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Minnesota minimum wage to rise to $9.50 per hour

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in Employment Law,Human Resources

Taking a page from the Democratic Party’s midterm election playbook, Gov. Mark Dayton signed a bill raising the state minimum wage. The state’s current minimum wage of $6.15 per hour is below the federal rate of $7.25.

The bill will gradually increase the minimum wage for larger employers to $9.50 per hour by 2016. Minimum wages for smaller, FLSA-exempt employers will rise to $7.75 during the same period.

Businesses with annual sales below $500,000 are exempt from the federal Fair Labor Standards Act (FLSA), but not the state law. Larger businesses are subject to both state law and the FLSA.

Democrats tout the minimum-wage hike as an economic stimulus, while Republican critics claim the move will kill jobs.

Note: Employers should build minimum wage increases into their plans, including their salary structure and succession planning.

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