Guides

Minnesota restaurant pay rules (2026): what to pay tipped and non-tipped staff

Mays TeamJune 24, 2026
The Time Off requests in Mays for June 2026: approved sick time for a line cook and a server, one of them to take a child to the doctor, and a pending sick day, each with its reason and the hours approved so far this year

Since January 1, 2025, Minnesota has had one minimum wage for every employer, whatever its size (MN DLI, 2025 minimum wage report): $11.41 an hour in 2026, adjusted each January for inflation (MN DLI, minimum wage). There's no tip credit, so a server starts from the same rate as the dishwasher and tips come on top. Minneapolis and Saint Paul set higher rates of their own. And Minnesota goes further than federal law on tips and breaks: an employer can't require tip sharing at all, and since January 1, 2026 the law spells out a paid rest break in every four hours of work and a meal break on a shift of six hours or more.

This page puts Minnesota's figures in one place. It covers what you owe tipped staff like servers and bartenders, what you owe everyone else, and two example weeks with the math shown. Every figure links to the official page it comes from.

Updated September 24, 2026: these figures are still current. Minnesota's minimum wage is $11.41 an hour, and tipped employees get the same through December 31, 2026. It rises to $11.87, for tipped employees too, on January 1, 2027. On July 1, 2026, Saint Paul's minimum wage rose to $16.37 for small businesses (6 to 100 employees), $14.25 for micro businesses (5 or fewer employees) and $13.95 for employees aged 14 to 17, for 90 days after they're hired (85% of the small-business rate); see Local rates. New state rules on earned sick and safe time took effect on July 6, 2026 (MN DLI, sick and safe time rules), and the Paid Leave premium stays at 0.88% of wages for 2027 (MN Paid Leave, 2027 rate).

This is general information, not legal advice. Whether a rule applies can depend on your business's size and your own facts; the note at the end says more.

Minnesota pay rules at a glance

As of June 24, 2026:

Rule

Minnesota

Minimum wage

$11.41 an hour, since January 1, 2026

Tipped employees

The full minimum wage: Minnesota doesn't allow a tip credit

Overtime

1.5× the regular rate after 40 hours in a workweek; no daily overtime

Meal and rest breaks for adults

Minnesota has break rules; see Breaks below

Next change

$11.87 minimum wage from January 1, 2027

Sources: MN DLI, minimum wage; MN DLI, overtime.

Other Minnesota rates:

  • 90-day training wage (under 20 years of age): $9.31 an hour

Who counts as a tipped employee in Minnesota

Minnesota doesn't allow a tip credit (MN DLI, minimum wage), so there's no separate tipped wage: servers and bartenders get at least the full minimum wage, and their tips come on top. Who counts as tipped still matters for tip pools, below.

What you must pay tipped staff in Minnesota

Servers, bartenders and baristas who get tips must be paid at least the full $11.41 an hour in wages (MN DLI, minimum wage), and their tips are all theirs, on top. There's no tipped cash wage and no weekly tip make-up to calculate. From January 1, 2027, that's $11.87 (MN DLI, minimum wage).

What you must pay non-tipped staff in Minnesota

Cooks, dishwashers, prep cooks, and cashiers or counter staff who don't get tips are paid like any other hourly employee:

  • At least $11.41 an hour for every hour worked, and at least $11.87 from January 1, 2027 (MN DLI, minimum wage). No tip credit applies.
  • Overtime is at least 1.5 times their regular rate for hours over 40 in a workweek. At $11.41 an hour, that's $17.115 (MN DLI, overtime).
  • Can they share in the tip pool? Not in a pool you require: Minnesota doesn't let an employer make anyone share tips, kitchen staff or servers. Employees can agree among themselves to share, without the employer's pressure or participation, and at their request you can hold the shared tips and pay them out (Minn. Stat. § 177.24).

Worked examples (made-up numbers)

The names, hours and tips below are made up. The rates are Minneapolis's as of June 24, 2026. Elsewhere in Minnesota, use the rates for your area above.

A server's week

Sam is a server. For a 28-hour week you pay him at least 28 × $16.37 = $458.36 in wages, before tips. His tips are all on top, whatever they come to; there's no make-up to calculate.

A cook's week with overtime

Ana is a line cook paid the Minneapolis minimum wage, $16.37 an hour. Over five days she works 9, 10, 8, 9 and 9 hours: 45 hours in all.


Hours

Rate

Pay

Regular hours

40

$16.37

$654.80

Overtime hours (over 40)

5

$24.555 (1.5 × $16.37)

$122.78

Total

45


$777.58

Overtime is counted by the workweek, and hours can't be averaged across two weeks: a long week earns overtime even if the next one is short (US DOL, overtime). Bonuses can change the rate too; see Time clock, breaks and overtime: first-month payroll mistakes to avoid.

