Hiring in Rice: Minnesota Wage and Paid Leave Basics

For businesses considering Rice, a staffing plan starts with clear assumptions about wages and time away from work. Minnesota's minimum wage and Paid Leave program supply statewide figures to use alongside a business's own plans. The dates attached to those figures matter: a rate for one year should not be carried into the next without checking it. Our guide brings the wage schedule, leave limits and premium information together so employers can see which details belong in a hiring discussion and which need a closer look.

Minnesota's Minimum Wage in 2026 and 2027

The Minnesota Department of Labor and Industry's minimum-wage schedule sets the state rate at $11.41 an hour as of January 1, 2026. On January 1, 2027, the rate rises through an inflation adjustment to $11.87 an hour for all employers in the state. Keep both the amount and its effective date in view when planning positions that will continue across the change.

The state minimum wage is higher than the federal minimum wage. Employees covered by both laws must be paid the higher state rate. For a hiring budget, write down the applicable dated rate before estimating hours or comparing possible staffing arrangements. That gives the discussion a clear starting point rather than leaving the wage assumption unstated.

The Training Wage for Younger Workers

The same state schedule identifies a 90-day training wage for workers under age 20. It is $9.31 an hour as of January 1, 2026 and increases to $9.68 on January 1, 2027. The age limit and the 90-day description are part of the provision, so the lower figure should always be read with those details beside it.

When comparing the training wage with the state minimum wage, keep the two entries separate in planning notes. A lower listed amount by itself does not explain which provision is being considered. Labeling the worker's age, the training period and the effective date makes the comparison easier to check against the state's schedule.

Minnesota Paid Leave at a Glance

Minnesota Paid Leave's explanation of benefits describes up to 12 weeks of family leave and up to 12 weeks of medical leave in a single benefit year. If both types are needed in that year, the total is capped at 20 weeks, rather than 24. The benefit year begins on the first day the worker takes Paid Leave.

To receive payments, a worker must have earned at least $3,900 in the last year. Earnings can come from one job or be combined from multiple jobs. Payments come from the state, not the employer. These details help distinguish the earnings requirement, the possible time away and the source of benefit payments when discussing the program.

How Paid Leave Is Funded

Paid Leave is funded through premiums paid by employers and employees. For 2026 and 2027, the premium rate is 0.88% of employee wages, collected by the state from employers. Employers may collect up to 0.44% from employees or choose to cover more themselves.

Keep the overall premium rate separate from the amount an employer chooses to collect from employees. They answer different budgeting questions. The premium is also distinct from the state payments received during leave; writing those items separately helps avoid confusing the funding of the program with its benefits.

What Small Employers Should Know

The state's Paid Leave guidance for small employers says most Minnesota employment is covered, including small and seasonal employers and part-time work. People who are self-employed or independent contractors are not automatically covered, but can opt in.

Qualifying small employers pay a reduced premium of 0.66% of employee wages in 2026 and 2027. Qualification depends on limits involving both the number of people employed and the wages paid. Employers that qualify will be notified. Calling a business small in everyday conversation does not settle that program-specific question; use the state's qualification information when choosing a premium assumption.

Checking the Details

Before finalizing a staffing budget, bring together the wage effective date, any training-wage questions and the applicable Paid Leave premium. Read the state guidance linked above for the provision relevant to the situation. Keeping these details together gives employers and prospective workers a more useful basis for discussing a position and the statewide rules that accompany it.