Increase in Minnesota Minimum Wage

At the height of busy season in early April,  the Legislature passed, and Governor Dayton signed, a bill to significantly increase the minimum wage paid in the state of Minnesota. As May tends to be a month of catching up on what we missed while we were clipping through tax returns, here is a brief summary of the law.

The minimum wage level is split based on the size of the business in question.

  • For businesses with gross sales over $500,000, the minimum wage increases to
    • $8.00 per hour in August, 2014
    • $9.00 per hour in August, 2015
    • $9.50 per hour in 2016
  • For business with gross sales under $500,000, the minimum wage increases to
    • $6.50 per hour in August, 2014
    • $7.25 in August, 2015
    • $7.75 in 2016

For both groups, the minimum wage will be tied to inflation starting January 1, 2018, unless the state determines the economy cannot support such an increase.

 

About the author

Brady is the owner of Ramsay & Associates. He specializes in financial statement preparation and personal, fiduciary and corporate tax and accounting.

His professional experience includes seven years' experience for local and national CPA firms before joining Ramsay & Associates in 2006.

He has a Bachelor of Accounting degree from the University of Minnesota Duluth. He is a Certified Public Accountant, a member of the Minnesota Society of CPA's, an Eagle Scout, as well as an active volunteer in the community.