HF 92

4th Engrossment - 88th Legislature (2013 - 2014) Posted on 05/03/2013 05:28pm

A bill for an act
relating to employment; regulating the minimum wage; modifying overtime and
parental leave provisions; amending Minnesota Statutes 2012, sections 177.24,
subdivision 1, by adding a subdivision; 177.25, subdivisions 1, 3, 5, by adding a
subdivision; 181.941, subdivision 1; 181.943; repealing Minnesota Rules, part
5200.0080, subpart 7.

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

Section 1.

Minnesota Statutes 2012, 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 $625,000 deleted text end new text begin $500,000 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 $625,000 deleted text end new text begin $500,000 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 deleted text begin , every large employer
must pay each employee wages at a rate of at least $5.15 an hour beginning September
1, 1997, and at a rate of at least $6.15 an hour beginning August 1, 2005. Every small
employer must pay each employee at a rate of at least $4.90 an hour beginning January 1,
1998, and at a rate of at least $5.25 an hour beginning August 1, 2005 deleted text end new text begin :
new text end

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

new text begin (i) $8.00 per hour beginning August 1, 2013;
new text end

new text begin (ii) $9.00 per hour beginning August 1, 2014;
new text end

new text begin (iii) $9.50 per hour beginning August 1, 2015; and
new text end

new text begin (iv) the rate established under paragraph (d) beginning January 1, 2016; and
new text end

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

new text begin (i) $7.00 per hour beginning August 1, 2013;
new text end

new text begin (ii) $8.00 per hour beginning August 1, 2014;
new text end

new text begin (iii) $8.50 per hour beginning August 1, 2015; and
new text end

new text begin (iv) the rate established under paragraph (d) beginning January 1, 2016 new text end .

(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 deleted text begin $4.90
an hour. No employer may take any action to displace any 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 deleted text end new text begin at least:
new text end

new text begin (1) $6.50 per hour beginning August 1, 2013;
new text end

new text begin (2) $7.50 per hour beginning August 1, 2014;
new text end

new text begin (3) $8.00 per hour beginning August 1, 2015; and
new text end

new text begin (4) the rate established under paragraph (d) beginning January 1, 2016 new text end .

new text begin 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.
new text end

new text begin (d) No later than November 1 of each year, beginning in 2015, the commissioner
shall determine the percentage increase in the rate of inflation, as measured by the
Consumer Price Index for all urban consumers, United States city average, as determined
by the United States Department of Labor, during the most recent 12-month period for
which data is available. The minimum wage rates in paragraphs (b) and (c) 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. The new minimum wage
rates determined under this paragraph take effect on the next January 1.
new text end

new text begin (e) Minimum wage standards and inflation must be reflected in statewide
reimbursement rates and county and state purchase of service contracts for social services
including those provided by direct service staff through home and community-based
services waivers for seniors and persons with disabilities.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end

Sec. 2.

Minnesota Statutes 2012, section 177.24, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Gratuities; credit cards or charges. new text end

new text begin (a) Gratuities presented to an
employee via inclusion on a debit, charge, or credit card shall be credited to that pay
period in which they are received by the employee and for which they appear on the
employee's tip statement.
new text end

new text begin (b) Where a tip is given by a customer through a debit, charge, or credit card, the full
amount of tip must be allowed the employee.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end

Sec. 3.

Minnesota Statutes 2012, section 177.25, subdivision 1, is amended to read:

Subdivision 1.

Compensation required.

No employer may employ an employee
for a workweek longer than deleted text begin 48 deleted text end new text begin 40 new text end hours, unless the employee receives compensation for
employment in excess of deleted text begin 48 deleted text end new text begin 40 new text end hours in a workweek at a rate of at least 1-1/2 times the
regular rate at which the employee is employed. The state of Minnesota or a political
subdivision may grant time off at the rate of 1-1/2 hours for each hour worked in excess of
deleted text begin 48 deleted text end new text begin 40 new text end hours in a week in lieu of monetary compensation. An employer does not violate
the overtime pay provisions of this section by employing any employees for a workweek
in excess of deleted text begin 48 deleted text end new text begin 40 new text end hours without paying the compensation for overtime employment
prescribed (1) if the employee is employed under an agreement meeting the requirement
of section 7(b)(2) of the Fair Labor Standards Act of 1938, as amended, or (2) if the
employee is employed as a sugar beet hand laborer on a piece rate basis, provided that the
regular rate of pay received per hour of work exceeds the applicable wage provided in
section 177.24, subdivision 1 new text begin , new text end by at least 40 cents.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end

Sec. 4.

Minnesota Statutes 2012, section 177.25, subdivision 3, is amended to read:

Subd. 3.

Motor vehicle salespeople; mechanics.

Subdivision 1 does not apply to
any salesperson, parts person, or mechanic primarily engaged in selling or servicing
automobiles, trailers, trucks, or farm implements deleted text begin and paid on a commission or incentive
basis deleted text end , if employed by a nonmanufacturing establishment primarily engaged in selling the
vehicles to ultimate purchasers.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end

Sec. 5.

Minnesota Statutes 2012, section 177.25, subdivision 5, is amended to read:

Subd. 5.

Air carrier employees.

Subdivision 1 does not apply to employees of air
carriers subject to the provisions of title II of the Railway Labor Act, when the hours worked
by an employee in excess of deleted text begin 48 deleted text end new text begin 40 new text end in a workweek are not required by the carrier, but are
arranged through a voluntary agreement among employees to trade scheduled work hours.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end

Sec. 6.

Minnesota Statutes 2012, section 177.25, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Agricultural employment. new text end

new text begin (a) Notwithstanding subdivision 1, hourly
individuals employed in agriculture are required to be compensated for employment in
excess of 48 hours per week at the same rate as provided in subdivision 1.
new text end

new text begin (b) For the purposes of this section, "agriculture" has the meaning given in
Minnesota Rules, part 5200.0260.
new text end

new text begin (c) The commissioner of labor and industry shall report to the legislature by January
1, 2014, on the number of agricultural employees who are using a 48 hour work week and
the number of employees affected. The commissioner shall include recommendations for
appropriate compensation for such agricultural employees.
new text end

new text begin (d) This subdivision expires February 1, 2014.
new text end

Sec. 7.

Minnesota Statutes 2012, section 181.941, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin Six deleted text end new text begin Twelve new text end -week leave; birth or adoption.

An employer must
grant an unpaid leave of absence to an employee who is a natural or adoptive parent in
conjunction with the birth or adoption of a child. The length of the leave shall be determined
by the employee, but may not exceed deleted text begin six deleted text end new text begin 12 new text end weeks, unless agreed to by the employer.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end

Sec. 8.

Minnesota Statutes 2012, section 181.943, is amended to read:

181.943 RELATIONSHIP TO OTHER LEAVE.

(a) The length of parental leave provided under section 181.941 may be reduced
by any period of paid parental or disability leave, but not accrued sick leave, provided
by the employer, so that the total leave does not exceed deleted text begin six deleted text end new text begin 12 new text end weeks, unless agreed
to by the employer.

(b) Nothing in sections 181.940 to 181.943 prevents any employer from providing
leave benefits in addition to those provided in sections 181.940 to 181.944 or otherwise
affects an employee's rights with respect to any other employment benefit.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end

Sec. 9. new text begin REPEALER.
new text end

new text begin Minnesota Rules, part 5200.0080, subpart 7, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end