Minnesota’s minimum wage laws: • There are different minimum wage rates, including the large-employer wage and the small- employer wage. There is also a 90-day training wage for workers 18 and 19 years old and the youth wage for workers 17 years old or younger, both of which are the same as the small- employer wage. • Large employers are companies with annual gross revenues of $500,000 or more and small employers make less than $500,000. Neither distinction includes the number of workers they employ. • The training wage may be paid to employees under the age of 20 for the first 90 consecutive days of employment while the youth wage may be paid to employees younger than 18. Prohibition of Displacement: The new law prohibits employers from displacing other employees to take advantage of the lower minimum wage rates for employees under the age of 18, employees under the age of 20, or employees who qualify for the summer work travel exception. This prohibition includes total displacement of employees as well as partial displacement through a reduction in hours, wages, or employment benefits. In cases where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher of the two minimum wages. Minimum wage rates apply to all hours work, whether part time or full time. Employers are required to pay for all hours worked including waiting time, call time, training time and any other time the employee is restricted to the premises of the employer. Cities may push their minimum wage base higher than state minimums. Minneapolis has approved a municipal ordinance that requires large employers to pay Minneapolis employees $15 an hour in five years and gives small employers seven years to reach that target wage. There is a tiered phase-in period (starting January 1, 2018) for small and large businesses. Large businesses are defined as having more than 100 employees and small businesses as 100 or fewer employees. There is no exception for tipped employees - all employees are subject to the minimum wage. Contact the City of Minneapolis for additional information. Contact the City of Minneapolis for additional information. The current 2024 rate for businesses with 100 or fewer employees is $14.50 an hour. On July 1, 2024 the rate will increase to $15.57. Businesses with more than 100 employees, the minimum wage is $15.57 per hour. The minimum wage will account for inflation every January 1st. St. Paul has a municipal ordinance that requires macro businesses (10,001 + employees and City of St. Paul employees) to pay St. Paul employees $15.57* (City Rate*) an hour beginning January 1, 2024, starting January 1, 2025 the City Rate*; large businesses (101-10,000 employees) $15.00 an hour beginning July 1, 2023, increasing to $15.57* (City Rate*) starting July 1, 2024; small businesses (6-100 employees) $13.00 an hour beginning July 1, 2023, increasing to $14.00 starting July 1, 2024; Micro businesses (5 or fewer employees) $11.50 an hour beginning July 1, 2023, increasing to $12.25 starting July 1, 2024; Youth wage rate $11.05 an hour beginning July 1, 2023, increasing to $11.90 starting July 1, 2024. Contact the City of St. Paul for additional information.
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