business
St. Paul’s new minimum wage for small businesses is helping workers, posing challenges for owners
By Cory Knudsen at KSTP 5 Eyewitness News (ABC)
· July 2, 2026
· 2 min read
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St. Paul’s new minimum wage for small businesses is helping workers, posing challenges for owners
The...
Key takeaway 37 an hour, up from $15 — that lower amount went into effect earlier this year.
Why this matters in The Minneapolis
The new minimum wage in St. Paul will have a ripple effect on the Twin Cities area, particularly in Minneapolis where similar wage discussions have been ongoing. As small businesses in St. Paul adjust to the increased wage, their counterparts in Minneapolis will likely be watching closely to gauge the impact on prices, staffing, and profitability. The fact that St. Paul businesses with 101 or more employees have had a $16.37 minimum wage since January, while smaller businesses are now catching up, suggests a phased approach to implementing a living wage. This could inform future wage discussions in Minneapolis, where city leaders may consider a similar tiered system to balance the needs of workers and businesses. The experiences of St. Paul's small businesses, such as Tongue in Cheek restaurant, will be particularly relevant as Minneapolis considers its own path forward on minimum wage.
About this story
Original reporting by KSTP 5 Eyewitness News (ABC) . The Minneapolis surfaces reporting from trusted publishers and adds local editorial context so readers can quickly understand what a story means for their community. We attribute every source, link to the original report, and follow a documented editorial standards policy. To understand how stories are selected and reviewed, read our about page .
For the complete original report, visit KSTP 5 Eyewitness News (ABC) . Have a tip or correction? Contact our newsroom .
Category: business ·
Published: July 2, 2026 ·
Source: KSTP 5 Eyewitness News (ABC) ·
Reading time: 2 min
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St. Paul’s new minimum wage for small businesses is helping workers, posing challenges for owners
The...
When was this published? This article was first published on July 2, 2026 by KSTP 5 Eyewitness News (ABC) and curated for The Minneapolis readers.
Who reported this story? This story was reported by Cory Knudsen at KSTP 5 Eyewitness News (ABC). To learn more about how The Minneapolis selects and reviews stories, see our editorial standards .
Where can I find related coverage? See more business coverage from The Minneapolis, or browse our daily briefing and topic hubs .
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