Lowest Wage Workers In Minnesota Will Get A Raise Of 6 Cents An Hour

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Andrew Jose Contributor
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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’)

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.