Minnesota Employment Law Update – December 2018

St. Paul Minimum Wage Ordinance

On November 14, 2018, Mayor Melvin Carter signed the City of Saint Paul Minimum Wage Ordinance and created a citywide minimum wage, dependent upon employer size.

The City of St. Paul and macro businesses (more than 10,000 employees) must pay the city minimum wage as follows:

• $12.50 per hour effective January 1, 2020.
• $15 per hour effective July 1, 2022.
• Beginning in 2022, on September 1 of each year the St. Paul Director of the Department of Human Rights and Equal Economic Opportunitywill determine the increase in the minimum wage rate based on inflation.

Large businesses (more than 100 employees) must pay the city minimum wage as follows:

• $11.50 per hour effective July 1, 2020.
• $12.50 per hour effective July 1, 2021.
• $13.50 per hour effective July 1, 2022.
• $15 per hour effective July 1, 2023.
• Beginning on July 1, 2024, the City Minimum Wage rate that applies to the City of Saint Paul likewise applies to large businesses.

Small businesses (100 or fewer employees) must pay the city minimum wage as follows:

• $10 per hour effective July 1, 2020.
• $11 per hour effective July 1, 2021.
• $12 per hour effective July 1, 2022.
• $13 per hour effective July 1, 2023.
• $14 per hour effective July 1, 2024.
• $15 per hour effective July 1, 2025
• On July 1, 2026, the City Minimum Wage that applies to the City of Saint Paul likewise applies to small businesses.

Micro businesses (5 or fewer employees) must pay the city minimum wage as follows:

• $9.25 per hour effective July 1, 2020.
• $10 per hour effective July 1, 2021.
• $10.75 per hour effective July 1, 2022.
• $11.50 per hour effective July 1, 2023.
• $12.25 per hour effective July 1, 2024.
• $13.25 per hour effective July 1, 2025.
• $14.25 per hour effective July 1, 2026.
• $15 per hour effective July 1, 2027.
• On July 1, 2028, the City Minimum Wage that applies to the City of Saint Paul likewise applies to micro businesses.

Of note, the ordinance does not permit employers to directly or indirectly credit, apply, or utilize gratuities towards payment of the city minimum wage set. Additionally, employers must provide employees with annual notice of their entitlement to the city’s minimum wage and are required to create and maintain records documenting the wages paid to each employee. These records must be retained for at least three years from the date the hours were worked.

The ordinance includes enforcement procedures, penalties for violations, and retaliation protections.

The ordinance is effective December 14, 2018.

Read the ordinance