Tip pooling rules in Minnesota

Minnesota has its own tip-pool rules (Minn. Stat. § 177.24): Minnesota bans tip pools the employer requires. Employees may share tips only voluntarily, by an agreement they make among themselves without the employer’s coercion or participation; at their request, the employer may hold the shared tips and pay them out. The full amount of a tip paid by card or other electronic payment goes to the employee no later than the next scheduled pay period. There is no tip credit.

Federal rules apply too, and where the two differ, follow the stricter one (US DOL, tips):

  • The business, its managers and supervisors never keep employees' tips. A manager can't take anything from a pool; they may keep only tips for service they directly and solely provide. An owner with a real stake who helps run the business counts as a manager too.
  • A pool you require: federal law would let one include cooks and dishwashers, since Minnesota has no tip credit, but Minnesota's own law doesn't let you require a pool at all (above): sharing has to be voluntary.
  • Card fees: federal law lets you reduce a card tip by the card company's actual fee percentage, but Minnesota doesn't allow it.
  • Service charges: under federal law, a mandatory service charge isn't a tip: money you share from one is wages, and it counts in the regular rate for overtime (DOL Fact Sheet #15). Minnesota adds its own rule: An obligatory charge that a customer might reasonably see as payment for personal service (service charge, tip, gratuity, surcharge) is a gratuity belonging to the employee, unless the employer gives clear and conspicuous notice that it is not the employee’s property: bold type on the menu, a placard, the front of the bill or other printed material, at least 18-pt on a placard or 9-pt on other notices (Minn. Stat. § 177.24).
  • Pay pooled tips out by the regular payday for the week or pay period (DOL Fact Sheet #15).

Card tips in full. Since August 1, 2024, you can no longer take the card company's fee out of a tip paid by card: the employee gets the whole amount (MN DLI, tips).

Automatic gratuities in your prices. If you add an automatic or mandatory gratuity, every price you advertise has to disclose its percentage clearly (Minn. Stat. § 325D.44).

How to split a pool fairly, with a worked example: Tip pooling for new restaurant owners.

Overtime in Minnesota

Minnesota has its own overtime rule (MN DLI, overtime): Time and a half for hours over 48 in a workweek (Minn. Stat. 177.25), unless the employee is exempt under section 177.23, subdivision 7. Holiday, vacation and sick hours don't count toward the 48. Employers the federal Fair Labor Standards Act covers, such as businesses with gross annual sales of more than $500,000, must pay overtime for all hours over 40 in a workweek.

The federal rule applies to covered employers as well: at least 1.5 times the regular rate for hours over 40 in a workweek (US DOL, overtime). Where the two differ, pay the higher amount.

So only a business outside the federal law can wait for Minnesota's 48-hour line. Federal coverage isn't only about sales: a smaller business can be covered too, through staff whose work regularly involves commerce across state lines (DOL Fact Sheet #14), so check before you rely on it.

Breaks in Minnesota

  • Meal breaks: A meal break of at least 30 minutes for an employee working 6 or more consecutive hours; the law doesn't require a second one on a long shift. The employer can require staff to stay on the premises during breaks. A missed break is owed at the employee's regular rate plus an equal amount as damages, and a collective bargaining agreement can set different meal periods (Minn. Stat. § 177.254).
  • Rest breaks: A rest break of at least 15 minutes, or enough time to use the nearest convenient restroom if that's longer, within each 4 consecutive hours of work; a break after the fourth hour doesn't count. A break shorter than 20 minutes is paid time. A missed break is owed at the employee's regular rate plus an equal amount as damages, and a collective bargaining agreement can set different rest breaks (Minn. Stat. § 177.253).
  • Minors: No separate Minnesota rule for minors; the adult rules above apply to them too (Minn. Stat. § 181A.04).

Other Minnesota rules that affect pay

  • Paid sick leave: Earned sick and safe time: an employee earns 1 hour for every 30 hours worked, up to 48 hours a year unless the employer agrees to more, and it's paid at the same base rate they earn when working. Minneapolis and Saint Paul have their own ordinances, and employers follow the requirements most favorable to their employees (MN DLI, sick and safe time).
  • Food handler training: A certified food protection manager is required, not a card for every employee. Who: at least one certified food protection manager per establishment (not every food employee) (MDH, food manager requirement).

