New Year, New Minimum-Wage Rates for Minnesota

With 2023 right around the corner, we want to issue a reminder that Minnesota’s minimum-wage rates will increase, effective January 1, 2023. Every year, the Minnesota Department of Labor and Industry is tasked with determining the increased rate of inflation and adjusting minimum-wage rates accordingly.

Effective January 1, 2023, Minnesota’s minimum wages are as follows:

Large employers: Enterprises with annual gross revenues of $500,000 or more $10.59 per hour
Small employers: Enterprises with annual gross revenues of less than $500,000 $8.63 per hour
90-day training wage: Employees under 20 years of age $8.63 per hour
Youth wage: Employees under 18 years of age $8.63 per hour

As we posted previously, in Minneapolis and St. Paul Minimum Wages Set to Increase July 1, 2022, new rates for Minneapolis and St. Paul went into effect on July 1, 2022. While many of these rates will stay the same until July 1, 2023, there are a couple of changes beginning January 1, 2023 that employers should be aware of:


Small businesses: Enterprises with 100 or fewer employees $13.50
Large businesses: Enterprises with over 100 employees $15.00 –> $15.19

St. Paul:

Macro businesses: Enterprises with over 10,000 employees $15.00 –> $15.19
Large businesses: 101-10,000 employees $13.50
Small businesses: 6-10 employees $12.00
Micro businesses: 5 or fewer employees $10.75

Bottom Line

As always, employers should make sure that all required posters are up to date and kept in a location that is easily visible to employees. State law requires employers to display certain mandated posters with information, including minimum-wage rates. Minneapolis and St. Paul have similar requirements.

All employers should check to ensure that nonexempt employees are earning the correct hourly wages, and Minneapolis and St. Paul employers should continue to follow their respective city’s minimum-wage rates. If you have any questions about these new changes, please reach out to your trusted Felhaber attorney.