The McDonald’s tag line “I’m Lovin’ It” was nowhere to be heard after a local outlet reportedly settled for $20,000 in unpaid minimum wages and penalties under the new Minneapolis Minimum Wage Ordinance. While reports indicate that the underpayment was an “inadvertent error,” the restaurant still had to serve up a healthy portion of back pay to its staff.
As we previously posted in Judge says $15.00 Minimum Wage in Minneapolis Applies to All Employers Starting Jan. 1, the Minneapolis’ minimum wage ordinance survived legal challenges and is now in effect. The ordinance requires large businesses in the City with more than 100 employees to pay workers $10 an hour. On July 1, 2018, the minimum wage increased to $10.25 for “small employers” (those with 100 or fewer employees) and $11.25 for larger employers.
This is a reminder to employers to ensure that all employees working within the geographic boundaries of the City of Minneapolis for at least 2 hours during the week must be paid the applicable minimum wage. Employers can check this map to determine if they are within the applicable City boundaries.
Violations of the ordinance can be enforced by both the city and private persons, and damages available include double the amount of wages that were underpaid. If the City brings an action, the employer can be liable for additional administrative penalties and fines. If a lawsuit is brought by a private individual, costs and attorneys are available as well.
To avoid these claims, be proactive and confirm that all employees working in Minneapolis are being paid the legally mandated minimum wage.