Minimum Wage Hike Takes Effect Nationwide, Including In Minnesota

MINNEAPOLIS (WCCO) -- Small-business owners in Minneapolis are bracing for the impact a new minimum wage ordinance could have on their already razor-thin margins.

Starting Jan. 1, 2018, businesses with at least 100 employees have to pay workers at least $10 an hour.

Smaller businesses with less than 100 employees have until July 1, 2018.

This change has been in the works since the Minneapolis City Council voted to boost the minimum wage last summer.

The increase also applies to workers who earn tips.

Tina Rexing owns T-Rex Cookie Co. and already pays her employees between $9 and $15 an hour and offers them health insurance.

Over the next few months, she'll take a close look at her books and expenses to prepare for the change.

"Taking a look at my scheduling and seeing where there is overlap where there doesn't need to be … I am going to have to take a look at my business hours. If I am not having any sales between 7 and 8, then maybe I should just close at 7," said Rexing.

We're already seeing the impact this minimum wage hike may have on Minneapolis businesses.

After 12 years, Whiskey Junction closed its doors on New Year's Eve.

On Facebook, the owner claimed the new ordinance, along with the lack of a tip credit provision, prompted the bar to shut down.

The minimum wage increase in Minneapolis keeps climbing in the coming years.

It will eventually get to $15 an hour by 2022.

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