Current Minimum Wage and Upcoming Changes in Minnesota

1. What is the current minimum wage in Minnesota and how does it compare to the federal minimum wage?


As of 2021, the current minimum wage in Minnesota is $10.08 per hour for large employers (defined as those with gross annual sales of $500,000 or more) and $8.21 per hour for small employers (defined as those with gross annual sales of less than $500,000).

The federal minimum wage is currently set at $7.25 per hour, so the minimum wage in Minnesota is significantly higher than the federal minimum wage.

However, some cities in Minnesota have implemented their own higher minimum wages. For example, as of July 2021, the minimum wage in Minneapolis is $11.75 per hour for small employers and $13.25 per hour for large employers. In Saint Paul, the minimum wage is $10 per hour for small employers and $11.50 per hour for large employers.

It’s also important to note that certain industries and occupations may have different minimum wage requirements in Minnesota. For example, employees who receive tips must be paid at least the state’s tipped employee minimum wage of $9.86 per hour.

2. Will there be a state-wide increase in the minimum wage in Minnesota this year?


There is currently no state-wide increase in the minimum wage scheduled for Minnesota in 2022. However, some cities and counties in the state may have their own minimum wage laws that could potentially lead to increases for workers within those areas. The current state minimum wage in Minnesota is $10.08 per hour for large employers and $8.21 per hour for small employers.

3. How often does the minimum wage change in Minnesota and what factors contribute to these changes?


The minimum wage in Minnesota changes on an annual basis. The state has enacted a law that increases the minimum wage every year based on inflation starting in 2014.

In addition to inflation, other factors that can contribute to changes in the minimum wage include the cost of living, economic growth, and political decisions. Labor advocates may also push for higher minimum wages to ensure workers are paid a livable wage. On the other hand, businesses and employers may argue for lower minimum wages in order to reduce labor costs and maintain profitability. Political climate and legislation at both state and federal levels can also impact minimum wage changes.

4. Is there a proposed increase in the minimum wage for tipped workers in Minnesota?

There are currently several proposed bills in the Minnesota legislature that seek to increase the minimum wage for tipped workers. One bill, HF 393, calls for tipped workers to receive a minimum wage of 100% of the state’s standard minimum wage. Another bill, HF 1233, proposes a 40% increase in the minimum wage for tipped workers. However, none of these proposals have been passed into law at this time.

5. How does cost of living affect minimum wage policies in Minnesota?


Cost of living is a key factor that affects minimum wage policies in Minnesota. In general, the higher the cost of living in a state, the higher the minimum wage tends to be.

In Minnesota specifically, the state’s Department of Labor and Industry considers various factors when determining the minimum wage rates each year, including inflation and cost of living. Minnesota has one of the highest costs of living in the Midwest region, which has influenced its minimum wage policies.

According to recent studies, a single adult without any dependents in Minnesota needs to earn at least $14.77 per hour to cover basic expenses such as housing, food, transportation, healthcare, and taxes. This amounts to an annual salary of approximately $30,700. As a result, in 2021, the minimum wage in Minnesota is set at $10.08 for large employers (those with annual gross revenue of $500,000 or more) and $8.21 for small employers (with an annual gross revenue below $500,000).

Additionally, efforts have been made by state legislators to increase the minimum wage gradually over time to keep up with rising costs of living in Minnesota. For example, starting January 2024, the minimum wage will reach $15 per hour for large employers and $12.50 per hour for small employers.

Overall, cost of living plays a significant role in shaping Minnesota’s minimum wage policies as it directly impacts how much people need to earn to cover basic expenses and maintain a certain standard of living.

6. Are there any exemptions or exceptions to the current minimum wage laws in Minnesota, such as for certain industries or age groups?


Yes, there are several exemptions and exceptions to Minnesota’s minimum wage laws. These include:

1. Tipped employees: Employers are allowed to pay a reduced minimum wage of $9.21 per hour to employees who regularly receive tips of at least $4 per hour.

2. Student learners: Employers can pay a lower minimum wage of at least 85% of the federal or state minimum wage to employees under the age of 18 who are enrolled in a vocational program.

3. Youth workers: Employees under the age of 18 who work part-time or during school breaks may be paid a lower minimum wage of at least 85% of the federal or state minimum wage for the first 90 consecutive days of employment.

4. Seasonal workers: Certain seasonal employees, such as those employed by camps, resorts and recreational establishments, may be paid a lower minimum wage of at least 85% of the federal or state minimum wage.

5. Agricultural workers: Some agricultural employees may be exempt from the state’s minimum wage laws if they work on small farms or if their employer meets certain criteria.

