Studies and Legislative History

​Minneapolis Minimum Wage in a nutshell

A $15 per hour rate was out of reach for as many as 78,000—or 1 in 4—workers in Minneapolis before 2018. A new minimum wage changed that.

​The Municipal Minimum Wage Ordinance phases-in raises – on two tiers – for small (100 or fewer employees) and large businesses (more than 100 employees) until July 2024. 

After July 2024, only one minimum wage will cover Minneapolis and it will be the same for all employers moving forward. The distinction based on size will disappear, as small businesses will reach the same rate as large businesses. Both will then rise together every January.

​Coverage depends on the physical location (in the city of Minneapolis) of an employee while the employee is performing work, regardless of the employee’s age or training. 

Federal Reserve Bank of Minneapolis studying economic impact

​The Federal Reserve Bank of Minneapolis is committed to conducting seven reports and presenting them annually through 2028, which will examine effects on workers and firms. Early findings estimate initial cutbacks in jobs and hours worked by employees in certain industries, including restaurant and retail, but the long term impact on future earnings of previously laid off workers in new jobs or different industries is unclear and will be included in ongoing studies.  

Legislative History
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Find all of the official records and legislative file here.

Extensive study and public input informed what eventually became the Minneapolis Minimum Wage Ordinance. During 2016-17, when demanded by residents, the City conducted public listening sessions across the city, cataloged existing policy data (see comparative data tool below), commissioned an economic simulation (details and links below), and presented a city staff report, outlining recommendations. 


2016 Simulation of future effects

In 2016, a team of researchers from the University of Minnesota, Howard University, Rutgers University, and the Economic Policy Institute replicated techniques used in prevalent economic literature to simulate the future impact of minimum wages at $12 and $15 per hour.

The study found that of the City’s 311,000 workers, about 47,000 would be affected by an increase to $12 per hour and about 71,000 would be affected by an increase to $15 per hour. Moreover, the study concludes that workers of color—especially Latino and Black workers—would disproportionately benefit from an increased minimum wage.