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14

By Jeanne Mejeur

Minnesota Governor Mark Dayton signed a bill today that adopted increases to the state’s minimum wages. Yes, that’s right. Minimum wages, as in plural.

MoneyMinnesota is one of just a handful of states that have a dual minimum wage. The Legislature made adjustments to both of them with the passage of H. B 2091.

Four states, including Minnesota, have two levels of minimum wages based on a business’ annual gross sales receipts. In Minnesota, the state minimum wage was $6.15 an hour for “large employers,” those with an annual sales volume of more than $625,000. For “small employers,” those with annual sales of $625,000 or less, the minimum wage was $5.25 an hour.

The new law redefines large and small employers, raises the minimum wage for both over three years, and implements automatic annual increases tied to the cost of living beginning in 2018.

Effective Aug. 1, 2014, large employers will be defined as those with annual gross sales receipts of $500,000; small employers will be those with sales less than $500,000.

Minnesota’s minimum wages will increase to:

Large Employers

Small Employers

Effective

$8.00

$6.50

8-1-2014

$9.00

$7.25

8-1-2015

$9.50

$7.75

8-1-2016

 

The other three states with dual minimum wages based on sales volume are Montana, Ohio and Oklahoma. Nevada also has a dual minimum wage, based on whether or not health care benefits are provided. In Nevada, jobs without health care benefits must pay $8.25 an hour, while those providing health care benefits are subject to a $7.25 minimum wage.

Jeanne Mejeur tracks labor issues for NCSL.

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About the NCSL Blog

This blog offers updates on the National Conference of State Legislatures' research and training, the latest on federalism and the state legislative institution, and posts about state legislators and legislative staff. The blog is edited by NCSL staff and written primarily by NCSL's experts on public policy and the state legislative institution.

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