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Minimum Wage Increase Affects All Minnesota Employers
By: Howard B. Tarkow
Minnesota's legally required minimum wage increases effective August 1, 2005. The new rate is higher than the federal minimum wage of $5.15 per hour. However, because employees are entitled to the higher of either the federal minimum wage or the minimum wage under any state law, Minnesota employers must comply with the new state rates.
Here are the new rates:
"Large employers," whose business is covered by the Minnesota Fair Labor Standards Act and whose annual gross revenue of sales made or business done is at least $625,000:
$6.15
"Small employers," whose business is covered by the Act but whose annual gross revenue of sales made or business done is less than $625,000:
$5.25
There were no changes to other laws that affect minimum wage payments, such as those pertaining to tipped employees, and lawful and unlawful deductions that affect the minimum wage.
If you would like more information on this or other employment law matters, please contact Howard Tarkow.
