On March 4, 2019 the Minnesota Court of Appeals upheld a Minneapolis city ordinance setting the minimum wage in the city at $15.00 per hour. Minneapolis company Graco, Inc. sued the City of Minneapolis in November 2017, arguing that the minimum wage law was unlawful in light of state laws regulating the minimum wage.
In April 2018, the district court held that the Minneapolis ordinance was lawful. Graco appealed to the Minnesota Court of Appeals. The Court of Appeals affirmed, holding that state law does not prohibit cities from setting a higher minimum wage so long as employers pay employees at least the state minimum wage.
As of July 1, 2018, large employers were required to pay employees who work within Minneapolis at least $11.25 per hour, which will increase annually, eventually reaching $15.00 per hour in 2022. Small employers must currently pay employees $10.25 per hour, which will also increase annually, reaching $15.00 per hour in 2024.
Takeway: Minneapolis’s new minimum wage ordinance is active and enforceable. Employers should review the ordinance carefully to ensure compliance. On July 1, 2019, the Minneapolis minimum wage will see another annual increase on its way to $15.00 per hour. Large employers will be required to pay at least $12.25 per hour and small employers will be required to pay $11.00 per hour.
