How do labor laws & minimum wages impact those in MN & ND?

MINNESOTA & NORTH DAKOTA (KVRR) – On this Labor Day, what are some local labor laws and how do they impact us?

Minnesota’s minimum wage law is unique because it goes up each year with inflation. Wages rise 2.5 percent from this year in The Land of 10,000 Lakes.

This year, someone with a minimum wage job from a large employer making more than $500,000 in gross revenue gets paid $10.33 per hour. That will go up 26 cents next year. Those working in minimum wage positions for small employers making less than half a million dollars in gross revenue makes $8.42 per hour. January first that will go up 21 cents.

Minnesota’s minimum wage law was signed by Governor Mark Dayton in 2014.

Employers aren’t able to take a tip credit against minimum wages and employees must be paid minimum wage plus tips.

In North Dakota, the minimum wage is $7.25, the same as the federal minimum wage. It was last changed in 2008 when it was raised from $6.55.

Employees receiving tips can earn a $4.86 per hour minimum wage if they make $30 in tips per month. Tips earned plus plus wages must equal $7.25 per hour for all hours worked.

In January 2021, a bill was introduced in the Legislature to raise the minimum wage to $9 in 2022 and increase every year until getting to $15 an hour in 2027. It died in the House.

North Dakota is one of 19 states with a minimum wage of $7.25.

South Dakota has a minimum wage of $9.25.

According to the U.S. Census Bureau, 12.1 percent of North Dakotans live in poverty ranking the state 26th.

Nine-and-a-half percent of Minnesotans live on the poverty line ranking the state 42nd.

The median income in The Peace Garden State is $43,800.

It’s $55,800 in The North Star State.

North Dakota is a right to work state meaning, without a contract, employers or employees can end employment without cause. A reason for a firing can’t be based on race, color, religion, sex, national origin, age disability, marital status, pregnancy status or in relation to public assistance. The state’s right to work law also makes it illegal for employers to collect union dues.