St. Paul enforces $15 minimum wage impacting small business operations
- New minimum wage laws took effect in St. Paul, Minnesota, increasing employee wages to at least $15 an hour.
- Businesses such as 2 Scoops face adjustments in hiring practices as a result of these increases.
- The community is divided on the implications of these hikes, with potential repercussions for prices and job opportunities.
On July 1, 2025, St. Paul, Minnesota implemented new minimum wage increases that will affect numerous employees and businesses across the city. This change mandates that small businesses, classified between 6 to 100 employees, like the ice cream shop 2 Scoops, must pay their staff at least $15 an hour. The owner, Brian White Jr., remarked that this shift could compel them to rethink their hiring practices, emphasizing the added pressure of higher wages on small business economics. He expressed that the long-term effects might lead to increased prices for customers as costs are passed on from businesses to consumers. The ordinance for the minimum wage hike was initially signed into law by Mayor Melvin Carter in 2018, establishing a scheduled increase based on business size. As of this implementation, micro businesses have seen their minimum wage rise to $13.25 an hour. With the city preparing to announce further increases for larger businesses and city workers on September 1, these measures reflect an ongoing trend of advocating for higher wages across different employment sectors. Critics of the minimum wage hikes present economic concerns, arguing that increases lead to adverse effects on small businesses, potentially raising prices for consumers and reducing available job opportunities for unskilled workers. This opposition includes political figures who accuse proponents, like St. Paul Mayor Melvin Carter, of ignoring the complex economic realities faced by businesses struggling with higher operational costs. While supporters of the minimum wage hikes argue that increased earnings ensure that full-time workers do not struggle to make ends meet, detractors contend that such mandates hinder job growth and profitability for small businesses. These discussions highlight a broader debate over the balance between ensuring fair wages and maintaining economic viability for businesses, especially in a challenging market environment where technology and AI threaten to replace workers.