§ 40.320. Findings and purpose.

(a) As a home rule charter city, Minneapolis has broad authority through its police powers to enact regulation to further the public health, safety, and general welfare.

(b)

Increasing the minimum wage directly promotes the health, safety, and welfare of those who work within the city's borders.

(c)

Enacting a minimum wage for workers in Minneapolis that exceeds the floor established in the state minimum wage law advances the stated purpose therein to "maintain workers' health, efficiency, and general well-being" and to "sustain purchasing power."

(d)

Rising inflation and a changing economy have vastly eroded the value of the minimum wage at the federal and state level and have pushed more Minneapolis families to the brink of economic collapse. A full-time worker earning the state-mandated minimum wage of nine dollars and fifty cents ($9.50) per hour for large employers would make an annual salary that is approximately five thousand dollars ($5,000.00) below the poverty level for a family of four (4). A minimum wage of twelve dollars ($12.00) per hour in Minneapolis today would be comparable to the federal minimum wage paid in the late 1960s. The cost of living in Minneapolis is among the highest in the state. The inaction by the federal and state governments on the minimum wage has contributed to the plight of tens of thousands of low wage workers in the city who struggle to meet their most basic needs.

(e)

According to the 2011-2015 American Community Survey (U.S. Census Bureau), Minneapolis has by far the most residents in the state with incomes below the federal poverty level. There are over eighty-four thousand (84,000) people in Minneapolis with incomes below the federal poverty level, which is more than twenty thousand (20,000) higher than the next closest city in the state.

(f)

A living wage is the minimum income necessary for workers to meet their basic needs. According to the Minnesota Department of Employment and Economic Development, the living wage in Hennepin County for a single person is fifteen dollars and twenty-five cents ($15.25) per hour. The living wage for a typical size household in Hennepin County of two (2) adults and one (1) child is nineteen dollars and eighty cents ($19.80) per hour.

(g)

At present, forty-eight (48) percent of workers in Minneapolis, or approximately one hundred fifty thousand (150,000) people, earn less than a living wage. When coupled with the precipitous rise in housing costs as a percentage of income, life in the city has become increasingly unaffordable for many people.

(h)

Without action to raise the wage floor, the problems caused by incomes that are inadequate to sustain working families will become more acute and the gap between low wages and the cost of a basic standard of living in Minneapolis will continue to widen.

(i)

An increase in the minimum wage to fifteen dollars ($15.00) per hour would benefit twenty-three (23) percent of workers in Minneapolis or approximately seventy-one thousand (71,000) people.

(j)

Through its adopted goal of "One Minneapolis," the city has recognized that income inequality, particularly between white and non-white workers, is one of the most pressing economic and social issues facing the city. Increasing the minimum wage is one of the primary ways the city can act to reduce economic and racial disparities.

(k)

An increase in the minimum wage to fifteen dollars ($15.00) per hour would impact many of the low wage workers in the city, particularly low wage workers of color who would disproportionately benefit. Fifty-four (54) percent of Latino workers and forty-one (41) percent of black workers in the city would benefit from an increase to fifteen dollars ($15.00) per hour.

(l)

Research and economic data show that poverty is concentrated among people of color, children, people with lower educational attainment, and female-headed households. Higher wages for these families would mean parents could work fewer jobs or hours. The benefits to children would accrue through more parenting time, including time for involvement in their children's education and family recreation. Better economic conditions for Minneapolis families would mean longer and healthier lives, and ultimately more stable communities.

(m)

Numerous studies document a strong relationship between income and health. Income is consistently shown to be one of the strongest predictors of health status. Poverty and low income have been linked with premature mortality and low life expectancy. A rise in household income stemming from an increase in the minimum wage would result in significant public health benefits for workers in the city.

(n)

Numerous studies indicate minimum wages benefit employers and the economy as a whole by improving employee performance, reducing employee turnover, lowering absenteeism, and thereby improving productivity and the quality of the services furnished by employees.

(o)

The public welfare, health, and prosperity of Minneapolis require wages sufficient to ensure a decent and healthy life for all Minneapolis workers and their families. ( Ord. No. 2017-030 , § 1, 6-30-17)