A Guide To STARTING A BUSINESS IN MINNESOTA 43rd Ed 2025

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. 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 (101 + employees and City of St. Paul employees) to pay St. Paul employees $15. 9 7 (City Rate); Small Businesses (6-100 employees) $15.00; Micro Businesses (5 or fewer employees) $13.25 . Visit stpaul.gov/ minimumwage for additional information or contact the Labor Standards Division at 651-266-8966 or by email at laborstandards@ci.stpaul.mn.us. Updating Wage Postings Employers are required to post a current notice of the applicable federal minimum wage rates and related obligations. Failure to post an updated notice may result in fines of up to $10,000. Updated posters may be downloaded free of charge from the U.S. Department of Labor. View these links: Workplace Posters; elaws Advisors Posters and Recordkeeping; and Wage and Hour Division (WHD) - Workplace Posters. Wages Using Payroll Card Accounts Employers are allowed to pay employee wages via payroll card accounts. Employers are not required to use payroll card accounts, even if requested by employees. Payroll debit cards allow an employee’s net pay to be applied to a payroll account. The employee can then use the card to make purchases and withdraw cash at ATMs. Payroll accounts allow wages to be electronically transferred, eliminating the need for check cashing charges.

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