SF 875

1st Unofficial Engrossment - 85th Legislature (2007 - 2008)

Posted on 12/15/2009 12:00 a.m.

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 new text begin $6.90 an hour new text end 1.20 new text begin effective July 24, 2008, and at a rate of at least $7.90 an hour effective July 24, 2009 new text end . 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 new text begin $5.75 an new text end 1.23 new text begin hour effective July 24, 2008, and at a rate of at least $6.75 an hour effective July 24, 2009 new text end . 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 $4.90 2.3an hour. No employer may take any action to displace any employee, including a partial 2.4displacement through a reduction in hours, wages, or employment benefits, in order to hire 2.5an employee at the wage authorized in this paragraph. new text begin No later than November 1 each new text end 2.6 new text begin year, beginning in 2009, the commissioner shall determine the percentage increase in the new text end 2.7 new text begin rate of inflation, as measured by the Consumer Price Index for all urban consumers, United new text end 2.8 new text begin States city average, as determined by the United States Department of Labor, during the new text end 2.9 new text begin most recent 12-month period for which data is available. The minimum wage rates in new text end 2.10 new text begin paragraph (b) are increased by the percentage calculated by the commissioner, rounded new text end 2.11 new text begin to the nearest cent. The new minimum wage rates determined under this paragraph take new text end 2.12 new text begin effect on the next January 1. new text end 2.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 2.14    Sec. 2. Minnesota Statutes 2006, section 177.24, is amended by adding a subdivision 2.15to read: 2.16     new text begin Subd. 6. new text end new text begin Notice. new text end new text begin An employer who pays a new employee the current state minimum new text end 2.17 new text begin wage under subdivision 1 must provide a written statement accompanying the first two new text end 2.18 new text begin paychecks of the employee or on the first two paydays of the employee if the employee is new text end 2.19 new text begin paid by electronic transfer. The written statement must be in at least 10-point font and new text end 2.20 new text begin must include the following information: new text end 2.21 new text begin (1) the applicable state or federal minimum wage rate required by law; and new text end 2.22 new text begin (2) contact information for the Department of Labor and Industry for the reporting new text end 2.23 new text begin of possible minimum wage violations. new text end 2.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 24, 2008. new text end