Minimum Wage Increases in Minnesota As City Moves Towards $15

As debate continues around the country, Minnesota was the most recent city to see minimum wage increases. 

Minnesota Passes Minimum Wage Increases

As part of a plan to increase the minimum wage to $15, Minneapolis raised the minimum wage on both small and large businesses.

Effective immediately, small businesses with 100 or fewer employees must pay an hourly wage of $10.25 for the next 12 months. Large businesses, which already saw an increase in January, must now raise their pay to $11.25 per hour.

The increase does not include tip credits. This means that waitstaff and other individuals who work in “tipping professions” must be paid the full minimum wage regardless of how much they collect in gratuity.

Not everyone is ecstatic about the increase, however.  Local businesses as well as some lawmakers warn that minimum wage increases place an unfair burden on the city’s smaller businesses.

And while small businesses will not have to worry about paying a $15 minimum wage until 2024, large businesses will reach the threshold in 2022.

“I think what really is gonna get hard and difficult is when it gets to 15,” said Jason Dorweiler, a local restaurant owner. “It’s gonna make things a lot more competitive for the workforce, too. People are going to hit that 15 automatically, and what is it going to do with more experienced people who are going to want a better pay than 15?”

Proponents, however, are happy with the plan.

“For our lowest-wage workers in the city of Minneapolis, this is going to be a really big deal,” Minneapolis Department of Civil Rights Director Velma Korbel said. “This is going to mean more money that they’re taking home and putting in their pockets every day.”

A Growing Trend

Other cities and states have passed similar measures. And while the full effects of the increase have yet to be seen, add Minneapolis to the growing list of cities passing minimum wage increases.

The impact on cost of living will play out over time, and as 2022 and 2024 grow closer. For now, workers in Minneapolis will see a modest increase in their wages. Which doesn’t mean it’s time to pick up and move to Minneapolis just yet. There are, of course, other factors to consider.

Around the country, cost of living varies greatly between cities. Before you head out to Minneapolis, make sure your other expenses won’t be increasing. That’s where City vs City can help.

City vs City is a powerful cost of living tool that uses local data to determine your expenses. Compare your housing, transportation, and tax expenses between city. As a result, you’ll see how your costs would change if you were to move.

If you’re thinking of moving, don’t make a move without downloading City vs City first.