6.Changes in the law January 01st,2020:

– Small employers with an annual gross revenue of less than $500,000 will have a lower minimum wage rate compared to large employers.
– For small employers with an annual gross revenue less then $500,000 ,the current rate is $8.15 per hour.
– For large employers with an annual gross revenue greater than $500,000 ,the current rate is adjusted for inflation each year.The new rate effective Januray01st is $10.00per hour

7.January 1st,20217 – Flexibility for individuals with disabilities:
-Some disabled individuals may receive special permits allowing them to be employed at wages below the legal Sub-Minimum Wage threshold
Under this provision,mnimum hourly rate will be phased in during a period that begins January 01st,2020 and end January 1st,2021
– the first post-employment support services ,minimum hourly rate will be $9.60
– The second post- employment support services rate will increase from $8.10 an hour to $8.75 an hour or the general state minimum wage rate , whichever is higher/~

7. Has Minnesota ever had a different minimum wage than the federal level and why?


Yes, Minnesota has had a different minimum wage than the federal level at various times.

Initially, Minnesota’s minimum wage was higher than the federal level in 1947, when it was set at 48 cents per hour compared to the federal rate of 40 cents per hour.

In the following years, Minnesota’s minimum wage fluctuated between being higher and lower than the federal rate. However, in 1981, Minnesota established a minimum wage increase that would keep its rate above the federal level indefinitely. This was done in response to concerns about inflation and maintaining workers’ purchasing power.

In recent years, Minnesota has consistently had a higher minimum wage than the federal level due to state legislation passed in 2014 and 2019 which increased the state’s minimum wage incrementally with cost-of-living adjustments.

Overall, these changes reflect Minnesota’s commitment to ensuring fair wages for workers and keeping up with the rising cost of living within the state.

8. Does Minnesota’s minimum wage automatically adjust for inflation or is it subject to legislative action?


Minnesota’s minimum wage does automatically adjust for inflation. The state legislature passed a law in 2014 that ties the minimum wage to inflation and requires it to be reviewed and adjusted annually by the Department of Labor and Industry.

9. How does the upcoming presidential election impact potential changes to Minnesota’s minimum wage laws?


The upcoming presidential election does not directly impact potential changes to Minnesota’s minimum wage laws. However, the outcome of the election, specifically in terms of which party holds control of the presidency and Congress, could have an indirect effect on potential changes.

If Democrats were to gain control of both the White House and Congress, they could potentially push for a higher federal minimum wage, which could then influence state-level minimum wage laws like Minnesota’s.

On the other hand, if Republicans maintain control or gain greater control of the government, they may be less likely to support a higher federal minimum wage and may also push for policies that limit increases in state minimum wages.

In addition, the agendas and priorities of the presidential candidates and their respective parties could also have an impact on potential changes to Minnesota’s minimum wage laws. For example, some candidates may prioritize increasing the minimum wage as part of their campaign platform while others may focus on different economic issues.

Ultimately, while the upcoming presidential election will not directly determine changes to Minnesota’s minimum wage laws, it is likely to have some level of influence depending on the political landscape following the election.

10. Are there any organizations or advocacy groups pushing for an increase in the state’s minimum wage?


Yes, there are several organizations and advocacy groups pushing for an increase in the state’s minimum wage in New York. Some prominent examples include:

1. Fight for $15: This is a nationwide movement advocating for a $15 minimum wage and union rights for all workers. In New York, the group has organized numerous protests and campaigns to raise awareness and pressure lawmakers to increase the state’s minimum wage.

2. New York State AFL-CIO: The state chapter of the national labor federation has been actively involved in advocating for an increase in the minimum wage in New York. The group believes that raising the state’s minimum wage will be beneficial for workers and their families, as well as boost economic growth.

3. Fast Food Worker Committee: A committee of fast food workers formed under the umbrella of Fight for $15, this group has staged strikes, demonstrations, and other forms of protests to demand an increase in the minimum wage for fast food workers specifically.

4. Worker Justice Center of New York: This organization works with low-wage workers across various industries to promote fair labor practices and advocate for higher wages. They have been involved in statewide efforts to raise the minimum wage in New York.

5. Community Service Society: A nonprofit organization focused on building economic opportunity and addressing poverty issues, it has been vocal about supporting efforts to increase the state’s minimum wage.

6. Coalition for Fair Minimum Wage: This statewide coalition of labor unions, community groups, faith-based organizations, and small business owners has been advocating for a gradual increase in the state’s minimum wage to $15 per hour.

7. National Employment Law Project (NELP): This organization advocates for policies that improve job opportunities and wages particularly focusing on low-wage workers. NELP has provided technical assistance to successful efforts to raise the minimum wage at both the local and state levels.

8 . SEIU Local 32BJ: With over 175,000 members working in various industries, including janitorial, security, and airport workers, this labor union has been a leading voice in the push for an increase in the minimum wage in New York.

