On February 25, 2016, MNDOLI issued its 2015 Minnesota Minimum Wage Report. The report details trends and statistics with respect to minimum wage workers in Minnesota, but seemingly only to “toot” Minnesota’s own horn. Adjusted for inflation, Federal minimum wage has dropped 26% from 1974 to 2013, while Minnesota’s minimum wage is about 2% more than it was in 1974. This means that Minnesota’s employers are paying more now for minimum wage workers than it was in 1974.
Minnesota’s minimum wage is $9.00 effective August 1, 2015. However, unlike federal minimum wage under the FLSA that exempts employers with less than $500,000 in annual revenue (with some exceptions), in Minnesota, “small” employers are those with annual revenues of less than $500,000, and they must pay a small-employer minimum wage – $7.25 as of August 1, 2015. In Minnesota, youth (those under 18) may be paid a minimum wage of $7.25 per hour and workers under age 20 may be paid a lower minimum during their first 90 consecutive days of employment.
Although Federal law allows employers to count tips in applying minimum wage, Minnesota employers are prohibited from counting tips for purposes of minimum wage under either law.