New year, new minimum-wage rates as of Jan. 1
Published 6:22 am Thursday, December 29, 2022
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, according to a press release.
As of Jan. 1, 2023:
- Large employers with annual gross revenues of at least $500,000 must pay at least $10.59 an hour.
- Small employers with annual gross revenues less than $500,000 must pay at least $8.63 an hour.
- 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. The minimum wages for large employers in Minneapolis and macro employers in St. Paul reached $15 in 2022. Minimum wages for other employers of different sizes in Minneapolis and St. Paul will reach $15 in various years from 2023 to 2027, and will be adjusted for inflation thereafter.
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For workers earning the Minnesota minimum hourly wage and working 40 hours a week, annual wages in 2022 are $21,486 for workers at large employers and $17,514 for workers at small employers. As of July 1, 2022, workers in Minneapolis earn annual full-time wages of $31,200 at large employers and $28,080 at small employers, while St. Paul workers earn $28,080 at large employers and $24,960 at small employers.
The 2022 Minnesota large-employer minimum wage of $10.33 an hour is below the average rate of the federal minimum wage for 1960 through 1981, which adjusting for inflation was $11.71. When the Minneapolis and St. Paul minimum wages reach $15, they will be higher than the federal minimum wage peak of $13.65, adjusted for inflation, which was reached in 1968.