St. Paul’s minimum wage just jumped again for workers at small businesses. As of July 1, 2026, employers with six to 100 employees must pay at least $16.37 an hour. The same change nudges up the city’s micro‑employer and youth pay floors under the ordinance’s scheduled phase-in.
According to the Minnesota Department of Labor and Industry, the state minimum wage was indexed to $11.41 on Jan. 1, 2026. The department’s 2025 report spells out the timetable that pushes St. Paul’s small‑employer rate to $16.37 on July 1, 2026, and breaks down how the new city rate fits into the broader, tiered schedule.
Who’s affected
City guidance defines small businesses as those that average six to 100 employees, and employers are told to count full‑time, part‑time, joint and temporary staff when calculating business size, along with many employees who work outside the city. The City of Saint Paul also set the micro‑employer rate at $14.25 on July 1 and moved the youth 90‑day rate to $13.95 under the same schedule.
What the raise adds up to
The Minnesota Department of Labor and Industry figures that a full‑time worker at $16.37 would earn about $34,050 a year, up from roughly $31,200 under last year’s small‑employer rate. A full‑time worker at the micro‑employer rate would earn about $29,640. The DLI materials explain how those annual totals were calculated and note that the state minimum remains lower than the city floor for many St. Paul jobs.
Local reaction and studies
Around the city, the talking points are familiar. Some small‑business owners warn that higher labor costs squeeze already thin margins, while labor advocates argue that the increase helps workers keep pace with local living costs. As examined in a recent Star Tribune story, Federal Reserve Bank of Minneapolis research has found mixed results in the Twin Cities, with higher hourly pay showing up alongside fewer available hours and some job declines, a tension that continues to shape the local debate.
Where to get help
Employers with questions and workers who believe they are not being paid correctly can find guidance, self‑audit tools and a complaint form through the city’s Labor Standards Division. The department’s minimum‑wage page lists a complaint form plus phone (651‑266‑8966) and email ([email protected]). The city’s Human Rights & Equal Economic Opportunity department enforces the ordinance and can answer business‑sizing and compliance questions.
For workers who rely on minimum‑wage jobs, the increase is an immediate bump in pay. For small employers, it is another cost to plan for as St. Paul continues phasing in and indexing its rates. City and state agencies will post the next adjustments when they announce inflation‑linked changes.
