Minnesota will start the year with adjustments to the minimum wage rate that will benefit practically all workers. Beginning January 1, 2026, the minimum wage rate will be adjusted to $11.41, and the 90-day wage for workers under 20 years old to $9.31, all due to inflation. The cities of St. Paul and Minneapolis have a minimum wage ordinance, which may require a higher wage rate.
The tip credit is not included in the wage, so it would be received separately. This adjustment applies to both part-time and full-time workers. Some employees exempt from this minimum wage requirement include nannies, taxi drivers, volunteers for nonprofit organizations, or police, among others. This adjustment must be notified to each employee in writing before it takes effect.
Minimum wage adjustment in Minnesota
The new arrival in Minnesota will bring with it the adjustment of the minimum wage rate for all employers in the state. This change, driven by inflation, will take effect on January 1, 2026, raising the minimum wage rate to $11.41 per hour. Regardless of how they are paid, employees must receive at least the current minimum wage. In the case of the cities of St. Paul and Minneapolis, ordinances may require a higher wage rate. One of the aspects that worried workers the most is the tip credit: no employer can apply a tip credit against the minimum wage in the state of Minnesota.
Workers will receive the minimum wage per hour on one hand, and all tips they may earn on the other, independently. In addition, the minimum wage law covers those who work both part-time and full-time, regardless of whether they are paid by the hour, by commission, salary, or rate, and regardless of tips. The law ensures that employers pay their employees the minimum wage for all hours worked. What is meant by ‘hours worked’? It refers to training time, waiting time, rest periods of less than 20 minutes, and any time the worker is required to be at their workstation. There are some job positions exempt from the minimum wage requirements, which are:
- Babysitters.
- Taxi drivers.
- Volunteers from non-profit organizations.
- Police or fire protection.
- Employees subject to the provisions of the United States Department of Transportation (drivers, driver helpers, mechanics and loaders).
- Other workers listed in Minnesota Statute §177.23, subd. 7.
Wage for younger workers
The 90-day training wage for workers under 20 years old is also included in this new adjustment. In this case, rates will experience an increase of 2.5%, reaching $9.31 per hour. Minnesota law requires employers to display posters informing employees of this change, as well as to notify them of any changes, including the change in the pay rate, before it takes effect.
Minimum wage adjustments are not exclusive to Minnesota, but are being implemented in many other states with the goal of combating inflation. This is the case in New York, where the increase reaches up to $17 an hour.
Frequently asked questions
Where will this minimum wage rate adjustment be applied?
In the state of Minnesota.
Who will it affect?
To all workers, including those under 20 years old. Nannies, Taxi drivers, Volunteers from non-profit organizations, Police or fire protection, Employees subject to the provisions of the United States Department of Transportation (drivers, driver helpers, mechanics and loaders)
and other workers listed in Minnesota Statute §177.23, subd. 7. , are the exceptions.