Minnesota Chamber no longer suing Minneapolis over minimum wage

The Minnesota Chamber of Commerce and two other groups have pulled out of a lawsuit against Minneapolis' wage hike.

The state chamber, along with the TwinWest Chamber of Commerce and the Minnesota Recruiting and Staffing Association were among the parties suing the city. They argued that the state has already set the minimum wage, so cities can't set a minimum wage at a higher level.

The plaintiffs asked for a temporary injunction, but a Hennepin County Judge denied that request in early December, writing that the plaintiffs had not proved the ordinance was outside the city's authority or that the state's residents would be harmed if the ordinance went forward.

In a statement Friday, the Minnesota Chamber said "Although the court's initial decision in this case created obstacles to this particular legal challenge, we believe a correct reading of the law would conclude that the ordinance remains unlawful by conflicting with state law. Job creators must be able to rely on tools of the private sector to attract and retain skilled workers in a competitive market."

Minneapolis-based Graco, Inc. which makes pumps and spray equipment, is still moving forward with the suit.

"Graco is one of many Minnesota businesses concerned about the requirements of Minneapolis' mandated minimum wage policy," wrote company spokesperson Charlotte Boyd, in a statement. "A city mandating a minimum wage is a slippery slope; if this stands, then we have no ability to predict what the next mandate will be. Businesses cannot make informed long-term investment decisions in an uncertain environment."