<a id="pl.1.3"></a><var>1.3</var>employees; regulating the minimum wage; regulating state employee use of <br/>
<a id="pl.1.4"></a><var>1.4</var>donated vacation leave;amending Minnesota Statutes 2012, sections 43A.1815; <br/>
<a id="pl.1.5"></a><var>1.5</var>177.24, subdivision 1.<br/>
<a id="pl.1.6"></a><var>1.6</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.0.1.0"></a><a id="pl.1.7"></a><var>1.7</var>    Section 1. Minnesota Statutes 2012, section 43A.1815, is amended to read:<br/>
<a id="pl.1.8"></a><var>1.8</var><b>43A.1815 VACATION DONATION TO SICK LEAVE ACCOUNT.</b><br/>
<a id="pl.1.9"></a><var>1.9</var>    (a) In addition to donations under section 
         <statute_ref>43A.181</statute_ref>, a state employee may donate a <br/>
<a id="pl.1.10"></a><var>1.10</var>total of up to 40 hours of accrued vacation leave each fiscal year to the sick leave account <br/>
<a id="pl.1.11"></a><var>1.11</var>of one or more state employees. A state employee may not be paid for more than 80 hours <br/>
<a id="pl.1.12"></a><var>1.12</var>in a payroll period during which the employee uses sick leave credited to the employee's <br/>
<a id="pl.1.13"></a><var>1.13</var>account as a result of a transfer from another state employee's vacation account.<br/>
<a id="pl.1.14"></a><var>1.14</var>(b) The recipient employee must receive donations, as available, for a life-threatening <br/>
<a id="pl.1.15"></a><var>1.15</var>condition of the employee or spouse or dependent child that prevents the employee from <br/>
<a id="pl.1.16"></a><var>1.16</var>working. A recipient may use program donations retroactively to when all forms of <br/>
<a id="pl.1.17"></a><var>1.17</var>paid leave are exhausted if the employee has sufficient donations to cover the period of <br/>
<a id="pl.1.18"></a><var>1.18</var>retroactivity. A recipient who receives program donations under this section may use up to <br/>
<a id="pl.1.19"></a><var>1.19</var>80 hours of program donations after the death of a spouse or dependent child.<br/>
<a id="pl.1.20"></a><var>1.20</var>(c) An applicant for benefits under this section who receives an unfavorable <br/>
<a id="pl.1.21"></a><var>1.21</var>determination may select a designee to consult with the commissioner or commissioner's <br/>
<a id="pl.1.22"></a><var>1.22</var>designee on the reasons for the determination.<br/>
<a id="pl.2.1"></a><var>2.1</var>    (d) The commissioner shall establish procedures under section 
         <statute_ref>43A.04, subdivision <br/>
<a id="pl.2.2"></a><var>2.2</var>4
         </statute_ref>, for eligibility, duration of need based on individual cases, monitoring and evaluation of <br/>
<a id="pl.2.3"></a><var>2.3</var>individual eligibility status, and other topics related to administration of this program.<br/>
<br/>
<a id="bill.0.2.0"></a><a id="pl.2.4"></a><var>2.4</var>    Sec. 2. Minnesota Statutes 2012, section 177.24, subdivision 1, is amended to read:<br/>
<a id="pl.2.5"></a><var>2.5</var>    Subdivision 1. <b>Amount.</b> (a) For purposes of this subdivision, the terms defined in <br/>
<a id="pl.2.6"></a><var>2.6</var>this paragraph have the meanings given them.<br/>
<a id="pl.2.7"></a><var>2.7</var>(1) "Large employer" means an enterprise whose annual gross volume of sales made <br/>
<a id="pl.2.8"></a><var>2.8</var>or business done is not less than $625,000 $500,000 (exclusive of excise taxes at the <br/>
<a id="pl.2.9"></a><var>2.9</var>retail level that are separately stated) and covered by the Minnesota Fair Labor Standards <br/>
<a id="pl.2.10"></a><var>2.10</var>Act, sections 
         <statute_ref>177.21</statute_ref> to 
