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Inflation-adjusted minimum wage rate starting January 1, 2025 – Austin Daily Herald

Inflation-adjusted minimum wage rate from 1 January 2025

Published on Tuesday, August 27, 2024, 17:53

The Minnesota Department of Labor and Industry announced Monday that Minnesota's minimum wage will be adjusted for inflation on January 1, 2025, and will be just over $11 an hour for all employers in the state.

During the 2024 legislative session, Minnesota's minimum wage law was revised to eliminate reduced minimum wages for microbusinesses (defined as businesses with annual gross revenue of less than $500,000), youth under 18, and workers on J-1 visas.

“The updates to minimum wage laws ensure that workers receive at least a standard minimum wage regardless of the size of their employer or their age, while preserving the 90-day training wage for workers under 20,” Commissioner Nicole Blissenbach of the Minnesota Department of Labor and Industry said in a press release Monday. “The changes will also help minimum wage earners keep pace with inflation to better provide for themselves and their families.”

Effective January 1, 2025, the federal minimum wage will increase to $11.13 per hour for all employers, including large businesses, small businesses, youth, and J-1 visa wages for hotels, motels, and lodging establishments. The law continues to provide a 90-day apprentice wage for workers under the age of 20. The current hourly apprentice wage of $8.85 will increase to $9.08. These rates represent a 2.6% increase.

The cities of Minneapolis and St. Paul have minimum wage ordinances that require higher minimum wages for work performed in Minneapolis and St. Paul.

Minnesota law requires employers to post state-mandated signs in a location where employees can easily see them. The new minimum wage sign will be available for download this fall.

Under Minnesota's employee wage notice requirement, employers must provide each employee with written notice before any change takes effect, including a change in the employee's rate of pay. Learn more about the employee wage notice requirement.