Minneapolis City Council passes $15 minimum wage

Large employers have until 2022 to reach $15 an hour; small businesses until 2024

The Minneapolis City Council approved a municipal minimum wage ordinance Friday that requires large employers to pay Minneapolis workers $15 an hour in five years, and small employers to reach the target wage in seven years. Minneapolis becomes the first Midwestern city — and one of only a few cities in the nation — to raise the minimum wage to $15.

In accordance 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 press release stated that the passage of the municipal minimum wage ordinance comes as many Minneapolis workers struggle to pay for basic needs.  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. Low-wage workers of color will disproportionately benefit from the wage increase, according to the City.

Increasing the minimum wage is one of the primary tools the City lists to help reduce economic and racial disparities. “The public welfare, health and prosperity of Minneapolis requires wages sufficient to ensure a decent and healthy life for all Minneapolis workers and their families,” the ordinance states.

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

Information provided by the City of Minneapolis.