Reaction To Minnesota Minimum Wage Increase - KTTC

ROCHESTER, Minn. (KTTC) – In January 2023, Minnesota’s minimum wage will increase.

The Minnesota department of labor proposed this increase to help people keep up with inflation.

• Large employers must pay at least $10.59 an hour when the employer’s annual gross revenues are $500,000 or more.
• Small employers must pay at least $8.63 an hour when the employer’s annual gross revenues are less than $500,000.
• The training wage rate, $8.63 an hour, may be paid to employees younger than 20 years of age for the first 90 consecutive days of employment.
• The youth wage rate, $8.63 an hour, may be paid to employees younger than 18 years of age.

People who run businesses in Rochester weighed in on the increase.

“I don’t see that the minimum wage is going to do anything. other than maybe for like high school kids, part time people. possibly for servers and tipped employees. But the reality is the wages are much much higher than that and you have to pay higher than that to just attract anybody,” said Jeff Jensen, the managing partner at Express Employment Professionals.

“I don’t think that the many places actually pay minimum wage now and we pay more than that I Know that, I know starting off we offer more than minimum wage. And as you see around town, your different places pretty much are not paying minimum wage. So I don’t foresee it being a huge impact at all,” said Joseph Phillips, Jersey Jo’s owner.

According to Minnesota Department of Labor and Industry, the minimum wage will increase to $10.59 an hour for large employers and $8.63 an hour for other state minimum wages.

The current large-employer minimum wage is $10.33, meaning it will increase by 26 cents to $10.59.

Other state minimum wages, including the small-employer, youth and training wages, as well as the summer work travel exchange visitor program wage, which are all currently $8.42, will increase by 21 cents to $8.63. These increases are both 2.5%.

Many people on KTTC’s Facebook post about the increase commented in disapproval of the announcement.

Some comments called it a “joke,” or a “slap in the face” for Minnesotans.

KTTC would like to hear from anyone that is in support of the increase. People can reach out to KTTC at [email protected] or call the tip line at 507-280-5125.

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