Recent reports indicate that the Minneapolis City Council may soon consider establishing a higher minimum wage for employees within city limits. This news follows on the heels of the state-wide minimum wage increase recently adopted by the Minnesota Legislature.
The City of Seattle, Washington made news earlier this summer when it passed an ordinance that will raise the city’s minimum wage to $15.00 per hour over a number of years. Now, the City Pages and Minnpost report that Minneapolis Council Members Alondra Cano and Jacob Frey are currently looking into whether it would be feasible for Minneapolis to raise the minimum wage in a similar fashion. One potential concern that Cano noted is that any such increase might encourage businesses to move operations to neighboring cities, such as St. Louis Park, Bloomington, or St. Paul. Another concern is how a minimum wage increase might impact small businesses or immigrant-owned business.
Currently, the Minneapolis City Council is working on strengthening the city’s living wage ordinance, which requires contractors performing work on covered contracts with the city to pay wages calculated in proportion to federal poverty guidelines. It is estimated that the Minneapolis City Council will focus on the living wage ordinance for about six months. After that, the Council will be able to turn its attention to a potential municipal minimum wage increase.
Takeaway: In addition to the recent state-wide minimum wage increase, employers in Minneapolis should stay alert for a potential municipal minimum wage increase in Minneapolis sometime in 2015.