Minnesota's minimum wage rises to $9.50 an hour for large employers

- Minnesota's large employer minimum wage rates will rise to $9.50 an hour starting Monday, August 1.

"Today, nearly 300,000 hardworking Minnesotans will see their incomes increase, putting more money in the pockets of families paying for child care, groceries and a roof over their heads," said Lt. Gov. Tina Smith.

This is the state's third of three annual minimum wage increases that were put into law in 2014. In January 2018, the rates will be annually indexed to inflation.

"In 2014, I worked with the Legislature to raise the minimum wage in Minnesota. This year, that law takes full effect, improving the lives of more than 287,000 Minnesotans and their families," said Gov. Mark Dayton. "All Minnesotans who work full time should earn enough to lift their families out of poverty and lead full lives."

According to Gov. Dayton's office, raising the minimum wage to $9.50 per hour will put an estimated $472 million in additional wages in the pockets of Minnesota’s lowest-wage workers each year.

Effective Aug. 1, 2016

- Large employers must pay at least $9.50 an hour when the employer's annual gross revenues are $500,000 or more.
- Small employers must pay at least $7.75 an hour when the employer's annual gross revenues are less than $500,000.
- The training wage rate, $7.75 an hour, may be paid to employees younger than 20 years of age for the first 90 consecutive days of employment.
- The youth wage rate, at least $7.75 an hour, may be paid to employees younger than 18 years of age.

The new new minimum wage poster is available online at www.dli.mn.gov/Posters. Minnesota law requires employers to display the poster in a physical location where employees can easily see it.

To help employers understand the new requirements, DLI has updated its minimum-wage fact sheets; both are available at www.dli.mn.gov/MinWage.

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