Minneapolis minimum wage increases July 1

Many workers in Minneapolis will see a 75-cent to $1 raise Monday as the city takes another step toward scaling up to a $15 minimum wage.

As part of an ordinance passed in 2017, the minimum pay for workers at small businesses, defined as 100 employees or fewer, rises to $11 on July 1. The minimum wage for larger employers increases to $12.25.

The city's minimum wage will continue to increase annually every July until it hits the $15 mark for all businesses in 2024.

Employers outside of Minneapolis must still abide by the minimum wage for hours worked in the city limits if the employee spends at least two work hours per week in the city. The ordinance stipulates that employers can't count tips as wages.

The city's Department of Civil Rights investigates potential violations, which can be reported through an online portal. Since the new wage policy began to take effect last year, the department has received 30 reports of wage violations, according to city data. It has helped reinstate more than $21,000 in back wages and penalties.

The bulk of that came from a 2018 settlement with a McDonald's franchise at 210 E. Lake St. after an investigation found management failed to pay dozens of employees the minimum wage, which was then $10 per hour.

Minneapolis is part of a nationwide movement toward a $15 minimum wage, one of many measures the city is enacting to protect low-wage workers. A separate ordinance guarantees safe and sick time for workers in Minneapolis. City Council members are pursuing ordinances to crack down on wage theft and exploitative pay practices at adult entertainment clubs.