🇺🇸 Minnesota Minimum Wage — 2026 UPDATE

Minnesota Minimum Wage 2026

⚠️Informational only — not legal or tax advice.

Last Updated: February 4, 2026
Last Reviewed: February 4, 2026
Applicable Period: 2026
Jurisdiction: State of Minnesota, United States
Update Schedule: Quarterly reviews in 2026; annual reviews thereafter

Minimum Wage in Minnesota 2026

Table of Contents

Click any item below to jump to the relevant section

Introduction

The minimum wage in Minnesota establishes the lowest hourly compensation that employers must legally provide to covered employees. For 2026, Minnesota maintains a minimum wage of $11.41 per hour for all employers in the state, with higher rates required in Minneapolis and St. Paul. The state also permits a 90-day training wage of $9.31 per hour for employees under age 20.

Minimum wage regulations in Minnesota operate under Minnesota Statutes § 177.24 alongside federal requirements established by the Fair Labor Standards Act (FLSA). When state or local minimum wage rates exceed the federal standard, employers must comply with the higher applicable rate. Minnesota does not allow tip credits, and two local jurisdictions—Minneapolis and St. Paul—have enacted higher minimum wage ordinances with rates reaching $16.37 per hour.

This page provides an authoritative overview of Minnesota minimum wage law for 2026, including current rates, scheduled increases, tipped employee provisions, local wage ordinances, coverage and exemptions, enforcement procedures, and compliance requirements. All information is compiled from official government sources.

Minnesota Minimum Wage — 2026 Quick Reference
Category Rate Effective Date Official Source
State minimum wage (all employers) $11.41/hour January 1, 2026 MN Stat. § 177.24
Training wage (under age 20) $9.31/hour January 1, 2026 MN Stat. § 177.24
Tip credit allowed No — MN Stat. § 177.24, subd. 2
Next scheduled increase $11.69 (estimated) January 1, 2027 MN DLI
Rate adjustment mechanism CPI-indexed annually — MN Stat. § 177.24, subd. 1(c)
Federal minimum wage $7.25/hour Ongoing U.S. Department of Labor
Local minimum wages Yes (Minneapolis, St. Paul) Varies Municipal ordinances

Minneapolis minimum wage:

  • All employers: $16.37/hour (January 1, 2026)

St. Paul minimum wage:

  • Macro/Large employers (101+ employees): $16.37/hour (January 1, 2026)
  • Small employers (6-100 employees): $16.37/hour (July 1, 2026)
  • Micro employers (5 or fewer): $14.25/hour (July 1, 2026)

Last verified: February 4, 2026 via Minnesota Department of Labor and Industry

Overview of Minimum Wage Law in Minnesota

Legal Authority

Minnesota minimum wage requirements are established under Minnesota Statutes § 177.24, which forms part of the Minnesota Fair Labor Standards Act (sections 177.21 to 177.35). The Minnesota Department of Labor and Industry administers and enforces minimum wage regulations in Minnesota. The state minimum wage law was substantially amended in 2014 to establish automatic annual adjustments indexed to inflation.

Relationship to Federal Law

Under the Fair Labor Standards Act (FLSA), the federal minimum wage establishes a floor of $7.25 per hour for covered employers and employees. Minnesota law operates independently of federal minimum wage standards. When both state and federal minimum wage laws apply, employers must pay whichever rate is higher.

Because Minnesota’s minimum wage of $11.41 exceeds the federal minimum, most covered employers must comply with the state rate. Employers should note that Minneapolis and St. Paul have enacted local ordinances with even higher rates.

Coverage Scope

Minnesota minimum wage law applies to all employers engaged in business in Minnesota, regardless of size. The state eliminated the previous distinction between “large” and “small” employers, establishing a uniform statewide rate for all employers. Specific industries and employee types may be exempt under state law, but most hourly workers are covered by minimum wage requirements.

Higher Rate Principle

The principle of “higher prevailing rate” requires employers to pay the highest applicable minimum wage—whether federal, state, or local. In Minnesota, this means employers must identify and apply whichever minimum wage rate provides employees the highest hourly compensation. For work performed in Minneapolis or St. Paul, employers must comply with applicable local rates even if those rates exceed the state minimum.

Current Minimum Wage Rates in Minnesota 2026

Standard Hourly Minimum Wage

As of January 1, 2026, the standard minimum wage in Minnesota is $11.41 per hour for all covered employers. This rate applies to employers of any size, eliminating the previous two-tier system that differentiated between large and small employers.

