New minimum wage increases go into effect in Minneapolis

Minimum-wage workers in Minneapolis are getting a raise on Wednesday.

Small businesses will start paying employees $11.75 an hour, and large businesses making $500,000 a year or more in annual revenue will pay employees at least $13.25 an hour. Tips don’t count toward the minimum wage.

In 2021, wages will be $12.50 for small businesses and $14.25 for large businesses. According to the Minneapolis city ordinance, which went into effect in 2018, all employers will pay workers at least $15 an hour by 2024.

The Minnesota Supreme Court upheld the city’s minimum wage ordinance in January.

Statewide, the hourly minimum wages are $10 and $8.15 for large and small businesses, respectively.

“The battle over our minimum wage ordinance is over,” Minneapolis Mayor Jacob Frey said about the ruling in a statement. “Today’s ruling affirms the right to a living wage for thousands of workers and cements Minneapolis’ status as a city willing to fight for inclusive economic policies."