Minnesota's minimum wage will rise to $9.50 per hour for large employers on Monday, August 1. A "large employer" has annual gross sales or business done in Minnesota of more than $500,000. Small employers are not off the hook, since the effective minimum wage for their employees will rise to $7.75 per hour. Minnesota also provides for training wage rates and youth wage rates which will also be set at $7.75 per hour.
Food preparation and serving occupations have the highest proportion of minimum wage workers in Minnesota. Minnesota does not recognize "tip credits" toward satisfaction of minimum wage requirements. More than half of workers paid minimum wage or less are 15-24 years of age. Part-time workers and those without a high school diploma are more likely to be paid minimum wage. (Statistics from Minnesota Department of Labor and Industry, Minimum Wage Report, 2015.)
Certain workers, such as babysitters and volunteers for non-profit organizations, are exempt from minimum wage requirements, as are workers who are otherwise exempt from coverage under the law, such as certain "white collar" workers.
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