Bill would ban cities from setting higher minimum wage

Cities would be prohibited from requiring private employers to pay workers at a rate higher than the state’s minimum wage, under a bill the House Job Growth and Energy Affordability Policy and Finance Committee laid over for possible inclusion in a future bill Monday.

Rep. Tony Albright

HF1241, sponsored by Rep. Tony Albright (R-Prior Lake), would apply to all local units of government, and would also ban them from requiring private employers to provide benefits, terms of employment, working conditions, or attendance and leave policies that exceed requirements set in state or federal law. The bill’s prohibitions would also apply to requirements local units of government already have on the books.

Albright said his bill would ensure an even playing field across the state, instead of a confusing employment environment with a patchwork of local policies. He said he backed Minneapolis Mayor Betsy Hodges’ opposition to a recent effort to set a $15 an hour minimum wage in the city.

Tanya René, corporate human resource manager at Thrifty White Pharmacy, spoke in favor of the bill, saying varying local wage requirements would create “cognitive dissonance” for employees at the worker-owned chain that includes 51 stores in Minnesota.

Ann Lindstrom, Minnesota League of Cities intergovernmental relations representative, said she didn’t know of any other cities where such a move was under consideration. Another concern, she said, is that working conditions aren’t defined in state statute. Attorney Lisa Stratton, executive director at Gender Justice, wondered how it could be determined whether a county or city policy “exceeds” state or federal requirements in less quantifiable areas such as attendance and leave policies.

Some committee members expressed concern that the bill would affect local government contracts requiring that private companies doing business with a city pay “living wages.” Rep. Pat Garofalo (R-Farmington), suggested adding “comfort language” that such government initiatives are not the bill’s intended target.

The companion, SF565, sponsored by Sen. Lyle Koenen (DFL-Clara City), awaits action by the Senate Jobs, Agriculture and Rural Development Committee.