Minnesota will increase minimum-wage beginning Jan. 1, 2023

ABC 6 News) – The Minnesota Department of Labor and Industry announced that the states minimum-wage rates will increase effective January 1, 2023.

The rates will be adjusted for inflation to $10.59 an hour for large employers and $8.63 an hour for other state minimum wages.

The current large-employer minimum wage, $10.33, will increase by 26 cents to $10.59.

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, 2023

  • 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.

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.

Learn more about the employee notice requirement HERE.