Minnesota adjusts its minimum wage annually based on the Consumer Price Index for All Urban Consumers (CPI-U). The 2026 rate of $11.41 reflects a 2.5% increase from 2025’s rate of $11.13, calculated according to the inflation adjustment formula established in Minnesota Statutes § 177.24, subdivision 1(c). Each August 31, the Minnesota Department of Labor and Industry calculates the percentage increase in inflation using the implicit price deflator for personal consumption expenditures, and the new minimum wage takes effect the following January 1.

Youth and Training Wages

Minnesota permits a reduced training wage for certain young workers during their initial employment period:

90-Day Training Wage

The training wage applies only during the first 90 consecutive calendar days of employment, not 90 days of actual work. After the 90-day period expires, employers must pay the employee at least the full standard minimum wage. The training wage also adjusts annually based on inflation using the same formula as the standard minimum wage.

Minnesota law prohibits employers from displacing existing employees to hire workers at the training wage rate. Employers may not reduce hours, wages, or employment benefits of current employees in order to hire employees under age 20 at the lower training wage.

Industry-Specific Rates: Nursing Home Workers

Beginning in 2026, Minnesota established minimum wage standards specifically for nursing home workers under rules adopted by the Nursing Home Workforce Standards Board:

All Nursing Home Workers

Certified Nursing Assistants and Trained Medication Aides

  • Minimum wage: $23.50 per hour (January 1, 2026)
  • Authority: NHWSB Rules Chapter 5200

Licensed Practical Nurses

  • Minimum wage: $27.00 per hour (January 1, 2026)
  • Authority: NHWSB Rules Chapter 5200

These occupation-specific rates apply to workers employed in Minnesota nursing homes and represent substantially higher minimum wages than the general state minimum. The rates were established through legislation passed in 2025 and implemented through expedited rulemaking by the Nursing Home Workforce Standards Board.

Scheduled Increases
Minnesota’s minimum wage will continue to adjust annually based on inflation.
Effective Date Standard Rate Training Rate (Under 20) Adjustment Method
January 1, 2026 $11.41 $9.31 2.5% CPI increase
January 1, 2027 TBD* TBD* Lesser of 5% or CPI
January 1, 2028 TBD* TBD* Lesser of 5% or CPI

Future rates will be announced each fall by the Minnesota Department of Labor and Industry based on the inflation formula.

The Minnesota Department of Labor and Industry calculates and announces the adjusted rate each year by August 31 for implementation the following January 1. The minimum wage increases by the lesser of: (1) five percent, or (2) the percentage increase in the implicit price deflator for personal consumption expenditures, as determined by the United States Department of Commerce, Bureau of Economic Analysis. The minimum wage cannot be reduced under this formula—if inflation is negative, the rate remains unchanged.

Employers should monitor the Minnesota Department of Labor and Industry website each fall for announcements of the following year’s minimum wage rates.

Minimum Wage for Tipped Employees

No Tip Credit Allowed

Minnesota does not permit employers to take a tip credit against minimum wage obligations. All employees, including those who receive tips, must be paid the full state minimum wage of $11.41 per hour before any tips are considered. This prohibition is explicitly stated in Minnesota Statutes § 177.24, subdivision 2.

This means:

  • Tipped employees receive $11.41 per hour (or applicable local minimum wage) as base compensation
  • All tips earned are additional compensation beyond the minimum wage
  • Employers cannot use customer tips to satisfy minimum wage requirements
  • Tips belong entirely to employees and cannot be retained by employers

Minnesota’s prohibition on tip credits applies statewide and cannot be circumvented by local ordinances or private agreements. The Minneapolis and St. Paul minimum wage ordinances similarly prohibit tip credits.

Tipped Employee Rights

Even though Minnesota prohibits tip credits, specific rules govern tip handling under state law:

Tip Ownership: All gratuities received by an employee or deposited in or about a place of business for personal services rendered by an employee are the sole property of the employee. Employers cannot keep any portion of tips, require employees to share tips with management, or deduct credit card processing fees from employee tips.

Tip Pooling: Minnesota law permits employees to voluntarily share gratuities with other employees. The agreement to share gratuities must be made by the employees without employer coercion or participation. Employers may, upon employee request, safeguard gratuities to be shared by employees and disburse shared gratuities to participating employees, provided the employer does not direct or control the sharing arrangement.

