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New Year, new minimum wage in Minneapolis

Published  December 29, 2017 7:04pm CST
News
FOX 9 Minneapolis-St. Paul

MINNEAPOLIS (KMSP) - When the clock strikes midnight on New Year's, some workers earning minimum wage in Minneapolis will be getting a raise. The first phase of the new Minneapolis minimum wage ordinance takes effect Monday, Jan. 1, increasing the wage to $10 per hour for businesses with more than 100 employees.

The minimum wage for small businesses with 100 or fewer employees does not increase until July 1, 2018, when it will jump to $10.25. The current minimum wage in Minneapolis ranges from $7.75 to $9.50 per hour.

MINNEAPOLIS MINIMUM WAGE PHASE-IN

Jan. 1, 2018
Small business: No increase
Large business: $10

July 1, 2018
Small business: $10.25
Large business: $11.25

July 1, 2019
Small business: $11
Large business: $12.25

July 1, 2020
Small business: $11.75
Large business: $13.25

July 1, 2021
Small business: $12.50
Large business: $14.25

July 1, 2022
Small business: $13.50
Large business: $15

July 1, 2023
Small business: $14.50
Large business: Indexed to inflation

July 1, 2024
Small business: Equal to large business
Large business: Indexed to inflation

Enforcement of the new minimum wage will go through the Minneapolis Department of Civil Rights. The city asks that employees report any violations online and minimumwage.minneapolismn.gov. 

According to the city, there are more than 84,000 people in Minneapolis with incomes below the federal poverty line, and an increase in the minimum wage to $15 an hour would benefit 23 percent of workers in Minneapolis.

Last June, the Minneapolis City Council voted 11-1 to raise the minimum wage to $15 per hour with the phase-in schedule listed above. Blong Yang, representing the north side's Ward 5, was the only "no" vote. 

Opponents have argued a $15 minimum wage will raise costs and put pressure on businesses to cut worker's hours in order to cut costs. Councilman Yang voiced concerns that the increase would negatively affect immigrant and minority-owned businesses in his ward, and potentially drive businesses out of the city.

The ordinance covers only the city of Minneapolis. The ordinance also includes a private "cause of action," which allows employees to file a civil lawsuit for violations of the ordinance.