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Minnesota Legislature Contemplates Bill to Raise State’s Minimum Wage

Minnesota Legislature (Credits: Source New Mexico)

A new bill aiming to raise Minnesota’s minimum wage is advancing through the state legislature, with more details set to be unveiled on Tuesday. However, the potential increase draws criticism from some small businesses even before its full scope is revealed.

Minnesota’s minimum wage was recently adjusted for inflation, reaching $10.85 per hour for large employers and $8.85 per hour for other state minimum wages as of January 1.

Minnesota Legislature (Credits: Minnesota House of Representatives)

While this adjustment has been beneficial, particularly for women and people of color according to the Economic Policy Institute, some lawmakers argue that it still falls short of meeting workers’ needs.

The proposed bill would elevate the statewide minimum wage to $15 per hour starting August 1. Additionally, it includes provisions for incremental annual increases until reaching $20 per hour by August 1, 2028.

The proposal seeks to eliminate the 2.5% inflator cap that has previously restrained the state minimum wage from keeping pace with inflation.

Minnesota Legislature (Credits: Reuters)

Both Minneapolis and St. Paul have already established minimum wages exceeding $15 per hour, highlighting disparities between local and federal wage standards, with the federal minimum wage remaining stagnant at $7.25 per hour.

However, small business advocacy groups have voiced opposition to the proposed increase, arguing that it would pose significant challenges for small enterprises to sustain.

The Senate Labor Committee is scheduled to address the bill on Tuesday at 2:45 p.m., where further discussions and deliberations are expected to take place regarding its potential implications and feasibility.

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