On May 26, 2017, the Minneapolis City Council will propose plans for an ordinance that will recommend eventually raising the minimum wage to $15 an hour without a tip credit. After entertaining the idea for some time, city staff presented a report suggesting a raise to at least $12.49 per hour, with the goal to eventually be $15 per hour, with the raises to be phased in over time. Lisa Schmid, a labor and employment attorney with Nilan Johnson Lewis, points out that the ordinance will likely include extraterritorial coverage. “Employers need to be aware that if they are located outside of Minneapolis, such as in Eagan, but send their workers into the city, they will be required to meet Minneapolis’ $15 minimum wage for the time their employees work in the city,” says Schmid. “This ordinance may result in companies having to pay employees two different wages depending on where work is performed.” While the drafted proposal is likely subject to change before it becomes law, Schmid notes there appears to be a strong commitment to the no tip credit as well as the minimum wage for all work done in the city regardless of where the company is located. Businesses need to prepare for those provisions as they are likely to survive the process. A public hearing will be held on June 22^nd 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.