As Minnesota raises its minimum hourly wage to make up for inflation, according to a Monday announcement by the state’s Department of Labor, 200,000 of the state’s lowest-paid workers will see their wages increase by 1%.
As per the state’s updated minimum wage policies set to be in effect from Jan.1, 2021, onwards, large employers will have to pay a minimum of $10.08 per hour to each worker, an 8 cents an hour increase from previous amounts, while smaller employers, with annual gross revenue below $500,000, will have to pay each worker $8.21 an hour, a 6 cents increase, Star Tribune reported. (RELATED: Perdue Backs Trump $2,000 Direct Payment Proposal: ‘The Right Thing To Do For People In Georgia’)
Minnesota’s minimum wage will increase to adjust to inflation on Jan. 1, 2021, the state Department of Labor and Industry announced Monday. https://t.co/1vrrBcT1kP— FOX 9 (@FOX9) December 29, 2020
The new pay floors don’t apply to the state’s largest pool of workers, who are in Minneapolis and St. Paul: cities with higher minimum wage rates, according to Star Tribune.
In February 2020, an estimated 8.5% of Minnesota jobs paid the minimum wage or less, FOX 9 reported. This was before the COVID-19 pandemic significantly impacted the state’s economy, according to the outlet.
According to Minnesota’s Department Of Labor And Industry, when corrected for inflation, Minnesota’s present $10 minimum wage for large employers in 2020 is lesser than the average federal minimum wage between 1960-1980, which would, at today’s prices, be $10.6, KARE 11 reported.
However, with the new changes, a full-time employee making minimum wage will see their annual wages rise to $20,966, according to Star Tribune.
Minimum wages in Minnesota are above the federal minimum wage of $7.25 per hour. By the state’s law, employers within will have to comply with the state’s higher minimum wage requirement in addition to the federal minimum wage rate, KARE 11 reported.