As expected, the Minneapolis City Council released its draft ordinance implementing a minimum wage increase. The draft ordinance includes extraterritorial application—meaning that it will apply to employers outside of Minneapolis if their employees work for a minimal amount of time in the City, a provision which will almost certainly face legal challenge—and no tip credit. The proposed schedule for minimum wage increases for large employers (a term which has not yet been defined) is as follows:

• On July 1, 2018, the hourly wage shall be $10.50
• On July 1, 2019, the hourly wage shall be $12.00
• On July 1, 2020, the hourly wage shall be $13.50
• On July 1, 2021, the hourly wage shall be $15.00

The ordinance also includes a phase-in period for small employers, but the City has not yet identified the amounts for that part of the proposal. The City is also considering adding a “micro” business tier. After a yet to be identified date, the minimum wage will automatically increase by an amount indexed to inflation.

There is also a youth training wage, which is 85% of the minimum wage for individuals under 20 and for only the first 90 days of employment. A copy of the draft can be found here. A public hearing will be held on June 22, and the City Council will vote on the wage ordinance by the end of June.

To speak with Lisa Schmid on Minneapolis raising its minimum wage and related issues, contact her at 612.305.7549 or lschmid@nilanjohnson.com.