In the wake of all the hoop-la about the overtime changes, I wanted to post a reminder to our Minnesota employers to prepare now (in your payroll system, personnel records, etc.), for the minimum wage increase effective August 1, 2016, lest you find yourself at the receiving end of a MnDOLI audit or complaint.  In case you’ve gotten too much sun this summer and have forgotten – here are the increased minimum wages:

Minimum Wage Effective August 1, 2016
Large employer wage $9.50/hour
Small employer wage $7.75/hour
90-day training wage
(under 20 years of age)
Youth wage
(under 18 years of age)
Inflation increase Inflation indexing begins Jan. 1, 2018

Small employers are those with annual gross revenue of less than $500,000. Large employers are, not surprisingly, those with an annual gross revenue of $500,000 or more.

Keep in mind that Minnesota minimum wage is higher than federal minimum wage, thus, these hourly wages will apply to all hours worked (part-time or full-time). Also, I’ve said it before, but Minnesota law does not allow a tip credit. Therefore, employers should not count tips as part of meeting the above minimum wage requirements. Finally, there are some limited exemptions from Minnesota’s minimum wage laws – babysitters, taxicab drivers, nonprofit volunteers, people providing police or fire protection, employees subject to US DOT provisions, and a few other quirky positions.