Minnesota Set to Raise Minimum Wage to $9.50

April 11, 2014

On Thursday, the Minnesota legislature passed a bill that would raise the state's minimum wage for hundreds of thousands of workers to $9.50 per hour by 2016. Under the law, which supporters expect Gov. Mark Dayton (D) to sign, businesses with gross sales of $500,000 or higher are required to raise their minimum wage to $8 per hour in August, $9 a year later and $9.50 by August 2016. Many smaller employers will be allowed to pay a lower rate, one that will reach $7.75 by 2016. Workers under 18 and 19- to 20-year-olds who are training still can be paid $7.25 per hour. From 2018 forward, the state's wage will be indexed to inflation.

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