Minnesota minimum wage 2026
The minimum wage in Minnesota is $11.41 an hour in 2026, rising to $11.87 on January 1, 2027. Since January 1, 2025, Minnesota has one statewide rate for employers of every size, after a 2024 law ended the lower rate for small businesses, youth and J-1 visa hotel workers. The rate is adjusted each January for inflation, capped at 5%, and rises 3.99% to $11.87 on January 1, 2027.
Contents12 sections
At a glance
| Minimum wage now | $11.41 an hour, since January 1, 202613 |
|---|---|
| Next change | $11.87 on January 1, 2027 (announced)12 |
| Tipped employees | $11.41, the full minimum wage before tips14 |
| Overtime | 1.5 times the regular rate after 48 hours a week56 · details |
| Full-time pay | $456 a week, $23,733 a year at 40 hours a week before taxes · calculate for your hours |
| Enforced by | Minnesota Department of Labor and Industry, Labor Standards Division, 651-284-5075 |
What to know about the Minnesota minimum wage
Until the end of 2024, Minnesota had several minimum wages at once: large employers paid one rate, while small businesses with under $500,000 in revenue, workers under 18, trainees and J-1 visa workers at hotels and resorts could be paid less, $8.85 in 2024 against $10.85 for large employers.3 A 2024 law collapsed all of that into a single statewide rate from January 1, 2025, keeping only the 90-day training wage for employees under 20.4
The single rate is adjusted every January. By August 31 the Commissioner of Labor and Industry applies the change in the personal consumption expenditures price index, with the cap on any one year's increase raised from 2.5% to 5% by the 2024 law. For 2027 the adjustment is 3.99%, taking the rate from $11.41 to $11.87 and the training wage from $9.31 to $9.68.2 The rate applies to every hour worked, part time or full time, and Minnesota allows no tip credit, so servers and bartenders receive the full minimum before tips.1
Two Minnesota rules differ sharply from federal law. Overtime under state law begins after 48 hours a week, so the 40-hour federal rule matters for employers it covers.5 And Minneapolis and St. Paul set their own, much higher rates for work done within city limits. The Department of Labor and Industry's Labor Standards Division answers questions and takes complaints, and employers must post the state minimum wage poster.1
All 2026 rates
Employees under 20 may be paid a training wage, $9.31 in 2026, during their first 90 consecutive days on the job. Minneapolis and St. Paul set much higher rates for work done inside those cities. Minnesota does not allow a tip credit.
| Rate | Applies to | Per hour |
|---|---|---|
| All employers | All employers since January 1, 2025; before then, employers with $500,000 or more in annual revenue$11.87 from January 1, 202712 | $11.4113 |
| Training wage, under 20, first 90 days | For employees under 20 during their first 90 consecutive days of employment. Rises to $9.68 on January 1, 2027. | $9.3114 |
Tipped employees
| Tip credit | Not allowed: tips are on top of the full minimum wage |
|---|---|
| Minimum cash wage | $11.41 an hour14 |
Tips do not count toward the minimum wage, so tipped workers get the full rate plus their tips. Employers cannot require tip sharing, though employees may pool voluntarily, and tips paid by card must reach the employee by the next scheduled payday.
Overtime and salaried staff
| Weekly overtime | After 48 hours in a workweek, at 1.5 times the regular rate56 |
|---|---|
| Daily overtime | None in state law |
| Exempt salary | The federal level, $684 a week ($35,568 a year) |
Time and a half after 48 hours a week (Minn. Stat. 177.25). Employers covered by the federal FLSA must still pay federal overtime after 40 hours.
Overtime at the minimum wage of $11.41 is $17.115 an hour. Salaried managers, administrators and professionals are exempt from overtime only if they meet the duties tests and are paid at least the exempt salary. See overtime rules in every state or calculate pay with overtime.
How the rate changes
By August 31 each year the Commissioner of Labor and Industry sets the increase for the next January 1, based on the personal consumption expenditures price index and capped at 5%. The rate never decreases (Minn. Stat. 177.24).
The Minnesota Department of Labor and Industry announced the 3.99% adjustment on August 19, 2026; the training wage rises to $9.68 the same day.
Indexed to inflation: yes. Adjusted each January 1 by the PCE price index, set by August 31; increases capped at 5%.46
Rate history
| Effective | Status | Per hour |
|---|---|---|
| January 1, 2027 | Announced Inflation adjustment, 3.99% | $11.8712 |
| January 1, 2026 | In effect now | $11.4113 |
| January 1, 2025 | Single rate for all employers | $11.133 |
| January 1, 2024 | $10.853 | |
| January 1, 2023 | $10.593 | |
| January 1, 2022 | $10.333 |
Who is covered
The Minnesota Fair Labor Standards Act (Minn. Stat. 177.21 to 177.35) covers employers of every size. Exemptions, including some agricultural work and executive, administrative and professional employees, are listed in Minn. Stat. 177.23, subdivision 7. Work performed in Minneapolis or St. Paul is owed the higher city rate.
- Before 2025, employers with less than $500,000 in annual revenue paid a lower rate, $8.85 in 2024.
- Under state law, overtime is due after 48 hours in a workweek; employers covered by federal law pay overtime after 40 hours.
- Employers must give written notice before a pay rate changes and display the state minimum wage poster.
- Employers may not displace other workers in order to hire at the training wage.
Local rates in Minnesota
No Minnesota statute bars local minimum wages. Minneapolis and St. Paul have their own ordinances, and employees covered by both must be paid the higher rate.
Places with their own rate
- Minneapolis$16.37
- Saint Paul$16.37
Each local page lists that place's tiers, next change and who is covered.
Largest cities in Minnesota
- MinneapolisLocal $16.37
Cities of Minnesota among the 50 most populous in the US (U.S. Census Bureau, Vintage 2025 estimates for July 1, 2025). “Local” marks a city with its own minimum wage, “Regional” a state wage region, and “Federal rate” a city where the federal $7.25 is the rate that applies.
Neighboring states
If you live near a state line, the rate that applies is the one where you do the work, not where you live or where the employer is based.
| State | Per hour now |
|---|---|
| South Dakota | $11.85 |
| Iowa | $7.25 |
| North Dakota | $7.25 |
| Wisconsin | $7.25 |
Compare every state on the ranked list and map.
Get help or file a claim
If you are paid less than the minimum wage that applies to your job, you can file a wage claim with the agency below. Federal law prohibits firing or otherwise retaliating against a worker for complaining about federal minimum wage rights.
| Agency | Minnesota Department of Labor and Industry, Labor Standards Division |
|---|---|
| Phone | 651-284-5075 |
| The law | Minn. Stat. 177.24 (minimum wages, gratuities); Minn. Stat. 177.23 (definitions and exemptions); Minn. Stat. 177.25 (overtime after 48 hours) |
| Federal | U.S. Department of Labor, Wage and Hour Division, 1-866-487-9243 |
Sources
- 1 Minnesota Department of Labor and Industry, Minimum wage in Minnesota Checked Oct 9, 2026 · Back to text ↑
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- 4 Minnesota Office of the Revisor of Statutes, Minn. Stat. 177.24 Checked Oct 9, 2026 · Back to text ↑
- 5 Minnesota Office of the Revisor of Statutes, Minn. Stat. 177.25 Checked Oct 9, 2026 · Back to text ↑
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