Minneapolis Workers Recover $2M in Wage Settlements

Minneapolis Workers Recover $2M in Wage Settlements

Introduction

The City of Minneapolis guarantees workers access to paid sick leave, a minimum wage, and protection from wage theft. By enforcing these protections, the City’s Civil Rights Department has reached a significant milestone: More than $2 million in unpaid wages and damages have been recovered for workers. These funds were returned as a result of investigations conducted by the Labor Standards Enforcement Division (LSED).

Commitment to Workers’ Rights

“The backbone of Minneapolis is, and always has been, our workers,” said the mayor. “When employers exploit labor, it’s not just workers who suffer—our entire community pays the price. Thank you to Director and our Civil Rights Department for ensuring economic justice is a right, not a privilege.”

The Director of the Civil Rights Department echoed this sentiment, emphasizing that workers' rights are civil rights. "Our department is committed to ensuring those rights are enforced fairly by providing education, training, and enforcement of labor standards for every resident, worker, and business in Minneapolis," the Director stated.

Investigating Wage Violations

Since 2018, the Civil Rights Department has processed over 1,000 labor standards complaints affecting more than 16,000 workers. These efforts have resulted in 382 mediations or settlements, often leading to policy changes and technical assistance for both employers and employees.

Key Cases and Settlements

Several recent investigations by LSED have led to substantial settlements:

Amigos One Stop: A South Minneapolis grocery store was found to have denied overtime pay to three workers for their entire employment. The investigation revealed that the employees frequently worked more than 40 hours per week without appropriate compensation. As part of a settlement, the employer agreed to pay over $43,000 in back wages and to implement fair labor practices moving forward. This case was brought forward through a partnership with the worker advocacy group Centro de Trabajadores Unidos en la Lucha (CTUL), which plays a crucial role in ensuring vulnerable workers step forward.

Unparalleled Parking LLC & Unparalleled Security LLC: A City investigation found that 180 security guards and valet attendants were not provided sick leave, violating the city’s sick and safe time ordinance. As a result, the companies agreed to pay over $145,000 in back wages and damages. Additionally, the companies committed to notifying employees of their rights and providing accrued sick leave going forward.

Plymouth Academy Preschool: An investigation into the preschool revealed that workers were receiving subminimum wages. A settlement resulted in over $22,000 in back wages being paid to seven employees. Additionally, all affected workers received raises after the resolution. This case was also brought forward with support from CTUL.

Labor Protections and Community Impact

The Director of the Labor Standards Enforcement Division highlighted the importance of labor protections, stating, “Our responsibility as a city is not just to create jobs but to support good jobs that build wealth and economic inclusion. Labor is not just another cost of doing business—labor is people.”

CTUL, which has partnered with the city on wage theft enforcement, emphasized the significant impact of recovering lost wages. “Every stolen dollar is a dollar less for rent, food, and basic necessities,” said a CTUL organizer. “Wage theft is a major issue, particularly for low-wage workers and marginalized communities. The partnership with LSED has allowed us to reach thousands of workers, provide crucial information, and help them overcome barriers such as fear of retaliation.”

Strengthening Worker Protections

On January 1, 2025, the minimum wage in Minneapolis increased to $15.97, reinforcing the city’s commitment to fair wages. The city also enforces:

Sick and Safe Time Ordinance: Employers must provide sick leave to prevent workers from being forced to work while ill, which can endanger public health.

Wage Theft Prevention Ordinance: Provides additional avenues for employees to recover unpaid wages, including overtime, through enforcement by the Civil Rights Department.

Workers who believe their rights have been violated can report wage theft by calling 311, filling out an online complaint form, or visiting City Hall, Room 239 in person. The City remains committed to protecting workers and ensuring they receive fair compensation for their labor.