Minnesota Minimum Wage Increase Is Now In Governor's Hands

House and Senate negotiators reached agreement on May, 8 that would increase the minimum wage for Minnesota’s lowest-paid workers.

Under the plan, for large employers (enterprise with annual receipts of $625,000 or more), the minimum wage would increase from $6.15 an hour to $6.75 per hour on July 24, 2008, and would increase again to $7.75 per hour in July of 2009. For smaller employers (enterprise with annual receipts of less than $625,000), the minimum wage would increase from $5.25 to $5.75 per hour on July 24, and up to $6.75 per hour in 2009.

“Without an increase in the minimum wage, many of our lowest-paid workers will soon find themselves unable to afford their basic necessities. I believe that this agreement takes a major step in the right direction, and will help thousands of our state’s residents cope with the challenges presented by our current economic downturn,” said Sen. Ellen Anderson, DFL-St. Paul, who carried the measure in the Senate.

The House and Senate agreement also increases the state’s training wage from $4.90 to $5.35 per hour in July, and increase to $5.75 per hour in 2009, while reducing the maximum age to receive a training wage down to 17.

Minnesota’s current minimum wage of $6.15 per hour for large employers has fallen below many Midwestern neighbors, including Iowa ($7.25), Illinois ($6.50, increasing to $7.50 in July), Wisconsin ($6.50), and Michigan ($7.15, increasing to $7.40 in July).

The state’s current minimum wage also ranks lowest among the 31 states that have enacted minimum wages above the federal minimum.