Further, the employer may not require employees to share tips with the employer or with other employees, because the tips are the exclusive property of the person who receives them. This differs from federal law, which allows a partial tip credit as long as the employer can prove that the employee actually receives enough tips to make up the difference between the lower hourly wage the employer pays and the statutory minimum wage. If a Minnesota employee is covered by state law, however, the employer cannot take the tip credit against the state minimum wage. The most recent increases in the federal and state minimum wages were effective in September of 1997, except that the increase in Minnesota's small employer wage was effective January 1, 1998. Click here to view the Department of Labor's detailed information.
States have different approaches to setting and applying their minimum wage laws.
Some states automatically make certain adjustments to their state rates when the federal rate changes. Many states also exclude from state coverage any employment that is covered by the federal law so that there is no overlap. Beginning in January of 2001, the minimum wage in the state of Washington will be automatically adjusted for inflation each year. Minimum wage laws are enforced in Minnesota by the Minnesota Department of Labor and Industry and the United States Department of Labor. Please direct all comments concerning issues or legislation to your House Member or State Senator .