Minnesota Minimum Wage and Local Authority Under 177.21

Minn. Stat. 177.21 to 177.35 establish state minimum wage rates with annual inflation adjustments. The legislature has not preempted local wage authority, and the Minnesota Supreme Court upheld Minneapolis's local minimum wage in Graco v. City of Minneapolis. Both Minneapolis and Saint Paul phase in $15 minimum wages by employer size. Employers must pay the higher of state or local rates for hours worked within those cities. Tip credit is generally not allowed under Minnesota law.

Failure to pay the applicable state or local minimum wage can result in back wages, liquidated damages, and civil penalties under chapter 177.