Minnesota Minimum Wage 2026: State, Minneapolis and St. Paul Rates and Sick Time Rules
Minnesota Minimum Wage 2026: State, Minneapolis and St. Paul Rates and Sick Time Rules
Minnesota minimum wage is not one number. The statewide rate for 2026 is $11.41 an hour, but Minneapolis and St. Paul set higher rates, and St. Paul's rate depends on how many employees your business has. Both cities also run their own sick and safe time ordinances on top of the state law. If you have employees in more than one jurisdiction, or you are about to hire your first one, you need the exact rate for each job and the sick time rules that apply to it.
This guide covers the minimum wage rates in effect now, the increases scheduled for January 1, 2027, the training wage for younger workers, and the earned sick and safe time rules for the state and both cities. Figures come from the Minnesota Department of Labor and Industry (DLI), the City of Minneapolis, and the St. Paul Human Rights and Equal Economic Opportunity (HREEO) rate table, as of October 23, 2026.
Minnesota minimum wage rates at a glance
Pay the higher of the state rate or the local rate that covers the job. The table below shows current rates and the scheduled changes.
| Jurisdiction | Rate in 2026 | Scheduled change |
|---|---|---|
| Minnesota (statewide) | $11.41 an hour | $11.87 an hour on January 1, 2027 |
| Minneapolis (all employer sizes) | $16.37 an hour | $17.02 an hour on January 1, 2027 |
| St. Paul, large employers (101 or more) | $16.37 an hour, from January 1, 2026 | Confirm with HREEO |
| St. Paul, small employers (6 to 100) | $16.37 an hour, from July 1, 2026 | Confirm with HREEO |
| St. Paul, micro employers (5 or fewer) | $14.25 an hour, from July 1, 2026 | $15.00 an hour on July 1, 2027 |
The statewide minimum wage
The Minnesota minimum wage is $11.41 an hour in 2026. According to DLI, it rises to $11.87 an hour on January 1, 2027. This is the floor for any Minnesota employee whose work is not covered by a higher city rate.
Minnesota also allows a training wage for workers under 20. In 2026 the training wage is $9.31 an hour, rising to $9.68 an hour in 2027. It applies during the first 90 days of employment. Confirm with DLI how the training wage applies to your workers before you use it. Paying it to a worker who does not qualify leaves you exposed to an underpayment claim, and the 90 day window is short enough that a payroll setup error can run for weeks before anyone notices.
Minneapolis minimum wage
Minneapolis sets one rate for every employer size: $16.37 an hour in 2026, rising to $17.02 an hour on January 1, 2027. Because the city rate is higher than the state rate, employees whose work is covered by the Minneapolis rate must be paid the Minneapolis rate, not the state rate.
Coverage questions are where most confusion starts. An employee who works part of the week inside city limits and part outside them, or a worker sent into Minneapolis by an out-of-town company, may fall under the city rate for some or all of their hours. Confirm these situations with the City of Minneapolis before you set pay.
St. Paul minimum wage by employer size
St. Paul is the only one of the three jurisdictions that uses employer size tiers. Your tier depends on your number of employees, and each tier has its own effective date.
- Large employers (101 or more employees): $16.37 an hour from January 1, 2026.
- Small employers (6 to 100 employees): $16.37 an hour from July 1, 2026.
- Micro employers (5 or fewer employees): $14.25 an hour from July 1, 2026, rising to $15.00 an hour on July 1, 2027.
Counting employees is where small businesses go wrong. Confirm with HREEO how headcount is measured, including part-time workers, owners, and staff who work outside the city, before you assign your business to a tier. The 2027 rates for large and small St. Paul employers are not settled in this guide, so confirm them with HREEO as well.
Which rate applies to each employee
The state rate is a floor. Where a city ordinance sets a higher rate and covers the work, the city rate applies. For a business with staff in more than one place, the rate generally depends on where each employee performs the work, not where your office sits. Keep a simple record of work location for every employee, especially for remote, delivery, and field staff, so you can show which rate you paid and why.
Here is how the numbers compare for a full-time employee who works 2,080 hours in a year (an illustrative figure):
- Statewide rate in 2026: $11.41 an hour, or about $23,733 a year.
- Minneapolis rate in 2026: $16.37 an hour, or about $34,050 a year.
