Minnesota Minimum Wage Increase

The Minnesota minimum wage increase takes effect tomorrow, August 1, 2014. This is the first of several planned increases over the next two years. For large employers (businesses with $500,000 or more in gross annual sales) the minimum wage will increase to $8.00 an hour, while the rate for small employers – including household employers – will increase to $6.50 an hour.

However – as the small employer rate after the increase is still below the current federal minimum wage rate of $7.25 per hour, that higher federal rate will still apply to all non-tipped employees (including household employees).

Additional increases are planned for August 1, 2015 and August 1, 2016. These further increases will bring the minimum wage rate for small and large employers to $7.75 and $9.00 per hour, respectively.

We recommend that household employers review the pay rates of their employees to ensure that they are in compliance with the new minimum rates by August 1, 2014.

Please contact us if you have any questions.