Staff photo by Fritz Busch New Ulm Domino’s pizza store General Manager Isaac Ehret arranges go (all-in-one food) trays Thursday. Ehret said the new 2024 Minnesota minimum wage hike doesn’t affect the business since its lowest wage is $11.08 an hour.

NEW ULM — A number of local bar and restaurant owners say they are feeling a pinch from the new Minnesota minimum wage law effective Jan. 1, 2024.

State minimum-wage rates were adjusted for inflation to $10.85 an hour for large employers (with annual gross revenue of at least $500,000) and $8.85 an hour for small employers with annual gross revenues less than $500,000.

Youth wage rates for employees under age 18 and training wage rates for employees under age 20 for the first 90 consecutive days of employment, were set at $8.85 an hour.

209 Pub & Grill owner Herb Knutson said the higher minimum wage is just part of the challenges facing business owners lately.

“We had to give raises to bartenders and servers,” said Knutson.

“It’s all cost of business that causes higher prices. We’re trying to keep our menu costs down. Food costs are higher at restaurants and grocery stores,” he added.

“Prime rib is now more than $16 wholesale. Not long ago, it was $9.50. Hamburger and pork prices are up too, plus higher insurance costs and real estate taxes,” Knutson said.

Carl’s Corner owner Pat Berg in Essig said most of his employees are paid more than minimum wage, but climbing food costs are more of a challenge.

“Our servers count on tips. Most of our cooks are paid above minimum wage,” said Berg.

Sleepy Eye’s newest restaurant and bar, The Dawg Haus, opened two months ago.

“We have not yet raises prices, but it’s definitely something we take into consideration,” said owner Geneva Bendix.

“We had to bump servers and bartenders wages to current minimum wage. Food costs including produce very week by week,” she added.

“It’s the way of the world. Play ball,” said Rodney’s Tavern owner Rodney Zimmer.

Domino’s pizza General Manager Isaac Ehret said the new minimum wage law doesn’t affect his business that includes nine part-time employees and five full-time workers.

“Our lowest wage is $11.08 an hour,” Ehret said.

“Liquor costs are going up,” said B & L Bar owner Rick Kamm.

“Everybody here makes two or three dollars above minimum wage,” said Lola’s – An American Bistro owner Aron Bode.

It’s the new Minnesota sick and safe time law that requires employers to provide paid leave to employees that Bode said is more challenging due to its complexity.

Sick and safe time is paid leave employers must provide to employees that can be used when they are sick, to care for a sick family member or to seek assistance if an employee or their family member has experienced domestic abuse, sexual assault or stalking, according to the Minnesota Department of Labor & Industry.

Employees are eligible for sick and safe time if they work at least 80 hours in a year for an employer in Minnesota; and are not an independent contractor.

Temporary and part-time employees are eligible for sick and safe time . Sick and safe time requirements will not apply to building and construction industry employees who are represented by a building and construction trades labor organization if a valid waiver of these requirements is provided in a collective bargaining agreement.

An employee earns one hour of sick and safe time for very 30 hours works and can earn a maximum of 48 hours each year unless the employer agrees to a higher amount.

Sick and safe time must be paid at the same hourly rate an employee earns when they are working.

Employees can use their earned sick and safe time for many reasons.

For more information, visit www.dli.mn.gov/sick-leave