TIME States

Minnesota To Hike Minimum Wage To $9.50 By 2016

With the governor’s signature Monday, the state will go from having one of the lowest minimum wage rates in the country to one of the highest

Minnesota Governor Mark Dayton signed legislation Monday that will boost the state’s minimum wage to $9.50 by 2016, among the highest rates in the United States.

The bill was passed by the state legislature with only Democratic votes Thursday. Under the new law, Minnesota’s current minimum wage of $6.15 per hour, one of the lowest in the country, will rise by more than $3 gradually over the next few years, after which it will be tied to inflation, the Associated Press reports.

The minimum wage doesn’t affect smaller employers with gross sales under $500,000, though they too will have to pay employees at least $7.25 per hour by 2016. The law includes exceptions for teenagers and for people being trained into new positions. In all, roughly 325,000 people are expected to see a wage increase as a result of the law.

Minnesota joins states including Connecticut and Maryland in passing minimum wage legislation, as the effort to increase the federal minimum wage—currently $7.25 per hour—remains stalled in Congress.


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