ROCHESTER, Minn. - Minnesota's minimum wage rates will be adjusted to account for inflation this Friday.

Employers with gross revenues of $500,000 or more will be required to pay employees at least $10.08 per hour beginning in 2021, an eight-cent increase from 2020.

Organizations grossing less than $500,000 yearly will have to pay at least $8.21 per hour, a six-cent bump from 2020.

James Honorman of the Minnesota Department of Labor and Industry says every year his agency evaluates whether an adjustment to the minimum wage rate is appropriate based on inflation. He says this adjustment is mild compared to years past.

"In other years past, it's in between a 1% and 2% type of increase. So this is slightly less, more of a modest increase," Honorman told KIMT News 3.

The Department of Labor and Industry estimates Friday's wage increases will affect more than 200,000 workers across Minnesota based on statistics collected last February.