Minimum wages set to increase in Minnesota on Monday

Starting Jan. 1, nearly two dozen states, including Minnesota, will see an increase in the minimum hourly wage. However, it’s important to note that these rates don’t apply to the cities of Minneapolis and St. Paul due to them having higher minimum wages.

In Minnesota, there will be a raise of 26 cents. Large employers will have to pay at least $10.85 an hour, while small employers must pay at least $8.85 an hour, according to the Minnesota Department of Labor and Industry.

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Large employers are defined by the state as having an annual gross revenue of at least $500,000, while small employers are those having revenues less than that same amount.

In addition, the training wage rate must be given to those who are younger than 20 years old for the first 90 consecutive days of employment, while the youth rate must be given to those who aren’t yet 18 years old.

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As previously reported by 5 EYEWITNESS NEWS, the state’s minimum wage rate increased by 26 cents for large employers in 2023 as well, increasing it from the 2022 rate of $10.33. Small businesses had a rate of $8.42 per hour in 2022 and saw an increase of 21 cents in 2023.

While 22 states are seeing an increase in the minimum wage, 20 states are still at the federal minimum wage, which has been $7.25 an hour since 2009. Those states include Minnesota’s neighbors of Iowa, North Dakota and Wisconsin. South Dakota’s minimum wage is $10.80 per hour.

Government statistics show that $1 now can buy only about 70% of what it could buy in 2009.