What is the minimum wage in Minnesota in 2026?

Minnesota's minimum wage is $11.41 per hour, effective January 1, 2026 through December 31, 2026, under the Minnesota Fair Labor Standards Act (Minn. Stat. §177.24). The rate is CPI-adjusted annually, with a cap of 5% or CPI (whichever is less), and cannot decrease.

Does Minnesota have different minimum wages for large and small employers?

No. Effective January 1, 2025, Minnesota eliminated the employer-size distinction. The $11.41 statewide rate for 2026 applies to all employers regardless of size. Previously, large employers (annual gross revenue above $625,000) paid a higher rate, but that distinction was removed.

Does Minnesota have a state overtime threshold different from the federal 40-hour rule?

Most Minnesota workers are covered by the federal FLSA and receive overtime after 40 hours per week under federal law. Minnesota also has a state overtime threshold of 48 hours per workweek under Minn. Stat. §177.25, but this applies only to employers not covered by the FLSA (annual gross sales below $500,000, not hospitals/schools/government). The 48-hour state threshold is the exception — the 40-hour federal rule governs most Minnesota workers.

When does Minnesota's minimum wage update next?

Minnesota adjusts its minimum wage every January 1 using the Consumer Price Index (CPI), capped at 5% or CPI, whichever is less. The rate cannot decrease. The current 2026 rate of $11.41/hr is valid through December 31, 2026; the 2027 rate will be announced by the Department of Labor and Industry (DLI) by fall 2026.

Do Minneapolis and Saint Paul have higher minimum wages?

Yes. Minneapolis and Saint Paul have adopted local minimum wage ordinances that exceed the state floor of $11.41/hr. Workers in those cities should verify the applicable local rate with the City of Minneapolis or City of Saint Paul, as local rates are updated separately from the state minimum.

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Minnesota minimum wage

Minnesota Minimum Wage — Current Rate, CPI Indexing, and Local Rates

Minnesota's minimum wage is $11.41 per hour, effective January 1, 2026, under the Minnesota Fair Labor Standards Act. The employer-size distinction was eliminated on January 1, 2025 — one rate now applies to all employers. Minneapolis and Saint Paul set higher local minimums.

Minnesota's minimum wage is $11.41 per hour, effective January 1, 2026 through December 31, 2026, under Minn. Stat. §177.24.— Minnesota Department of Labor and Industry (DLI) — Minimum Wage

Note on overtime: Most Minnesota workers are covered by the federal FLSA and receive overtime after 40 hours per week. Minnesota's state overtime threshold of 48 hours per week (Minn. Stat. §177.25) applies only to non-FLSA employers — see the overtime section below.

Current Minnesota minimum wage

Jurisdiction	Rate (2026)	Notes
Minnesota statewide (all employers)	$11.41/hr	Effective January 1, 2026 through December 31, 2026
Minneapolis	Higher local rate*	Verify with City of Minneapolis
Saint Paul	Higher local rate*	Verify with City of Saint Paul

*Minneapolis and Saint Paul local minimum wages are updated independently from the state. Verify current local rates at the respective city's official website before applying to payroll.

Employer-size distinction eliminated (January 1, 2025)

Prior to January 1, 2025, Minnesota had separate minimum wage rates for large employers (annual gross sales above $625,000) and small employers. Effective January 1, 2025, Minnesota eliminated this distinction. The $11.41/hr rate applies to all covered employers regardless of size.

CPI indexing mechanism

Minnesota's minimum wage is adjusted each January 1 by the Consumer Price Index (CPI). The increase is capped at the lesser of 5% or the CPI increase for the prior year. The rate cannot decrease even if the CPI falls. The Minnesota Department of Labor and Industry (DLI) announces the updated rate before January 1 of each year. The rollover date is January 1 annually (CPI-adjusted; lesser of 5% or CPI; rate cannot decrease).