         <statute_ref>177.35</statute_ref>.<br/>
<a id="pl.2.11"></a><var>2.11</var>(2) "Small employer" means an enterprise whose annual gross volume of sales <br/>
<a id="pl.2.12"></a><var>2.12</var>made or business done is less than $625,000 $500,000 (exclusive of excise taxes at the <br/>
<a id="pl.2.13"></a><var>2.13</var>retail level that are separately stated) and covered by the Minnesota Fair Labor Standards <br/>
<a id="pl.2.14"></a><var>2.14</var>Act, sections 
         <statute_ref>177.21</statute_ref> to 
         <statute_ref>177.35</statute_ref>.<br/>
<a id="pl.2.15"></a><var>2.15</var>(b) Except as otherwise provided in sections 
         <statute_ref>177.21</statute_ref> to 
         <statute_ref>177.35</statute_ref>, every large employer <br/>
<a id="pl.2.16"></a><var>2.16</var>must pay each employee wages at a rate of at least $5.15 an hour beginning September <br/>
<a id="pl.2.17"></a><var>2.17</var>1, 1997, and at a rate of at least $6.15 an hour beginning August 1, 2005. Every small <br/>
<a id="pl.2.18"></a><var>2.18</var>employer must pay each employee at a rate of at least $4.90 an hour beginning January 1, <br/>
<a id="pl.2.19"></a><var>2.19</var>1998, and at a rate of at least $5.25 an hour beginning August 1, 2005:<br/>
<a id="pl.2.20"></a><var>2.20</var>(1) every large employer must pay each employee wages at a rate of at least:<br/>
<a id="pl.2.21"></a><var>2.21</var>(i) $8.00 per hour beginning August 1, 2014;<br/>
<a id="pl.2.22"></a><var>2.22</var>(ii) $9.00 per hour beginning August 1, 2015;<br/>
<a id="pl.2.23"></a><var>2.23</var>(iii) $9.50 per hour beginning August 1, 2016; and<br/>
<a id="pl.2.24"></a><var>2.24</var>(iv) the rate established under paragraph (f) beginning January 1, 2018; and<br/>
<a id="pl.2.25"></a><var>2.25</var>(2) every small employer must pay each employee at a rate of at least:<br/>
<a id="pl.2.26"></a><var>2.26</var>(i) $6.50 per hour beginning August 1, 2014;<br/>
<a id="pl.2.27"></a><var>2.27</var>(ii) $7.25 per hour beginning August 1, 2015;<br/>
<a id="pl.2.28"></a><var>2.28</var>(iii) $7.75 per hour beginning August 1, 2016; and<br/>
<a id="pl.2.29"></a><var>2.29</var>(iv) the rate established under paragraph (f) beginning January 1, 2018.<br/>
<a id="pl.2.30"></a><var>2.30</var>(c) Notwithstanding paragraph (b), during the first 90 consecutive days of <br/>
<a id="pl.2.31"></a><var>2.31</var>employment, an employer may pay an employee under the age of 20 years a wage of $4.90 <br/>
<a id="pl.2.32"></a><var>2.32</var>an hour. No employer may take any action to displace any employee, including a partial <br/>
<a id="pl.2.33"></a><var>2.33</var>displacement through a reduction in hours, wages, or employment benefits, in order to hire <br/>
<a id="pl.2.34"></a><var>2.34</var>an employee at the wage authorized in this paragraph at least:<br/>
<a id="pl.2.35"></a><var>2.35</var>(1) $6.50 per hour beginning August 1, 2014;<br/>
<a id="pl.3.1"></a><var>3.1</var>(2) $7.25 per hour beginning August 1, 2015;<br/>
<a id="pl.3.2"></a><var>3.2</var>(3) $7.75 per hour beginning August 1, 2016; and<br/>
<a id="pl.3.3"></a><var>3.3</var>(4) the rate established under paragraph (f) beginning January 1, 2018.<br/>
<a id="pl.3.4"></a><var>3.4</var>No employer may take any action to displace an employee, including a partial <br/>
<a id="pl.3.5"></a><var>3.5</var>displacement through a reduction in hours, wages, or employment benefits, in order to <br/>
<a id="pl.3.6"></a><var>3.6</var>hire an employee at the wage authorized in this paragraph.<br/>
<a id="pl.3.7"></a><var>3.7</var>(d) Notwithstanding paragraph (b), an employer must pay an employee working <br/>
