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4.6.6.15 Applicable Minimum Wage

ISSUE DATE: 08/2025

Applicable minimum wage for child care assistance is used to determine:

· If a parent meets minimum activity requirements for employment outside of an Employment Plan at application and redetermination. See Chapter 4.6 (CCAP Authorized Activities) and Chapter 4.6.6 (Authorized Activities Outside an Employment Plan).

· The number of hours to authorize for employment outside an Employment Plan when the parent does not work for an hourly wage. See Chapter 9.1.1 (Authorizing Care – Employment).

Minimum wage laws

There are city and state minimum-wage laws and federal minimum-wage laws. In cases where an employee is subject to city or state, and federal minimum wage laws, the employee is entitled to the higher of the minimum wages. The federal minimum wage is currently less than Minneapolis, St. Paul and Minnesota’s state minimum wage.

· In St. Paul , there are different minimum wages based on the number of employees.

· Minneapolis has set its own minimum wage.

Other states may have their own minimum wages. An applicant or participant living in Minnesota may work in another state. The state’s minimum wage where the employer is located applies, rather than Minnesota’s minimum wages.

Determining the applicable minimum wage

· Assume that the applicable minimum wage is being paid by the employer when a worker receives an hourly wage from their employer and they are not self-employed, contracted, or salaried.

· For contracted or salaried persons, apply the higher minimum wage unless the person can supply information to show that they are subject to the lower minimum wage. For St. Paul, apply the higher minimum wage for the applicable business size. The CCAP agency should work with the applicant or participant to identify the correct applicable amount if the person believes that they should not be subject to the higher minimum wage but verification is not available.

· For self-employed persons, use the federal minimum wage to determine the number of hours unless the self-employed person can supply information to show that they are subject to a state minimum wage.

Wages for people with disabilities

Some employers employ people with disabilities and may qualify for disabled worker permits. The Minnesota Department of Labor and Industry grants waivers from minimum wage requirements for some sheltered workshops employing people with disabilities.

To pay a person with disabilities less than the state minimum-wage, an employer must apply for a subminimum-wage permit from the Minnesota Department of Labor and Industry. The employer may have such documentation of a waiver, or the worker can contact the Department of Labor and Industry to determine if this employer has such a waiver. If it is determined that the employer has a permit to pay subminimum wage, the wage paid should be regarded as the “applicable minimum wage” and as meeting CCAP requirements.

Legal authority

Minnesota Statutes 142E.12
Minnesota Rules 3400.0040

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