Minneapolis Wage Facts
- $15/hour: Seattle, NY, CA & more!
- 68% polled support our proposal for $15/hr
- 71,000 workers would get a raise
About our proposal for $15/hr:
15 Now Minnesota and a coalition of labor and community organizations developed a proposal for minimum wage in Minneapolis. In the Spring of 2016, the proposal garnered nearly 20,000 signatures in under 3 months, and a poll found the 68% of likely voters supported the proposal (Patinkin Research Strategies).
The proposal takes all Minneapolis workers to at least a $15/hr minimum wage - at businesses with over 500 workers by 2020, at businesses with under 500 workers by 2022 - with no exemptions or carve-outs. Once passed, minimum wage would be adjusted to inflation.
The City of Minneapolis' study supports our proposal!
About the City of Minneapolis' study:
The City of Minneapolis commissioned a research team, led by the Roy Wilkins Center at the University of Minnesota, which replicated techniques used in prevalent economic literature to simulate the relative impact of a minimum wage at $12 and $15 per hour.
The study was released in October 2016. In line with studies across the country on recent minimum wage increases, the study shows that the benefits of passing minimum wage would far outweigh the negatives. See some of the highlights: The study shows that passing a $15/hr minimum wage would be a major step towards addressing racial, gender and economic equity in Minneapolis, immediately benefitting:
71,000 workers in Minneapolis
42% of Black workers
54% of Latinx workers
29% of working single mothers
Working families below the poverty line, who would see a 50% increase in their income
17,000 households who would immediately become food secure (leading to a 7% drop in food insecurity)
The study dispels many common fears and misconceptions about raising the minimum wage:
The study projects no significant impact on employment or business closures.
The study projects that a $15/hour minimum wage increases the average operating cost of Minneapolis businesses by 1/3 of a percent, maxing out at 5.4% for restaurants. Differences for business costs between a $12 and a $15 minimum wage are nominal and are spread across the entire regional economy, and the positive effect on families is far greater with $15/hr.
- 73% of workers affected by $15/hr in Minneapolis would be over 25 years old, and over half of those affected are full-time workers.
The study, which supports our proposal, does not analyze any carve-outs like a tip penalty. Here’s what we do know about tip penalties:
A tip penalty would allow tipped workers to be paid less than minimum wage, before tips.
Minnesota is one of only 7 states without a tip penalty. Tips are not wages, and adding in a tip penalty would be a step backwards for workers!
Women make up 70% of tipped workers, and women working in the restaurant industry make only 68% of what their male counterparts make. Servers in states with tip penalties are twice as likely to experience sexual harassment from customers (Restaurant Opportunities Centers United, ROC).
Tipped workers are disproportionately people of color - 38% - who studies show receive less in tips on average (Cornell University, ROC). Gutting the minimum wage for tipped workers would not address some of the worst in the nation racial disparities in Minnesota, but worsen them.
In states with tip penalties, tipped workers experience 3 times the poverty rate of states without one (ROC).