The Minnesota minimum wage increase on January 1, 2018 is detailed below:
|LARGE EMPLOYER||Any enterprise with an annual gross dollar volume of sales made or business done of $500,000 or more||$9.65|
|SMALL EMPLOYER||Any enterprise with an annual gross dollar volume of sales made or business done of less than $500,000||$7.87|
|TRAINING RATE||May be paid to employees younger than 20 years of age for the first 90 consecutive days of employment||$7.87|
|YOUTH RATE||Paid to employees younger than 18 years of age who are not covered under federal law||$7.87|
|J-1 VISA||Applies to employees of hotels, motels, lodging establishments and resorts working under the authority of a summer work, travel Exchange Visitor (J) non-immigrant visa||$7.87|
|FEDERAL WAGE||Currently not applicable, unless an employer or employee is specifically exempt from the state law, but not federal law||$7.25|
The minimum wage law covers full-time and part-time employees, whether paid hourly rates, commissions, or salaries. Minnesota does not allow for tips received by employees to be credited toward the payment of minimum wages. Most businesses are covered by both federal and state minimum wage laws due to the definition of interstate commerce being broad and including any business that receives payment via credit card or completes orders via the internet as those transactions may be completed outside of the state your business operates in. Since the state minimum wage is higher than the federal minimum wage, employees who are covered by both laws must be paid the higher state minimum wage.
A complete list of exempt employees can be found here.
If you have questions relating to minimum wage, reach out to Christianson today!