On August 1, 2015, the minimum wage will increase again for Minnesota employers. Here’s what employers need to know about the minimum wage increase that will soon take effect:

  • Large Employers: “Large employers” – whose gross annual volume of sales made or business done is $500,000 or more – will need to pay a minimum wage of at least $9.00 per hour.
  • Small Employers: “Small employers” – whose gross annual volume of sales made or business done is less than $500,000 – will need to pay a minimum wage of at least $7.25 per hour.
  • Exception for Employees Under the Age of 18: “Large employers” may pay employees under the age of 18 a lower minimum wage of at least $7.25 per hour.
  • Exception for Employees Under the Age of 20: During the first 90 days of employment, any employer may pay an employee under the age of 20 a lower minimum wage of at least $7.25 per hour.
  • Exception for Certain Summer Work Travel Employees: An employer that is considered a “hotel or motel,” “lodging establishment,” or “resort,” as defined by Minnesota law, may pay a lower minimum wage to employees working under a summer work travel exchange visitor program nonimmigrant visa if the employer also provides a food or lodging benefit to the employee. The minimum wage rate for these employees will be $7.50 per hour.

See Minn. Stat. § 177.24.

Takeaway: Employers should prepare for the new minimum wage increase that will take effect on August 1, 2015.