Local Government Compensation Limit

Minnesota law sets a compensation limit for local government employees. The limit is adjusted each year based on the Consumer Price Index. For recent years:

Effective January 1, 2016, the limit was $165,333.
Effective January 1, 2017, the limit was $167,978.
Effective January 1, 2018, the limit was $171,338.
Effective January 1, 2019, the limit is $175,621.
Effective January 1, 2020, the limit is $178,782.
Effective January 1, 2021, the limit is $180,927.

The compensation limit applies to cities, counties, towns, and metropolitan or regional agencies, but not to school districts. Hospitals, clinics, and health maintenance organizations owned by governmental units are also not subject to the limit.

Detailed information on the compensation limit is available on the Minnesota Management & Budget website at:

https://mn.gov/mmb/employee-relations/compensation/laws/local-gov/comp-limits/lgcomplimitsbyyear.jsp

Date this Avoiding Pitfall was most recently published: 1/8/2021