On January 1, 2019, 20 states, including the state of Minnesota, are set to increase the minimum wage. Employers are required to pay employees at least the new minimum wage rate and post a notice in the workplace to inform employees of their right to receive the minimum wage. The Minnesota Department of Labor has released the 2019 Minnesota Minimum Wage Rates notice with plenty of time to spare for employers to comply by the new year.
What do employers need to know about the 2019 Minnesota minimum wage?
The state minimum wage for Minnesota previously underwent a series of scheduled increases which ended in August of 2016. From 2018 on, rates will rise in accordance with increases to inflation as measured by the implicit price deflator, which provides information on price changes to all goods and services which are included in the gross domestic product (GDP). This differentiates Minnesota from many other states with inflation-influenced minimum wages which tie their rates to changes in the Consumer Price Index (CPI), which measures price changes only to goods and services which are commonly consumed by households.
Between August 2017 and August 2018, the change in the U.S. GDP price deflator was an increase of 2.16%. As a result, on January 1, 2019, the Minnesota minimum wage for large employers will rise to $9.86 per hour. (A large employer is defined as any enterprise with an annual gross volume of sales made or business done of $500,000 or more.)
Small employers will be required to pay their employees a minimum wage of $8.04 per hour. The small employer minimum wage rate also applies to employees aged 17 or younger (youth wage), 18- or 19-year-old employees during the first 90 consecutive days of employment (training wage), and employees working under a J-1 Visa.
Employers are subject to the Act if they employ one or more covered employees. Most employees working in the state of Minnesota are covered by the Act, but there are some exemptions, such as specified agricultural and seasonal employees. Employees who work at least 2 hours within the municipal limits of Minnesota are also covered by the Minneapolis minimum wage ordinance.
Get the 2019 MINNESOTA MINIMUM WAGE RATES NOTICE now!
The Minnesota Department of Labor (MDOL) has revised the Minnesota Minimum Wage Rates notice to reflect the new wage rates and the effective date of January 1, 2019. The URL to view complete wage rate information which is provided on the notice has also been updated, as MDOL has recently reorganized its website. The revision date on the notice has been updated to October 2018.
Every employer subject to the Minnesota Fair Labor Standards Act must post the 2019 Minnesota Minimum Wage Rates notice in a conspicuous and accessible place in or about the premises where a covered employee is employed (Minnesota Statutes, Sec. 177.31).
If you already own one of Compliance Poster Company’s signature products, you can update with the 2019 Minnesota Minimum Wage Rates Notice Peel ‘N Post™ sticker for only $9.95. The cost-effective alternative to poster subscription services, Peel ‘N Post update stickers are quick and easy to use – simply peel off the backing and post the sticker over the outdated notice.
If you’re looking for a complete compliance solution, order a fully up-to-date 2019 Minnesota All-On-One™ Labor Law Poster, consolidating all state and federal required postings onto one convenient and attractive wall poster, or an Minnesota Mobile Poster Pak™ booklet for mobile and off-site workers or your HR reference desk. Minnesota products are available in English and Spanish.
January 1 minimum wage products begin shipping on December 3.
KEEP IN TOUCH WITH CPC!
To keep up with the latest in labor law news and posting compliance, follow us on Facebook, LinkedIn, or Twitter or subscribe to this blog! You can also contact us by phone, email, or chat to order one of CPC’s signature labor law compliance products or learn more about your company’s individualized posting obligations.
Please keep in mind that CPC cannot provide legal advice. If you have a question about how labor law applies to your specific workplace situation, please consult your local labor department or an employment lawyer.