HF 2091

2nd Unofficial Engrossment - 88th Legislature (2013 - 2014)

Posted on 04/09/2014 03:05 p.m.

1.1A bill for an act 1.2relating to employment; providing labor standards for private and public 1.3employees; regulating the minimum wage; regulating state employee use of 1.4donated vacation leave;amending Minnesota Statutes 2012, sections 43A.1815; 1.5177.24, subdivision 1. 1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.7    Section 1. Minnesota Statutes 2012, section 43A.1815, is amended to read: 1.843A.1815 VACATION DONATION TO SICK LEAVE ACCOUNT. 1.9    (a) In addition to donations under section 43A.181, a state employee may donate a 1.10total of up to 40 hours of accrued vacation leave each fiscal year to the sick leave account 1.11of one or more state employees. A state employee may not be paid for more than 80 hours 1.12in a payroll period during which the employee uses sick leave credited to the employee's 1.13account as a result of a transfer from another state employee's vacation account. 1.14(b) The recipient employee must receive donations, as available, for a life-threatening 1.15condition of the employee or spouse or dependent child that prevents the employee from 1.16working. A recipient may use program donations retroactively to when all forms of 1.17paid leave are exhausted if the employee has sufficient donations to cover the period of 1.18retroactivity. new text begin A recipient who receives program donations under this section may use up to new text end 1.19 new text begin 80 hours of program donations after the death of a spouse or dependent child. new text end 1.20(c) An applicant for benefits under this section who receives an unfavorable 1.21determination may select a designee to consult with the commissioner or commissioner's 1.22designee on the reasons for the determination. 2.1    (d) The commissioner shall establish procedures under section 43A.04, subdivision 2.24 , for eligibility, duration of need based on individual cases, monitoring and evaluation of 2.3individual eligibility status, and other topics related to administration of this program. 2.4    Sec. 2. Minnesota Statutes 2012, section 177.24, subdivision 1, is amended to read: 2.5    Subdivision 1. Amount. (a) For purposes of this subdivision, the terms defined in 2.6this paragraph have the meanings given them. 2.7(1) "Large employer" means an enterprise whose annual gross volume of sales made 2.8or business done is not less than $625,000 new text begin $500,000 new text end (exclusive of excise taxes at the 2.9retail level that are separately stated) and covered by the Minnesota Fair Labor Standards 2.10Act, sections 177.21 to 177.35. 2.11(2) "Small employer" means an enterprise whose annual gross volume of sales 2.12made or business done is less than $625,000 new text begin $500,000 new text end (exclusive of excise taxes at the 2.13retail level that are separately stated) and covered by the Minnesota Fair Labor Standards 2.14Act, sections 177.21 to 177.35. 2.15(b) Except as otherwise provided in sections 177.21 to 177.35, every large employer 2.16must pay each employee wages at a rate of at least $5.15 an hour beginning September 2.171, 1997, and at a rate of at least $6.15 an hour beginning August 1, 2005. Every small 2.18employer must pay each employee at a rate of at least $4.90 an hour beginning January 1, 2.191998, and at a rate of at least $5.25 an hour beginning August 1, 2005 new text begin : new text end 2.20 new text begin (1) every large employer must pay each employee wages at a rate of at least: new text end 2.21 new text begin (i) $8.00 per hour beginning August 1, 2014; new text end 2.22 new text begin (ii) $9.00 per hour beginning August 1, 2015; new text end 2.23 new text begin (iii) $9.50 per hour beginning August 1, 2016; and new text end 2.24 new text begin (iv) the rate established under paragraph (f) beginning January 1, 2018; and new text end 2.25 new text begin (2) every small employer must pay each employee at a rate of at least: new text end 2.26 new text begin (i) $6.50 per hour beginning August 1, 2014; new text end 2.27 new text begin (ii) $7.25 per hour beginning August 1, 2015; new text end 2.28 new text begin (iii) $7.75 per hour beginning August 1, 2016; and new text end 2.29 new text begin (iv) the rate established under paragraph (f) beginning January 1, 2018 new text end . 2.30(c) Notwithstanding paragraph (b), during the first 90 consecutive days of 2.31employment, an employer may pay an employee under the age of 20 years a wage of $4.90 2.32an hour. No employer may take any action to displace any employee, including a partial 2.33displacement through a reduction in hours, wages, or employment benefits, in order to hire 2.34an employee at the wage authorized in this paragraph new text begin at least: new text end 2.35 new text begin (1) $6.50 per hour beginning August 1, 2014; new text end 3.1 new text begin (2) $7.25 per hour beginning August 1, 2015; new text end 3.2 new text begin (3) $7.75 per hour beginning August 1, 2016; and new text end 3.3 new text begin (4) the rate established under paragraph (f) beginning January 1, 2018 new text end . 3.4 new text begin No employer may take any action to displace an employee, including a partial new text end 3.5 new text begin displacement through a reduction in hours, wages, or employment benefits, in order to new text end 3.6 new text begin hire an employee at the wage authorized in this paragraph. new text end 3.7 new text begin (d) Notwithstanding paragraph (b), an employer that is a "hotel or motel," "lodging new text end 3.8 new text begin establishment," or "resort" as defined in Minnesota Statutes 2012, section 157.15, new text end 3.9 new text begin subdivisions 7, 8, and 11, must pay an employee working under a contract with the new text end 3.10 new text begin employer that includes the provision by the employer of a food or lodging benefit, if the new text end 3.11 new text begin employee is working under authority of a summer work travel exchange visitor program new text end 3.12 new text begin (J) nonimmigrant visa, a wage of at least: new text end 3.13 new text begin (1) $7.25 per hour beginning August 1, 2014; new text end 3.14 new text begin (2) $7.50 per hour beginning August 1, 2015; new text end 3.15 new text begin (3) $7.75 per hour beginning August 1, 2016; and new text end 3.16 new text