The minimum wage in Minnesota is $11.41 an hour for all employers as of October 2026. It rises to $11.87 an hour on 1 January 2027, when the state's annual inflation adjustment takes effect, and no employer can take a tip credit against it.
I've taken this from the Minnesota Department of Labor and Industry and the U.S. Department of Labor's state tables, both read in October 2026. Minnesota has two quirks that matter to employers more than the rate itself: overtime starts at 48 hours, not 40, under state law, and Minneapolis and St. Paul set their own higher rates.
Minnesota rates for 2026 and 2027
| Rate | From 1 January 2026 | From 1 January 2027 |
|---|---|---|
| State minimum wage, all employers | $11.41 | $11.87 |
| 90-day training wage, workers under 20 | $9.31 | $9.68 |
The state rate applies to part-time and full-time hours alike, and to everyone however they're paid, whether hourly, salaried, by commission or by piece. Because Minnesota's rate is higher than the federal $7.25, employees covered by both laws must get the state rate.
How you pay doesn't change the floor
The state is clear that employees must be paid at least the current minimum wage rate no matter how they're paid. So a commission-only sales role, a piece-rate packing job or a salaried assistant on long hours all need checking. Divide the pay for the period by the hours worked. If the answer is below $11.41, the employer owes the difference, and from January 2027 the test is against $11.87.
The training wage, explained
Employers can pay workers under 20 the training wage for their first 90 days. After that, or once the worker turns 20, the full state rate applies. A couple of practical points:
- Note each young worker's start date and date of birth on day one.
- Pay at least $9.31 an hour during the first 90 days, or $9.68 once the 2027 rate applies.
- Move them to the full rate on day 91, or on their 20th birthday if that comes first.
- Update rates on 1 January, because both figures change each year.
- Keep the evidence, since the department can ask how you applied the training rate.
No tip credit in Minnesota
The Minnesota Department of Labor and Industry is direct about this: no employer may take a tip credit against minimum wages in Minnesota. A server must be paid at least the full minimum wage per hour, plus any tips they earn. That sets Minnesota apart from Wisconsin, Iowa and the Dakotas, where tipped cash wages can be far lower. If your staff share tips, my tip pooling guide covers the federal limits on pools.
Overtime: the 48-hour rule
Here's the insight most pages miss. The U.S. Department of Labor's state table lists Minnesota's premium pay threshold as 48 hours a week, not 40. That's the state law. Employers covered by the federal Fair Labor Standards Act still owe overtime after 40 hours, so in practice most Minnesota employers pay after 40. The 48-hour line only decides things for the smaller group of employers outside federal coverage. My overtime laws guide explains federal coverage.
Getting help from the state
The Minnesota Department of Labor and Industry publishes brochures and fact sheets on labor standards, guidance on the state's wage theft law, protections for transportation network company drivers, and the required workplace posters, which must be updated whenever Minnesota law changes. It also handles applications for subminimum wage permits for workers with a disability, and it published a Minnesota minimum wage report in December 2025. Its labor standards team is on 651-284-5075 or 800-342-5354.
Minneapolis and St. Paul
The state notes that both Minneapolis and St. Paul have their own minimum wage ordinances that may require a higher rate. If you employ anyone who works inside either city, check the city's own rate for that work rather than relying on the state figure.
This matters most for businesses based in the suburbs that send staff into the cities, such as cleaners, caterers, home care providers and tradespeople. The state rate covers the hours worked outside the city limits, but hours worked inside Minneapolis or St. Paul may fall under that city's ordinance. Keep timesheets that show where the work happened, not just how long it took, so you can prove the right rate was paid for each hour.
Minnesota's recent history
| Year (1 January) | Rate for large employers |
|---|---|
| 2020 | $10.00 |
| 2021 | $10.08 |
| 2022 | $10.33 |
| 2023 | $10.59 |
| 2024 | $10.85 |
| 2026 (as of October 2026) | $11.41 |
| 2027 (announced) | $11.87 |
The 2020 to 2024 figures are the U.S. Department of Labor's history table, which notes Minnesota used to set a lower rate for smaller enterprises. The 2026 and 2027 figures apply to all employers in the state, so the old large and small split no longer exists.
Want AI doing the heavy lifting in your marketing?
I build the systems that handle the boring 80 percent, so you get your week back. Done properly, with the human kept in.
Minnesota against its neighbours
| State | Minimum wage (as of October 2026) | Tipped cash wage |
|---|---|---|
| Minnesota | $11.41 | $11.41, no tip credit |
| South Dakota | $11.85 | $5.93 |
| Iowa | $7.25 | $4.35 |
| Wisconsin | $7.25 | $2.33 |
| North Dakota | $7.25 | $4.86 |
South Dakota's state rate is a little above Minnesota's for now, while Iowa, Wisconsin and North Dakota sit at the federal floor. For the rest of the country, see my federal minimum wage guide.
My verdict
Minnesota's headline figure looks modest next to the coasts, but no tip credit and city ordinances in Minneapolis and St. Paul make it a higher-cost state than the headline suggests. Budget for $11.87 from January 2027, use the training wage only for the first 90 days, and pay overtime after 40 hours if the federal law covers you.
Frequently asked questions
What is the minimum wage in Minnesota?
It's $11.41 an hour for all employers as of October 2026.
What will Minnesota's minimum wage be in 2027?
It rises to $11.87 an hour on 1 January 2027 after the annual inflation adjustment.
What is the training wage in Minnesota?
Workers under 20 can be paid $9.31 an hour for their first 90 days, rising to $9.68 in 2027.
Can Minnesota employers count tips toward minimum wage?
No. No employer may take a tip credit against minimum wages in Minnesota.
When is overtime due in Minnesota?
State law sets 48 hours a week, but employers covered by federal law owe overtime after 40 hours.
Do Minneapolis and St. Paul have a higher minimum wage?
Both cities have their own ordinances that may require a higher rate than the state's.
Does Minnesota's minimum wage apply to part-time workers?
Yes. The rate applies to all hours worked, whether part time or full time.
