A Minnesota bill contemplating minimum wage increases (Minnesota H.F. 2091) was signed into law on April 14, 2014, and is effective August 1. It contemplates minimum wage increases commencing on August 1 and continuing thereafter.

Except as otherwise provided in the Minnesota Fair Labor Standards Act, Minn. Stat. §§ 177.21 to 177.35 (the "Act"), every large employer must pay each employee wages at a rate of at least:

$8.00 per hour beginning August 1, 2014;

$9.00 per hour beginning August 1, 2015;

$9.50 per hour beginning August 1, 2016; and

the rate established under Minn. Stat. § 177.24(f) beginning January 1, 2018

"Large employer" is defined as "an enterprise whose annual gross volume of sales made or business done is not less than $500,000 (exclusive of excise taxes at the retail level that are separately stated) and covered by the Act

Except as otherwise provided in the Act, every small employer must pay each employee at a rate of at least:

$6.50 per hour beginning August 1, 2014;

$7.25 per hour beginning August 1, 2015;

$7.75 per hour beginning August 1, 2016; and

the rate established under Minn. Stat. § 177.24(f) beginning January 1, 2018

"Small employer" is defined as "an enterprise whose annual gross volume of sales made or business done is less than $500,000 (exclusive of excise taxes at the retail level that are separately stated) and covered by the Act.

Exceptions include wages payable by an employer to an employee under the age of 20 years or to an employee under the age of 18. During the first 90 consecutive days of employment, an employer may pay an employee under the age of 20 years a wage of:

$6.50 per hour beginning August 1, 2014;

$7.25 per hour beginning August 1, 2015;

$7.75 per hour beginning August 1, 2016; and

the rate established under Minn. Stat. § 177.24(f) beginning January 1, 2018

Similarly, a large employer must pay an employee under the age of 18 at a rate of at least:

$6.50 per hour beginning August 1, 2014;

$7.25 per hour beginning August 1, 2015;

$7.75 per hour beginning August 1, 2016; and

the rate established under Minn. Stat. § 177.24(f) beginning January 1, 2018

There is also a provision applicable to an employer that is a "hotel or motel," "lodging establishment," or "resort," as defined in Minnesota Statutes.

Minn. Stat. § 177.24(f) requires, no later than August 31 of each year, beginning in 2017, the Commissioner of Labor and Industry (or authorized designee or representative) to determine the percentage increase in the rate of inflation, as measured by the implicit price deflator, national data for personal consumption expenditures as determined by the United States Department of Commerce, Bureau of Economic Analysis during the 12-month period immediately preceding that August or, if that data is unavailable, during the most recent 12-month period for which data is available. The minimum wage rates in Minn. Stat. § 177.24(b), (c), (d), and (e) are increased by the lesser of: (1) 2.5%, rounded to the nearest cent; or (2) the percentage calculated by the Commissioner, rounded to the nearest cent; a minimum wage rate may not be reduced under this paragraph. The new minimum wage rates determined under Minn. Stat. § 177.24(f) will take effect on the next January 1.