Prohibited Practices: Under Minnesota Statutes § 177.24, subdivision 3, employers may not:

  • Require employees to contribute or share gratuities with the employer
  • Require employees to contribute gratuities to a fund or pool operated for the benefit of the employer
  • Directly or indirectly credit, apply, or utilize gratuities toward payment of the minimum wage

Service Charges: Mandatory service charges added to customer bills are not considered tips under Minnesota law. Service charges are controlled by the employer and may be retained by the employer unless otherwise specified in employment policies or agreements. Employees should verify whether amounts charged to customers are discretionary tips (which belong to employees) or mandatory service charges (which may be retained by employers).

Payroll Tax Obligations

Because Minnesota requires employers to pay the full minimum wage before tips, employers must pay the employer share of payroll taxes on the entire cash wage, not a reduced tip credit amount. This represents a higher payroll tax burden compared to states that permit tip credits. Tips received by employees are taxable income and must be reported by employees for income tax purposes.

Local Minimum Wage Ordinances in Minnesota

In addition to the state minimum wage, two cities in Minnesota have enacted their own minimum wage ordinances that exceed the state rate. Employers must comply with the highest applicable rate—federal, state, or local—for the jurisdiction where work is performed.

Minnesota City and County Minimum Wages (2026)
City / County Rate Effective Date Employer Size Requirements Official Source
Minneapolis $16.37 January 1, 2026 All employers Minneapolis Ord. Ch. 40, Art. IV
St. Paul – Macro / Large $16.37 January 1, 2026 101+ employees St. Paul Ord. Ch. 224
St. Paul – Small $16.37 July 1, 2026 6–100 employees St. Paul Ord. Ch. 224
St. Paul – Micro $14.25 July 1, 2026 5 or fewer employees St. Paul Ord. Ch. 224

Note: St. Paul rates shown are for 2026. Micro employers will reach $15.00 by July 2027 and then be indexed to inflation thereafter.

Minneapolis Minimum Wage

The Minneapolis minimum wage ordinance became fully effective in 2024 when the previous distinction between large and small employers was eliminated. As of January 1, 2026, all employers in Minneapolis must pay $16.37 per hour regardless of business size.

Key Provisions:

  • Coverage: All work performed within Minneapolis city limits for at least two hours in any two-week period
  • No exemptions: No training wage, youth wage, or tip credit allowed
  • Annual adjustment: Indexed to inflation using the same formula as the state minimum wage
  • Effective: The 2026 rate of $16.37 represents a 40-cent increase from 2025’s rate of $15.97

Future Increases: The Minneapolis minimum wage will continue to increase annually each January 1 based on the inflation adjustment calculated by the Minnesota Department of Labor and Industry. The city ordinance uses the same CPI-U formula as the state minimum wage.

Coverage Details: The Minneapolis ordinance applies to employees who perform at least two hours of work within Minneapolis city boundaries in any two-week period. This includes:

  • Employees whose primary work location is in Minneapolis
  • Mobile workers who spend at least two hours in Minneapolis over two weeks
  • Delivery drivers and service workers performing work in the city
  • Remote workers physically located in Minneapolis while working

Employers must track where employees perform work to determine applicable minimum wage rates. The physical location where work is performed controls, not the employer’s principal place of business.

St. Paul Minimum Wage

The St. Paul minimum wage ordinance implements a multi-tier system based on employer size, with different phase-in schedules for each business category:

Macro and Large Employers (101+ employees):

  • Rate: $16.37/hour (January 1, 2026)
  • These employers reached the $15.00 base rate in 2023 and now follow annual inflation adjustments

Small Employers (6-100 employees):

  • Rate: $16.37/hour (July 1, 2026)
  • Small employers reached $15.00 on July 1, 2025 and will align with macro/large employers on July 1, 2026

Micro Employers (5 or fewer employees):

  • Rate: $14.25/hour (July 1, 2026)
  • Rate: $15.00/hour (July 1, 2027)
  • After reaching $15.00, micro employers will be indexed to inflation

Youth Training Wage: Employees ages 14-17 may be paid 85% of the small employer minimum wage for their first 90 consecutive calendar days of employment, rounded to the nearest nickel. After 90 days, these employees must receive the full applicable minimum wage based on employer size. As of July 1, 2026, the youth training wage for small employers will be approximately $13.91 per hour.

Determining Business Size: Under the St. Paul ordinance, employers must count all employees whether employed full-time, part-time, jointly with another employer, or on a temporary basis. This includes employees not physically located in St. Paul. Business size is calculated annually based on the average number of employees per week during the previous calendar year.

