ARRM's Daily Dispatch

Minneapolis Minimum Wage Ordinance Update

The amendment to the Minneapolis minimum wage ordinance, classifying any business that relies on Medicare or Medicaid reimbursement rates as small businesses, was removed from the recently adopted ordinance.

Based on conversations ARRM has had, our understanding is that Minneapolis City Council members felt they needed more education and information on this particular group of employers before making a final determination on how to move forward. City council staff have been instructed to conduct research and consult with “stakeholders in non-hospital residential health care enterprises” on these employers ability to more rapidly come into compliance with the minimum wage, with a report back due on August 2.

Staff who perform periodic work in MPLS

It is important to note the ordinance specifies the new minimum wage applies to any “employee who is typically based outside the city and performs work in the city on an occasional basis of at least two hours in a week.” Meaning, if an organization has an employee who takes an individual to a sporting event, play, or any other kind of activity in the city for more than two hours, they would qualify for the Minneapolis minimum wage.

ARRM staff met with city council staff on Tuesday, July 18 to provide clarity and education on disability services and the struggle we face when additional unfunded mandates are brought upon providers, and specifically explaining the hardship the above provision would place on employers and their staff. City staff were very engaged in learning about how rates are set and the funding battles we face every year at the legislature. They assured us that ARRM will be able to view the report they put together prior to its presentation to ensure our interests are appropriately represented.

ARRM staff will continue to be in contact with city staff, providing follow-up information to our meeting and answering any additional questions they may have.

If you have questions please contact me at sgrafstrom@arrm.org.

--Sara Grafstrom, Director of Government Relations and Member Advocacy

New Minimum Wage Adopted in Minneapolis

On Friday, June 30^th, the Minneapolis City Council adopted a new $15 minimum wage ordinance. This ordinance applies to any employee that performs at least two hours of work per week for an employer within the geographic boundaries of the city.

During a City Council hearing earlier in June, an amendment was added to the ordinance stating that “Non-hospital residential health care facilities, including, but not limited to nursing care facilities, home health care facilities, assisted living facilities, and residential disability facilities, that rely on Medicare or Medicaid reimbursement rates shall be considered small business. During the same meeting, small businesses were granted an additional two-years to meet the $15 per hour wage.

The ordinance lays out a phased approach for organizations to reach $15/hour minimum wages, with incrementally higher annual wage thresholds. Dates and salary thresholds for small businesses are:

• July 1^st, 2018: $10.25
• July 1^st, 2019: $11.00
• July 1^st, 2020: $11.75
• July 1^st, 2021: $12.50
• July 1^st, 2022: $13.50
• July 1^st, 2023: $14.50
• July 1^st, 2024: $15.00 plus inflationary figure

If you have questions or concerns, please contact me at sgrafstrom@arrm.org.

--Sara Grafstrom, Director of Government Relations and Member Advocacy