Things are looking up: new year, new minimum wage

January 2023 employment law letter

Authors:

David Richie, Felhaber Larson; Bonnie Boryca, Erickson|Sederstrom; and Emily Maurice, Goosmann Law Firm

A new year has started, and that means new minimum wage rates. New rates went into effect on January 1, 2023, in Minnesota, Nebraska, and South Dakota.

Minnesota

Every year, the Minnesota Department of Labor and Industry is tasked with determining the increased rate of inflation and adjusting minimum wage rates accordingly.

The new minimum wage rates are as follows:

Large employers (employers with annual gross revenues of $500,000 or more) have a new rate of $10.59 per hour;
Small employers (employers with annual gross revenues of less than $500,000) have a new rate of $8.63 per hour;
For 90-day training wages (employees who are under 20 years of age), the new rate is also $8.63 per hour; and
The new rate for employees who are under 18 years of age is also $8.63 per hour.

The cities of Minneapolis and St. Paul had their minimum wages increased on July 1, 2022.While many of these rates will stay the same until July 1, 2023, there are a couple of changes beginning January 1, 2023, that employers should be aware of.

In Minneapolis, the minimum wage for small businesses (100 employees or less) is $13.50 per hour. For large businesses (more than 100 employees), the rate increased from $15 to $15.19 per hour.

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