Coverage: The St. Paul minimum wage applies to all work performed within St. Paul city boundaries for at least 80 hours in a year. Immigration status does not affect coverage. Independent contractors are not covered.

How Local Minimum Wages Apply

Location of Work Controls: The applicable minimum wage is determined by where the employee physically performs work, not where the employer’s headquarters or main office is located. An employer based in Minneapolis with employees working in St. Paul must pay the St. Paul rate for hours worked in St. Paul.

Employee Split Between Jurisdictions: When an employee works in multiple jurisdictions during a single pay period, employers must pay the minimum wage rate applicable for each location based on hours worked there. For example, an employee who works 20 hours in Minneapolis at $16.37 and 20 hours in suburban Minnesota at $11.41 must be compensated at each applicable rate.

Remote Work Considerations: For employees working remotely from home, the minimum wage of the jurisdiction where the employee physically performs work applies. An employee working from their home in Minneapolis must be paid the Minneapolis minimum wage of $16.37, even if the employer is located outside Minneapolis or outside Minnesota.

Two-Hour Threshold (Minneapolis): The Minneapolis ordinance includes a unique two-hour threshold: it applies to employees who perform at least two hours of work in Minneapolis in any two-week period. This means even occasional work in the city triggers the Minneapolis minimum wage requirement for those hours.

Enforcement: Local minimum wage ordinances are enforced by city labor standards divisions:

Violations may result in back pay, penalties, and other remedies under local law. Both cities prohibit retaliation against employees who file complaints or cooperate with investigations.

Scheduled Local Minimum Wage Increases
Minneapolis and St. Paul minimum wages are indexed to inflation, with scheduled milestones by employer size.
Employer Category Current Rate (2026) Future Milestones
Minneapolis (All employers) $16.37 (Jan 1) Indexed annually each January 1. The specific 2027 rate will be announced in fall 2026.
St. Paul – Macro / Large (101+) $16.37 (Jan 1) Indexed annually each January 1
St. Paul – Small (6–100) $16.37 (Jul 1) Indexed annually each July 1
St. Paul – Micro (≤5) $14.25 (Jul 1) $15.00 (July 2027), then indexed annually

Additional Local Requirements

Both Minneapolis and St. Paul impose additional employment requirements beyond minimum wage rates:

Minneapolis:

  • Earned Sick and Safe Time ordinance
  • Wage Theft Prevention ordinance
  • Fair Labor Standards requirements

St. Paul:

  • Earned Sick and Safe Time ordinance (employees earn 1 hour per 30 hours worked)
  • Wage Theft Prevention ordinance
  • Pre-hire notice requirements

Employers operating in these cities should consult municipal ordinances and contact city labor standards offices to ensure full compliance with all applicable workplace requirements. Required workplace posters are available from each city’s website:

Who Is Covered and Who Is Exempt

Employees Covered by Minnesota Minimum Wage

Minnesota minimum wage law covers employers engaged in business in Minnesota, regardless of size. The Minnesota Fair Labor Standards Act applies broadly to most employment relationships. Unless specifically exempted, covered employees include:

  • Private sector workers: Full-time and part-time employees of private businesses of any size
  • Salaried non-exempt employees: Employees paid on a salary basis who do not qualify for executive, administrative, or professional exemptions
  • Hourly employees: Workers compensated on an hourly basis
  • Temporary and seasonal workers: Workers employed on a temporary or seasonal basis
  • Minor employees: Workers under age 18, subject to specific provisions for training wages
  • Public sector employees: State and local government employees (subject to specific overtime provisions)
  • Tipped employees: All employees who receive tips must still be paid the full minimum wage

The elimination of the large employer/small employer distinction means that virtually all employers in Minnesota must pay the same minimum wage regardless of annual gross sales or number of employees.

Exemptions from Minimum Wage Requirements

The following categories of employees are exempt from Minnesota minimum wage requirements under Minnesota Statutes § 177.23, subdivision 7:

Executive, Administrative, and Professional Employees Employees performing bona fide executive, administrative, or professional duties are exempt if they meet both salary and duties tests. Minnesota generally follows federal exemption criteria established under the Fair Labor Standards Act. These employees must be paid on a salary basis and perform exempt duties as their primary job functions.

Outside Sales Employees Employees whose primary duty is making sales away from the employer’s place of business and who are customarily and regularly engaged away from the employer’s business location are exempt from minimum wage requirements.

