Minnesota's minimum-wage rates will be adjusted for inflation Jan. 1, 2022, to $10.33 an hour for large employers and $8.42 an hour for other state minimum wages.
The current large-employer minimum wage, $10.08, will increase by 25 cents to $10.33. Other state minimum wages, including the small-employer, youth and training wages, as well as the summer work travel exchange visitor program wage, which are all currently $8.21, will increase by 21 cents to $8.42. These increases are both 2.5%.
"This increase is designed to help minimum-wage workers keep up with inflation to better provide for themselves and their families," Roslyn Robertson, Department of Labor and Industry commissioner said.
Rates as of Jan. 1, 2022
- Large employers must pay at least $10.33 an hour when the employers annual gross revenues are $500,000 or more.
- Small employers must pay at least $8.42 an hour when the employer's annual gross revenues are less than $500,000.
- The training wage rate, $8.42 an hour, may be paid to employees younger than 20 years of age for the first 90 consecutive days of employment.
- The youth wage rate, $8.42 an hour, may be paid to employees younger than 18 years of age.
In February 2020, the last month before the COVID-19 pandemic had a significant effect on the economy, an estimated 208,000 jobs, or 8.6%, paid the minimum wage or less.
Because of the effects of the pandemic, it is not possible to reliably project the number of jobs that will pay the minimum wage or less in 2022.
The state minimum-wage rates will not apply to work performed in the cities of Minneapolis and St. Paul, which have higher minimum-wage rates.