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MINNEAPOLIMEDIA NEWS | Minneapolis Minimum Wage Will Rise to $17.02 on January 1
The 65-cent increase applies to covered work performed within city limits, including qualifying employees of businesses headquartered elsewhere.
MINNEAPOLIS, MN (October 25, 2026). Minneapolis’ minimum wage will increase from $16.37 to $17.02 an hour on January 1, 2027, giving workers and employers a defined rate to use as they prepare next year’s payrolls and household budgets.
The increase is 65 cents an hour, approximately 3.97 percent. For an employee working 40 hours a week at the minimum rate, that equals an additional $26 in weekly gross pay, before taxes and other deductions.
Those figures are calculations from the city’s published rates, not estimates of take-home income. Actual earnings depend on hours worked and employment circumstances.
Work location determines coverage
The city’s guidance emphasizes where an employee performs the work.
An employer based outside Minneapolis can still be required to pay the city rate for qualifying work inside Minneapolis. The city generally applies the ordinance when an employee performs at least two hours of work within city limits during a calendar week.
Part-time, temporary and seasonal employment can fall within that coverage. A business address outside the city does not, by itself, exempt an employer.
The city’s general rate is now the same across employer sizes. Minneapolis adjusts it annually on January 1 to account for inflation, subject to the applicable cap.
Tips do not replace required wages
For tipped workers, the hourly rate remains separate from gratuities. Minneapolis does not allow employers to count tips toward the minimum wage they must pay.
The city’s employer guidance also addresses payroll practices that can reduce compensation. Required uniforms, certain equipment and other specified employment expenses cannot be deducted in a way that pushes wages below the required minimum.
Employers must maintain records of wages and hours for at least three years. Workplace notice requirements also apply, with labor-standard materials available in multiple languages.
Preparing for January
Workers can review pay statements and the location of covered hours when checking compliance. Employers can use the remaining months to update payroll systems, review notices and identify employees whose rates require adjustment.
The city provides technical assistance through its Labor Standards Enforcement Division. Questions can be directed to 311, or 612-673-3000.
The official minimum-wage website includes employee resources, employer guidance and a channel for reporting suspected violations. Retaliation for exercising rights under the ordinance is prohibited.
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