Minnesota looks to raise minimum wage to $9.50 by 2016

MSNBC reports that state legislators in Minnesota appear to have agreed to raise the minimum wage in the state - one of the lowest in the country - to $9.50 by 2016:

In a press conference on Monday, party leaders announced a crucial—and much fought over—part of the bill: the state’s minimum wage would be indexed—tied to inflation—starting in 2018, with an annual cap of 2.5%, though the governor’s administration does have the right to stop these automatic hikes.

While lawmakers had agreed on a $9.50 wage as early as last summer, they spent months negotiating over these automatic increases.

Minnesota’s current minimum wage is among the lowest in the nation—$5.25 for smaller companies, $6.15 for larger companies, though many employees are paid the higher, federal minimum wage of $7.25. After the hike, it will be among the highest minimum wages.