SF671 would raise Minnesota’s state minimum wage on a phased schedule beginning August 1, 2025. The bill amends Minnesota Statutes section 177.24 to increase the general minimum wage from the current law’s lower rates to $15.00 per hour in 2025, then $16.25 in 2026, $17.50 in 2027, $18.75 in 2028, and $20.00 in 2029, with the inflation-adjusted minimum wage formula continuing in 2030 and beyond. It also raises the youth/training wage for employees under age 20 during their first 90 consecutive days of employment on a parallel schedule, starting at $13.00 per hour in 2025 and increasing annually through 2029 before moving to the inflation-adjusted rate in 2030.
The bill preserves the existing inflation indexing mechanism, which requires the commissioner to calculate annual increases based on the implicit price deflator for personal consumption expenditures, capped at 5 percent and effective each January 1. It also retains the prohibition on employers displacing existing workers, including through reduced hours, wages, or benefits, in order to hire someone at the lower youth wage. In practical terms, the bill would substantially increase labor costs for employers subject to Minnesota’s minimum wage law and raise earnings for low-wage workers, especially younger workers and those in entry-level jobs.
Impact
SF671 would amend Minnesota’s wage-and-hour law by changing the statutory minimum wage amounts in section 177.24, subdivision 1, for both standard employees and employees under age 20 in their first 90 days of employment. The bill would affect employers covered by the state minimum wage, workers earning at or near the minimum wage, and the commissioner’s annual inflation-adjustment calculations. It would not eliminate the existing indexing framework, but it would reset the base wage levels to higher amounts over several years.
Sentiment
Based on the bill text and available context, the measure appears to be introduced as a pro-worker wage increase with no recorded committee testimony or votes in the provided materials. The authorship and caption suggest support for raising pay for low-wage workers, and the bill’s structure indicates a deliberate phased-in approach rather than an immediate jump. Because there are no transcripts or vote records included, there is no documented opposition or support beyond the bill’s introduction.
Contention
The main likely point of contention is the size and pace of the minimum wage increase, particularly the jump to $20.00 per hour by 2029 and the corresponding increase in the youth wage. Supporters would likely emphasize higher earnings and inflation protection for workers, while opponents may focus on potential cost pressures for small businesses, reduced hiring flexibility, and the impact on entry-level employment. The bill also preserves a lower wage for young workers during an initial employment period, which could draw scrutiny from labor advocates concerned about wage equity, even though it includes anti-displacement protections.