1.1 	A bill for an act
1.2 	relating to employment; regulating the minimum wage; amending Minnesota 
1.3 	Statutes 2012, section 177.24, subdivision 1.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2012, section 177.24, subdivision 1, is amended to read:
1.6 		Subdivision 1.Amount. (a) For purposes of this subdivision, the terms defined in 
1.7 	this paragraph have the meanings given them.
1.8 	(1) "Large employer" means an enterprise whose annual gross volume of sales 
1.9 	made or business done is not less than $625,000 (exclusive of excise taxes at the retail 
1.10 	level that are separately stated) and covered by the Minnesota Fair Labor Standards Act, 
1.11 	sections 177.21 to 177.35.
1.12 	(2) "Small employer" means an enterprise whose annual gross volume of sales made 
1.13 	or business done is less than $625,000 (exclusive of excise taxes at the retail level that 
1.14 	are separately stated) and covered by the Minnesota Fair Labor Standards Act, sections 
1.15 	177.21 to 177.35.
1.16 	(b) Except as otherwise provided in sections 177.21 to 177.35, every large employer 
1.17 	must pay each employee wages at a rate of at least $5.15 an hour beginning September 
1.18 	1, 1997, and at a rate of at least $6.15$7.25 an hour beginning August 1, 2005 2013, at 
1.19 	a rate of at least $7.50 beginning August 1, 2014, and at a rate of at least $7.75 an hour 
1.20 	beginning August 1, 2015. Every small employer must pay each employee at a rate of 
1.21 	at least $4.90 an hour beginning January 1, 1998, and at a rate of at least $5.25 an hour 
1.22 	beginning August 1, 2005.
1.23 	(c) Notwithstanding paragraph (b), during the first 90 consecutive days of 
1.24 	employment, an employer may pay an employee under the age of 20 years a wage of $4.90
2.1 	$5.15 an hour. No employer may take any action to displace any employee, including a 
2.2 	partial displacement through a reduction in hours, wages, or employment benefits, in order 
2.3 	to hire an employee at the wage authorized in this paragraph.
2.4 	(d) Notwithstanding paragraph (b), a large employer must, beginning August 1, 
2.5 	2013, except if eligible to pay the wage under paragraph (c), pay each employee under the 
2.6 	age of 18, wages at a rate of at least $7.25 an hour.

2.7 	EFFECTIVE DATE. This section is effective August 1, 2013.