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Another minimum wage bump takes effect in Minneapolis

Minimum wage is going up to $12.25 an hour for large employers in Minneapolis today and $11 for smaller ones.
Credit: Getty Images/iStockphoto
The late afternoon sun shines in this aerial view over the Minneapolis skyline.

MINNEAPOLIS — Minimum wage has again been raised in Minneapolis, as part of a gradual plan to get to $15 an hour by 2024.

Effective Monday, July 1, small employers with 100 or fewer employees must pay $11 an hour. Larger employees have to bump their pay to $12.25 an hour.

The city's incremental minimum wage increases started in 2018, with a new raise going into effect every July. Rates will continue to go up as follows:

  • July 2020: $11.75 small business; $13.25 large business
  • July 2021: $12.50 small business; $14.25 large business
  • July 2022: $13.50 small business; $15 large business
  • July 2023: $14.50 small business
  • July 2024: $15 small business

RELATED: Mpls. adopts $15 minimum wage

The city of Minneapolis says employees are encouraged to report violations online

According to the city, 30 reports have been filed, and employees have received more than $21,000 in back wages and penalties.

RELATED: Appeals court upholds $15 Minneapolis minimum wage

The Minneapolis City Council voted to approve the increases 11-1, in June of 2017.

The lone city council member to vote against the measure, Blong Yang, said his main concern was with small businesses and whether they'd be able to stay afloat with such a large portion of their revenue going to wages.

RELATED: St. Paul votes to raise minimum wage

Large businesses over 100 employees must meet the goal by 2022. Small businesses were given smaller incremental goals to meet and two extra years to get to $15.

RELATED: Minimum wage increases in Minneapolis

The city's plan does not include tip credits, meaning employees like waiters and waitresses must make the full minimum wage regardless of how much they collect in tips during a given shift. The Minnesota Restaurant Association had pushed for a tip credit as a way to ease the burden on employers.

St. Paul also approved a minimum wage increase in 2018, which will be phased in fully by 2025.