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Minnesota’s minimum-wage rates will be adjusted for inflation on Jan. 1, 2023, to $10.59 an hour for large employers and $8.63 an hour for other state minimum wages, the Minnesota Department of Labor and Industry announced Tuesday.

The current large-employer minimum wage, $10.33, will increase by 26 cents.. Other state minimum wages, including the small-employer, youth and training wages, as well as the summer work travel exchange visitor program wage, which are all currently $8.42, will increase by 21 cents to $8.63. These increases are both 2.5%.

“This increase is designed to help minimum-wage workers keep up with inflation to better provide for themselves and their families,” said Nicole Blissenbach, DLI temporary commissioner.

As of Jan. 1:

• Large employers must pay at least $10.59 an hour when the employer’s annual gross revenues are $500,000 or more.
• Small employers must pay at least $8.63 an hour when the employer’s annual gross revenues are less than $500,000.
• The training wage rate, $8.63 an hour, may be paid to employees younger than 20 years of age for the first 90 consecutive days of employment.
• The youth wage rate, $8.63 an hour, may be paid to employees younger than 18 years of age.

The state minimum-wage rates will not apply to work performed in the cities of Minneapolis and St. Paul, which have higher minimum-wage rates.

Minnesota law requires employers to display five state-mandated posters in a location where employees can easily see them. The new minimum-wage poster will be available for download this fall.

As part of Minnesota’s employee notice requirement, employers are required to provide each employee with a written notice of any change before the change takes effect, including a change to the employee’s rate of pay.