City of Minneapolis Releases Details on New Minimum Wage Increases

The Minneapolis City Council adopted a new minimum wage ordinance on Friday, June 30, 2017, which will impact many employees working in Minneapolis. The ordinance goes into effect starting January 1, 2018, depending on the size of the business, and incrementally increases over the next several years to reach a $15 per hour minimum wage.

 

Below are details to get you started. There are a lot of additional details around inflation, enforcement, and additional questions you may have. Start here and we’ll update with more information. You are also welcome to call directly to talk through how this might impact your organization directly.

 

For large businesses (if it has more than 100 employees) the wage increase schedule is:

Effective Date

Hourly Minimum Wage

January 1, 2018

$10.00

July 1, 2018

$11.25

July 1, 2019

$12.25

July 1, 2020

$13.25

July 1, 2021

$14.25

July 1, 2022

$15.00

 

For small businesses, (if it has 100 or fewer employees) the wage increase schedule is:

Effective Date

Hourly Minimum Wage

July 1, 2018

$10.25

July 1, 2019

$11.00

July 1, 2020

$11.75

July 1, 2021

$12.50

July 1, 2022

$13.50

July 1, 2023

$14.50

July 1, 2024

$15.00 plus an inflationary figure determined by a process outlined in the ordinance

 

Further info on business size

To qualify as a large business, do all 100 employees have to be working in Minneapolis? No. Where the employees work does not impact the size. The size, regardless of location, is the size.

Youth Training Wages

The ordinance contains a 90 day youth training wage. However, there may be further changes here as City Council provided a staff directive to further examine the training wage provision.

Non-healthcare facilities

City Council continues to contemplate how this schedule should be implemented for non-healthcare facilities – which is a broad way of discussing several job categories – each which carries different reimbursement and rate structures. MCN appreciates the Council looking thoughtfully at what the needs are around reimbursement rate situations – it is something that many MCN members are engaged in as well.

Disability wages

For the purposes of this ordinance, employee does not include anyone participating in the extended employment program defined in Minn.Stat. 268A.15.

Applicable to all nonprofits who perform work within Minneapolis

Even if you’re organization is not based in Minneapolis, all work within Minneapolis are covered by this ordinance if they hit a two-hour per week coverage threshold. For those hours worked in Minneapolis, employees will be eligible for the higher minimum wage. Similarly, to sick & safe leave – the City is expecting legal challenge on this part of the ordinance.

Implementations:

Employers based in Minneapolis or employers who regularly send employees into the City to work should start planning to comply with the new ordinance. Many nonprofits surveyed are already paying its employees more than the first couple scheduled rate changes in 2018. So, a review of how many staff are impacted, and when, is a good starting place to understand how to put together options and a plan for your organization.

If you are located outside of Minneapolis but have employees that perform work in Minneapolis, again, start by reviewing how many staff will be impacted, and when. That will help you understand what additional mechanisms for tracking hours worked in Minneapolis are needed, how quickly, if at all.

Nonprofits are an important part of the economy. We want to be a desirable sector that provides a positive work experience, recruiting and retaining the best as part of thriving economy where both staff and the communities we partner in can be successful. However, we recognize that workplace policies need to be reasonable to implement – especially where there are financial mechanisms that create barriers for some in our sector. MCN sits on the City of Minneapolis Workplace Advisory Council and continues to thoughtfully advocate for nonprofits, the communities it partners with as we move into the implementation and enforcement stage of this ordinance.

For more information on the new minimum wage ordinance, please contact Rebecca Lucero, MCN public policy director, at rlucero@minnesotanonprofits.org.

 
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