Hennepin County Employees to See Minimum Wage Increase

Hennepin County Employees to See Minimum Wage Increase

The Hennepin County Board of Commissioners gave final approval Tuesday to raising the minimum wage for about 480 county employees.

The minimum wage would rise from $15 to $20 an hour. The increase could bump an employee’s annual salary as much as $10,000. The new wage takes effect March 28.

Supporters say the new wage was based on cost-of-living research.

“This a very, very data-informed decision,” said Commissioner Irene Fernando, who serves District 2, which includes Golden Valley and southeast Plymouth.

Fernando pointed out that it takes exactly $19.98 per hour to cover basic needs in Hennepin County. She says that total does not include internet.

“We do not believe our own workers should be living in poverty or receiving assistance,” Fernando said.

Commissioner Jeff Lunde also supported the increase. The former Brooklyn Park mayor serves District 1, which includes Brooklyn Park, Brooklyn Center, Crystal, New Hope, Osseo and Robbinsdale. He says the wage hike will elevate the county’s lowest-paid employees from needing other government assistance.

“I think that’s really important to highlight that paying someone low wage and then having them have to apply for assistance is paying them in two different ways,” said Lunde.

He added, “I think this is good in that it says people are important enough that we pay them well and that the taxpayers know exactly what a real cost of what a staff member is.”

The Issue of Wage Compression

One concern Lunde did raise is the issue of wage compression. That means a person with more experience could be making a little more than a new hire receiving the $20 minimum wage.

County Administrator David Hough says that issue will be handled on an individualized basis. He says he will work with the county’s chief labor relations officer and chief of human resources to track potential cost impacts of wage compression.

Hennepin County employs a total of 9,000 workers.

A Small Slice of County’s Budget

The minimum wage increase will cost the county $2.2 million over four years. District 7 Commissioner Kevin Anderson, who serves Maple Grove and northwest Plymouth, says it’s a small slice of the county’s $2.2 billion budget.

“This is such a small portion of what our overall budget is,” said Anderson. “If we can help people be self sufficient by paying them a living wage, we absolutely should be doing that.”

District 5 Commissioner Debbie Goettel cited research of rents in the Twin Cities averaging between $1,700-$1,800 a month. If you have a child, that’s about another $9,000 in costs, she said.

Goettel challenged other large companies to do similar wage hikes, noting that Costco recently raised its minimum wage to $16 per hour.

“Let’s see who has the courage to do something like this for their community,” she said.

The item passed under consent agenda by a 7-0 vote.

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