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HOURLY WAGE INDEX

Let’s talk wages in Minnesota

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$10.85

What is the minimum wage in Minnesota?

The minimum wage in Minnesota is $10.85 per hour for large employers and $8.63 per hour for small employers. The Minnesota minimum wage refers to the legally mandated lowest hourly rate that employers must pay to their employees.

The Minnesota minimum wage is periodically reviewed and adjusted to account for inflation and economic factors, ensuring that workers receive fair compensation. To obtain the most accurate and up-to-date information about the current minimum wage rates in Minnesota, consult official government websites or labor departments, which can provide comprehensive details regarding the minimum wage regulations in the state.

$32.07

What is the average wage in Minnesota?

The average wage in Minnesota is about $32.07 per hour as of May 1, 2023. This is higher than the national average wage.

$33.06

What is the living wage in Minnesota?

Wages aren’t everything!

While pay is one of the main factors that hourly employees consider when choosing to join (or stay at) a company, it’s not the end all be all. Research shows that advancement opportunities, supportive management, and schedule flexibility are all incredibly important as well.

Want to learn more about this trend? We dive deep into the data behind which perks and benefits matter most to hourly workers. Check out our full conversation with expert Sara Wasserteil of Cara Collective.

A guide to hourly labor laws in Minnesota

Verified by Legal Counsel Brooke Davis

Standard Minimum Wage:
- Large employer ($500,000+): $10.85.
- Small employer: $8.85.
- Training wage: $8.85.
- Youth wage rate: $8.85. Minneapolis and St. Paul have higher minimum wages (MN.gov) (Minn. Stat. § 177.24) (MinneapolisMN.gov) (StPaul.gov).
Tipped Minimum Wage: Applicable standard minimum wage applies; no tip credits (MN.gov) (Minn. Stat. § 177.24).
Overtime: Paid at 1.5 times the regular rate for all hours worked over 48 hours, triggering federal overtime laws that become applicable over 40 hours (Minn. Stat. § 177.25) (29 US Code § 207).
Meal Breaks: Provide employees working 8+ consecutive hours enough time to eat a meal (Minn. Stat. § 177.254). Federal law allows unpaid, non-working, bona-fide meal breaks over 30 minutes; exceptions may apply (29 C.F.R. § 785.19) (DoL).
Rest Breaks: Provide employees working 4+ consecutive hours enough time to use the restroom every four hours (Minn. Stat. § 177.253). Breaks lasting 5–20 minutes must be paid (29 C.F.R. § 785.18).
Wage Deductions: Only those required by law or authorized in writing by the employee. Third-party deductions benefitting the employer may not reduce the wage below the applicable minimum (29 C.F.R. § 4.168) (29 US Code § 203) (Minn. Stat. § 181.79).

Final Paychecks: By the next regularly scheduled payday after the last day of employment. If the next payday is within five days, payment may be delayed until the next payday but must be paid within 20 days of the last day of employment (Minn. Stat. § 181.13).
Wage Payment Frequency: At least once every 31 days (Minn. Stat. § 181.01).
Paid Sick Leave: No state/federal law (DoL). Certain cities, including Minneapolis and St. Paul, have local ordinances requiring paid sick leave (MinneapolisMN.gov) (StPaul.gov).
Paid Family and Medical Leave: No state/federal paid leave. The FMLA provides up to 12 unpaid weeks in one year for eligible employees (FMLA). In 2026, Minnesota's Paid Family and Medical Leave program will provide up to 12 weeks of paid leave (MN.gov) (MN Paid Leave Comparison Chart).
Maximum Daily and Weekly Hours for Children Under 16: Minors under 14 may not work. No work during required school hours. No work between 9 p.m. and 7 a.m. Up to eight hours per day and 40 hours per week. No working in hazardous occupations (Minn. Stat. § 181A.09) (Minn. Stat. § 181A.04).
Maximum Daily and Weekly Hours for Children 16 and 17: No work during required school hours. No work for high school students between 11 p.m. and 5 a.m. before a school day, with limited exceptions extending the hours to 11:30 p.m. and 4:30 a.m. No working in hazardous occupations (Minn. Stat. § 181A.09) (Minn. Stat. § 181A.04).

Frequently asked questions

What is the difference between gross wages and net wages?

It's important to remember that the Hourly Wage Index data above reflects gross wages, or the amount of money an employee earns before accounting for payroll deductions like taxes, benefits, or wage garnishments. Due to variability in tax rates across locations, slightly lower gross wages in a certain location might result in higher take home pay, or vice versa.

What is a good hourly wage?

This question is a difficult one to answer, as a "good hourly wage" is highly subjective according to experience, work responsibilities, cost of living, and other factors. We recommend using Hourly Wage Index data as a starting point. Once you have established a baseline for certain positions, do further research into similar businesses in your area.

Lastly, consider surveying your employees. They're the best resource to help you know what is a good hourly wage, what competitive pay looks like in your location, and how competitive wages change in your industry over time.

Offering competitive pay is one of my top priorities—what other resources do you have that might help?

We know that getting applicants to pay attention to your business can be extremely challenging, and that offering competitive pay is a huge part of that. Wages aren’t everything, however! Applicant experience is another important factor that can help set you apart from your competition. A few examples include:

Short, easy to understand job descriptions
Mobile-friendliness
Quick communication
Streamlined interview stages

Resources

Learn more about hiring and
retaining the hourly workforce

GUIDE

4 secrets to increasing loyalty among today’s deskless workforce

Get the guide

HIRING HACKS

Get actionable tips in this series of quick videos

Watch now

GUIDE

Checking the box on hiring and retention

Download the packet

Resources

Become a hiring and onboarding expert.

GUIDE

Checking the box on hiring and retention

Download the packet

BLOG

5 Steps to build your convenience store brand

Read now

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Social media recruiting: Why your employees should help

Read now

We're here to help!

A Workstream hiring specialist can help you identify high impact ways to improve your applicant experience, and even help you determine what is a good hourly wage for your location and business.

Learn about wages in your city

Minneapolis Minimum Wage

Featured Reads

For our customers: Product roadmap sneak peek

Restaurant

Learn how to tackle the hardest aspects of paying restaurant workers from taxes and tip reporting to labor law compliance.

HOURLY WAGE INDEX

Let’s talk wages in Minnesota

What is the minimum wage in Minnesota?

What is the average wage in Minnesota?

What is the living wage in Minnesota?

Wages aren’t everything!

While pay is one of the main factors that hourly employees consider when choosing to join (or stay at) a company, it’s not the end all be all. Research shows that advancement opportunities, supportive management, and schedule flexibility are all incredibly important as well.

Want to learn more about this trend? We dive deep into the data behind which perks and benefits matter most to hourly workers. Check out our full conversation with expert Sara Wasserteil of Cara Collective.

A guide to hourly labor laws in Minnesota

Frequently asked questions

What is the difference between gross wages and net wages?

What is a good hourly wage?

Offering competitive pay is one of my top priorities—what other resources do you have that might help?

Resources

Learn more about hiring andretaining the hourly workforce

GUIDE

4 secrets to increasing loyalty among today’s deskless workforce

HIRING HACKS

Get actionable tips in this series of quick videos

GUIDE

Checking the box on hiring and retention

Resources

Become a hiring and onboarding expert.

GUIDE

Checking the box on hiring and retention

BLOG

5 Steps to build your convenience store brand

BLOG

Social media recruiting: Why your employees should help

We're here to help!

Learn about wages in your city

Learn more about hiring and
retaining the hourly workforce