Minnesota · Wages · Updated April 2026

Minnesota state minimum wage: $11.41/hr.

Minnesota's statewide minimum wage rose to $11.41/hr on January 1, 2026 — up from $11.13 in 2025, a 2.5% inflation adjustment. Unlike most other 2025 minimum wage states, Minnesota's $11.41 is meaningfully below the prevailing $15 floor that emerged across coastal states. The reason is structural: Minneapolis ($16.37) and St. Paul (tiered up to $16.37) carry the high-rate burden through local ordinances, leaving the state rate as the floor for non-metro work. The state law was simplified in 2024 to a single unified rate — the prior large-employer ($500K+ revenue) vs small-employer split was eliminated.

Standard Rate
$11.41
2025 Rate
$11.13
Authority
Minn. Stat. § 177.24
Active

State Minimum Wage Floor

Enforces $11.41/hr Minnesota state floor on every shift save outside Minneapolis and St. Paul boundaries. Auto-uplifts each January 1 when DLI announces the new CPI-adjusted rate by August 31 of the prior year.

Block save below $11.41
Annual January 1 CPI uplift surfaced
Route to higher Minneapolis or St. Paul rate when applicable
Always running

What those rules do as a Minnesota shift is created.

The hero card configuration: Block below state floor, Flag on annual uplift, Critical on city ordinance routing.

Block · on save below $11.41

When a manager attempts to save a Minnesota shift at a rate below $11.41, the save fails with the controlling rate identified. "Cannot save: rate is below the Minnesota minimum wage floor."

Flag · on January 1 annual uplift

DLI announces the new CPI rate by August 31 each year. Teambridge surfaces all Minnesota workers below the new floor and offers a batch uplift workflow effective January 1.

Critical · on city ordinance applicability

When the shift work address falls inside Minneapolis ($16.37) or St. Paul (tiered up to $16.37) boundaries — and the worker performs 2+ hours of work in either city in any 2-week period — the higher city rate controls. Teambridge resolves the controlling rate at shift creation.

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The rule, plainly stated

Single unified rate, annual CPI adjustment, city ordinances on top.

Minnesota's wage framework is structurally simpler than New Jersey's four-tier system but operationally complex due to the Minneapolis and St. Paul ordinances. Most workers run on the state rate; metro workers typically run on the higher city rate.

Minn. Stat. § 177.24 — MN Fair Labor Standards Act: Every employer shall pay each employee wages at a rate of at least the state minimum wage, currently $11.41 per hour effective January 1, 2026, with annual adjustments based on Consumer Price Index data calculated by the Minnesota Department of Labor and Industry.

Single unified rate as of 2024

Through January 1, 2024, Minnesota maintained a two-tier minimum wage based on employer size and revenue (large employers $10.85, small employers $8.85). The 2023 legislative session eliminated the split entirely — effective August 1, 2024 — and consolidated to a single unified rate. The simplification matters: multi-state operators no longer need to track Minnesota employer-size categories. Every Minnesota worker earns the same state floor.

Annual CPI adjustment

Minn. Stat. § 177.24 mandates an annual CPI-based adjustment to the state minimum wage. The Minnesota Department of Labor and Industry announces the new rate by August 31 each year, calculated from the CPI-U from the most recent August. New rate takes effect January 1. The CPI cap is 2.5% per year — meaning if inflation runs higher, the rate adjusts only by 2.5%.

On autopilot

Teambridge resolves the controlling minimum wage at shift creation.

The state, Minneapolis, and St. Paul rates create a three-jurisdiction framework. Per-shift, parcel-level routing is the only durable approach.

01 · Address-based jurisdiction routing

Shift address resolved against Minneapolis + St. Paul boundaries.

When a shift is saved, the work address is checked against Minneapolis and St. Paul city boundaries. The controlling minimum wage tier is set: state $11.41, Minneapolis $16.37, or St. Paul macro/large/small/micro tier.

02 · 2-hour-in-2-weeks coverage rule

Mobile workers tracked across jurisdictions.

Minneapolis and St. Paul ordinances cover workers who perform 2+ hours in the city in any 2-week period. Mobile workers (delivery drivers, service technicians, traveling sales) are tracked across jurisdictions for the rolling 2-week window.

03 · January 1 batch uplift

Annual CPI adjustment processed.

DLI announces the new rate by August 31. Teambridge surfaces all workers below the new floor and offers a batch uplift effective January 1.

04 · 90-day training wage tracking

Under-20 status + 90 consecutive days.

Workers under 20 in their first 90 consecutive days of employment may be paid $9.31. Day 91 or 20th birthday triggers automatic rate uplift to standard.

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FAQ

People also ask.

What is Minnesota's minimum wage in 2026?
$11.41/hr statewide effective January 1, 2026 — a 2.5% CPI increase from $11.13 in 2025. The single unified rate replaced the prior large/small employer split in 2024. Higher rates apply in Minneapolis ($16.37) and St. Paul (up to $16.37 with a $14.25 micro-employer tier).
When does the Minnesota minimum wage change?
January 1 each year. The MN Department of Labor and Industry announces the new CPI-adjusted rate by August 31 of the prior year. The annual increase is capped at 2.5% per year regardless of actual inflation.
Can Minnesota employers take a tip credit?
No. Minnesota prohibits tip credits entirely — one of seven no-tip-credit states (alongside California, Oregon, Washington, Nevada, Alaska, Montana). Tipped workers must receive the full applicable minimum wage in cash, with tips entirely on top.
Are there Minnesota cities with higher minimum wages?
Yes — Minneapolis and St. Paul. Minneapolis: $16.37 for all employer sizes. St. Paul: $16.37 for macro/large/small employers, $14.25 for micro employers (fewer than 6 employees). Both are CPI-indexed annually.
What's the Minnesota training wage?
$9.31/hr for workers under 20 during their first 90 consecutive days of employment. After 90 days OR the worker's 20th birthday (whichever is sooner), the standard $11.41 rate applies.
Did Minnesota eliminate the large/small employer wage split?
Yes — effective August 1, 2024. The prior two-tier system (large $500K+ revenue at $10.85, small under $500K at $8.85) was consolidated into a single unified rate. Multi-state operators no longer need to track MN employer-size categories.