Living wage ordinance and business subsidies

We explain the rules for paying a living wage. These rules apply to certain businesses that get money from the City.

   

Three diverse workers doing construction finishing

 

Overview

The purpose of the Minneapolis Living Wage and Responsible Spending Ordinance is to increase wages for:

  • Service employees
  • Employees whose employers are subsidized by the City

In this section

Related links

How it works

Contractors who receive subsidies from the City create living wage jobs.

Who it applies to

The ordinance applies to certain development projects that receive:

  • Grants
  • Loans below market rate
  • Other contributions and assistance

What is required

Projects subject to the ordinance must:

  • Create at least one full-time living wage job for each $25,000 of subsidies
  • Meet additional requirements on subsidies valued at $100,000 or more.

Read the ordinance

Living wage calculation

The City's living wage is based on the prevailing federal poverty level. We adjust it every year after the federal government adjusts the rates.
Household size Income percentage of federal poverty level Employer provides health coverage Rates for Jan. 1 - Dec. 31, 2024
Family of four

130% 

No $40,560 or $19.50 per hour at 2,080 hours worked per year
Family of four

110%

Yes $34,320 or $16.50 per hour at 2,080 hours worked per year

 

Contact us

Mark Brinda

Community Planning & Economic Development

Phone

612-673-6231

Address

Public Service Building
505 Fourth Ave. S., Room 320
Minneapolis, MN 55415