Minnesota's state overtime threshold — important context

Minnesota sets its state overtime threshold at 48 hours per workweek under Minn. Stat. §177.25. However, this threshold applies only to employers the FLSA does not cover. Most Minnesota workers — those employed by businesses with annual gross sales above $500,000, hospitals, nursing homes, schools, and government agencies — are FLSA-covered and are owed overtime after 40 hours per week under federal law. The 48-hour state threshold is narrower and applies to fewer employers than the headline might suggest. Any mention of overtime for a Minnesota worker should lead with the 40-hour federal rule.

Worked examples

Example 1: full-time week at Minnesota minimum wage

hours worked = 40 hourly rate = $11.41gross wages = 40 × $11.41 = $$456.40

Example 2: part-time week

hours worked = 25 hourly rate = $11.41gross wages = 25 × $11.41 = $$285.25

What this does not determine

Whether a Minneapolis or Saint Paul local ordinance sets a higher rate for a specific employer.
Whether the FLSA 40-hour or the Minnesota 48-hour overtime threshold applies to a specific employer — requires analysis of FLSA coverage.
The 90-day training wage for workers under 20 ($9.31/hr candidate rate, not independently verified — do not use without confirming from DLI).
No-tip-credit rule: Minnesota has no tip credit — tipped workers must receive the full $11.41/hr directly from their employer.

Minnesota statute and enforcement

Minnesota's minimum wage is codified in Minn. Stat. §177.24 (Minnesota Fair Labor Standards Act). The Minnesota Department of Labor and Industry (DLI) enforces wage and hour laws. Employees who have not received the minimum wage may file a complaint with DLI at dli.mn.gov/minwage.

Minnesota vs. neighboring Iowa

Minnesota's 2026 minimum wage of $11.41/hr is significantly above neighboring Iowa, which has remained at the federal FLSA floor of $7.25/hr since 2008 (Iowa Code § 91D.1). Iowa additionally preempts local minimum wage ordinances under SF 2197 (2017). The $4.16/hr gap between the two neighboring states illustrates the range of minimum wage policy in the upper Midwest.

Sources and verification

The rate, effective date, and through date were verified from the Minnesota Department of Labor and Industry minimum wage page (dli.mn.gov). The statute reference is Minn. Stat. §177.24. The overtime threshold and federal-rule primacy are confirmed from dli.mn.gov/overtime. This page is reviewed each January when Minnesota's rate adjusts. See the site's methodology for how rates are verified before publication.

Common questions

What is Minnesota's minimum wage in 2026?

Minnesota's minimum wage is $11.41 per hour for all employers, effective January 1, 2026 through December 31, 2026, under Minn. Stat. §177.24. The employer-size distinction was eliminated effective January 1, 2025. The rate adjusts annually by CPI on January 1.

Does Minnesota have a tip credit?

No. Minnesota has no tip credit. Employers must pay tipped workers the full $11.41/hr (2026) minimum wage as a direct cash wage, regardless of tips received. Tips are in addition to the minimum wage, not a substitute for it. This makes Minnesota one of a small number of states without a tip credit mechanism.

What is Minnesota's overtime threshold — 40 hours or 48 hours?

The answer depends on which law covers the employer. Most Minnesota workers are covered by the federal FLSA and receive overtime after 40 hours per week. Minnesota's own state law (Minn. Stat. §177.25) sets a 48-hour threshold, but this applies only to non-FLSA employers — a smaller group. FLSA-covered employers include businesses with gross sales above $500,000, hospitals, schools, and government entities.

When does Minnesota's minimum wage change next?

Minnesota adjusts its minimum wage on January 1 each year using the Consumer Price Index, capped at 5% or CPI (whichever is less). The current 2026 rate of $11.41/hr is effective through December 31, 2026. The Minnesota Department of Labor and Industry will announce the 2027 rate before the end of 2026.

Are Minneapolis and Saint Paul minimum wages higher than the state rate?

Yes. Both Minneapolis and Saint Paul have adopted local minimum wage ordinances that exceed Minnesota's statewide $11.41/hr rate as of 2026. These local rates are set and updated independently by each city. Workers and employers in those cities should check the official city websites for the current applicable local minimum wage before applying any rate to payroll.