30 June, 2017
As proposed, it would phase in the $15 minimum wage over five years for large businesses and seven years for small businesses.
"I think we need to be moving forward in a way that uplifts workers and simultaneously accounts for the realities small local businesses face in our city", Jacob Frey, a Minneapolis City Council member, said. Yang, who is up for reelection for his north Minneapolis seat, said he knows his decision is unpopular.
Under the ordinance, large businesses will start paying a $10 an hour minimum wage, 50 cents above the state's minimum wage, starting next January. Many restaurant owners and employees have argued they support the higher wage but wanted tips counted toward the $15. But critics say required pay increases lead to layoffs and force some employers out of business. But it is likely to be monitored closely for any negative impact on the labor market.
A council committee passed a preliminary version of the ordinance Wednesday.
Meanwhile, businesses with fewer than 100 people would have seven years to reach the new minimum wage.
"We can not make Minneapolis an island", Yang said at the meeting.
California, under a law approved previous year, is the only state that has set a $15 target for all workers, which it plans to reach in 2022.
