City Council passes municipal minimum wage ordinance

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

Date

Large businesses: five years

Small businesses: seven years

Jan. 1, 2018

$10

No increase

July 1, 2018

$11.25

$10.25

July 1, 2019

$12.25

$11

July 1, 2020

$13.25

$11.75

July 1, 2021

$14.25

$12.50

July 1, 2022

$15

$13.50

July 1, 2023

$15 indexed to inflation

$14.50

July 1, 2024

$15 indexed to inflation

$15

 

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 the 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 allowing an employee or employees to bring a civil action in district court for violations of the ordinance.

The passage of the municipal minimum wage ordinance comes as many Minneapolis workers struggle to pay for basic needs. Inaction by federal and State governments has prompted more cities throughout the country to establish minimum wage policies.

More than 84,000 people in Minneapolis have incomes below the federal poverty level. An increase in the minimum wage to $15 an hour would benefit 23 percent of workers in Minneapolis (about 71,000) people. Low-wage workers of color will disproportionately benefit from the wage increase.

For more information on the City’s minimum wage ordinance, visit the City’s website: minneapolismn.gov/minimumwage.

 

 

Published Jul 11, 2017

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