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State Minimum Wage Set to Increase on January 1

The minimum wage for Minnesota employees will take another jump effective January 1, 2019. For large employers (any enterprise with an annual gross revenue of $500,000.00 or more), the minimum wage will increase from $9.65 to $9.86 per hour. For small employers (any enterprise with annual gross revenue of less than $500,000.00), it will jump from $7.87 to $8.04.

In addition, the 90-day training wage for employees under age 20 and the youth wage for workers under age 18 will both increase on January 1 from $7.87 to $8.04 per hour.

However, employers and employees alike need to be aware of the growing trend of cities enacting their own local minimum wage ordinances. Minneapolis, for example, passed an ordinance setting a minimum wage that graduates upward to $15.00 per hour over the next several years. Currently, those rates are $10.25 for small employers (100 or fewer employees) and $11.25 for large employers (more than 100 employees). Effective July 1, 2019 they will be $11.00 for small employers and $12.25 for large employers. St. Paul is considering a similar move.

To prepare for these changes, employers should work with their payroll staff or vendors to make sure they know and understand these new rates. Employees should check their paystubs to make sure they reflect any increases required by these laws or local ordinances.

Employers and employees also need to recognize when a higher local minimum wage may apply, even if the employer is based out of the city setting that wage.

Thumbnail image for Thumbnail image for TAJ - 2nd retouch.jpgFor more information about wage or other employment law issues, please contact MSBA-certified Labor and Employment Law Specialist Tom Jacobson.

Disclaimer: The information in this article is for general informational purposes only and is not to be construed as legal advice.

© 2018 Swenson Lervick Syverson Trosvig Jacobson Cass, PA

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