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City Council passes municipal minimum wage ordinance

The City Council approved a municipal minimum wage ordinance June 30, 2017 that requires large employers to pay Minneapolis workers $15 an hour in five years and gives small employers seven years to reach that target wage.

There will be a tiered phase-in period for small and large businesses. Large businesses are defined as having more than 100 employees and small businesses as 100 or fewer workers.


Large business: five years

Small business: seven years

Jan. 1, 2018


No increase

July 1, 2018



July 1, 2019



July 1, 2020



July 1, 2021



July 1, 2022




Jan. 1: $15 indexed to inflation

July 1: $14.50

July 1, 2024

$15 indexed to inflation

$15 indexed to inflation

To be consistent with State law, the minimum wage policy will apply to anyone who works in Minneapolis for any amount of time. The minimum wage will be indexed to inflation after the target $15 an hour wage is reached. The ordinance does not include an exception for tipped workers in the hospitality industry--all workers will be subject to the minimum wage, regardless of tips, consistent with state policy. 

The City's Department of Civil Rights will oversee enforcement of the municipal minimum wage. The ordinance also includes a private cause of action in district court for violations of the ordinance.


Schedule to consider draft ordinance on minimum wage

The City Council has set the following schedule to review the draft ordinance on a municipal minimum wage policy:

City staff report on a minimum wage policy

City staff have completed a report, outlining recommendations for a municipal minimum wage in the City of Minneapolis. On Aug. 5, 2016, the City Council directed City staff to "work with stakeholders, review policies from other cities, review and incorporate results from the minimum wage study, and recommend a minimum wage policy to bring before the City Council Committee of the Whole by second quarter of 2017." Staff also created a minimum wage comparative data tool (below.)


City holding listening sessions to discuss minimum wage

The City of Minneapolis is hosting several listening sessions to gather feedback on a potential minimum wage policy for employers in the City of Minneapolis.

The City Council has directed City staff to present minimum wage policy recommendations mid-year after doing additional research and community engagement on the topic. The listening sessions will be an opportunity for community stakeholders to share viewpoints on how a change in the minimum wage would impact them. Meetings include:

All meetings are open to the public, though each will have a specific audience focus. Meeting organizers will use a variety of mechanisms to engage community stakeholders and will have interpreters available. More listening sessions are also being planned. Questions and feedback on this issue can also be sent to


Listening session recaps 


Minimum Wage Study

In April 2015, the City Council adopted a resolution supporting a strong economy and working families. In September 2015, the City Council authorized the issuance of a Request for Proposals for a comprehensive economic analysis of the effects of an increased minimum wage, both locally and in Hennepin and Ramsey County. The contract for that economic analysis was awarded to a team of researchers from the University of Minnesota, Howard University, Rutgers University, and the Economic Policy Institute. That research team—led by the Roy Wilkins Center at the University of Minnesota—replicated techniques used in prevalent economic literature to simulate the relative impact of a minimum wage at $12 and $15 per hour.

The study found that of the City’s 311,000 workers, about 47,000 would be affected by an increase to $12 per hour and about 71,000 would be affected by an increase to $15 per hour. Moreover, the study concludes that workers of color—especially Latino and black workers—would disproportionately benefit from an increased minimum wage.

Minimum wage study graph: 310,000 people in the Minneapolis workforce, 71,000 affected by $15/hour, 46,000 affected by $12/hour

People of color would disproportionally benefit from a wage increase

  • Of Latino workers, 39 percent would benefit from an increase to $12/hour and 54 percent would benefit from an increase to $15/hour.
  • Of black workers, 27 percent would benefit from an increase to $12/hour and 41 percent would benefit from an increase to $15/hour.
  • Of white workers, 10 percent would benefit from an increase to $12/hour and 17 percent would benefit from an increase to $15/hour.

After applying the local workforce demographics to the available economic forecast models, the study did not find significant projected job growth losses due to the proposed minimum wage increases, either in Minneapolis, or in Hennepin and Ramsey County. The models either showed a slight decrease in employment, or no statistically significant change. The difference in estimations for the effect of a minimum wage is largely due to the fact that each model makes different assumptions on the best way to test for these effects.

Service industries like restaurants, retail, fast food, health care and child care are where minimum wage work is concentrated and where the benefits and impacts will be felt strongest by both employees and employers.


Last updated Jul 17, 2017



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