In 2017, the City of Minneapolis enacted a minimum wage ordinance, which increased the minimum wage in the city above Minnesota state minimum wage.
Under that ordinance, minimum wage in Minneapolis is scheduled to increase as follows:
(100 or fewer employees)
(101 or more employees)
|January 1, 2018||$9.65 per hour||$10.00 per hour|
|July 1, 2018||$10.25 per hour||$11.25 per hour|
|July 1, 2019||$11.00 per hour||$12.25 per hour|
|July 1, 2020||$11.75 per hour||$13.25 per hour|
|July 1, 2021||$12.50 per hour||$14.25 per hour|
|July 1, 2022||$13.50 per hour||$15.00 per hour*|
|July 1, 2023||$14.50 per hour|
|July 1, 2024||Increase to equal large business minimum wage|
* minimum wage increases to account for inflation starting January 1, 2023
In November of 2017, several businesses in Minneapolis filed a lawsuit challenging the legality of the Minneapolis Minimum Wage Ordinance and sought to enjoin the Ordinance (or prevent it from going into effect). The district court denied the injunction and the minimum wage ordinance went into effect on January 1, 2018, as scheduled.
The businesses appealed that ruling and, on March 4, 2019, the Minnesota Court of Appeals upheld the district court’s ruling.
What does this mean for Minneapolis employers?
Simply put, this ruling means that the Minneapolis Minimum Wage Ordinance is still in effect and all employers in Minneapolis must be paying their employees at least the local minimum wage.