In case, you aren’t aware, the Minnesota minimum wage was adjusted for inflation effective January 1, 2018. The new large employer minimum wage is $9.65/hour, an increase of $0.15. Small employer minimum wage went up $0.12 to $7.87/hour. $7.87/hour is also the new 90-day training wage for employees under age 20 and youth wage for employees under the age of 18. A “large employer” is defined as any enterprise with an annual gross revenue of $500,000 or more. “Small employers” are defined as any enterprise with annual gross revenue of less than $500,000.
Minnesota’s minimum wage is higher than the federal minimum wage, so it is important for employers to know that if they have employees who are covered by both federal and state law the employer is required to pay the higher state wage. Employees must be paid the new minimum wage for all hours worked, whether they are employed part-time or full-time.
For small business owners, if your business was thriving and growing in 2017, it is important to check your annual gross revenue and see if your status as a “small employer” changed under the minimum wage laws. If so, your employees may be entitled to a higher minimum wage.