After 14 weeks of study, the Citizens League has released a series of recommendations that spell out three different ways the city of St. Paul could institute a $15 minimum wage — with or without partial exemptions for tipped employees at “full-service” restaurants that serve liquor.

At the request of the St. Paul City Council, the nonpartisan public policy organization studied how best to roll out a citywide minimum wage increase. The 446-page report, released Friday evening, outlines three scenarios for implementing a $15 minimum wage over the course of four to seven years.

All three scenarios include a recommendation for a $15 per hour minimum wage that would be indexed to, or increase with, inflation, and all three scenarios include exemptions of 180 to 365 days for youth training programs, as well as exemptions for disability employment programs that have applied for special approvals from the city.

Two scenarios recommend no “tip credit,” or no adjustment for tipped employees. A third scenario includes a tip credit for full-service restaurants that serve liquor, which would be re-evaluated after a probationary period.

“The city council still has some work ahead of it,” said B. Kyle, president and CEO of the St. Paul Area Chamber of Commerce, and a co-chair of the 21-member study committee. “The challenge to the city council is that the committee did not arrive at one recommendation. Instead, we offered three scenarios, along with additional considerations.”

Kyle added, “The process worked. That’s what I know for sure. I remain concerned about city-driven wage requirements. … There are still open issues.”

Mayor Melvin Carter, who was elected by a landslide in November, made a $15 minimum wage without exceptions, or “carve-outs,” a cornerstone of his campaign for office.

Liz Xiong, a spokeswoman for the mayor’s office, said Friday evening that Carter has not settled on a particular scenario and is still digesting the report.

“I’m grateful to the committee members for their dedication and hard work to complete this portion of the process,” said Carter, in a statement forwarded by Xiong. “I look forward to continuing the remainder of the process with the city council, and remain committed to signing a $15 minimum wage into law before the end of the year.”

Celeste Robinson, an organizer with the $15 Now coalition, said advocates for workers’ rights would continue to lobby City Hall for minimum wage increases without exemptions.

“Working people in St. Paul have made it clear over the last year that we need a $15 minimum wage with no tip penalty or exceptions,” Robinson said. “With this final confirmation that the policy is right for St. Paul, we’re calling on City Hall to pass $15 … now to get working families the raises we desperately need to address the crisis of poverty in our city.”

Tony Parrish, a contracted spokesman for the Minnesota Licensed Beverage Association, which represents bars, liquor stores and restaurants that serve liquor, said the study committee was weighted toward labor advocates. He called the study committee “union-biased” and said “it did not engage the business community in a fair manner.” Related Articles Hastings bar owner: $7K state fine for alleged mask violation is ‘outrageous’

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4- to 7-YEAR PHASE-IN

The Citizens League, which was advised by 21 business owners, advocates for workers’ rights, union representatives and other groups, stopped short of recommending one approach over another. Instead, the report tallied the degree of support from the committee toward each of the three scenarios, ranging from 43 percent at the low end for the “tip credit” scenario, to 77 percent approval for a $15 minimum without a tip credit for full-service restaurants.

The report’s executive summary noted that committee members largely agreed that “an increase in the minimum wage affects businesses/organizations differently based on their size, industry and respective business model. Implementation — including community education/outreach — and enforcement efforts are critical to the viability of and adherence to a new minimum wage ordinance.”

The $15 minimum wage would not happen overnight. The phase-in time ranges from six to seven years for small businesses, and four to six years for large businesses.

The committee considered 21 scenarios in all, including situations beyond what the city council asked it to study a few months ago, such as how to define small and large businesses, and recommendations on when the rules should kick in.

WORK STUDY, MICRO BUSINESSES, MEDICAID

The committee noted several areas that need further study, including how professional sports teams and work-study students will be affected. There’s also some question about the impact on Medicaid-funded businesses that receive a set reimbursement for services, such as agencies that dispatch personal care attendants. The committee brought up concerns about how best to support “micro businesses,” such as two-person start-up organizations, and how to complete education, outreach and enforcement.

The city council will host a public hearing on the Citizens League recommendations Sept. 12 at City Hall. The mayor’s office has scheduled two community conversations, or listening sessions, for Sept. 15 and Sept. 20. Carter needs council approval to institute a new citywide minimum wage.

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How Mayor Carter’s proposed budget will impact libraries, Fire Dept., Public Works The Minneapolis City Council voted to approve a $15 minimum wage — phased in over several years — in July 2017. The Minneapolis rules have survived legal challenges, with a Hennepin County judge determining in March that nothing in state law precludes municipalities from passing their own rules increasing the minimum wage.

The complete St. Paul study is online at CitizensLeague.org.