Agricultural Workers Several categories of agricultural employees are exempt:

  • Any individual employed in agriculture on a farming unit or operation who is paid a salary greater than what they would earn working 48 hours at state minimum wage plus 17 hours at time-and-a-half
  • Individuals under age 18 employed in certain agricultural roles when their parents are also agricultural workers
  • Individuals under age 18 employed as corn detasselers

Seasonal Camp Staff Staff members employed on a seasonal basis by organizations operating resident or day camps under permits issued under Minnesota Statutes § 144.72 are exempt.

Companionship Services Individuals employed to provide companionship services to elderly or infirm individuals who stay overnight in the home and are paid minimum wage for at least four hours associated with the overnight stay may have nighttime hours (10:00 p.m. to 9:00 a.m.) excluded from minimum wage calculations, up to eight hours per night.

Volunteers and Interns Bona fide volunteers for religious, charitable, civic, or humanitarian organizations are not employees and therefore not covered by minimum wage laws. Student interns may be exempt if they meet specific criteria regarding educational credit and the primary benefit accruing to the intern rather than the employer.

Independent Contractors Properly classified independent contractors are not employees and therefore not covered by minimum wage requirements. However, Minnesota applies strict tests to determine independent contractor status. Misclassification may result in penalties, back wages, and tax liabilities. The Minnesota Department of Labor and Industry provides guidance on proper worker classification.

Other Exempt Categories: Additional exemptions include certain carnival and circus workers employed on a seasonal basis, natural resource managers (conservation officers), individuals in positions subject to U.S. Department of Transportation hour qualifications, and seafarers exempt from federal overtime standards.

Overtime Exemptions

Minnesota’s overtime requirements differ from minimum wage coverage. Under Minnesota Statutes § 177.25, employers must pay overtime at 1.5 times the regular rate for hours worked over 48 per week (compared to the federal threshold of 40 hours). Many employees exempt from minimum wage are also exempt from overtime requirements, but employers should verify specific exemption criteria for both minimum wage and overtime separately.

Employer Obligations and Enforcement

Employer Compliance Requirements

Employers subject to Minnesota minimum wage law must:

  1. Pay the applicable minimum wage for all hours worked, including the higher of federal, state, or local rates
  2. Maintain accurate payroll records documenting hours worked and wages paid for at least three years
  3. Display required posters informing employees of minimum wage rates and other employment rights
  4. Issue compliant wage statements showing gross wages, deductions, and net pay each pay period
  5. Provide written notice of wage rates, pay schedules, and deductions to new hires before work begins
  6. Track work location for employees working in multiple jurisdictions to ensure proper minimum wage application
  7. Post notices of any investigations or violations if under investigation by enforcement agencies

Recordkeeping Requirements: Under Minnesota Statutes § 177.30, employers must maintain payroll records for at least three years, including:

  • Employee names, addresses, and occupations
  • Hours worked each workday and workweek
  • Wage rates and total wages paid each pay period
  • Deductions from wages and explanation of each deduction
  • Total wages paid and date of payment

Records must be available for inspection by the Minnesota Department of Labor and Industry upon request.

Enforcement of Minimum Wage Law

The Minnesota Department of Labor and Industry enforces minimum wage requirements in Minnesota. The agency:

  • Investigates wage complaints filed by employees
  • Conducts routine compliance inspections of employers
  • Issues citations and orders for wage violations
  • Collects unpaid wages and penalties on behalf of employees
  • Refers cases for criminal prosecution when appropriate
  • Provides education and outreach to employers and employees

For work performed in Minneapolis or St. Paul, city labor standards divisions have concurrent enforcement authority under local minimum wage ordinances.

Filing a Complaint – State Level: Employees who believe they have not been paid proper minimum wage may file a complaint with the Minnesota Department of Labor and Industry through:

  • Online: Minnesota DLI Complaint Portal
  • Phone: 651-284-5005 or 1-800-342-5354
  • Mail: Minnesota Department of Labor and Industry, Labor Standards Division, 443 Lafayette Road N., St. Paul, MN 55155

Filing a Complaint – Local Level: For work performed in Minneapolis:

  • Online/Email: minwage@minneapolismn.gov
  • Phone: 311 or 612-673-3000
  • In-person: City Hall, Room 239, 350 Fifth St. S., Minneapolis, MN 55415

For work performed in St. Paul:

Minnesota law prohibits retaliation against employees who file wage complaints or cooperate with investigations. Employers who retaliate may face additional penalties and civil liability.

