Higher minimum wages, new employer mandates and more are all taking effect this year in Minnesota. Here’s what you need to know.
Higher minimum wages: The Minnesota statewide minimum wage rose to $11.13 per hour on Jan. 1, which applies to virtually all workers because of a state law passed in 2024 eliminating a lower minimum wage for workers at small businesses, workers under 18 years old and workers on J-1 visas.
The new hourly minimum wage is a 2.6% increase from $10.85 for workers at large businesses and a nearly 26% increase from $8.85 for workers at small businesses. There is still a lower hourly minimum wage for workers under 20 and in training: $9.08. Minnesota is among 34 states and territories with hourly minimum wages higher than the federal rate of $7.25, which hasn’t been changed since 2009.
In the Twin Cities, minimum wages were also adjusted upward about 2.6% with inflation. In Minneapolis, workers at all businesses are entitled to at least $15.97 per hour. In St. Paul, large businesses must pay at least $15.57 per hour, small businesses at least $14 per hour and “micro” businesses — with five employees or fewer — at least $12.25 per hour.
Employers must post salary ranges: Companies with 30 or more employees in Minnesota must disclose a salary range for each job opening along with a general description of benefits and other compensation. Salary ranges may not be “open ended.” The point is to arm job seekers with more information so they can negotiate higher pay. Researchers at the Federal Reserve Bank of Minneapolis found disclosing pay ranges is on the rise even though few states require it.
Nursing home worker holiday pay: Nursing homes must pay workers time-and-a-half on the 11 state holidays including New Year’s Day, Juneteenth and Labor Day as part of new rules adopted by Minnesota’s new Nursing Home Workforce Standards Board. The board, which is made up equally of workers, nursing home leaders and lawmakers, also voted to raise the minimum wage for nursing home workers to $23.49 per hour on average by 2027. The first bump is scheduled to take effect next year (contingent on state funding). Two industry groups have sued in federal court to block the holiday pay rules from taking effect with a hearing scheduled later this month.
New insurance requirements for ride-hail companies: Uber, Lyft and other transportation network companies must carry insurance that covers drivers’ injuries up to $1 million including for the time immediately after a trip ends, as of Jan. 1.