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Minimum wage increases go into effect in Minneapolis beginning July 1

Tips and gratuities don't count towards the new hourly wages.

Beginning Sunday, July 1, the minimum wage in Minneapolis will rise to $10.25 for small employers and $11.25 for large employers. 

It's part of the recently passed ordinance that will see minimum wage continue to rise over the next five years, going up in one dollar increments each July 1 through 2023, although large businesses will be capped at $15 per hour in 2022. 

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The City of Minneapolis notes that 84,000 people in Minneapolis are financially below the federal poverty level, which is defined by annual income and family size. 

Federal poverty level tiers:  

  • $12,140 for individuals
  • $16,460 for a family of 2
  • $20,780 for a family of 3
  • $25,100 for a family of 4
  • $29,420 for a family of 5
  • $33,740 for a family of 6
  • $38,060 for a family of 7
  • $42,380 for a family of 8

In Minneapolis, 41 percent of all black workers and 54 percent of all Latino workers earn less than $15 per hour. Only 17 percent of white workers make less than $15 per hour. 

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Notes: Small employers are defined as having 100 or fewer employers. Large businesses have 100+ on staff. Tips do not count towards hourly wages. 

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