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  • Paula Carlsen

    In January 2022, Minnesota's minimum-wage rates will rise by 2.5 percent above the present amount

    2021-08-28
    User-posted content

    ST. PAUL, MN – Minnesota's minimum-wage rates will be raised for inflation on January 1, 2022, to $10.33 an hour for large companies and $8.42 an hour for other state minimum wages, according to the Minnesota Department of Labor and Industry or DIL.

    "This increase is designed to help minimum-wage workers keep up with inflation to better provide for themselves and their families," said Roslyn Robertson, commissioner of the Department of Labor and Industry.

    The existing large-employer minimum pay of $10.08 per hour will rise by 25 cents to $10.33 per hour. Other state minimum salaries, such as the small-employer, youth, and training wages, as well as the summer work travel exchange visitor program wage, will rise by 21 cents to $8.42. According to DIL, these gains are both 2.5 percent.

    Work performed in Minneapolis and St. Paul, which have higher minimum-wage rates, will not be subject to the state's minimum-wage rates.

    The new rates are listed as below:

    • If a company's yearly gross revenue exceeds $500,000, the firm must pay at least $10.33 an hour.

    • If a company's yearly gross sales is less than $500,000, the firm must pay at least $8.42 an hour.

    • For the first 90 consecutive days of employment, employees under the age of 20 may be paid the training wage rate of $8.42 per hour.

    • Employees under the age of 18 may be paid the youth wage of $8.42 per hour.

    In February 2020, the final month before the COVID-19 pandemic had a substantial impact on the economy, an estimated 208,000 jobs, or 8.6 percent, were paid at or below the minimum wage. Due to the pandemic's impacts, it is impossible to predict with certainty the number of employment paying the minimum wage or below in 2022.

    Minnesota law compels employers to post five state-mandated posters in a prominent position visible to employees. This fall, the new minimum-wage poster will be made available for download.

    Employers are required by Minnesota's employee notice law to provide each employee with written notice of any change prior to the change taking effect, including a change in the employee's rate of pay.

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