Penalties for Minimum Wage Violations

Employers who violate Minnesota minimum wage law may be subject to:

Back Wages: Employers must pay employees the difference between wages paid and the required minimum wage for all hours worked. The statute of limitations for wage claims is typically six years, though complaints should be filed promptly.

Liquidated Damages: Minnesota law authorizes liquidated damages equal to the amount of unpaid wages, effectively doubling the employer’s liability. Courts may reduce or eliminate liquidated damages if the employer shows good faith and reasonable grounds for believing no violation occurred.

Civil Penalties: The Minnesota Department of Labor and Industry may assess administrative penalties for willful or repeated violations. Penalties vary based on the severity and frequency of violations.

Interest: Unpaid wages accrue interest at the legal rate from the date wages were due.

Criminal Penalties: Willful violations of minimum wage law may constitute a misdemeanor punishable by fines and potential imprisonment. The Minnesota Department of Labor and Industry may refer cases to prosecutors for criminal charges in cases of intentional wage theft or repeated violations.

Attorney Fees: Employees who prevail in minimum wage actions may recover reasonable attorney fees and costs of litigation under Minnesota law.

Additional Local Penalties: Minneapolis and St. Paul minimum wage ordinances provide for additional civil penalties, including:

  • Administrative fines per violation
  • Suspension or revocation of business licenses
  • Public disclosure of violations
  • Required posting of violation notices at the workplace

Wage Theft Prevention

Both state law and local ordinances in Minneapolis and St. Paul include wage theft prevention provisions requiring employers to:

  • Provide written notice of employment terms to all new hires
  • Issue itemized wage statements each pay period
  • Pay all wages earned by regularly scheduled paydays
  • Maintain accurate time and payroll records

Violations of wage theft prevention requirements may result in separate penalties beyond minimum wage violations.

Minnesota Minimum Wage vs Federal Law

The Federal Minimum Wage Floor

The Fair Labor Standards Act (FLSA) establishes a federal minimum wage of $7.25 per hour, which has remained unchanged since July 24, 2009. This federal rate sets a floor for minimum wage requirements nationwide and applies to employers engaged in interstate commerce or with annual gross sales exceeding $500,000.

The federal law also permits a tip credit, allowing employers to pay tipped employees as little as $2.13 per hour provided that tips bring total compensation to at least $7.25 per hour. This federal tip credit does not apply in Minnesota.

When State Law Applies

Because Minnesota’s minimum wage of $11.41 exceeds the federal minimum, most employees working in Minnesota are entitled to the higher state rate. The federal minimum serves as a fallback only for the extremely limited category of employers who might be covered by federal but not state law—a scenario that rarely occurs given Minnesota’s broad coverage.

Minnesota’s prohibition on tip credits supersedes the federal provision allowing tip credits. Even for employers covered by both federal and state law, Minnesota’s more protective standard controls, requiring payment of the full $11.41 minimum wage before tips.

Higher Applicable Rate Rule

The fundamental principle governing minimum wage compliance is that employers must pay whichever rate—federal, state, or local—provides employees the highest hourly wage. This rule ensures workers receive maximum protection under applicable law.

Practical Application:

  1. Identify all minimum wage rates that may apply (federal, state, local)
  2. Determine which rates cover the specific employer and employee
  3. Pay the highest applicable rate for each hour worked

In Minnesota, this typically means comparing:

  • Federal minimum: $7.25/hour
  • State minimum: $11.41/hour
  • Minneapolis minimum: $16.37/hour (if work performed in Minneapolis)
  • St. Paul minimum: $14.25 to $16.37/hour (if work performed in St. Paul, depending on employer size)

The highest rate always governs. For employees working in Minneapolis, the $16.37 local rate applies regardless of federal or state minimums.

Federal vs Minnesota Overtime Standards

Minnesota and federal overtime rules differ significantly:

Federal Standard (FLSA): Overtime at 1.5x regular rate for hours over 40 per workweek

Minnesota Standard: Overtime at 1.5x regular rate for hours over 48 per workweek

Employers must comply with whichever standard provides greater protection. Most employees benefit from the federal 40-hour threshold, though some may prefer the Minnesota 48-hour standard depending on their work schedules. Employers covered by both laws must track compliance with both standards and apply whichever provides greater employee protection.

Coverage Differences

The FLSA covers employers engaged in interstate commerce or with annual gross sales of $500,000 or more. Minnesota’s minimum wage law has no sales volume threshold and applies to employers of any size engaged in business in Minnesota. This means some very small employers may be covered by Minnesota but not federal minimum wage law.

