Statewide minimum wage in Minnesota set to go up Jan. 1

Minnesota's minimum-wage workers will get a raise starting Jan. 1, state officials announced Thursday.

An adjustment for inflation will raise the statewide minimum wage from $9.65 to $9.86 an hour for workers at companies with annual gross revenue of $500,000 or more. Employees at smaller companies will see the minimum wage go from $7.87 to $8.04 an hour.

The youth wage rate — for those younger than 18 — also will go up to $8.04 an hour, as will the training wage that may be paid to employees under age 20 for the first 90 consecutive days of employment.

About 219,000 people — or 8.4 percent of the state's workforce — are paid minimum wage. That doesn't include about 71,000 workers in Minneapolis, where the minimum is $10.25 for companies with fewer than 100 workers and $11.25 for companies with more than 100 workers.

The minimum wage in Minneapolis will increase to $15 an hour by 2022 for large companies and by 2024 for small ones. St. Paul officials have pledged to pass a $15 minimum soon.

"This is great news for Minnesota's lowest-wage workers and will help them keep up with inflation to better provide for themselves and their families," said Ken Peterson, commissioner of the state Department of Labor and Industry. "But more needs to be done so all Minnesotans can earn their way to economic security."

The wage increase was applauded by 15 Now Minnesota, a group that advocates for higher wages.

"We celebrate the wage increase that hardworking families are getting as a result of movement building and struggle by Minnesota workers," said Celeste Robinson, the group's co-director. "But the reality is that the number is still poverty wages. ... We look forward to continuing the tradition of Minnesota workers struggling for our rights and dignity for a $15 minimum wage."

Minnesota Chamber of Commerce president Doug Loon said the chamber will continue to oppose an automatic inflator. "No wage or tax should be on autopilot; rather, wage policy should require legislative debate and a vote," he said. "Furthermore, we oppose a city-by-city patchwork of minimum wages."

John Reinan • 612-673-7402