Minnesota's minimum wage rates to increase in 2024: Here's what to know
MINNEAPOLIS — If you earn minimum wage, get ready to pocket a bit more cash in the new year.
Starting on Jan. 1, Minnesota's minimum wage rates will increase to $10.85 for large employers and $8.85 for other state minimum wages.
This is up 26 cents from the current rate of $10.59 for large employers and a 22-cent raise for other state minimum wages.
Why raise the minimum wage?
The goal of raising the state minimum wage was to help adjust to inflation having an impact on our cost of living and cost of goods and services.
When compared to the other 21 states raising minimum wages, Minnesota is near the bottom.
The state seeing the highest increase is Washington at $16.28 followed by New York and California at $16.
Minnesota is fourth to last on the list at $10.85 followed by Ohio, Michigan and Montana all raising their minimum wages to at least $10.30.
Overall, the pay bump will give an economic boost to an estimated 9.9 million people across the country.
Who will benefit?
According to the Economic Policy Institute, about 6 in 10 workers who will benefit from higher mandated pay are women.
Hispanic workers constitute about 20% of workers in states that are boosting baseline wages. They represent nearly 40% of those who will be impacted by the minimum wage hikes.
About 11% of workers to be affected are Black, though they make up about 9% of the workforce in these 22 states.
Several more states will raise their minimum wages later on in the year. This is in addition to nearly 40 cities and counties across the country.
Back here in Minnesota, these new state wage increases only apply to work performed outside of the cities of Minneapolis and St. Paul, which have higher minimum wage rates.