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.


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About Brady Ramsay

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.