City’s minimum wage ordinance takes effect Jan. 1

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

The tiered phase-in period for small and large businesses 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 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 For additional questions call 311 or email