Minnesota minimum wage increases Jan. 1

A new year will bring new minimum wage rates in Minnesota.

The Minnesota Department of Labor and Industry says the state’s minimum wage rates are adjusted for inflation on Sunday, moving the hourly wage for large employers to $10.59 and $8.63 for other employers.

Large employers are those with an annual gross revenue of at least $500,000, the labor department says.

Additionally, the training and youth wage rates are the same as the small employer rate.

Those minimum wage rates won’t apply to Minneapolis and St. Paul, which have higher wage requirements.

Minneapolis classifies small businesses as those with no more than 100 employees and requires them to pay workers at least $13.50 per hour. That rate will increase to $14.50 in July. The city’s large business minimum wage will adjust for inflation on Sunday and move from $15 an hour to $15.19.

Meanwhile, St. Paul’s minimum wage for small businesses is currently $12 an hour and will increase to $13 in July. For large businesses, the city requires at least $13.50 per hour, which will jump to $15 in July.