LABOR LAW NEWS

St. Paul Passes $15 Minimum Wage Ordinance

By Kelsey Basten

Published on Nov. 20, 2018

On Nov. 14, 2018, the St. Paul, MN, City Council, along with Mayor Melvin Carter’s signature, passed a new minimum wage ordinance. Starting in 2022, macroemployers within the city limits of St. Paul will be required to pay employees a minimum wage of $15. This increase comes about a year after the Minneapolis $15 Wage Ordinance.

The $15 rate will be phased in between July 1, 2020, and July 1, 2028.  The amount of increase and length of time to reach the $15 rate varies by business size. Business size is defined by the number of employees per week during the previous calendar year and includes all employees (full-time, part-time, join, temporary, etc.). The tiers include:

  • 5 or fewer employees
    • July 1, 2027: $15
  • 6 to 100 employees
    • July 1, 2025: $15
  • 101 to 10,000 employees
    • July 1, 2023: $15
  • 10,000 or more employees
    • July 1, 2020: $12.50
    • July 1, 2022: $15

Once an employer meets the $15 minimum wage level, the minimum wage will be indexed yearly based on the Consumer Price Index (CPI).

The new ordinance does not recognize a tip credit. It also allows for a lower rate for 14-17-year-old employees for the first 90 days of employment.

Employers must provide employees with an annual notice that they are entitled to minimum wage and have the right to report violations. The St. Paul Department of Human Rights and Equal Opportunity will be creating a poster and notice for employer use. Also, if an employee handbook exists, ordinance details and notice must be included.

Employers must create and maintain records that document wages paid to each employee for three years. These records must be made available upon department request.

This Labor Law News Blog is intended for market awareness only, it is not to be used for legal advice or counsel.

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