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SF 875

2nd Unofficial Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
1.1A bill for an act
1.2relating to employment; increasing and indexing the minimum wage; eliminating
1.3the training wage; requiring notice to new employees; amending Minnesota
1.4Statutes 2006, section 177.24, subdivision 1, by adding a subdivision.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6    Section 1. Minnesota Statutes 2006, section 177.24, subdivision 1, is amended to read:
1.7    Subdivision 1. Amount. (a) For purposes of this subdivision, the terms defined in
1.8this paragraph have the meanings given them.
1.9(1) "Large employer" means an enterprise whose annual gross volume of sales
1.10made or business done is not less than $625,000 (exclusive of excise taxes at the retail
1.11level that are separately stated) and covered by the Minnesota Fair Labor Standards Act,
1.12sections 177.21 to 177.35.
1.13(2) "Small employer" means an enterprise whose annual gross volume of sales made
1.14or business done is less than $625,000 (exclusive of excise taxes at the retail level that
1.15are separately stated) and covered by the Minnesota Fair Labor Standards Act, sections
1.16177.21 to 177.35.
1.17(b) Except as otherwise provided in sections 177.21 to 177.35, every large employer
1.18must pay each employee wages at a rate of at least $5.15 an hour beginning September
1.191, 1997, and at a rate of at least $6.15 an hour beginning August 1, 2005 $6.90 an hour
1.20effective July 24, 2008, and at a rate of at least $7.90 an hour effective July 24, 2009.
1.21Every small employer must pay each employee at a rate of at least $4.90 an hour beginning
1.22January 1, 1998, and at a rate of at least $5.25 an hour beginning August 1, 2005 $5.75 an
1.23hour effective July 24, 2008, and at a rate of at least $6.75 an hour effective July 24, 2009.
2.1(c) Notwithstanding paragraph (b), during the first 90 consecutive days of
2.2employment, an employer may pay an employee under the age of 20 years a wage of
2.3$4.90 $5.25 an hour effective July 24, 2008. No employer may take any action to displace
2.4any employee, including a partial displacement through a reduction in hours, wages,
2.5or employment benefits, in order to hire an employee at the wage authorized in this
2.6paragraph. No later than November 1 each year, beginning in 2009, the commissioner
2.7shall determine the percentage increase in the rate of inflation, as measured by the
2.8Consumer Price Index for all urban consumers, United States city average, as determined
2.9by the United States Department of Labor, during the most recent 12-month period for
2.10which data is available. The minimum wage rates in paragraph (b) are increased by
2.11the percentage calculated by the commissioner, rounded to the nearest cent. The new
2.12minimum wage rates determined under this paragraph take effect on the next January 1.
2.13EFFECTIVE DATE.This section is effective the day following final enactment.

2.14    Sec. 2. Minnesota Statutes 2006, section 177.24, is amended by adding a subdivision
2.15to read:
2.16    Subd. 6. Notice. An employer who pays a new employee the current state minimum
2.17wage under subdivision 1 must provide a written statement accompanying the first two
2.18paychecks of the employee or on the first two paydays of the employee if the employee is
2.19paid by electronic transfer. The written statement must be in at least 10-point font and
2.20must include the following information:
2.21(1) the applicable state or federal minimum wage rate required by law; and
2.22(2) contact information for the Department of Labor and Industry for the reporting
2.23of possible minimum wage violations.
2.24EFFECTIVE DATE.This section is effective July 24, 2008.