Court rules in favor of the City in challenge to new municipal minimum wage ordinance

 

Feb. 28, 2018 (MINNEAPOLIS) The City of Minneapolis has prevailed in a legal challenge to its new municipal minimum wage ordinance. The decision means the ordinance, which took effect Jan. 1, will stay in place. 

Hennepin County District Court issued its decision on the merits of Graco, Inc. v. the City of Minneapolis yesterday afternoon. In that decision, the court ruled in favor of the City on all grounds and denied the plaintiff’s request for a permanent injunction. 

“The City of Minneapolis seeks to address pressing social and economic issues facing the City, such as poverty and economic and racial disparities,” Judge Susan Burke said in her written decision. “Possible benefits to the City of Minneapolis include improved quality of health, children's education, family life, and community stability. Improved employee performance, reduced turnover, lowered absenteeism, and improved productivity and quality of services furnished by employees should benefit the City of Minneapolis, as well as the economy as a whole.”

“I am very pleased with the outcome in this important case,” said City Attorney Susan Segal. “The court’s decision is well-reasoned and affirms the basic authority of the City to address local needs – in this case, by providing a minimum wage more in tune with costs of living in an urban center and that will promote the health and well-being of City workers through a more livable wage.”

“This landmark decision sets an important precedent, solidifies Minneapolis as a laboratory of democracy, and is a big win for workers,” said Mayor Jacob Frey. “I applaud our City Attorney’s office for their excellent defense and legal work.”

"This is a significant and meaningful win for Minneapolis", said Council President Lisa Bender. "We created the minimum wage to help improve the lives of low wage workers and their families struggling to get by paycheck to paycheck. This court decision will ensure thousands of workers living in poverty, disproportionately women and people of color, can see their income increase to meet basic needs.”

For this first phase of the ordinance, large businesses with more than 100 employees are required to pay workers a minimum of $10 an hour. Smaller businesses are gradually phased in. (Note: The minimum wage will be indexed to inflation every subsequent January after the $15 an hour wage is reached.)

 *indexed to inflation every subsequent January 1 

The City’s Department of Civil Rights oversees enforcement of the municipal minimum wage, and employees are encouraged to report violations online.

The municipal minimum wage ordinance comes at a time when many Minneapolis workers struggle to pay for basic needs. Inaction by federal and state governments has prompted more cities throughout the country to establish minimum wage policies.

There are more than 84,000 people in Minneapolis with incomes below the federal poverty level. An increase in the minimum wage to $15 an hour is expected to benefit 23 percent of workers in Minneapolis (about 71,000 people). Of this number, a majority are low-wage workers of color.

For more information about the ordinance, visit minimumwage.minneapolismn.gov. For additional questions call 311 or email minwage@minneapolismn.gov. Read the court's full opinion here.