This bill amends Minnesota Statutes 2024, section 177.24, subdivision 1, to significantly increase the minimum wage rates for employees in the state. The new minimum wage will rise to $15.00 per hour starting in 2025, with subsequent increases to $16.25 in 2026, $17.50 in 2027, $18.75 in 2028, and $20.00 in 2029. Additionally, for employees under the age of 20 during their first 90 days of employment, the minimum wage will also increase to $13.00 in 2025, $14.25 in 2026, $15.50 in 2027, $16.75 in 2028, and $18.00 in 2029.

The bill also includes provisions to ensure that employers cannot displace current employees to hire new workers at the newly established wage rates. Furthermore, it mandates that the commissioner will determine annual adjustments to the minimum wage based on inflation, ensuring that the rates are responsive to economic changes. The adjustments will be based on the lesser of a five percent increase or the percentage increase in the rate of inflation, with any new rates taking effect on January 1 of the following year.

Statutes affected:
Introduction: 177.24