Amid the hubbub of proposed federal regulations expanding overtime eligibility, let’s also remember that minimum wage for Minnesota employees is set to increase on August 1.
Right now, minimum wage for employees working for large companies (defined as $500,000 in annual gross revenues) is $8.00 per hour, while workers for smaller companies are entitled to at least $6.50 per hour (although they must receive at least $7.25 per hour if they are covered by the federal minimum wage).
When the new regulation takes effect on August 1, 2015, the minimum wage at large employers must be $9.00 per hour while the standard for smaller employers will be $7.25. Don’t get too used to those numbers, though – the rates increase again on August 1, 2016 to $9.50 and $7.75 respectively. Thereafter, the minimum wage in Minnesota will be indexed for inflation, although state regulations limit any such increase to 2.5%.
Remember that Minnesota permits all employers to pay a training wage to any worker under 20 years of age for their first 90 days of employment, and to all workers under the age of 18. Those rates also increase to $7.25 next month and to $7.75 on August 1, 2016.
For more information, contact Dennis Merley at 612-373-8434 or dmerley@felhaber.com.