begin (4) the rate established under paragraph (f) beginning January 1, 2018. new text end 3.17 new text begin No employer may take any action to displace an employee, including a partial new text end 3.18 new text begin displacement through a reduction in hours, wages, or employment benefits, in order to new text end 3.19 new text begin hire an employee at the wage authorized in this paragraph. new text end 3.20 new text begin (e) Notwithstanding paragraph (b), a large employer must pay an employee under new text end 3.21 new text begin the age of 18 at a rate of at least: new text end 3.22 new text begin (1) $6.50 per hour beginning August 1, 2014; new text end 3.23 new text begin (2) $7.25 per hour beginning August 1, 2015; new text end 3.24 new text begin (3) $7.75 per hour beginning August 1, 2016; and new text end 3.25 new text begin (4) the rate established under paragraph (f) beginning January 1, 2018. new text end 3.26 new text begin No employer may take any action to displace an employee, including a partial new text end 3.27 new text begin displacement through a reduction in hours, wages, or employment benefits, in order to new text end 3.28 new text begin hire an employee at the wage authorized in this paragraph. new text end 3.29 new text begin (f) No later than August 31 of each year, beginning in 2017, the commissioner shall new text end 3.30 new text begin determine the percentage increase in the rate of inflation, as measured by the implicit new text end 3.31 new text begin price deflator, national data for personal consumption expenditures as determined by new text end 3.32 new text begin the United States Department of Commerce, Bureau of Economic Analysis during the new text end 3.33 new text begin 12-month period immediately preceding that August or, if that data is unavailable, during new text end 3.34 new text begin the most recent 12-month period for which data is available. The minimum wage rates in new text end 3.35 new text begin paragraphs (b), (c), (d), and (e) are increased by the lesser of: (1) 2.5 percent, rounded new text end 4.1 new text begin to the nearest cent; or (2) the percentage calculated by the commissioner, rounded to the new text end 4.2 new text begin nearest cent. A minimum wage rate shall not be reduced under this paragraph. The new new text end 4.3 new text begin minimum wage rates determined under this paragraph take effect on the next January 1. new text end 4.4 new text begin (g)(1) No later than September 30 of each year, beginning in 2017, the commissioner new text end 4.5 new text begin may issue an order that an increase calculated under paragraph (f) not take effect. The new text end 4.6 new text begin commissioner may issue the order only if the commissioner, after consultation with new text end 4.7 new text begin the commissioner of management and budget, finds that leading economic indicators, new text end 4.8 new text begin including but not limited to projections of gross domestic product calculated by the United new text end 4.9 new text begin States Department of Commerce, Bureau of Economic Analysis; the Consumer Confidence new text end 4.10 new text begin Index issued by the Conference Board; and seasonally adjusted Minnesota unemployment new text end 4.11 new text begin rates, indicate the potential for a substantial downturn in the state's economy. Prior to new text end 4.12 new text begin issuing an order, the commissioner shall also calculate and consider the ratio of the rate new text end 4.13 new text begin of the calculated change in the minimum wage rate to the rate of change in state median new text end 4.14 new text begin income over the same time period used to calculate the change in wage rate. Prior to issuing new text end 4.15 new text begin the order, the commissioner shall hold a public hearing, notice of which must be published new text end 4.16 new text begin in the state register, on the department's Web site, in newspapers of general circulation, and new text end 4.17 new text begin by other means likely to inform interested persons of the hearing, at least 10 days prior to new text end 4.18 new text begin the hearing. The commissioner must allow interested persons to submit written comments new text end 4.19 new text begin to the commissioner before the public hearing and for 20 days after the public hearing. new text end 4.20 new text begin (2) The commissioner may in a year subsequent to issuing an order under clause (1), new text end 4.21 new text begin make a supplemental increase in the minimum wage rate in addition to the increase for new text end 4.22 new text begin a year calculated under paragraph (f). The supplemental increase may be in an amount new text end 4.23 new text begin up to the full amount of the increase not put into effect because of the order. If the new text end 4.24 new text begin supplemental increase is not the full amount, the commissioner may make a supplemental new text end 4.25 new text begin increase of the difference, or any part of a difference, in a subsequent year until the full new text end 4.26 new text begin amount of the increase ordered not to take effect has been included in a supplemental new text end 4.27 new text begin increase. In making a determination to award a supplemental increase under this clause, new text end 4.28 new text begin the commissioner shall use the same considerations and use the same process as for an new text end 4.29 new text begin order under clause (1). A supplemental wage increase is not subject to and shall not be new text end 4.30 new text begin considered in determining whether a wage rate increase exceeds the limits for annual wage new text end 4.31 new text begin rate increases allowed under paragraph (f). new text end 4.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2014. new text end 4.33    Sec. 3. new text begin SEVERABILITY. new text end 4.34 new text begin If any provision of this act or its application to any person or circumstance is judged new text end 4.35 new text begin invalid, the invalidity shall not affect other provisions or applications of the act which can new text end 5.1 new text begin be given effect without the invalid provision or application, and to this end the provisions new text end 5.2 new text begin of this act are declared severable. new text end 5.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end