MINIMUM WAGE
WORKING. THRIVING. TOGETHER.
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What is the Minneapolis Minimum Wage? |
On July 1st, 2024 the minimum wage across the city of Minneapolis rose to $15.57. Effective January 1st, 2025, the Minneapolis minimum wage rates for all employer, including large employers, franchises, and small employers will increase to $15.97 an hour.
Coverage depends on the physical location (in Minneapolis) of the employee while performing work, regardless of the employee's age. |
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HOW MUCH IS THE MINNEAPOLIS MINIMUM WAGE?
The required minimum wage rate increases to $15 and then continues increasing yearly on January 1 starting in 2023 to account for inflation (capped at 2.5%). “Small businesses” – those averaging one hundred (100) or fewer workers – have more time to adjust to a higher wage, with increases in July 2023 and July 2024.
HOW DO I DETERMINE MY BUSINESS SIZE UNDER THE NEW MINIMUM WAGE ORDINANCE?
To determine an employer’s size, count the total number of persons performing work for compensation. Add each person per week for each week of the previous calendar year and divide by 52. Include full-time, part-time, jointly-employed, paid interns, seasonal, and temporary workers, no matter where they are located. This calculation determines whether an employer is considered “large” or “small” for purposes of the ordinance (see questions 13 and 14). If an employer is a franchise or a full-service restaurant, see questions 18 and 19 below.
Scenario (a): Robot World, a business in Minneapolis, employed 30 full-time workers, 22 part-time workers, and two temp workers each week last year. Robot World averaged a total of 54 (30 + 22 + 2) workers per week. It is a “small business” for purposes of the minimum wage ordinance because 54 is less than 100. Scenario (b): Tree World is a business in Minneapolis. It is open all year round, but there is a lot of variation in the number of persons working during the year. For 12 weeks of the year, it employs 150 full-time workers. During the slowest 10 weeks, it only employs 25. For the remaining 30 weeks, it employs 50 workers. Tree World has to do some math. It looks like this: 12 weeks x 150 workers = 1,800 10 weeks x 25 workers = 250 30 weeks x 50 workers = 1,500 1,800 + 250 + 1,500 = 3,550 Divide 3,550 by 52 (weeks in a year) to get the average number of employees, like this: 3,550 / 52 = 68.27 employees (weekly average for one year) Because 68.27 is less than 100, Tree World is a “small business” under the minimum wage ordinance. DO TIPS COUNT TOWARD THE MINIMUM WAGE?
Tips and gratuities do not affect the new minimum wage owed to employees. No employer may directly or indirectly credit, apply, or utilize gratuities towards payment of the minimum wage.
Scenario: Tina is a server at a restaurant in Minneapolis. On average, she receives about $8 an hour in tips. Does that count towards the minimum wage her employer must pay her? No, it does not. The employer must pay her at least the minimum wage-not counting tips or gratuities. are franchise locations automatically required to pay the Large business wage?
If a business is operated pursuant to Minnesota's franchise law, Minn. Stat. 80C.01, and
the franchisor and all franchisees own or operate an aggregate of more than ten (10) locations nationally, then the business is automatically considered a large business under the Minimum Wage ordinance. The number of employees would not matter. If more than ten (10) franchise locations exist, all locations count as large businesses, regardless of ownership. DOES THE ORDINANCE APPLY TO AN EMPLOYER WHO ISN’T LOCATED IN MINNEAPOLIS BUT HAS AN EMPLOYEE PERFORMING WORK IN MINNEAPOLIS?
Regardless of where an employer is located, it must pay at least the Minneapolis minimum wage rate, for time worked in the City of Minneapolis, to any employee who performs at least two hours of work in a calendar week within the City of Minneapolis. For purposes of this rule, a calendar week runs from Monday to Sunday.
I WANT TO REPORT A VIOLATION, BUT I’M AFRAID OF RETALIATION. WHAT SHOULD I DO?
Retaliation against an employee for exercising or attempting to exercise any rights available under the Municipal Minimum Wage Ordinance is strictly prohibited.
Material changes in job duties or hours, formal disciplinary action such as documented warnings, or employment termination may be considered retaliatory. Aggressive enforcement to protect employees’ rights will be pursued by the Department in these types of cases. Employees should report violations in the drop-down tab at the top of this webpage. WHERE CAN I RECEIVE MORE INFORMATION?
The entire FAQ's document is downloadable on the employee or employer resources pages in the download centers. Labor Standards Enforcement Division staff in the Minneapolis Department of Civil Rights will also provide technical assistance or answer questions from anyone. Contact (612) 673-3000 (311) or (612) 673-2157 (TTY) or email [email protected] for more information.
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Checks maps left and below or enter a street address to identify if it is located inside or outside the City of Minneapolis:
gis.hennepin.us/property/map/default.aspx |
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