Minnesota Minimum Wage in 2026: State and Local Rules

This article is provided for educational and informational purposes only. It does not constitute legal, financial, or tax advice, and no attorney-client relationship is formed by reading it. Laws, regulations, official guidance, and related information vary by jurisdiction, change frequently, and may have changed or become outdated since publication. Always verify current information with authoritative sources and consult a qualified professional about your specific circumstances. The author and publisher assume no liability for actions taken based on this information.

The Minnesota minimum wage is an inflation-adjusted state wage floor. Beginning January 1, 2026, it is $11.41 per hour for employees covered by Minnesota law. That number is the starting point, not always the final answer: federal coverage, local ordinances, a narrow youth training rate, occupation-specific standards, and the legal meaning of hours worked can change the applicable calculation.

Minnesota uses one statewide employer rate

Minnesota Statutes section 177.24 requires every employer covered by the Minnesota Fair Labor Standards Act to pay at least the statutory rate. The large-employer and small-employer distinction that once appeared in the law was removed, and the Department of Labor and Industry now publishes one statewide rate for all employers.

The commissioner adjusts the rate each year using the inflation formula in section 177.24. The increase is limited to the lesser of five percent or the measured inflation percentage, rounded to the nearest cent, and the rate cannot be reduced through that adjustment. A newly determined rate takes effect on January 1.

For 2026, that calculation produced an $11.41 hourly rate. The amount applies to hours worked whether employment is full time or part time and regardless of whether pay is described as a salary, commission, piece rate, or hourly wage.

The youth training wage is limited

An employer may pay $9.31 per hour during the first 90 consecutive days of employment to an employee under age 20 in 2026. The 90 days run consecutively rather than counting only scheduled workdays.

Minnesota law also prohibits displacement to use the training rate. Displacement includes a partial displacement through reduced hours, wages, or employment benefits. Once the employee turns 20 or the 90-day period ends, the ordinary applicable rate replaces the training rate.

Tips are paid on top of Minnesota minimum wage

Minnesota is a no-tip-credit state. Section 177.24 prohibits an employer from directly or indirectly applying gratuities toward the minimum wage required by state or federal law. A covered tipped employee therefore receives at least the applicable cash minimum wage in addition to tips.

This differs from the federal FLSA, which permits a limited tip credit when detailed conditions are met. The broader federal minimum wage guide explains that federal layer. Minnesota’s more protective no-tip-credit rule controls when Minnesota law covers the work.

Federal, state, and local wage floors can overlap

The federal minimum wage remains $7.25 per hour for covered, nonexempt employees. Where both federal and Minnesota laws apply, the higher applicable protection governs, which ordinarily makes the Minnesota rate the operative floor.

Local ordinances can create an additional layer for work performed within city boundaries. They are not statewide rates and should not be generalized to work elsewhere in Minnesota.

Minneapolis minimum wage

Minneapolis set a $16.37 hourly minimum for 2026. The city describes coverage as depending on the employee’s physical location while performing work in Minneapolis, regardless of employer size or employee age.

Saint Paul minimum wage

Saint Paul’s 2026 schedule varies by employer size. Macro and large employers have a $16.37 rate beginning January 1, 2026; small employers reach $16.37 on July 1, 2026; and micro employers have a $14.25 rate beginning July 1, 2026. The city publishes separate rules for youth workers and approved youth training or apprenticeship programs.

These city rules illustrate why “minimum wage in Minnesota” can produce more than one correct number. The location of the work, the effective date, employer classification, employee coverage, and any valid special rule all matter.

Coverage depends on Minnesota statutory definitions

Minnesota’s wage law broadly defines an employee as an individual employed by an employer, but it lists exclusions. The exclusions include certain agricultural workers, specified volunteers, elected officials, and other categories whose precise statutory conditions matter.

A label does not necessarily resolve status. Minnesota’s definition of “employ” includes permitting or suffering another person to work, and the statute defines an employer to include a person acting directly or indirectly in the interest of an employer in relation to an employee.

Specific occupations can also have higher wage standards. Minnesota administrative rules, for example, establish separate 2026 minimums for certain nursing-home occupations. Those occupation-specific standards do not replace the general statewide rate for unrelated work.

Hours and pay method shape the calculation

Minimum wage applies to compensable hours, not merely scheduled hours. Work an employer permits or allows can count even when performed before or after a scheduled shift, while the treatment of waiting, training, travel, or on-call time depends on the governing legal standards and facts.

A salary does not automatically make an employee exempt from minimum wage or overtime. Exemptions have specific duties and compensation requirements, and nonexempt salary pay must still cover compensable hours at no less than the applicable floor.

Commission and piece-rate arrangements also must produce at least the required minimum for covered hours. Minnesota requires employers to keep records including employees’ names, addresses, occupations, pay rates, amounts paid each pay period, and hours worked each day and workweek.

Minimum wage and overtime are separate rules

Minnesota generally requires overtime at one-and-one-half times the employee’s regular rate after 48 hours in a workweek. Federal law generally uses a 40-hour threshold for covered, nonexempt employees. When both apply, the overlapping rules must be evaluated separately rather than treating the state minimum wage as an overtime rate.

Some employees and industries fall under exemptions or specialized rules. A conclusion about minimum wage does not, by itself, establish whether overtime is due.

Pay records and notices make the rate visible

Minnesota law requires employers to provide specified written information about employment terms and earnings. The required earnings statement includes items such as the pay rate, total hours worked unless an exemption applies, gross pay, deductions, net pay, pay-period dates, and the employer’s identifying information.

Employers covered by the Minnesota Fair Labor Standards Act also must preserve required wage-and-hour records for at least three years. These records connect the stated pay arrangement to the hours and compensation used in a minimum-wage calculation.

Questions about Minnesota minimum wage

Is the Minnesota minimum wage $11.41 everywhere in the state?

It is the general statewide rate for 2026, but Minneapolis and Saint Paul can require higher local rates, and certain occupations can have specialized standards. Coverage and a valid youth training rate can also change the applicable number.

Can tips make up part of Minnesota’s $11.41 minimum?

No. Minnesota prohibits a tip credit, so gratuities are not counted toward the required state minimum wage.

Does a small Minnesota business pay a lower state rate?

No. Minnesota now publishes one state minimum-wage rate for all employers. A local ordinance may still classify employers by size, as Saint Paul does.

Is Minnesota overtime due after 40 or 48 hours?

Minnesota’s state threshold is generally 48 hours, while the federal FLSA generally uses 40 hours for covered, nonexempt employees. The governing coverage and exemptions determine which rule or combination of rules applies.

Sources

• Minnesota Statutes § 177.24 — payment of minimum wages
• Minnesota Statutes § 177.23 — wage-law definitions
• Minnesota Department of Labor and Industry minimum-wage guidance
• Minnesota Statutes § 177.25 — state overtime rule
• Minnesota Statutes § 181.032 — wage notices and earnings statements
• City of Minneapolis minimum-wage information
• City of Saint Paul minimum-wage rates
• U.S. Department of Labor federal minimum-wage overview
• Minnesota Statutes § 177.30 — employer records
• 29 U.S.C. § 206 — federal minimum wage