- This change has passed.
Minnesota: The annual minimum wage increase goes into effect.
January 1, 2020
Beginning in August 2017, Minnesota minimum wage law requires the Department of Labor and Industry to conduct an annual review each August of its minimum wage and increase the minimum wage by the lesser of:
- 2.5 percent, or
- the percentage increase in the rate of inflation, as measured by the implicit price deflator, national data for personal consumption expenditures as determined by the United States Department of Commerce, Bureau of Economic Analysis in the 12-month period immediately preceding the August in which the review is conducted or during the most recent period for which the information is available.
Any change to the minimum wage takes effect on January 1 of the following year, with the first cost of living adjustment taking effect on January 1, 2018. In certain circumstances and prior to September 30 in a given year, the Minnesota Department of Labor and Industry may choose not to increase the minimum wage the following year. It may refuse to increase the minimum wage in a given year only if it finds, after consultation with the Department of Management and Budget, that the leading economic indicators indicate the potential for a substantial downturn in the state’s economy. It must also consider the ratio of the rate of the calculated change to the minimum wage to the rate of change in the state median income over the same period of time. Prior to implementing the decision not to increase the minimum wage, the Department of Labor and Industry must conduct a public hearing and allow for written comments prior to the hearing and for twenty (20) days after. The Department of Labor and Industry may make adjustments to the minimum wage in subsequent years to make up for the lack of an increase in prior years. MN Statute 177.24(1)(f)