<a id="pl.3.8"></a><var>3.8</var>under and as an Exchange Visitor (J) nonimmigrant visa holder a wage of at least:<br/>
<a id="pl.3.9"></a><var>3.9</var>(1) $6.50 per hour beginning August 1, 2014;<br/>
<a id="pl.3.10"></a><var>3.10</var>(2) $7.25 per hour beginning August 1, 2015;<br/>
<a id="pl.3.11"></a><var>3.11</var>(3) $7.75 per hour beginning August 1, 2016; and<br/>
<a id="pl.3.12"></a><var>3.12</var>(4) the rate established under paragraph (f) beginning January 1, 2018.<br/>
<a id="pl.3.13"></a><var>3.13</var>No employer may take any action to displace an employee, including a partial <br/>
<a id="pl.3.14"></a><var>3.14</var>displacement through a reduction in hours, wages, or employment benefits, in order to <br/>
<a id="pl.3.15"></a><var>3.15</var>hire an employee at the wage authorized in this paragraph.<br/>
<a id="pl.3.16"></a><var>3.16</var>(e) Notwithstanding paragraph (b), a large employer must pay an employee under <br/>
<a id="pl.3.17"></a><var>3.17</var>the age of 18 at a rate of at least:<br/>
<a id="pl.3.18"></a><var>3.18</var>(1) $6.50 per hour beginning August 1, 2014;<br/>
<a id="pl.3.19"></a><var>3.19</var>(2) $7.25 per hour beginning August 1, 2015;<br/>
<a id="pl.3.20"></a><var>3.20</var>(3) $7.75 per hour beginning August 1, 2016; and<br/>
<a id="pl.3.21"></a><var>3.21</var>(4) the rate established under paragraph (f) beginning January 1, 2018.<br/>
<a id="pl.3.22"></a><var>3.22</var>No employer may take any action to displace an employee, including a partial <br/>
<a id="pl.3.23"></a><var>3.23</var>displacement through a reduction in hours, wages, or employment benefits, in order to <br/>
<a id="pl.3.24"></a><var>3.24</var>hire an employee at the wage authorized in this paragraph.<br/>
<a id="pl.3.25"></a><var>3.25</var>(f) No later than August 31 of each year, beginning in 2017, the commissioner shall <br/>
<a id="pl.3.26"></a><var>3.26</var>determine the percentage increase in the rate of inflation, as measured by the implicit <br/>
<a id="pl.3.27"></a><var>3.27</var>price deflator, national data for personal consumption expenditures as determined by <br/>
<a id="pl.3.28"></a><var>3.28</var>the United States Department of Commerce, Bureau of Economic Analysis during the <br/>
<a id="pl.3.29"></a><var>3.29</var>12-month period immediately preceding that August or, if that data is unavailable, during <br/>
<a id="pl.3.30"></a><var>3.30</var>the most recent 12-month period for which data is available. The minimum wage rates in <br/>
<a id="pl.3.31"></a><var>3.31</var>paragraphs (b), (c), (d), and (e) are increased by the lesser of: (1) 2.5 percent, rounded <br/>
<a id="pl.3.32"></a><var>3.32</var>to the nearest cent; or (2) the percentage calculated by the commissioner, rounded to the <br/>
<a id="pl.3.33"></a><var>3.33</var>nearest cent. A minimum wage rate shall not be reduced under this paragraph. The new <br/>
<a id="pl.3.34"></a><var>3.34</var>minimum wage rates determined under this paragraph take effect on the next January 1.<br/>
<a id="pl.4.1"></a><var>4.1</var>(g)(1) No later than September 30 of each year, beginning in 2017, the commissioner <br/>
<a id="pl.4.2"></a><var>4.2</var>may issue an order that an increase calculated under paragraph (f) not take effect. The <br/>
<a id="pl.4.3"></a><var>4.3</var>commissioner may issue the order only if the commissioner, after consultation with <br/>
<a id="pl.4.4"></a><var>4.4</var>the commissioner of management and budget, finds that leading economic indicators, <br/>
<a id="pl.4.5"></a><var>4.5</var>including but not limited to projections of gross domestic product calculated by the United <br/>
