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Minimum Wage: What’s the Deal?

by | Jan 9, 2024 | Small Business |

Minnesota Minimum Wage Updates

On January 1, 2024, Minnesota’s minimum wage rate increased from $10.59 to $10.85 per hour for large employers and from $8.63 to $8.85 for small employers.

Minimum-wage rates apply to all hours worked, whether part time or full time. Employers can’t take a tip credit against minimum wages in Minnesota. Employees must be paid at least the minimum wage per hour, plus any tips the employee might earn.

St. Paul and Minneapolis both have minimum wage ordinances that may require a higher rate of pay. If your business is located in either city, you must pay the higher minimum wage. In Minneapolis, the 2024 minimum wage is $14.50 for businesses with 100 or fewer employees, and $15.57 for businesses with more than 100 employees. In Saint Paul, the minimum wage for businesses with five or fewer employees is $11.50; it is $13.00 for businesses with 6-100 employees; $15 for businesses with 100-10,000 employees; and $15.57 for businesses with over 10,000 employees.

How to determine if my business is large or small for state minimum wage purposes?

  • Review the employer’s past four quarterly tax estimates or the previous year audit statement;
  • Add up the gross revenue for the four most recent quarters;
  • Exclude excise taxes that are listed separately; and
  • If the combined amount of gross revenue is more than $500,000, pay the large employer minimum-wage rate.

What about posters?

You must post updated minimum wage posters where employees can easily see them. Additionally for 2024, employers with 50 or more employees must post a Veterans Benefits poster in their workplace. Posters are available for free from the Minnesota Department of Labor and Industry here, and can be downloaded and printed.

If you have questions about minimum wage and poster compliance, contact rb LEGAL today at (763) 582-1414. We’re here to make sure your business is compliant with wage and hour laws so you can focus on what matters most to you.