Sick and safe time, Paid Leave and written pay terms

  • The sick and safe time balance. An employee can carry up to 80 hours of unused earned sick and safe time unless you allow more (Minn. Stat. § 181.9446). It's paid at their base rate, which leaves out tips, so a server's sick hour is paid at their hourly wage alone (Minn. Stat. § 181.9445).
  • Minnesota Paid Leave. Paid family and medical leave began on January 1, 2026. The premium in 2026 is 0.88% of wages, of which you can take up to 0.44% from employees' pay (MN Paid Leave, premiums); small employers pay a lower 0.66% (MN Paid Leave, small employers). A seasonal hospitality business, a restaurant included, can ask to have seasonal jobs lasting no more than 150 days in a 52-week period designated, and then no premium is owed on those wages (MN Paid Leave, seasonal hospitality).
  • Pay terms in writing at hire. At the start of employment, give each employee a written notice of their pay rate, paid time off, pay period and payday, keep a copy they've signed, and give them any change in writing before it takes effect (Minn. Stat. § 181.032).

Local rates in Minnesota

These cities and counties set their own minimum wage. The rates are the ones in effect on June 24, 2026, and the next changes are as recorded on September 24, 2026. An employer pays the highest rate that applies where the work is done.

Area

Who it covers

Minimum wage

Next change

Minneapolis

all employers regardless of size or employee age; employees performing at least 2 hours of work in a calendar week within Minneapolis

$16.37

$17.02 on January 1, 2027

Saint Paul

macro businesses (10,001 or more employees) and the City of Saint Paul

$16.37

$17.02 on January 1, 2027

Saint Paul

large businesses (101 to 10,000 employees)

$16.37

$17.02 on January 1, 2027

Saint Paul

small businesses (6 to 100 employees)

$15.00

$16.37 on July 1, 2026

Saint Paul

micro businesses (5 or fewer employees)

$13.25

$14.25 on July 1, 2026

Saint Paul

employees aged 14 to 17, for 90 days after they're hired (85% of the small-business rate)

$12.75

$13.95 on July 1, 2026

Sources: Minneapolis; Saint Paul. "—" means we found no date for the next change; check the city's or county's page.

Saint Paul sizes a business by all its employees, including those outside the city, but a full-service restaurant with fewer than 10 locations nationwide, other than a franchise, counts each location on its own (Saint Paul). Both cities also have their own sick and safe time ordinances, and employers follow whichever rule is more favorable to the employee (MN DLI, sick and safe time).

How Mays helps

Mays runs the schedule, time clock, tip pool and payroll export for each location. For Minnesota pay rules, that means:

  • Positions and wages. Give each position a default hourly wage of at least the minimum wage that applies where you are, servers included, since Minnesota has no tip credit. Mays doesn't check wages against the minimum wage, so update them yourself when the rate changes on January 1, 2027.
  • A tip pool per location. Split pooled tips by hours worked, equally or by FTAR score, per pay period or day by day, and choose which positions receive. Minnesota's law describes only tip sharing that's voluntary, so get advice before you run a pool your staff haven't agreed to. When you set it up, turn on Leave managers and admins out of the pool: it's off by default. The tips come from your connected POS at that location (Square) or from tips synced with 7shifts time punches, and each person's share appears in the Tip Payouts report and the payroll export.
  • Time clock and timesheets. Staff clock in on their phone, a shared kiosk or an NFC tag. Timesheets run by pay period, and overtime is counted by the workweek, with an optional daily threshold for states that have one.
  • Payroll export. A standard CSV or a Gusto-format CSV with regular and overtime hours and pooled tips for each employee.
  • Sick and safe time accrual. Under Scheduling → Settings → Time off & PTO accrual, set the Sick category to accrue Per hour worked, at least one hour for every 30 worked, with a maximum balance of 80 hours. Balances build nightly and come off when a paid request is approved, and the Time Off page shows each request with the hours already approved this year. The policy covers the whole organization, and Mays doesn't stop accrual at 48 hours a year, a limit the law lets an employer raise.
  • Breaks at the time clock. Under a location's Labor & compliance card, add Minnesota's breaks as custom breaks: a paid 15-minute rest break and a 30-minute meal break. Staff choose the break when they start it, and with Enforce breaks at the time clock on, a break marked enforced can't be ended early. Outside California, Mays doesn't check that a rest break falls within each four hours or track missed breaks, so review punches yourself.

Sources

Every figure on this page comes from these official pages, as they read on the date shown.

This page is general information, not legal advice. Laws change, and coverage rules (your business's size, whether federal law covers you) decide which of them apply. Check the pages above, and ask an employment lawyer or accountant about your situation.

Run Minnesota payroll on the right numbers

Set each position's wage, turn on the tip pool with managers left out, and let the time clock count overtime by the workweek. Then payroll is an export, not an evening.

Start your free trial: 30 days, every module, no card needed. Setting up a tip pool? Read Tip pooling for new restaurant owners.