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Minneapolis City Minimum Wage Ordinance

Minneapolis City Minimum Wage Ordinance

On Friday, June 30, 2017, the Minneapolis City Council passed a $15 minimum wage ordinance amending Title 2, Chapter 40 of the Minneapolis Code of Ordinances relating to Administration: Workplace Regulations. The Ordinance requires that large employers (100 or more employees) pay Minneapolis workers $15 per hour by July 1, 2022, and small employers pay $15 per hour by July 1, 2024, over a 5 and 7 year phase-in period. As with State law, employers may not take a tip credit for hospitality workers.

Who is subject to this?
Both large and small employers are subject – determined by number of employees.  All employees (full-time, part-time, joint, or temporary) are counted to determine size.

Example #1: A franchise is a large employer (no matter how many employees at a single location) if the brand has at least 10 national locations (no matter who operates the franchise).

Example #2 A full service restaurant in Minneapolis, with fewer than 10 national locations is a single employer.

State, County, and local governments (except the City of Minneapolis) are exempt. There is also a requirement that it applies to “all time worked within the geographic boundaries of the city”. Employees who work outside the City but perform at least two (2) hours per week or more in Minneapolis are covered by this ordinance.

For construction and other transportation industries: “Time spent in the city solely for the purpose of travelling through the city from a point of origin outside the city to a destination outside the city, with no employment-related or commercial stops in the city, except for refueling or the employee’s personal meals or errands, is not covered by this article.”

How does the phase-in work?
The current tiered phase-in hourly wages are as follows:

* Training wage: 90-days for employees under the age of 20 (85% of minimum wage)

Other Info
The Minneapolis Department of Civil Rights is in charge of enforcement, though the Ordinance does allow a private right of action (employers may be sued by individuals for failing to pay the proper minimum wage). Employers must post notice of these rights, similar to the other State required notices.

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