HF 50

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/25/2021 05:30pm

A bill for an act
relating to wages; modifying definition of small business; amending Minnesota
Statutes 2020, section 177.24, subdivision 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2020, section 177.24, subdivision 1, is amended to read:

Subdivision 1.

Amount.

(a) For purposes of this subdivision, the terms defined in this
paragraph have the meanings given them.

(1) "Large employer" means an enterprise whose annual gross volume of sales made or
business done is not less than deleted text begin $500,000 deleted text end new text begin $750,000 new text end (exclusive of excise taxes at the retail
level that are separately stated) and covered by the Minnesota Fair Labor Standards Act,
sections 177.21 to 177.35.

(2) "Small employer" means an enterprise whose annual gross volume of sales made or
business done is less than deleted text begin $500,000 deleted text end new text begin $750,000 new text end (exclusive of excise taxes at the retail level
that are separately stated) and covered by the Minnesota Fair Labor Standards Act, sections
177.21 to 177.35.

(b) Except as otherwise provided in sections 177.21 to 177.35:

(1) every large employer must pay each employee wages at a rate of at least:

(i) $8.00 per hour beginning August 1, 2014;

(ii) $9.00 per hour beginning August 1, 2015;

(iii) $9.50 per hour beginning August 1, 2016; and

(iv) the rate established under paragraph (f) beginning January 1, 2018; and

(2) every small employer must pay each employee at a rate of at least:

(i) $6.50 per hour beginning August 1, 2014;

(ii) $7.25 per hour beginning August 1, 2015;

(iii) $7.75 per hour beginning August 1, 2016; and

(iv) the rate established under paragraph (f) beginning January 1, 2018.

(c) Notwithstanding paragraph (b), during the first 90 consecutive days of employment,
an employer may pay an employee under the age of 20 years a wage of at least:

(1) $6.50 per hour beginning August 1, 2014;

(2) $7.25 per hour beginning August 1, 2015;

(3) $7.75 per hour beginning August 1, 2016; and

(4) the rate established under paragraph (f) beginning January 1, 2018.

No employer may take any action to displace an employee, including a partial displacement
through a reduction in hours, wages, or employment benefits, in order to hire an employee
at the wage authorized in this paragraph.

(d) Notwithstanding paragraph (b), an employer that is a "hotel or motel," "lodging
establishment," or "resort" as defined in Minnesota Statutes 2012, section 157.15,
subdivisions 7, 8, and 11, must pay an employee working under a contract with the employer
that includes the provision by the employer of a food or lodging benefit, if the employee is
working under authority of a summer work travel exchange visitor program (J) nonimmigrant
visa, a wage of at least:

(1) $7.25 per hour beginning August 1, 2014;

(2) $7.50 per hour beginning August 1, 2015;

(3) $7.75 per hour beginning August 1, 2016; and

(4) the rate established under paragraph (f) beginning January 1, 2018.

No employer may take any action to displace an employee, including a partial displacement
through a reduction in hours, wages, or employment benefits, in order to hire an employee
at the wage authorized in this paragraph.

(e) Notwithstanding paragraph (b), a large employer must pay an employee under the
age of 18 at a rate of at least:

(1) $6.50 per hour beginning August 1, 2014;

(2) $7.25 per hour beginning August 1, 2015;

(3) $7.75 per hour beginning August 1, 2016; and

(4) the rate established under paragraph (f) beginning January 1, 2018.

No employer may take any action to displace an employee, including a partial displacement
through a reduction in hours, wages, or employment benefits, in order to hire an employee
at the wage authorized in this paragraph.

(f) No later than August 31 of each year, beginning in 2017, the commissioner shall
determine the percentage increase in the rate of inflation, as measured by the implicit price
deflator, national data for personal consumption expenditures as determined by the United
States Department of Commerce, Bureau of Economic Analysis during the 12-month period
immediately preceding that August or, if that data is unavailable, during the most recent
12-month period for which data is available. The minimum wage rates in paragraphs (b),
(c), (d), and (e) are increased by the lesser of: (1) 2.5 percent, rounded to the nearest cent;
or (2) the percentage calculated by the commissioner, rounded to the nearest cent. A minimum
wage rate shall not be reduced under this paragraph. The new minimum wage rates
determined under this paragraph take effect on the next January 1.

(g)(1) No later than September 30 of each year, beginning in 2017, the commissioner
may issue an order that an increase calculated under paragraph (f) not take effect. The
commissioner may issue the order only if the commissioner, after consultation with the
commissioner of management and budget, finds that leading economic indicators, including
but not limited to projections of gross domestic product calculated by the United States
Department of Commerce, Bureau of Economic Analysis; the Consumer Confidence Index
issued by the Conference Board; and seasonally adjusted Minnesota unemployment rates,
indicate the potential for a substantial downturn in the state's economy. Prior to issuing an
order, the commissioner shall also calculate and consider the ratio of the rate of the calculated
change in the minimum wage rate to the rate of change in state median income over the
same time period used to calculate the change in wage rate. Prior to issuing the order, the
commissioner shall hold a public hearing, notice of which must be published in the State
Register, on the department's website, in newspapers of general circulation, and by other
means likely to inform interested persons of the hearing, at least ten days prior to the hearing.
The commissioner must allow interested persons to submit written comments to the
commissioner before the public hearing and for 20 days after the public hearing.

(2) The commissioner may in a year subsequent to issuing an order under clause (1),
make a supplemental increase in the minimum wage rate in addition to the increase for a
year calculated under paragraph (f). The supplemental increase may be in an amount up to
the full amount of the increase not put into effect because of the order. If the supplemental
increase is not the full amount, the commissioner may make a supplemental increase of the
difference, or any part of a difference, in a subsequent year until the full amount of the
increase ordered not to take effect has been included in a supplemental increase. In making
a determination to award a supplemental increase under this clause, the commissioner shall
use the same considerations and use the same process as for an order under clause (1). A
supplemental wage increase is not subject to and shall not be considered in determining
whether a wage rate increase exceeds the limits for annual wage rate increases allowed
under paragraph (f).