NEW CASE: Minneapolis Minimum Wage Ordinance Upheld By Minnesota Court of Appeals

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:

Small Business

(100 or fewer employees)

Large Business

(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.