Posted April 7th, 2014 in Top Stories

Minnesota Employers Take Note: Minimum Wage Likely to Increase to $9.50

Lawmakers in Minnesota today announced a deal that will likely pave the way for an increase in the state’s minimum wage to $9.50 for many employers within a few years. The legislation is expected to move through both chambers this week and is all but certain to receive Governor Dayton’s signature. Under the deal, future minimum wage increases will be tied to inflation, although these raises could be withheld by the Commissioner of Labor and Industry due to poor economic conditions. Full details of the agreement will be known later this week.

The increase will make Minnesota’s minimum wage one of the nation’s highest, and Minnesota will also be fairly unique in tying increases to inflation. However, the fact that there is some discretion in deciding whether an increase is appropriate in light of economic conditions is a positive development for Minnesota employers, many of whom are still recovering from the Great Recession. Nilan Johnson Lewis labor and employment attorney Lisa Schmid is closely following this breaking news, and is available to comment on how employers should prepare for the upcoming changes.