Minnesota Legislature considers bill to increase state's minimum wage
ST. PAUL, Minn. — A new bill that would increase Minnesota's minimum wage is making its way through the state legislature.
Lawmakers plan to release more details on it Tuesday, but the possible change is already not sitting well with some small businesses.
Minnesota's minimum wage was just adjusted for inflation on Jan. 1 to $10.85 an hour for large employers and $8.85 an hour for other state minimum wages.
According to the Economic Policy Institute, women and people of color are benefitting the most from the change, but some lawmakers believe the pay bump still isn't enough.
Now lawmakers are considering a bill that would increase the statewide minimum wage to $15 an hour on Aug. 1.
Pay will also increase annually until it reaches $20 an hour on Aug. 1, 2028.
The proposal would also remove the 2.5% inflator cap that prevented the state minimum wage from matching rampant inflation in recent years.
Both Minneapolis and St. Paul already have minimum wages over $15 an hour while the federal minimum wage is $7.25 an hour
Small business groups have already come out against this, saying it's untenable.
"Labor costs are already a top problem for small businesses. When the cost of employing workers goes up, opportunities for workers go down and small businesses may go with them," John Reynolds, the state director for the National Federation of Independent Business, said in a statement.
The minimum wage increase proposal will get a hearing in the Senate Labor Committee at 12:30 p.m. The bill's author will hold a press conference at 2:45 p.m.
Stick with WCCO for updates to the story.
