Minnesota Raising Minimum Wage Rate
The nearly 155% increase moves Minnesota from the bottom four U.S. states with lowest minimum wage rates.
Minnesota’s minimum wage rate will increase in stages beginning in August 2014, eventually reaching $9.50 per hour by 2016. Beginning in 2018, the rate would be indexed to the implicit price deflator to help Minnesota workers’ wage keep up with inflation, but any annual increases would be capped at 2.5 percent of the previous rate.
The state’s current minimum wage is $6.15 per hour, but most businesses use the higher federal rate of $7.25 per hour. Minnesota’s minimum wage had not increased since 2005.
Senator Jeff Hayden, the Senate Bill’s author, said about 315,000 Minnesotans would benefit from the minimum wage increase.
The measure faced strong opposition in the Minnesota legislature. The Senate version eked out a 35-31 win and the House of Representatives voted 71-60. Governor Mark Dayton signed the bill into law April 14, 2014.
Minnesota Minimum Wage Timeline: Phasing In the Increase
Businesses with gross sales of $500,000 or more:
- August 2014: $8.00 per hour
- August 2015: $9.00 per hour
- August 2016: $9.50 per hour
Large business can apply a $7.75 minimum wage rate for a 90-day training wage for 18- and 19-year-old employees, all 16- and 17-year-old employees (even after 90-day training), and employees who are foreign medical graduates working under a J1 visa.
Businesses with gross sales less than $500,000:
- August 2014: $6.50 per hour
- August 2015: $7.25 per hour
- August 2016: $7.75 per hour
All Minnesota Businesses to Index to Inflation in 2018
Beginning in 2018, all wages would increase each year on January 1 by inflation measured by the implicit price deflator capped at 2.5 percent.
Minnesota Minimum Wage Posting Requirements for Employers
Employers will be required to display the new version of the Minnesota Minimum Wage posting. For customers enrolled in the GovDocs Update Program, we will provide the revised posting once it is released.
Lowest State Minimum Wage in the U.S.
Once Minnesota’s minimum wage increase takes effect, three states will retain minimum wage rate lower than the federal minimum wage of $7.25:
- Georgia: $5.15
- Wyoming: $5.15
- Arkansas: $6.25
Minnesota Employers: Get Ready!
Connecticut Tops States with $10.10 Minimum Wage
Effective January 2017, Connecticut minimum wage workers will receive the highest state minimum wage rate in the U.S.
The Connecticut General Assembly passed legislation raising the State’s current $8.70 per hour minimum wage in each of the next three years to $10.10 in 2017.
- 2014: $8.70
- 2015: $9.15
- 2016: $9.60
- 2017: $10.10
Governor Daniel Malloy signed the legislation March 27, 2014. Similar state minimum wage rate increases are also being considered in Maryland, Massachusetts, Hawaii.
In a statement from the White House, President Obama took the opportunity to use Connecticut’s new minimum wage rate to promote his own push for raising the federal minimum wage to $10.10 per hour.
I support these efforts, and I commend Governor Malloy for his leadership. But to truly make sure our economy rewards the hard work of every American, Congress must act. I hope Members of Congress, governors, state legislators and business leaders across our country will follow Connecticut’s lead to help ensure that no American who works full time has to raise a family in poverty, and that every American who works hard has the chance to get ahead.
