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MAT Staff December 19, 2019

2020 Minimum Wage Increase and Employee Notice Requirements

Minnesota’s minimum-wage is increasing in 2020. Below are some details of the wage increase and the notices that must be given to employees to comply with wage theft laws.

Minimum wage increases:

The following will be Minnesota’s minimum-wage rates as of Jan. 1, 2020:

  • Large employers must pay at least $10 an hour when the employer’s annual gross revenues are $500,000 or more.
  • Small employers must pay at least $8.15 an hour when the employer’s annual gross revenues are less than $500,000.
  • The training wage rate, $8.15 an hour, may be paid to employees younger than 20 years of age for the first 90 consecutive days of employment.
  • The youth wage rate, $8.15 an hour, may be paid to employees younger than 18 years of age.

Minn. Stat. § 177.24 shows that employer size is dictated by annual gross revenue. To be classified as a large employer, annual gross revenue of the company must be $500,000 or more. To be classified as a small-employer, gross annual revenue of the company must be less than $500,000. For local governments, it is best to contact your town attorney to determine whether you are classified as a large employer or a small employer.

Also, there are certain local government employees who are exempt from these minimum-wage standards, these positions include:

  • Elected officials.
  • Individuals who serve on any governmental board, commission, committee, or other similar body.
  • City volunteers.
  • Any individual employed, directly or indirectly, by the city to provide police or fire protection services.
  • Those whose annual salary from one governmental subdivision never exceeds $5,100 stipulated in writing in advance.
  • Student interns, as defined in the law. Stat. § 353.01, subd. 2b (a) (9) (i).
  • Any individual under 18, working less than 20 hours per workweek for a municipality as part of a recreational program.

Because minimum-wage has increased employers are required to update the minimum-wage rates workplace poster. Minn. Stat. § 177.31. A copy of the poster can be printed or ordered at:

https://www.dli.mn.gov/about-department/workplace-posters?utm_medium=email&utm_source=govdelivery

 

Notice Requirements:

As of July 2019, Minn. Stat. § 177.30 requires that all employers must provide each employee with a written notice at the start of their employment and keep a signed copy of the notice on file. The notice must contain required information about an employee’s employment status and terms of employment. The notice must include a statement, in multiple languages, that informs employees they may request the notice be provided to them in another language. Employers may use the example notice or create their own.

A sample for the wage increase notice can be found at:

http://www.dli.mn.gov/business/employment-practices/employee-notice?utm_medium=email&utm_source=govdelivery

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