Regional Minimum Wage Context
Minnesota’s minimum wage of $11.41 can be compared to surrounding states for regional context.
State 2026 Rate
Minnesota $11.41
Wisconsin $7.25 (federal)
Iowa $7.25 (federal)
North Dakota $7.25 (federal)
South Dakota $11.50

Minnesota’s rate exceeds the rates in neighboring Wisconsin, Iowa, and North Dakota (all at the federal $7.25), and is slightly below South Dakota’s $11.50. However, Minnesota’s two largest cities—Minneapolis and St. Paul—have local minimum wages of up to $16.37, which are among the highest in the Midwest region.

Note: Rates shown are standard minimum wages and may not reflect local or industry-specific variations.

Minimum Wage Posting Requirements

Minnesota law requires employers to display an official minimum wage notice in a conspicuous location accessible to all employees. The poster must include current wage rates, employee rights, and contact information for the Minnesota Department of Labor and Industry.

Where to obtain posters:

Posting locations: The notice must be posted in each workplace location where employees can readily see it, typically near time clocks, in break rooms, or at other prominent locations. Employers with multiple work sites must post notices at each location.

Compliance: Failure to display required posters may result in citations and penalties from enforcement agencies. Employers operating in Minneapolis or St. Paul must display both state and local posters. Posters must be updated when minimum wage rates change—new 2026 posters became available in late 2025.

Frequently Asked Questions: Minimum Wage in Minnesota 2026

What is the minimum wage in Minnesota in 2026?

The minimum wage in Minnesota is $11.41 per hour as of January 1, 2026, for all employers. Higher rates of $16.37 apply in Minneapolis for all employers and in St. Paul for macro, large, and small employers. St. Paul micro employers (5 or fewer employees) must pay $14.25 as of July 1, 2026.

When is the next minimum wage increase in Minnesota?

The next state minimum wage increase is scheduled for January 1, 2027, when the rate will increase based on inflation. The specific amount will be announced by the Minnesota Department of Labor and Industry by August 31, 2026. Minneapolis will also increase on January 1, 2027, and St. Paul rates will adjust on January 1 and July 1, 2027.

Does Minnesota allow tip credit?

No, Minnesota does not allow tip credit. All employees, including those who receive tips, must be paid the full minimum wage before tips. Employers cannot use customer tips to satisfy minimum wage requirements. Tips belong entirely to employees as additional compensation beyond the required minimum wage.

Are there different minimum wages in different cities in Minnesota?

Yes, two cities in Minnesota have enacted minimum wages higher than the state rate. Minneapolis requires $16.37 per hour for all employers. St. Paul requires $16.37 for macro, large, and small employers, and $14.25 for micro employers. Employers must pay the highest applicable rate for the location where work is performed.

Who is exempt from minimum wage in Minnesota?

Common exemptions from Minnesota minimum wage include executive, administrative, and professional employees meeting salary and duties tests, outside sales employees, certain agricultural workers, seasonal camp staff, and properly classified independent contractors. Most hourly workers, including part-time employees, are covered. The elimination of employer size distinctions means nearly all employers must comply.

What happens if an employer pays below minimum wage in Minnesota?

Employers who pay below minimum wage face back wage liability, liquidated damages equal to unpaid amounts, civil penalties, and potential criminal prosecution. Employees can file complaints with the Minnesota Department of Labor and Industry or, for work in Minneapolis or St. Paul, with city labor standards offices. Minnesota law prohibits retaliation against workers who report violations.

Do small businesses have to pay minimum wage in Minnesota?

Yes, all employers in Minnesota must pay minimum wage regardless of size. Minnesota eliminated the previous distinction between large and small employers, establishing a uniform statewide rate of $11.41 for all employers. Even businesses with one employee must comply. Minneapolis and St. Paul have size-based variations only for local rates above the state minimum.

Is Minnesota’s minimum wage higher than the federal minimum?

Yes, Minnesota’s minimum wage of $11.41 is $4.16 higher than the federal minimum wage of $7.25. Employers in Minnesota must pay the higher state rate. Additionally, Minneapolis and St. Paul have even higher local rates reaching $16.37 per hour.

How often does Minnesota increase its minimum wage?

Minnesota adjusts its minimum wage annually on January 1 based on inflation. The Minnesota Department of Labor and Industry calculates the increase each August using the implicit price deflator for personal consumption expenditures. The increase is the lesser of 5% or the inflation rate, rounded to the nearest cent. The wage cannot decrease even if inflation is negative.

