Effective August 1, 2016, the minimum wage in Minnesota will increase.
The increase will impact all businesses, including agri-businesses.
Hourly Rate Overview
Below is a brief overview of the new minimum wage rates for hours worked beginning August 1, 2016.
|LARGE EMPLOYER||Any enterprise with an annual gross dollar volume of sales made or business done of $500,000 or more||$9.50|
|SMALL EMPLOYER||Any enterprise with an annual gross dollar volume of sales made or business done of less than $500,000||$7.75|
|TRAINING RATE||May be paid to employees younger than 20 years of age for the first 90 consecutive days of employment||$7.75|
|YOUTH RATE||Paid to employees younger than 18 years of age who are not covered under federal law||$7.75|
|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||$7.75|
|FEDERAL WAGE||Currently not applicable, unless an employer or employee is specifically exempt from the state law, but not federal law||$7.25|
Considerations for Agricultural Workers
Agricultural employees are entitled to overtime compensation at a rate of time and a half for all hours worked in excess of 48 hours in a workweek under Minnesota law if they are paid by any means other than a salary. Agricultural workers are exempt from state law overtime requirements if they are paid a certain minimum salary as detailed below.
|LARGE EMPLOYER||$698.25 per week|
|SMALL EMPLOYER||$569.63 per week|
Split Pay Periods and other Implementation Considerations
Depending on your pay periods, this increase may be effective in the middle of a pay period.
As an employer, you can split the pay period and pay one week at the old rate and the second week at the new rate or you can elect to pay the higher minimum wage rate for the entire pay period.
Our payroll specialists, Karla Olinger, Terri Anderson, or Andy Pirrotta, are available to answer questions specific to your individual business.