1000’s of minimal wage employees within the Twin Cities will get pay raises of as much as $15 an hour July 1, a purpose years within the making.
In Minneapolis, massive companies with greater than 100 employees can be required to pay an hourly wage of at the least $15. Employees in companies with fewer than 100 workers will get a pay bump of as much as $13.50. These smaller employers have till 2024 to achieve the $15 an hour fee.
St. Paul’s massive companies should improve their minimal wage by $1 to $13.50 an hour. Smaller companies — these with six to 100 workers — additionally should increase their hourly wage by $1 — to $12, whereas companies with fewer than 5 workers should increase hourly charges from $10 to $10.75.
In 2017, Minneapolis grew to become the primary metropolis within the Midwest to undertake an ordinance elevating the minimal hourly wage to $15. St. Paul adopted go well with the next yr, passing a phased coverage that can require all employers to pay $15 an hour by July 2027.
Ideas and gratuities don’t depend towards wage funds, Minneapolis officers stated.
The wage improve will instantly profit tens of hundreds of households and the financial system, they stated Wednesday.
For the reason that Minneapolis ordinance took impact in 2018, wages have been rising in lots of low-wage industries. The rise has been dramatic the previous yr as many companies wrestle to seek out employees. On Tuesday, Minnesota reported the state had greater than twice as many job openings as unemployed individuals.
Many employers are already paying greater than the minimal wage. Huge retailers similar to Goal have raised beginning pay to at the least $15 an hour prior to now couple of years.
In April, the common wage for restaurant and bar employees in Minnesota was $17.18, a 12% improve prior to now yr and a 20% hike prior to now two years, in response to the Minnesota Division of Employment and Financial Improvement.
In the meantime, the common wage for retail employees was $18.84, a 3% improve and 17% improve throughout those self same years.
There have additionally been violations.
The Minneapolis Division of Civil Rights, which oversees enforcement of minimal wage and wage theft ordinances, discovered that about 22 employers have been paying lower than the required minimal wage since 2018. In these instances, the town recovered about $172,463 in again wages for greater than 1,000 employees.
In the meantime, Minneapolis has additionally collected at the least $34,700 from 4 employers in different instances of wage theft, stated Brian Walsh, director of the town’s Labor Requirements Enforcement Division.
Town is encouraging employees to report violations online on its web site or name 311 for info or companies.
Employees writers Kavita Kumar and Katie Galioto contributed to this story.