The gap is large enough that a misclassified worker in Minneapolis creates a real back-pay liability, not a rounding error.
The 2027 increases and what they cost
Budget for the January 1, 2027 changes now. The statewide rate rises by 46 cents an hour, from $11.41 to $11.87. The Minneapolis rate rises by 65 cents an hour, from $16.37 to $17.02. For the same 2,080 hour full-time employee, the statewide increase adds about $957 a year, and the Minneapolis increase adds about $1,352 a year. The St. Paul micro employer rate rises by 75 cents an hour on July 1, 2027, from $14.25 to $15.00. The training wage rises by 37 cents an hour, from $9.31 to $9.68.
Earned sick and safe time: the state rules
Minnesota's earned sick and safe time law gives employees paid time off that they can use for illness, injury, and other covered needs. The state accrual rate is 1 hour of earned sick and safe time for every 30 hours worked, up to 48 hours a year. The accrual applies to employees who are expected to work 80 or more hours a year.
To see how the accrual works in practice, an employee who works 1,500 hours in a year earns 50 hours at the 1 hour per 30 rate, but the 48 hour annual cap limits the total to 48 hours. An employee who works 600 hours earns 20 hours.
DLI adopted new rules effective July 6, 2026. Before you set up your timekeeping or payroll system, read the current rules on the DLI website. Do not rely on older summaries, including ones that predate the July 2026 change.
Minneapolis and St. Paul sick and safe time ordinances
Both cities have their own sick and safe time ordinances. Both follow the state's basic terms, which means 1 hour for every 30 hours worked, up to 48 hours a year. Treat the state law as the baseline, not the whole picture. Each city has its own notice requirements, and local rules can differ on details such as carryover.
St. Paul amended its ordinance in January 2024. Under the amended ordinance, employees accrue 1 hour for every 30 hours worked, up to 48 hours a year, and unused time can carry over up to 80 hours. If you have St. Paul employees, use the St. Paul carryover cap for them rather than assuming the state default applies. Confirm the current state carryover treatment with DLI, since the state and city rules are separate.
Posting requirements
Post the required state notices in your workplace. If you have employees in Minneapolis or St. Paul, also post that city's sick and safe time poster. If you have employees in both cities, post both. Posters change when the ordinances change, so download the current version from the city's website each time you update your notices, rather than reusing last year's copy.
Common mistakes to avoid
- Paying the state rate in Minneapolis. The city rate is higher, and it applies to covered work.
- Guessing St. Paul headcount. Your tier sets your rate, so count employees using the rules HREEO confirms, not a rough estimate.
- Applying the training wage to everyone new. It applies only to workers under 20 during their first 90 days.
- Forgetting the 2027 dates. The state and Minneapolis change on January 1, 2027, and the St. Paul micro rate changes on July 1, 2027.
- Accruing sick time without a cap check. Stop accrual at 48 hours a year, and apply St. Paul's 80 hour carryover limit to St. Paul employees.
- Missing posters. Each applicable city poster is a separate requirement from the state notice.
Employer checklist for 2026 and 2027
- Record the work location for every employee: statewide, Minneapolis, or St. Paul.
- Pay the higher applicable rate for each employee's work.
- If you have St. Paul employees, assign each one to the correct employer size tier and confirm your headcount method with HREEO.
- Calendar the 2027 changes: January 1, 2027 for the state and Minneapolis, and July 1, 2027 for St. Paul micro employers. Confirm the 2027 rates for St. Paul large and small employers with HREEO.
- Set sick and safe time accrual at 1 hour per 30 hours worked, with the 48 hour annual cap, and apply St. Paul's 80 hour carryover limit where it applies.
- Post the state notice and each applicable city poster.
Where to confirm the numbers
Check these official sources before you set pay or update your notices:
- Minnesota Department of Labor and Industry for the state minimum wage, the training wage, and the sick and safe time rules.
- City of Minneapolis for the city minimum wage and its sick and safe time ordinance.
- City of Saint Paul for the HREEO rate table, employer size tiers, and the city sick and safe time ordinance.
This guide is informational only. It is not legal, tax, or employment advice. Wage and sick time rules change, and cities can amend their ordinances. Confirm current figures with the agencies listed above before you set pay. For complex situations, such as employees in several jurisdictions, disputes, or payroll setup, consult an employment attorney or a qualified CPA.