In January 2018, the City of Minneapolis’ minimum wage ordinance took effect. Businesses and business groups had previously sued the city to block the law, noting that the city’s minimum wage exceeded Minnesota’s current statewide minimum wage. In April 2018, a Minnesota district court held that the state law did not prohibit Minneapolis from setting a higher wage for employees who worked in the city.
This week, the Minnesota Court of Appeals upheld the district court’s decision. The Court of Appeals noted that current state law sets a floor, not a ceiling, for minimum wages. Cities cannot authorize payment of lower wages, but they can require payment of higher wages.
It’s unknown whether the ruling will be appealed to the Minnesota Supreme Court. In the meantime, the Minneapolis ordinance remains effective. The current minimum wage for large businesses (100+ employees in the previous calendar year) is $11.25/hour. For small businesses (100 or fewer employees), it’s $10.25/hour. Details on determining business size are available from the city’s minimum wage webpage.
For more detail on the minimum wage ordinance, check out our previous article overviewing the requirements.