Starting January 1, 2027, Minnesota's minimum wage is $11.87 per hour for all employers in the state, up from $11.41. The 90-day training wage for workers under age 20 rises to $9.68. Minnesota does not allow a tip credit.
In This Guide
What changes on January 1, 2027
The Minnesota Department of Labor and Industry (DLI) says that, effective January 1, 2027, the state minimum wage will be adjusted for inflation to $11.87 an hour. That is $0.46 more than the 2026 rate of $11.41. The rate applies to all employers in the state. DLI lists the rates on its Minimum wage in Minnesota page.
| Provision | 2026 | 2027 |
|---|---|---|
| State minimum wage | $11.41 an hour | $11.87 an hour |
| 90-day training wage (under 20 years of age) | $9.31 an hour | $9.68 an hour |
Minnesota's rate is higher than the federal minimum. Employees covered by both laws must be paid the higher state rate. The rate applies to all hours worked, part time or full time, no matter how the employee is paid.
The 90-day training wage
Employers may pay workers under age 20 a training wage for their first 90 days. In 2027 that wage is $9.68 an hour, up from $9.31. After the 90 days, the employee moves to the full $11.87.
Track each employee's start date and birth date if you use the training wage. Payroll systems do not always end it on their own, and paying it past day 90 creates back wages.
No tip credit
No employer may take a tip credit against minimum wages in Minnesota. Tipped employees must be paid at least the minimum wage per hour, plus any tips they earn. In 2027 that means $11.87 an hour before tips.
Minneapolis and St. Paul
St. Paul and Minneapolis both have their own minimum wage ordinances that may require a higher rate of pay. If you have employees working in either city, check the city rules and pay the higher rate.
Who gets the raise
The minimum wage is a floor. An employee already paid more than $11.87 an hour does not have to get a raise. Hourly staff under that rate do, unless a specific exception covers them.
Pay plans that are not hourly need a look too. A non-exempt employee paid by salary, commission or piece rate must still receive at least the minimum wage for the hours worked. Check those employees against the new rate before January.
Pay periods that cross January 1
The new rate applies to hours worked on or after January 1, 2027. It does not depend on the pay date. If a pay period starts in December and ends in January, split the hours. Pay the December hours at the 2026 rate and the January hours at $11.87.
Paying the whole period at the new rate is also allowed, and it is simpler. Paying the January hours at the old rate is not.
Watch pay just above the minimum. When the floor moves to $11.87, a shift lead or a long-time employee may end up only a few cents ahead of a new hire. Keeping that gap is a business choice, not a legal one. It is easier to plan for in the fall than in January.
What to do before January 1
- Raise covered employees' hourly rates below $11.87 and every training wage below $9.68. Apply the new rates to hours worked on or after January 1, 2027.
- Review employees on the training wage and confirm each one is under 20 and within the first 90 days.
- Post the updated notice. DLI says workplace posters are required and must be updated when Minnesota law changes.
- Check salaried exempt staff. DLI's minimum wage page does not set a 2027 salary threshold. Confirm each exempt employee still meets the salary and duties tests.
- Budget for the raise, including overtime and employer payroll taxes.
For the rates in effect through December 31, 2026, see our Minnesota minimum wage 2026 guide. For withholding and filing rules, see the Minnesota payroll compliance guide.
Frequently Asked Questions
What is the Minnesota minimum wage in 2027?
Effective January 1, 2027, Minnesota's minimum wage is $11.87 per hour for all employers in the state, up from $11.41.
What is the Minnesota training wage in 2027?
The 90-day training wage for workers under age 20 is $9.68 per hour in 2027, up from $9.31.
Can Minnesota employers take a tip credit?
No. No employer may take a tip credit against minimum wages in Minnesota. Employees must be paid at least the minimum wage per hour, plus any tips.
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Legal & Tax Disclaimer
This article is for general informational purposes only and does not constitute legal, tax, or professional advice. Employment laws, tax regulations, and compliance requirements change frequently. The information on this page reflects our understanding as of October 2026 and may not reflect recent changes in federal or Minnesota state law.
Do not act or refrain from acting based solely on the information in this article. Always consult a qualified attorney, CPA, or HR professional familiar with Minnesota law before making payroll or compliance decisions for your business.