Minnesota Minimum Wage: Current Rate & Scheduled Increases

The Fair Labor Standards Act (FLSA), 29 U.S.C. § 206, establishes the federal minimum wage at $7.25 per hour, which has been unchanged since 2009. The FLSA covers employees of enterprises with annual gross revenue of $500,000 or more, and also covers employees of certain employers regardless of revenue (hospitals, schools, public agencies, and federal contractors). The FLSA prohibits employers from paying workers less than the applicable minimum wage for all hours worked, including compensatory time off. Employees under 20 years old may be paid a training wage of $4.25 per hour for the first 90 days of employment.

Tipped employees must receive a cash wage of at least $2.13 per hour if tips bring the total to $7.25 per hour; if tips do not reach this amount, the employer must make up the difference. The FLSA requires overtime pay at 1.5 times the regular rate for all hours worked over 40 per week, with limited exemptions for certain salaried executives, professionals, administrative employees, and salespeople. Enforcement is handled by the U.S. Department of Labor's Wage and Hour Division, and employees may file complaints at no cost.

Remedies under the FLSA include back wages, liquidated damages equal to back wages, and in willful violations, extended statute of limitations. The Fair Labor Standards Act applies to virtually all employers across the United States, though some agricultural, domestic, and certain small business exceptions exist.

Minnesota Statutes section 177.24 establishes a state minimum wage of $11.85 per hour as of January 1, 2025, significantly higher than the federal floor of $7.25 per hour. Minnesota's minimum wage is adjusted annually on January 1 based on the Consumer Price Index, meaning the rate changes yearly and workers benefit from automatic cost-of-living increases without legislative action. This indexing mechanism makes Minnesota's minimum wage more responsive to inflation than the federal minimum, which has remained static since 2009.

Under Minnesota law, all employers subject to Minnesota's jurisdiction must pay the higher state minimum wage, not the federal minimum. This applies to most employers operating in Minnesota, regardless of their size or revenue. Minnesota's minimum wage law covers private sector employers, public employers, nonprofits, and contractors. The state applies its minimum wage to all employees, including part-time and full-time workers.

Minnesota provides stronger protections than federal law in several ways. Tipped employees must receive a minimum of $10.85 per hour in direct wages from their employer, unlike the federal $2.13 tipped wage floor. Tips may be credited toward the minimum wage, but only to the extent that tips plus wages equal at least $11.85 per hour. Additionally, Minnesota requires employers to pay overtime at 1.5 times the applicable minimum wage (not just the regular rate), providing greater overtime protection.

Minnesota's wage and hour law, found in sections 177.23-177.27, covers more categories of workers than federal law, including some positions with limited federal protection. Remedies under Minnesota law include back wages, penalties, and court costs. Violations may also result in Department of Labor investigation and enforcement action. Employees may file complaints with the Minnesota Department of Labor and Industry at no cost.

Minnesota Statutes section 177.25 provides limited exemptions from the minimum wage requirement. Employees who are immediate family members of the employer may be exempt if the business is owned and operated by family members. Students employed by schools, libraries, or nonprofit organizations may have reduced minimum wage rates under certain conditions, though this exemption is narrowly construed and most student workers must still receive the full minimum wage.

Employees engaged in apprenticeship programs registered with the Department of Labor and Industry may earn less than the minimum wage during the apprenticeship period, but only if approved. However, the wage floor for apprentices remains substantial and the apprenticeship must meet state standards. Agricultural workers have historically had different protections under federal law, but Minnesota applies its minimum wage to agricultural employees as well.

Seasonal or temporary workers do not receive an exemption; they must earn the minimum wage like all other employees. Employees compensated on a commission basis or through profit-sharing arrangements must still earn at least the minimum wage when averaged over the pay period. Employers cannot reduce the minimum wage based on the employee's skill level, productivity, or performance; the minimum is a true floor.

At-will employment remains the general rule in Minnesota, meaning employers may terminate employees for any non-illegal reason. However, this does not permit employers to pay wages below the minimum. Piecework arrangements and per-task compensation models must still result in at least minimum wage when calculated on an hourly basis. Union-represented employees may have collective bargaining agreements providing higher wages, but the union wage cannot fall below the state minimum.

Step 1: Document Everything. Keep detailed records of all hours worked, including daily start and end times, breaks, and any off-the-clock work. Photograph or screenshot pay stubs, emails requesting work outside scheduled hours, text messages about work assignments, and any communications showing you were not compensated for time worked. Maintain a personal time log if your employer does not provide accurate records. Save all documents related to your employment in a secure location, including offer letters, employee handbooks, and correspondence with managers.

Step 2: File an Internal Complaint. Report the wage violation to your HR department or manager in writing if safe to do so. Send an email documenting the dates, hours, and amounts owed, and request a written response. Keep a copy of your complaint and any response. This creates a paper trail and may prompt immediate correction. If your workplace has a compliance officer or payroll department, escalate the issue there. Do not resign unless the violation is severe enough to constitute constructive dismissal; remaining employed preserves your legal claims and access to company records.

Step 3: File with the Minnesota Department of Labor and Industry. Go to the Department of Labor and Industry's Wage and Hour Division at https://www.dli.mn.gov or call 651-284-5005 (Minneapolis area) or 1-800-342-5354 (toll-free). File a wage claim form describing the employer, dates of employment, the wage violation, and amounts owed. You may file in person at a local office, by mail, or online. There is no filing fee and no statute of limitations; you can file years after the violation occurred. The Department will investigate at no cost to you. Provide all documentation: pay stubs, time records, emails, and your time log. Include the employer's full legal name, address, phone number, and description of the violation.

Step 4: Expect the Investigation Process. The Department of Labor will contact your employer and request wage records, time sheets, and payroll documentation. The investigation typically takes 30-90 days, depending on complexity and employer responsiveness. You may be asked to provide additional information or clarification by phone or written correspondence. The Department will review whether the employer violated Minnesota's minimum wage law and calculate back wages owed. If the Department finds a violation, it will issue an order requiring the employer to pay back wages plus penalties. The Department may also assess liquidated damages equal to the unpaid wages, plus interest.

Step 5: Consult an Attorney if Necessary. If the Department's order is not paid, hire an employment attorney to pursue collection or file a civil lawsuit in Minnesota state court under Minnesota Statutes section 181.11. An attorney can also represent you if the violation is severe, involves retaliation, or affects multiple employees (potential class action). Many employment attorneys work on contingency, meaning they are paid from the recovery. If the employer retaliates against you for filing a wage claim, contact an attorney immediately; retaliation is illegal under Minnesota law. Legal aid organizations may assist if you cannot afford an attorney.