Minimum wage rates to increase across Minn. in 2023

Effective Jan. 1, state minimum wage rates will increase for both large employers and small businesses, the Minnesota Department of Labor and Industry (DLI) says.

You can find a breakdown of 2023 minimum wage rate changes from the department, including specific rates for Minneapolis and St. Paul, below.

The rates determined by yearly inflation have not yet been announced. Earlier this summer, U.S. residents saw the largest 12-month inflation increase since 1981, according to the Bureau of Labor Statistics.

The state says there are employees who are exempt from minimum wage requirements, such as taxicab drivers, babysitters, volunteers of nonprofit organizations, and others.

State minimum wage rate changes effective Jan. 1, 2023

The large employer minimum wage will increase from $10.33 to $10.59, a 26-cent change.

The small employer minimum wage will increase from $8.42 to $8.63, a 21-cent change.

The state’s training and youth wage rates are both $8.63 an hour.

DLI says these rates will not apply to the Twin Cities, which have higher minimum wage rates.

Minneapolis minimum wage rate changes

The City of Minneapolis says its minimum wage rate for small businesses will increase to $14.50 on July 1, 2023 an increase of a whole dollar from the current rate.

Minneapolis’ large business minimum wage rate became $15 in 2022. The city has not cited specific increase benchmarks past January 2022, saying once the minimum wage rate reached $15 increases would be made according to inflation each January.

Minneapolis has not provided specifics on what the large business rate will be for 2023.

With the Minneapolis Minimum Wage Ordinance, there will be only one minimum wage rate for all sizes of businesses starting January 2024.

St. Paul minimum wage rate changes

The City of St. Paul has four categories of business sizes, three of which have definite increases in 2023.

St. Paul’s large business (101-1,000 employees) minimum wage rate will increase to $15 on July 1, 2023, a $1.50 change from 2022.

St. Paul’s small business (6-100) employees will make at least $13 per hour in 2023, a $1 increase, and its micro businesses – places with 5 or fewer employees – can expect a 75-cent increase to $11.50.

Like Minneapolis, St. Paul has not yet provided the city rate increase for its largest businesses, called macro businesses, for years past 2022.

St. Paul says each year, the city rate must be announced by Sept. 1, so businesses with 10,001 or more employees are expected to know that increase one week from Thursday.