9. Federal Reserve Bank of New York: While not an advocacy group per se, the Federal Reserve Bank of New York has conducted research on the impacts of raising the minimum wage and has publicly expressed support for gradually increasing it to $15 per hour.

10. Small Business Majority: This small business advocacy group believes that raising the minimum wage will benefit both workers and businesses by stimulating consumer spending and reducing turnover costs. They have supported efforts to raise the state’s minimum wage.

11. Has there been any opposition from businesses or other groups to past increases in Minnesota’s minimum wage?


Yes, there has been opposition from businesses and others to past increases in Minnesota’s minimum wage. Some argue that raising the minimum wage will lead to job losses and hurt small businesses. Others argue that it will increase labor costs and lead to higher prices for consumers. In 2019, when Minnesota raised its minimum wage to $9.86 per hour for large employers, business groups voiced concern and some requested exemptions or delays for certain industries. However, supporters of the minimum wage increase argue that it helps stimulate the economy by putting more money into the pockets of low-wage workers who are more likely to spend it on goods and services.

12. What is the process for determining and implementing changes to the state’s minimum wage?


The process for determining and implementing changes to the state’s minimum wage typically involves several steps, which may vary from state to state.

1. Research and Evaluation: The first step is to conduct research and evaluate the current economic and labor market conditions in the state. This includes examining factors such as cost of living, inflation rates, unemployment rates, and wages in different industries.

2. Public Input: State governments may seek public input through surveys, town hall meetings, or other means to gather opinions and feedback on potential changes to the minimum wage.

3. Legislative Action: If the minimum wage is set by legislation, then a bill must be introduced and passed by both houses of the state legislature before it can become law. The bill may go through multiple rounds of review, debate, and amendments before being voted on.

4. Approval by Governor: Once the bill is passed by both houses of the legislature, it must be signed by the governor to become law. The governor may also have veto power over the bill.

5. Ballot Measures: In some states, the minimum wage can also be changed through ballot measures or initiatives put forth by citizens or interest groups. These measures must also go through a vetting process before being included on the ballot for voters to approve or reject.

6. Implementation: After a change in minimum wage has been approved through either legislative action or a ballot measure, it typically goes into effect on a specific date determined by the governing body responsible for enforcing labor laws in that state.

7. Monitoring and Adjustments: Some states have mechanisms in place to regularly review and adjust the minimum wage based on economic conditions or other factors. This allows for periodic increases without having to go through the entire process outlined above each time there is a need for change.

Overall, determining and implementing changes to the minimum wage can take several months or even years depending on various factors such as political climate, public opinion, and the complexity of the legislation.

13. Are there any proposals to eliminate or reduce taxes on small businesses affected by higher minimum wages in Minnesota?


There are currently no specific proposals in place to eliminate or reduce taxes on small businesses affected by higher minimum wages in Minnesota. However, there may be potential tax deductions or credits available to small businesses that could help offset the cost of increased labor expenses. It is recommended that small business owners consult with a tax professional for specific strategies and options.

14. Have neighboring states recently made changes to their own minimum wages that may influence upcoming decisions for Minnesota?


Yes, neighboring states such as Wisconsin and Michigan have recently increased their minimum wages. This may have an influence on upcoming decisions for Minnesota, as lawmakers may take into consideration the wage levels of surrounding states in order to remain competitive in attracting businesses and workers. Additionally, these changes in neighboring states could also lead to a push for similar increases in Minnesota in order to prevent workers from crossing state lines for higher paying jobs.

15. How do potential changes to immigration policies at the federal level affect discussions about possible changes to Minnesota’s minimum wage?


Potential changes to immigration policies at the federal level may affect discussions about possible changes to Minnesota’s minimum wage in a few ways:

1. Impact on immigrant workers: Many immigrants, particularly low-wage workers, might face challenges or barriers if there are stricter immigration policies in place. This could result in a decrease in the labor force and could potentially increase competition for jobs among immigrant and non-immigrant workers. As a result, some argue that raising the minimum wage could benefit all workers, including immigrants, by ensuring fair pay and reducing economic inequality.

2. Impact on businesses: Stricter immigration policies might also affect businesses that rely heavily on immigrant labor, such as agriculture and hospitality industries. These businesses may struggle to find enough workers to fill their positions if there is a decrease in available immigrant labor. As a result, some argue that increasing the minimum wage could help attract more domestic workers to these industries.

3. State versus federal authority: The federal government has jurisdiction over immigration policy, while states have the authority to set their own minimum wage laws. Potential changes at the federal level may make it harder for states like Minnesota to adopt or enforce their own minimum wage policies if they conflict with federal regulations.

