Minneapolis Minimum Wage Rises to $17.02 Jan. 1: What Changes Across the Twin Cities

MINNEAPOLIS, MN — The Minneapolis minimum wage rises to $17.02 an hour on January 1, 2027, up 65 cents from this year's $16.37. Across the river, St. Paul's biggest employers hit the same number that day. Drive out to Bloomington or Brooklyn Park, though, and the legal floor is the state rate of $11.87. For anyone job hunting this winter, the address of the job matters more than ever.

One metro, several wage floors: what the January 1 increases mean for hourly workers in Minneapolis, St. Paul and the suburbs.

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📍 The New Rates at a Glance

Minneapolis, all employers	$17.02 an hour starting January 1, 2027 (now $16.37)
St. Paul, 101+ employees	$17.02 starting January 1, 2027
St. Paul, 6 to 100 employees	$16.37 on January 1, 2027, then $17.02 on July 1, 2027
St. Paul, 5 or fewer employees	$14.25 on January 1, 2027, then $15.00 on July 1, 2027
Minnesota statewide	$11.87 an hour starting January 1, 2027 (now $11.41)
Minnesota training wage	$9.68 an hour, workers under 20, first 90 days

What's Changing in Minneapolis on January 1

The city's rate climbs every New Year's Day to keep pace with inflation, with the yearly bump capped at 5%. For 2027 that works out to $17.02, according to the city's minimum wage office. The small-business phase-in is long finished, so the rate is the same whether you work for a corner coffee shop on Lyndale or a downtown hotel on Nicollet Mall.

Age doesn't matter: a 17-year-old bagging groceries in Longfellow is owed the same floor as anyone else. Part-time, seasonal and temporary workers are covered, and tips can't count toward the minimum.

The Address Where You Work Decides Your Floor

The Minneapolis rate follows the work, not the worker. Where you live and where your boss is headquartered don't matter. What counts is where you physically do the job, and an outside employer whose worker spends at least two hours in a calendar week inside city limits is covered.

That's where the metro gets interesting. A cashier at a store on Lake Street is owed $17.02. The same job at a store a short drive south on I-35W in Richfield or Bloomington carries the state floor of $11.87, because those suburbs don't have their own ordinance. That's a gap of more than $5 an hour on paper.

St. Paul works differently because its rate depends on how big the employer is. Large employers match Minneapolis at $17.02 in January. Small businesses with 6 to 100 workers pay $16.37 until July 1, when they also reach $17.02. The smallest shops, five workers or fewer, step up to $14.25 in January and $15.00 in July. The details are on the City of Saint Paul's 2027 rate announcement.

Everywhere else in Minnesota, the floor is $11.87 for employers of every size, according to the Minnesota Department of Labor and Industry. That's a 3.99% inflation adjustment.

💵 The Floor Isn't the Going Rate

These are legal minimums, not what most employers advertise. Warehouses, hospitals, grocery chains and big-box retailers across the metro often post starting pay well above the floor, suburbs included.

The line matters most at small restaurants, coffee shops and independent retail. If two offers look alike, check the street address. If you're working inside Minneapolis and your paycheck is under the city rate, the Labor Standards Enforcement Division takes complaints through 311 or (612) 673-3000.

🔎 Where to Aim This Winter

Holiday hiring is in full swing, and January brings a fresh round of openings. These searches cover the hourly jobs the new rates touch most.

Start here:

Minneapolis Minimum Wage FAQ

What is the Minneapolis minimum wage in 2027?

$17.02 an hour starting January 1, 2027, for every employer size. It's $16.37 through December 31.

Does it apply if I live in the suburbs?

Yes, if you work in Minneapolis. The rate is set by where the work is done. If you live in Minneapolis but work in Bloomington, the state rate of $11.87 applies instead.

Can my employer count my tips toward the minimum wage?

Not in Minneapolis. Tips can't cover any part of the city minimum.

Is St. Paul's minimum wage the same as Minneapolis?

Only for large employers with more than 100 workers, which reach $17.02 on January 1. Smaller St. Paul businesses phase up during 2027.

Find a Job That Pays What You're Worth

Create a free LocalJobPage account to save searches and get new Minneapolis openings first. For pay and training paths by role, browse the Career Center.

Employers: Hiring ahead of the January wage change? Post your openings on LocalJobPage and reach Twin Cities job seekers.