Questions Raised Regarding Minimum Wage Exemption for Nonprofits

In February 2015, a bill to exempt nonprofit organizations from recent minimum wage increases was introduced in the Minnesota Senate. Senate File 620 would establish a $6.15 minimum wage for nonprofit organizations starting August 1, 2015 (current law requires a $9.00 minimum wage starting on August 1). While the Minnesota Council of Nonprofits (MCN) is sensitive to the financial challenges that some nonprofits may be facing as a result of the recent minimum wage increase, MCN does not support this proposal.

In surveying our members on this subject in 2013, MCN found that nonprofit organizations are overwhelmingly supportive of the increase, both as employers and based on their concern for the members of their community who struggle with low incomes. Given the important work that nonprofits do in the community, nonprofits must not become the employer of last resort. We believe that fully complying with Minnesota’s increased minimum wage requirements will help the nonprofit sector recruit and retain the high-quality employees we seek.

If you have questions about Senate File 620 or the Minnesota Council of Nonprofits’ position on this bill, please contact Susie Brown, public policy director, at 651-757-3060 or sbrown@minnesotanonprofits.org.

 
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