Minneapolis and St. Paul minimum wage and break rules for restaurants

Two restaurants a few miles apart in the Twin Cities can pay a different minimum wage for the same job. Minneapolis and St. Paul each set a local minimum, higher than the state's, and the rules for what counts as covered work are written around where the employee actually works. Since January 1, 2026, a state law on rest and meal breaks adds another scheduling rule. Check each city's rules and the Department of Labor and Industry before you set a pay rate.

What is the Minneapolis minimum wage?

Minneapolis sets $16.37 an hour for 2026 and $17.02 on January 1, 2027. The rate applies regardless of employer size or the age of the employee. Coverage depends on the physical location in Minneapolis of the employee while performing work, and the city says employers must pay the Minneapolis rate to any employee who works at least two hours in a calendar week, Monday to Sunday, within the city. That includes part-time, seasonal and temporary employees. A server who splits a week between a Minneapolis restaurant and a suburban one is covered for the hours in the city.

Build a one-page pay chart for your managers: each location, the city it sits in, the rate that applies and the date the next step takes effect. Pin it beside the schedule so a new hire is never entered at the wrong rate, and review it each January and July when the rates move.

What is the St. Paul minimum wage?

St. Paul still uses size tiers. From July 1, 2026, the city's notice lists $14.25 an hour for micro businesses with five employees or fewer, $16.37 for small businesses with 6 to 100 employees and $16.37 for large and macro businesses with 101 or more employees. The state labor department adds that large and macro employers have paid $16.37 since January 1, 2026. The city's notice also says youth workers aged 14 to 17 must be paid at least $13.95 an hour for the first 90 consecutive days after hire, after which the rate for the business's size applies. Check the city's page each July for the next step.

How many employees count toward the tier?

The tier depends on the size of the business, and the definition of an employee count is in the city's ordinance. A restaurant group with several locations may count staff across all of them, so do not assume each site is its own tier. Ask the city's labor standards office before you pay the micro rate, and keep your headcount records for the pay period.

What is the state minimum?

For 2026 the state minimum is $11.41 an hour for all employers, and the 90 day training wage for workers under 20 is $9.31, according to the state labor department. The state rate matters mostly for restaurants outside the two cities. Minnesota also does not let employers count tips toward any minimum wage, and Minneapolis says so in its own words. Our guide on the state minimum wage and the no tip credit rule explains the state side.

What is the new break rule?

Since January 1, 2026, the state labor department says employers must generally allow employees a paid rest break of at least 15 minutes for every four consecutive hours worked, and an unpaid meal break of at least 30 minutes when working six or more consecutive hours. A busy dinner service makes that a real scheduling question. A server who works a six hour shift is owed a meal break, and a cook who works eight hours is owed rest breaks.

How do you schedule breaks in a service?

Build breaks into the schedule, not into the gaps. In a restaurant, many owners stagger rest breaks before the rush and put the meal break at a lull, with a manager covering the floor. Write the break times on the schedule, record when breaks were actually taken and train managers to protect them. Ask the department how the rule applies to a split shift or to a worker who is called in for a short shift.

What should you post and record?

Both cities require notices and records, so ask each city's labor office what to post. Keep time records that show the hours worked in each city, the rate paid and the breaks taken. If your payroll system has a location field, set it for each shift, so the right rate applies automatically.

What should you do next?

List every employee and the city where they work. Check each rate against the table above. Put the January 1, 2027 Minneapolis rate and the July 1 St. Paul adjustment in your calendar. Then rebuild your service schedule with the paid rest break and the meal break in place. Share the new break plan with your team before it starts, and ask your cooks and servers which stretch of the shift feels hardest to cover.

More guides for your business:

• Minnesota minimum wage and no tip credit for restaurants (2026)
• Minnesota earned sick and safe time: what restaurant owners must do
• Minnesota tip pooling and tip sharing rules for restaurants

More in the US guides for food businesses.