4. Political and economic climate: Discussions about potential changes to immigration policies at the federal level may also impact the political and economic climate surrounding minimum wage discussions in Minnesota. For example, if there is ongoing debate or controversy surrounding immigration policies, it could overshadow discussions about increasing the minimum wage and make it more difficult for lawmakers to reach a consensus.

Overall, potential changes to immigration policies at the federal level can have ripple effects on discussions about possible changes to Minnesota’s minimum wage. They can impact both workers’ rights and employers’ abilities to hire workers, as well as influence political and economic factors surrounding these discussions.

16. What is considered a “living wage” in various cities within Minnesota, and how do they compare with current and proposed state-level minimum wages?


A living wage is defined as the minimum income needed for a household to cover basic needs such as food, housing, utilities, transportation, healthcare, and taxes. The concept of a living wage varies depending on family size and geographical location. In Minnesota, the living wage is determined based on individual counties.

According to the Massachusetts Institute of Technology’s Living Wage Calculator, the estimated living wages in various cities within Minnesota are:

1. Minneapolis: $15.25 per hour for a single adult and $33.50 per hour for a household with two adults and two children.

2. Saint Paul: $14.92 per hour for a single adult and $32.84 per hour for a household with two adults and two children.

3. Rochester: $13.67 per hour for a single adult and $30.07 per hour for a household with two adults and two children.

4. Duluth: $13.30 per hour for a single adult and $29.24 per hour for a household with two adults and two children.

5. Bloomington: $14.10 per hour for a single adult and $31 per hour for a household with two adults and two children.

These estimated living wages are higher than both the current state minimum wage of $9.86 per hour (as of 2020) and the proposed state-level minimum wages (which varies from city to city). For example, in Minneapolis, the proposed minimum wage is set at $15 an hour by 2024 while in Saint Paul it is set at $15 an hour by 2027.

Overall, while the proposed state-level minimum wages are expected to provide some improvement towards meeting basic needs, they may still fall short of meeting the estimated living wages in each city within Minnesota.

17. Is there currently a debate about whether students, interns, or trainees should be exempt from receiving a full state-level minimum wage in Minnesota?


Yes, there is currently a debate and ongoing discussions about whether students, interns, or trainees should be exempt from receiving a full state-level minimum wage in Minnesota. Some argue that these individuals should be exempt in order to allow for valuable learning experiences and the development of job skills without being too financially burdened. Others argue that all workers, regardless of their status as students or trainees, deserve to receive a fair and reasonable minimum wage for their work. This issue has been brought up in recent legislative sessions and continues to be a topic of discussion among lawmakers and advocates for workers’ rights.

18. What has been the impact of past minimum wage increases on employment rates and average income levels in Minnesota?


The impact of past minimum wage increases on employment rates and average income levels in Minnesota has been largely positive.

1. Employment Rates:

a) After the last increase in the minimum wage in 2016, Minnesota’s employment rate continued to increase and reached a record high of 70.5% in December 2019.

b) In the three years following the implementation of the 2014 minimum wage increase, employment in Minnesota grew at a rate nearly double that of neighboring Wisconsin, which did not increase its minimum wage.

2. Average Income Levels:

a) Since the 2014 minimum wage increase, median hourly wages for all workers (not just those earning minimum wage) have increased by an average of $2.07 per hour, from $15.13 to $17.20.

b) The median hourly wage for workers earning between $8-$9 per hour increased by more than $3 per hour from 2009 to 2020.

c) The percentage of workers earning below poverty level wages (calculated as half of the federal poverty threshold for a family of four) decreased from 11.7% in 2013 to 8.7% in 2018.

Overall, these trends suggest that past minimum wage increases have not had a significant negative impact on employment rates and have contributed to higher average income levels for workers in Minnesota.

19. Are there any states with lower minimum wages than Minnesota, and what are the potential impacts on the local economy if Minnesota raises its minimum wage?


Yes, there are several states with lower minimum wages than Minnesota, such as Georgia, Wyoming, and Alabama. The potential impact on the local economy of raising the minimum wage in Minnesota depends on various factors, including businesses’ ability to absorb the increased labor costs and the overall health of the economy. Some potential impacts may include an increase in consumer spending as low-wage workers have more disposable income, leading to a boost in economic growth. However, there may also be potential negative impacts, such as job losses or small businesses struggling to keep up with the increased expenses. It is important to carefully consider all potential effects before making changes to the minimum wage.

20. Are there any plans for regional variations or different thresholds for minimum wages based on factors such as population density or median income levels within Minnesota?


At this time, there are no plans for regional variations or different thresholds for minimum wages based on factors such as population density or median income levels within Minnesota. The state’s current minimum wage rates apply to all employers and employees statewide. However, some cities in Minnesota have implemented their own local minimum wage ordinances with higher minimum wage rates, such as the city of Minneapolis. Employers in these cities must comply with the higher local minimum wage rate.