Minneapolis Minimum Wage 2026 and 2027

The city lists $17.02 per hour for 2027, effective January 1, 2027, up from $16.37. The city says the minimum wage increases every January 1 to account for inflation, capped at 5 percent.

The rate increases every January 1 to account for inflation, capped at 5 percent.

Tips do not count. The city says tips and gratuities do not affect the minimum wage owed to employees and no employer may directly or indirectly credit, apply or use gratuities toward the minimum wage. Minnesota law agrees: the Department of Labor and Industry says no employer may take a tip credit against minimum wages in Minnesota, so a tipped worker is paid the full rate plus tips. The city also says employer payments toward medical benefits are not wages.

Coverage depends on where the work is physically done. An employer anywhere must pay the Minneapolis rate for time worked in the city to any employee who performs at least two hours of work in a calendar week (Monday to Sunday) inside Minneapolis, and that includes part-time, seasonal and temporary employees.

The same rate applies regardless of employer size or the employee's age. Workers based outside Minneapolis who only pass through the city without work-related stops are not covered, and employees who work less than two hours in a week in the city are not covered either.

• City-approved training or apprenticeship programs: employers must pay employees under age 20 at least 85 percent of the minimum wage, rounded up to the nearest nickel, for the first 90 days of employment, then the full rate. The city keeps a list of approved programs and the criteria.
• Union contracts do not create an exemption: employers operating under a collective bargaining agreement must pay all employees at least the minimum wage.
• Wages include salary, hourly pay, piece rate pay, commissions and non-discretionary performance bonuses. Employers may not deduct uniforms, equipment, supplies or travel costs if that pushes pay below the minimum wage.