Minneapolis new minimum wage

07.7.2017
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Minneapolis New Minimum Wage

The Minneapolis City Council recently passed a new minimum-wage ordinance that increases the minimum wage to $15 per hour. Read on to find out whether this will impact your business:

Who
The ordinance is still brand-new and much remains to be clarified. However, as the ordinance is currently written, all businesses that do business within Minneapolis will be affected. Large businesses (those with more than 100 employees [including those outside Minneapolis]) will be required to comply sooner than small businesses. The minimum-wage requirements will apply to all employees, whether full- or part-time.

Franchise businesses, even if owned by separate companies or individuals, are considered large employers if they have 10 or more locations. State, county and local government employees are exempt from the new requirements.

As drafted, the ordinance applies to “all time worked within the geographic boundaries of the city.” Employees who work outside Minneapolis, but perform at least two (2) hours per week or more in the city, are covered. Time spent passing through Minneapolis from a starting point outside the city to a destination outside the city does not count as work performed in Minneapolis.

What and When
A $15 per hour minimum wage must be paid to employees according to the implementation chart:

Date Large business: implementation over five years Small business: implementation over seven years
Jan. 1, 2018 $10 No increase
July 1, 2018 $11.25 $10.25
July 1, 2019 $12.25 $11
July 1, 2020 $13.25 $11.75
July 1, 2021 $14.25 $12.50
July 1, 2022 $15 $13.50
July 1, 2023 $15 indexed to inflation $14.50
July 1, 2024 $15 indexed to inflation $15

Employers must post notice of these rights, similar to the other State-required notices. The Minnesota Department of Civil Rights is responsible for enforcement; however, there’s also an option for employees to file suit against an employer if proper minimum wage is not paid. It remains to be seen whether other cities will follow Minneapolis in adopting higher minimum-wage requirements. As the ordinance is implemented, hopefully additional clarification will emerge.

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