Minnesota’s Minimum Wage Increase for 2026

Minnesota's minimum wage increased on January 1, 2026, as part of the state’s annual adjustment for inflation. Employers across the state should understand the updated rates, how city‑specific laws differ from statewide requirements, and what steps are needed to stay compliant.

Minimum Wage Changes

As of January 1, 2026, Minnesota increased its statewide minimum wage from $11.13 to $11.41 per hour. At the same time, the 90-day training wage for employees under 20 increased from $8.85 to $9.31 per hour.

These new statewide rates apply to all employees working in Minnesota except those working in Minneapolis or St. Paul, which have their own minimum wage ordinances with higher rates.

Additionally, there are a couple of statewide reminders for employers to remember:

  • Minnesota's new minimum wage law applies to all hours worked, including full-time, part-time, and seasonal employees.
  • This new minimum wage law applies to all employees regardless of pay structure, such as hourly, salary, or commission pay.
  • Employers also cannot count employees' tips towards meeting minimum wage requirements. Employees who earn tips must still receive at least the full minimum wage per hour, in addition to any tips they receive.

Minneapolis Minimum Wage Changes

Employers with employees working in Minneapolis are subject to a separate minimum wage ordinance. As of January 1, 2026, the Minneapolis minimum wage increased from $15.97 to $16.37 per hour. This new rate applies to all employers, regardless of their business size.

St. Paul Minimum Wage Changes

St. Paul's minimum wage changes vary by employer size and include changes in both January and July 2026.

As of January 1, 2026, for employers with at least 101 employees, the minimum wage increased from $15.97 to $16.37 per hour.

For smaller employers, additional increases are scheduled for July 1, 2026.

  • Employers with 6 to 100 employees will see their minimum wage increase from $15.00 to $16.37 per hour.
  • Employers with 5 or fewer employees will see their minimum wage increase from $13.25 to $14.25 per hour.

What Employers Must Do 

1. Update Minimum Wage Posters

All Minnesota employers must update their workplace minimum wage poster to reflect the 2026 rates. Posters must be displayed in a visible, accessible location for employees.

2. Provide Written Notice

Employers are required to provide employees with written notice of any changes to their pay rate before the new rate takes effect.

The Minnesota Department of Labor and Industry provides the required written notices and posters on its official website here. The written notices are at the top of the page, with the downloadable posters listed further down.

These 2026 updates reflect Minnesota’s annual inflation adjustments and help ensure employees are paid fairly based on the local cost of living. Employers should review their payroll, update required notices, and ensure compliance before the effective dates.

If you have questions about this blog, please contact your North Risk Partners advisor. Don’t have an advisor? No problem. We’ll help you find one.

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This blog was written in partnership with Wagner, Falconer, & Judd. Wagner, Falconer, & Judd (WFJ) is a firm with 70 employees based in the Midwest, serving clients across the country. With roots dating back to 1932, WFJ works with businesses of various sizes and industries. The firm specializes in human resources and employment law, commercial collections, civil litigation, and more. 

This provides general information and does not constitute legal advice.  

Posted in Regulatory Updates, Uncategorized