When both federal and state minimum wage laws apply and the rates differ, employers must pay at least the higher of the two rates for each hour worked.
Minnesota state minimum wage structure Minnesota has several minimum wage categories: • Large employer wage – for employers whose annual gross revenues are at or above the statutory threshold. • Small employer wage – for employers below that revenue threshold. • Training wage – may be paid to employees under age 20 for the first 90 consecutive days of employment with the employer. • Youth wage – may be paid to employees younger than 18. • Special wage for certain summer work travel exchange visitor program participants . The training and youth wage rates are set at the small employer minimum wage level. “Large” and “small” employer status is determined by gross annual revenue, not by number of employees. Minnesota law prohibits employers from displacing existing employees or reducing their hours, wages, or benefits simply to take advantage of lower minimum wage rates for youth, training, or exchange visitor categories. Because Minnesota’s dollar amounts are adjusted periodically, employers should consult the Minnesota Department of Labor and Industry (DLI) for the current large employer, small employer, training, youth, and program specific wage rates. Local minimum wage ordinances – Minneapolis and St. Paul Cities may set higher local minimum wages. Minneapolis and St. Paul have adopted local minimum wage ordinances with phased in schedules and employer size distinctions. • Minneapolis requires covered employers to pay at least the city minimum wage to employees who work in Minneapolis, with different phase in timelines and thresholds for “large” and “small” employers. Tipped employees must receive at least the full city minimum wage before tips. Refer to Minimum Wage. • St. Paul similarly requires employers to pay a city minimum wage to employees working in St. Paul, with rates and phase in schedules that vary by business size (macro/large, small, and micro). Refer to Minimum Wage. Because these local rates are updated over time and are now generally above the state minimum wage, employers with employees working in Minneapolis or St. Paul must review those cities’ official minimum wage pages or contact their labor standards offices for current rates and effective dates.
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