Announcing City of Saint Paul Minimum Wage Rates for 2027

Under the City Minimum Wage Ordinance, the minimum wage hourly rate for businesses with more than 101 employees is required to be announced on September 1 annually and takes effect on January 1 of the subsequent year.  

See the chart below for updated rates in 2027:

Minimum wage rates for Saint Paul businesses in 2026, January 1, 2027, and July 1, 2027, by business size.

What is the Minimum Wage Ordinance?

The Minimum Wage Ordinance sets the lowest hourly rate of pay required for work performed in the City of Saint Paul, which exceeds the applicable statewide minimum wage rate. Minimum wage requirements vary based on an employer's business size classification. Please use the guide below to determine your business's correct classification and applicable minimum wage rate.  

  • Wages include salary, hourly pay, piece rate pay, commissions, and non-discretionary performance bonuses. Employer payments toward medical benefits and tips are not considered wages.
  • Employers must keep track of where their employees are working. Records can include (but are not limited to) delivery addresses, estimated travel times, historical averages, dispatch logs, scheduling logs, and appointment details.
  • Looking for information in Hmong? Watch this Hmong-language video created in partnership with 3HmongTV and Councilmember Nelsie Yang.

Click Here to Read the Ordinance     Click here to Read the PDF Version of the Ordinance

Contractors and subcontractors performing work for the City may be required to pay their workers the City's Prevailing Wage or Living Wage

Prevailing Wage and Living Wage Ordinances

Who does the ordinance cover?

The ordinance covers all employees' hours of work in the geographic boundaries of the City of Saint Paul. 

  • Full-time, part-time, and temporary employees are all covered under the ordinance.
  • Immigration status does not impact coverage of the Minimum Wage Ordinance.
  • The ordinance does not cover independent contractors

What is the Minimum Wage in Saint Paul?

How to Calculate Your Business Size

Count all full-time, part-time, joint, and temporary employees. Include employees not located in Saint Paul (unless you are a restaurant with fewer than 10 locations, see below). 

Generally, business size is based on the average number of employees per week during the previous calendar year. Owners and board members are not counted as employees when calculating business size. Employers may not mask employees with titles to change their business size.

New Business

If you've been in business less than one year, you're considered a new business. To determine business size for new businesses, calculate your average number of employees for the first 13 weeks you were in business. To do this, add the total number of employees per week for the first 13 weeks and then divide that total number by 13. Please reach out to the Department if you have any questions. 

Joint Venture

Integrated enterprises (or joint ventures) count as one employer under the ordinance. When calculating your business size, add the employees from all businesses involved in the joint venture. Be sure to count joint employees only once. 

The Labor Standards Division will determine the existence of an integrated enterprise by assessing the degree of control exercised by one entity over the operation of another entity. The factors in this assessment include, but are not limited to:

  • Degree of interrelation between the operations;
  • Degree to which the entities share common management;
  • Centralized control of labor relations;
  • Degree of common ownership or financial control over the entities.

Franchise

If you operate a franchise, calculate the total number of employees at all franchise locations owned and operated by a single franchisee. Please reach out to the Department if you have any questions. 

Franchise relationships with more than two parties are considered integrated enterprises and must count employees of all sub franchises. The burden is on you as an employer to establish you are not an integrated enterprise if you disagree with this classification.
 

Restaurant

Full-service restaurants located in Saint Paul with fewer than 10 locations nationwide are considered unique employers when determining business size (except franchises). To calculate your business size, add the number of employees from each location separately per week for 52 weeks and divide by 52. 

If there is only one location in Saint Paul, you only need to count employees from that one location. You do not need to count employees from other locations outside of Saint Paul (as long as your restaurant has fewer than 10 total locations).

Frequently Asked Questions