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 in 2025, $16.25 in 2026, $17.50 in 2027, and will further increase to $18.75 per hour starting August 1, 2028, and $20.00 per hour beginning August 1, 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 minimum wage rates. Furthermore, it mandates that the commissioner will determine the annual percentage increase in the rate of inflation, which will be used to adjust the minimum wage rates each year, ensuring that they keep pace with inflation. The adjustments will take effect on January 1 of the following year, and the minimum wage rates cannot be reduced.

Statutes affected:
Introduction: 177.24