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This paper examines the effects of the increase in the minimum wage level and the strengthening of the system on corporate employment decisions, and draws conclusions on changes in labor relations from changes in employment forms using China's practice of the minimum wage system. The minimum wage system was implemented nationwide in 1993, and the “Minimum Wage Regulations” was enacted in 2004 to further strengthen and regulate the implementation of the minimum wage system. In this article, a theoretical model is constructed to obtain testable properties, and empirical analysis is conducted using China's Nutrition and Health Survey data to examine the impact of the minimum wage system on employment decisions of enterprises. We find that the increase in the minimum wage has led to a trend towards short-term employment forms, and the strengthening of the minimum wage system in 2004 further exacerbates this trend.