Can employers pay less than minimum wage during training?

Minnesota permits employers to pay a training wage of $9.31 per hour during the first 90 consecutive calendar days of employment for workers under age 20. After 90 days, employers must pay full minimum wage. Employers cannot displace existing workers to hire employees at the training wage. Minneapolis and St. Paul do not allow training wages for work performed in those cities.

How to file a minimum wage complaint in Minnesota

Employees who believe they have not received proper minimum wage compensation may file a wage complaint with the appropriate enforcement agency:

For work anywhere in Minnesota:

  • Online: Minnesota DLI Wage Claim Portal
  • Phone: 651-284-5005 or 1-800-342-5354
  • Mail: Minnesota Department of Labor and Industry, Labor Standards Division, 443 Lafayette Road N., St. Paul, MN 55155

For work in Minneapolis:

  • Email: minwage@minneapolismn.gov
  • Phone: 311 or 612-673-3000
  • In-person: City Hall, Room 239, 350 Fifth St. S., Minneapolis, MN 55415

For work in St. Paul:

The enforcement agency will investigate complaints and may recover unpaid wages on behalf of employees. Minnesota law prohibits employer retaliation against workers who file wage complaints or participate in investigations.

Do remote workers in Minnesota get the Minnesota minimum wage?

Generally, the minimum wage of the jurisdiction where the employee physically performs work applies. Remote workers located in Minnesota are entitled to Minnesota’s minimum wage of $11.41, even if their employer is based in another state. If the remote worker is physically located in Minneapolis or St. Paul while working, the applicable local minimum wage applies based on the city’s coverage thresholds.

What is the minimum wage for nursing home workers in Minnesota?

Beginning January 1, 2026, Minnesota nursing home workers are entitled to occupation-specific minimum wages: $19.00 per hour for all nursing home workers, $23.50 per hour for certified nursing assistants and trained medication aides, and $27.00 per hour for licensed practical nurses. These rates are substantially higher than the general state minimum wage and increase further on January 1, 2027.

Information Verification Log

All information on this page has been compiled from official government sources and verified for accuracy as of the dates below.

Information Verification Log
Source Last Verified Full URL
Minnesota Statutes § 177.24 (Minimum Wage) February 4, 2026 https://www.revisor.mn.gov/statutes/cite/177.24
Minnesota Department of Labor and Industry (DLI) February 4, 2026 https://www.dli.mn.gov/minwage
MN DLI 2026 Minimum Wage Announcement February 4, 2026 https://www.dli.mn.gov/news/minimum-wage-rate-adjusted-inflation-jan-1-2026
Minnesota Statutes § 177.23 (Definitions) February 4, 2026 https://www.revisor.mn.gov/statutes/cite/177.23
Minnesota Statutes § 177.25 (Overtime) February 4, 2026 https://www.revisor.mn.gov/statutes/cite/177.25
MN DLI Nursing Home Wage Standards February 4, 2026 https://www.dli.mn.gov/.../nhwsb-minimum-wage-holiday-pay-rules
Minneapolis Minimum Wage Ordinance February 4, 2026 https://www.minneapolismn.gov/.../minimum-wage
Minneapolis 2026 Minimum Wage Rate Announcement February 4, 2026 https://www.minneapolismn.gov/.../minimum-wage
St. Paul Minimum Wage Ordinance (Chapter 224) February 4, 2026 https://www.stpaul.gov/.../minimum-wage
St. Paul 2026 Minimum Wage Rates February 4, 2026 https://www.stpaul.gov/.../2026-minimum-wage-increases
St. Paul Minimum Wage Rules (PDF) February 4, 2026 https://www.stpaul.gov/.../Minimum-Wage-Rules.pdf
U.S. Department of Labor – Fair Labor Standards Act February 4, 2026 https://www.dol.gov/agencies/whd/flsa
MN DLI Minimum Wage Poster (2026) February 4, 2026 https://www.dli.mn.gov/.../minwage_poster_2026.pdf

Others

California
Missouri
Wisconsin
Indiana
Arizona
Tennessee
Massachusetts
Colorado
Maryland
New Jersey
Michigan
Virginia
Washington

Legal Disclaimer: Nature of This Compilation This document is a compilation of publicly available information from official government sources. It is NOT: Legal advice An interpretation of laws or regulations A substitute for consultation with a licensed attorney A comprehensive treatment of all applicable laws Guaranteed to be complete or current