1.1 	A bill for an act
1.2 	relating to employment; reducing the minimum wage for nonprofit organizations;
1.3 	amending Minnesota Statutes 2014, section 177.24, subdivision 1.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2014, 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 $500,000 (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) "Nonprofit employer" means an enterprise that has tax-exempt status in 
1.13 	accordance with the Internal Revenue Service Code, section 501(c)(3), regardless of the 
1.14 	amount of annual gross volume of sales made or business done.
1.15 	(2) (3) "Small employer" means an enterprise whose annual gross volume of sales 
1.16 	made or business done is less than $500,000 (exclusive of excise taxes at the retail level 
1.17 	that are separately stated) and covered by the Minnesota Fair Labor Standards Act, 
1.18 	sections 177.21 to 177.35.
1.19 	(b) Except as otherwise provided in sections 177.21 to 177.35:
1.20 	(1) every large employer must pay each employee wages at a rate of at least:
1.21 	(i) $8.00 per hour beginning August 1, 2014;
1.22 	(ii) $9.00 per hour beginning August 1, 2015;
1.23 	(iii) $9.50 per hour beginning August 1, 2016; and
1.24 	(iv) the rate established under paragraph (f) (g) beginning January 1, 2018; and
2.1 	(2) every small employer must pay each employee at a rate of at least:
2.2 	(i) $6.50 per hour beginning August 1, 2014;
2.3 	(ii) $7.25 per hour beginning August 1, 2015;
2.4 	(iii) $7.75 per hour beginning August 1, 2016; and
2.5 	(iv) the rate established under paragraph (f) (g) beginning January 1, 2018.
2.6 	(c) Notwithstanding paragraph (b), during the first 90 consecutive days of 
2.7 	employment, an every large and small employer may pay an employee under the age of 20 
2.8 	years a wage of at least:
2.9 	(1) $6.50 per hour beginning August 1, 2014;
2.10 	(2) $7.25 per hour beginning August 1, 2015;
2.11 	(3) $7.75 per hour beginning August 1, 2016; and
2.12 	(4) the rate established under paragraph (f) (g) beginning January 1, 2018.
2.13 	No employer may take any action to displace an employee, including a partial 
2.14 	displacement through a reduction in hours, wages, or employment benefits, in order to 
2.15 	hire an employee at the wage authorized in this paragraph.
2.16 	(d) Notwithstanding paragraph (b), an employer that is a "hotel or motel," "lodging 
2.17 	establishment," or "resort" as defined in Minnesota Statutes 2012, section 157.15, 
2.18 	subdivisions 7, 8, and 11, must pay an employee working under a contract with the 
2.19 	employer that includes the provision by the employer of a food or lodging benefit, if the 
2.20 	employee is working under authority of a summer work travel exchange visitor program 
2.21 	(J) nonimmigrant visa, a wage of at least:
2.22 	(1) $7.25 per hour beginning August 1, 2014;
2.23 	(2) $7.50 per hour beginning August 1, 2015;
2.24 	(3) $7.75 per hour beginning August 1, 2016; and
2.25 	(4) the rate established under paragraph (f) (g) beginning January 1, 2018.
2.26 	No employer may take any action to displace an employee, including a partial 
2.27 	displacement through a reduction in hours, wages, or employment benefits, in order to 
2.28 	hire an employee at the wage authorized in this paragraph.
2.29 	(e) Notwithstanding paragraph (b), beginning August 1, 2015, every nonprofit 
2.30 	employer must pay each employee at a rate of at least $6.15 an hour, except that during 
2.31 	the first 90 consecutive days of employment, a nonprofit employer may pay an employee 
2.32 	under the age of 20 years a wage of $4.90 an hour.
2.33 	(e) (f) Notwithstanding paragraph (b), a large employer must pay an employee under 
2.34 	the age of 18 at a rate of at least:
2.35 	(1) $6.50 per hour beginning August 1, 2014;
2.36 	(2) $7.25 per hour beginning August 1, 2015;
3.1 	(3) $7.75 per hour beginning August 1, 2016; and
3.2 	(4) the rate established under paragraph (f) (g) beginning January 1, 2018.
3.3 	No employer may take any action to displace an employee, including a partial 
3.4 	displacement through a reduction in hours, wages, or employment benefits, in order to 
3.5 	hire an employee at the wage authorized in this paragraph.
3.6 	(f) (g) No later than August 31 of each year, beginning in 2017, the commissioner 
3.7 	shall determine the percentage increase in the rate of inflation, as measured by the implicit 
3.8 	price deflator, national data for personal consumption expenditures as determined by 
3.9 	the United States Department of Commerce, Bureau of Economic Analysis during the 
3.10 	12-month period immediately preceding that August or, if that data is unavailable, during 
3.11 	the most recent 12-month period for which data is available. The minimum wage rates in 
3.12 	paragraphs (b), (c), (d), and (e) (f) are increased by the lesser of: (1) 2.5 percent, rounded 
3.13 	to the nearest cent; or (2) the percentage calculated by the commissioner, rounded to the 
3.14 	nearest cent. A minimum wage rate shall not be reduced under this paragraph. The new 
3.15 	minimum wage rates determined under this paragraph take effect on the next January 1.
3.16 	(g) (h)(1) No later than September 30 of each year, beginning in 2017, the 
3.17 	commissioner may issue an order that an increase calculated under paragraph (f) (g)
3.18 	not take effect. The commissioner may issue the order only if the commissioner, after 
3.19 	consultation with the commissioner of management and budget, finds that leading 
3.20 	economic indicators, including but not limited to projections of gross domestic product 
3.21 	calculated by the United States Department of Commerce, Bureau of Economic Analysis; 
3.22 	the Consumer Confidence Index issued by the Conference Board; and seasonally adjusted 
3.23 	Minnesota unemployment rates, indicate the potential for a substantial downturn in the 
3.24 	state's economy. Prior to issuing an order, the commissioner shall also calculate and 
3.25 	consider the ratio of the rate of the calculated change in the minimum wage rate to the 
3.26 	rate of change in state median income over the same time period used to calculate the 
3.27 	change in wage rate. Prior to issuing the order, the commissioner shall hold a public 
3.28 	hearing, notice of which must be published in the State Register, on the department's Web 
3.29 	site, in newspapers of general circulation, and by other means likely to inform interested 
3.30 	persons of the hearing, at least ten days prior to the hearing. The commissioner must allow 
3.31 	interested persons to submit written comments to the commissioner before the public 
3.32 	hearing and for 20 days after the public hearing.
3.33 	(2) The commissioner may in a year subsequent to issuing an order under clause 
3.34 	(1), make a supplemental increase in the minimum wage rate in addition to the increase 
3.35 	for a year calculated under paragraph (f) (g). The supplemental increase may be in an 
3.36 	amount up to the full amount of the increase not put into effect because of the order. If the 
4.1 	supplemental increase is not the full amount, the commissioner may make a supplemental 
4.2 	increase of the difference, or any part of a difference, in a subsequent year until the full 
4.3 	amount of the increase ordered not to take effect has been included in a supplemental 
4.4 	increase. In making a determination to award a supplemental increase under this clause, 
4.5 	the commissioner shall use the same considerations and use the same process as for an 
4.6 	order under clause (1). A supplemental wage increase is not subject to and shall not be 
4.7 	considered in determining whether a wage rate increase exceeds the limits for annual wage 
4.8 	rate increases allowed under paragraph (f) (g).