HOURLY WAGE INDEX
Let’s talk wages in Minnesota
What is the minimum wage in Minnesota?
The minimum wage in Minnesota is $11.41 per hour for all employers. Minnesota does not allow a tip credit — tipped employees must be paid the full minimum wage. The rate is periodically adjusted for inflation; consult the Minnesota Department of Labor and Industry for current rates.
What is the average wage in Minnesota?
According to the U.S. Bureau of Labor Statistics, the average hourly wage in Minnesota is $28.04. Wages vary by occupation, industry, and location.
What is the living wage in Minnesota?
The estimated living wage in Minnesota is $23.31 per hour. A living wage represents the estimated hourly rate needed to cover basic living expenses, including housing, food, transportation, healthcare, and other essential costs.
A guide to hourly labor laws in Minnesota
● Standard Minimum Wage: $11.41 per hour (MN.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: Minnesota's Earned Sick and Safe Time (ESST) law (effective January 1, 2024) requires up to 48 hours of paid sick leave per year, accrued at 1 hour per 30 hours worked. 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
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