City’s minimum wage ordinance takes effect Jan. 1, 2018

The City’s new municipal minimum wage ordinance takes effect Jan. 1, 2018. For this first phase of the ordinance, large businesses with more than 100 employees will be required to pay workers at least $10 an hour.

The tiered phase-in period for small and large business is as follows. (Note: The minimum wage will be indexed to inflation every subsequent January after the $15 an hour wage is reached.)

Date Small business: 100 or fewer employees Large business: more than 100 employees
Jan. 1, 2018  No increase $10
July 1, 2018 $10.25 $11.25
July 1, 2019 $11 $12.25
July 1, 2020 $11.75 $13.25
July 1, 2021 $12.50 $14.25
July 1, 2022 $13.50 $15
July 1, 2023 $14.50 Indexed to inflation
July 1, 2024 Equal to large business Indexed to inflation

The City’s Department of Civil Rights will oversee enforcement of the municipal minimum wage and employees are encouraged to report violations online.

The ordinance applies to all employees regardless of immigration status. The City will not inquire about an individual’s immigration status when investigating ordinance violations. The City will not tolerate retaliation against workers who report violations or otherwise assert their rights.

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.

There are more than 84,000 people in Minneapolis with 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). Of this number a majority are low-wage workers of color.

For more information about the ordinance, visit minimumwage.minneapolismn.gov.

NOTE:  With regard to the lawsuit brought by the Minnesota Chamber of Commerce and others seeking to enjoin implementation of the City’s minimum wage ordinance, the Hennepin County District Court has denied the Plaintiffs’ motion for a temporary injunction and the City will proceed with implementation of the ordinance as scheduled.