<a id="pl.4.6"></a><var>4.6</var>States Department of Commerce, Bureau of Economic Analysis; the Consumer Confidence <br/>
<a id="pl.4.7"></a><var>4.7</var>Index issued by the Conference Board; and seasonally adjusted Minnesota unemployment <br/>
<a id="pl.4.8"></a><var>4.8</var>rates, indicate the potential for a substantial downturn in the state's economy. Prior to <br/>
<a id="pl.4.9"></a><var>4.9</var>issuing an order, the commissioner shall also calculate and consider the ratio of the rate <br/>
<a id="pl.4.10"></a><var>4.10</var>of the calculated change in the minimum wage rate to the rate of change in state median <br/>
<a id="pl.4.11"></a><var>4.11</var>income over the same time period used to calculate the change in wage rate. Prior to issuing <br/>
<a id="pl.4.12"></a><var>4.12</var>the order, the commissioner shall hold a public hearing, notice of which must be published <br/>
<a id="pl.4.13"></a><var>4.13</var>in the state register, on the department's Web site, in newspapers of general circulation, and <br/>
<a id="pl.4.14"></a><var>4.14</var>by other means likely to inform interested persons of the hearing, at least 10 days prior to <br/>
<a id="pl.4.15"></a><var>4.15</var>the hearing. The commissioner must allow interested persons to submit written comments <br/>
<a id="pl.4.16"></a><var>4.16</var>to the commissioner before the public hearing  and for 20 days after the public hearing.<br/>
<a id="pl.4.17"></a><var>4.17</var>(2) The commissioner may in a year subsequent to issuing an order under clause (1), <br/>
<a id="pl.4.18"></a><var>4.18</var>make a supplemental increase in the minimum wage rate in addition to the increase for <br/>
<a id="pl.4.19"></a><var>4.19</var>a year calculated under paragraph (f). The supplemental increase may be in an amount <br/>
<a id="pl.4.20"></a><var>4.20</var>up to the full amount of the increase not put into effect because of the order. If the <br/>
<a id="pl.4.21"></a><var>4.21</var>supplemental increase is not the full amount, the commissioner may make a supplemental <br/>
<a id="pl.4.22"></a><var>4.22</var>increase of the difference, or any part of a difference, in a subsequent year until the full <br/>
<a id="pl.4.23"></a><var>4.23</var>amount of the increase ordered not to take effect has been included in a supplemental <br/>
<a id="pl.4.24"></a><var>4.24</var>increase. In making a determination to award a supplemental increase under this clause, <br/>
<a id="pl.4.25"></a><var>4.25</var>the commissioner shall use the same considerations and use the same process as for an <br/>
<a id="pl.4.26"></a><var>4.26</var>order under clause (1). A supplemental wage increase is not subject to and shall not be <br/>
<a id="pl.4.27"></a><var>4.27</var>considered in determining whether a wage rate increase exceeds the limits for annual wage <br/>
<a id="pl.4.28"></a><var>4.28</var>rate increases allowed under paragraph (f).<br/>
<a id="pl.4.29"></a><var>4.29</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2014.<br/>
<br/>
<a id="bill.0.3.0"></a><a id="pl.4.30"></a><var>4.30</var>    Sec. 3. <b>SEVERABILITY.</b><br/>
<a id="pl.4.31"></a><var>4.31</var>If any provision of this act or its application to any person or circumstance is judged <br/>
<a id="pl.4.32"></a><var>4.32</var>invalid, the invalidity shall not affect other provisions or applications of the act which can <br/>
<a id="pl.4.33"></a><var>4.33</var>be given effect without the invalid provision or application, and to this end the provisions <br/>
<a id="pl.4.34"></a><var>4.34</var>of this act are declared severable.<br/>
<a id="pl.5.1"></a><var>5.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>