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Graco alone now opposes Minneapolis minimum

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in Employment Law,Human Resources

The Minneapolis Chamber of Commerce, TwinWest Chamber of Commerce and the Minnesota Recruiting & Staffing Association have all pulled out of the lawsuit challenging the city of Minneapolis’ minimum wage ordinance. Only Graco—a Minneapolis-based maker of valves and fittings—is pressing on.

The four plaintiffs had argued that the city exceeded its authority under state law when it adopted its own minimum wage. Additionally, they argued that varying minimum wages between cities is burdensome to businesses.

The entities that dropped out cited court rulings that will make it difficult for them to win the case.

In June, Minneapolis became the first Midwestern city to adopt a $15 minimum wage. The ordinance phases in the wage hike over several years. Other cities across the country—including San Francisco, Seattle and Washington, D.C.—have also adopted a $15 minimum wage. Saint Paul is considering the same wage standard.

The Minneapolis ordinance requires large employers (those with $500,000 or more in gross annual revenue) to pay $15 per hour by July 1, 2022. Smaller firms have until July 1, 2024, to comply.

Note: Employers that operate in Minneapolis should consult their attorneys to determine how to structure pay systems to comply.

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