Minnesota Minimum Wage Will Be Adjusted For Inflation In 2019

Minnesota’s minimum-wage rates will be adjusted for inflation beginning Jan. 1, 2019, to $9.86 an hour for large employers and $8.04 an hour for other state minimum wages. As of Jan. 1, 2019, an estimated 219,000 jobs (not including jobs in Minneapolis) will pay the $9.86 or $8.04 state minimum-wage rates.

“This is great news for Minnesota’s lowest-wage workers and will help them keep up with inflation to better provide for themselves and their families,” said Ken Peterson, commissioner, Minnesota Department of Labor and Industry. “But more needs to be done so all Minnesotans can earn their way to economic security.”

The current large-employer minimum wage, $9.65, will increase by 21 cents to $9.86. Other state minimum wages, including the small-employer, youth and training wages, as well as the summer work travel exchange visitor program wage, which are all currently $7.87, will increase by 17 cents to $8.04.

As of Jan. 1, 2019:

• Large employers must pay at least $9.86 an hour when the employer’s annual gross revenues are $500,000 or more.
• Small employers must pay at least $8.04 an hour when the employer’s annual gross revenues are less than $500,000.
• The training wage rate, $8.04 an hour, may be paid to employees younger than 20 years of age for the first 90 consecutive days of employment.
• The youth wage rate, $8.04 an hour, may be paid to employees younger than 18 years of age.

These state minimum-wage rates will not apply to work performed in the city of Minneapolis, which has higher minimum-wage rates.

Projected numbers of minimum-wage jobs, 2019

State of Minnesota jobs (not including Minneapolis)

• Total jobs:  2,619,000
• Minimum-wage jobs ($9.86 and $8.04):  219,000 (8.4 percent)

Note: All figures are projections. Jobs include hourly and salaried jobs. Workers are counted once for each job they hold. Projections by Minnesota Department of Labor and Industry using Minnesota Department of Employment and Economic Development wage detail data.