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What is the minimum wage in Minnesota?

Federal & State Law Editorial TeamLast reviewed: 2026-04-30

Minnesota minimum wage is governed by Minn. Stat. §§ 177.21-177.35.

1. Current State Rate (2025)

  • $11.13/hour for ALL employers as of January 1, 2025.
  • The 2023 "Workforce Development Acts" eliminated the prior split between large ($500K+ revenue) and small employers.
  • Annually indexed to CPI-W, capped at 2.5% per year (Minn. Stat. § 177.24, subd. 1(f)).

    • 2. No Tip Credit

    Minnesota is one of seven states with NO tip credit. Tipped employees must receive the full $11.13/hour cash wage in addition to tips (Minn. Stat. § 177.24, subd. 4). Tip pooling requires written consent of employees.

    3. Youth Wage

    Workers under age 18: $9.08/hour (90% of state minimum) — but only for first 90 days at small employers; otherwise full minimum.

    4. Training Wage

    Federal $4.25 youth wage applies to workers under 20 for first 90 days when small employer.

    5. Local Minimum Wages (2025)

  • Minneapolis: $15.97/hour (large employers, 100+); rate indexed annually. Tipped employees still receive full $15.97 (no tip credit). Effective July 1.
  • St. Paul:

    • - Macro (10,000+): $15.97 (Jan. 1, 2025)

    - Large (101-9,999): $15.97 (Jan. 1, 2025)

    - Small (6-100): $14.00

    - Micro (1-5): $13.25

    Phasing all to $15+ by 2027.

    Where local rate is higher, local applies.

    6. Overtime (Minn. Stat. § 177.25)

  • 1.5x after 48 hours/week under Minnesota state law.
  • BUT federal FLSA's 40-hour week standard usually applies to FLSA-covered employers (the lower threshold controls).
  • Hospital/nursing home employees may use 80 hours over 14 days (federal 8/80 rule).

    • 7. Exemptions (Minn. Stat. § 177.23, subd. 7)

  • Executive, administrative, professional (state thresholds + duties).
  • Outside salespersons.
  • Babysitters.
  • Volunteers.
  • Family members in family business.
  • Agricultural workers (limited).
  • Taxi drivers.
  • Police, fire, public safety.

    • 8. Earned Sick and Safe Time (ESST)

    Minn. Stat. § 181.9445 et seq., effective Jan. 1, 2024 — Minnesota workers accrue ESST at 1 hour per 30 worked, up to 48 hours/year.

    9. Enforcement

    Minnesota Department of Labor and Industry, Labor Standards Division. Private right of action under Minn. Stat. § 177.27 and § 181.171:

  • Unpaid wages + liquidated damages (equal amount).
  • Attorney's fees.
  • 3-year statute of limitations (2 years for non-willful).

    • This is legal information, not legal advice.

    When to Talk to a Lawyer
    • Your Minneapolis/St. Paul employer pays only the state minimum
    • Your employer takes a tip credit (illegal in MN)
    • You're denied Earned Sick and Safe Time
    Related Statutes & Laws
    • Minn. Stat. § 177.24
    • Minn. Stat. § 177.25
    • Minn. Stat. § 177.27
    • Minn. Stat. § 181.9445
    • Minneapolis Code § 40.390
    • St. Paul Leg. Code § 224

    This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.