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Minnesota Minimum Wage Rate Increase

On August 19, 2021, Minnesota’s Department of Labor and Industry announced the minimum wage rate in the state will increase in 2022. Beginning January 1, 2022, large employers must pay employees at least $10.33 per hour. Small employers must pay employees at least $8.42 per hour. The lower minimum wage rate also applies to employees under the age of 18 and new hires (trainees).

The law provides definitions for each category as outlined below.

Large employers: Employers with an annual gross revenue of $500,000 or more.

Small employers: Employers with an annual gross revenue that is less than $500,000.

Training wage rate: Employees younger than 20 years of age for the first 90 consecutive days of employment.

Youth wage rate: Employees younger than 18 years of age.

Minnesota law does not allow employers to use an employee’s tips to offset the employee’s minimum wage rate. Tipped employees must be paid at least the general minimum wage rate plus any tips the employee may earn.

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