Frundt & Johnson, Ltd.

Due to a new law which became effective August 1, 2005, Minnesota law requires large employers to pay a minimum wage of $6.15 per hour.To be a large employer you must have total gross annual sales or business of $625,000.00 or more.The law also increased the minimum wage for smaller employers to $5.25 per hour.  The Federal minimum hourly rate remains unchanged at $5.15 per hour.

In the past many Minnesota employers have been able to pay a lower minimum wage than the Federal law required, because they were only subject to Minnesota law and not to Federal law. Now all employers in Minnesota will be required by Minnesota law to pay the higher minimum wage since the Minnesota minimum wage is higher than Federal law requires.There continues to be a “opportunity wage” which can be paid during the first 90 consecutive calendar days of employment to employees under the age of 20.This wage also increased August 1, 2005, from $4.25 per hour to $4.90 per hour.Overtime continues to be required to be paid at 1-1/2 times the regular rate for all time worked over 40 hours in a work week under Federal law and over 48 hours per week under Minnesota law unless exempt.

It is necessary for all employees to keep weekly time records showing the beginning and ending time of each work session so that a calculation of the number of hours worked each day and each week can be established.