1.1 	A bill for an act
1.2 	relating to employment; requiring a quality service wage for covered airport or 
1.3 	related location workers; providing penalties;amending Minnesota Statutes 2024, 
1.4 	section 177.27, subdivision 4; proposing coding for new law in Minnesota Statutes, 
1.5 	chapter 181.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2024, section 177.27, subdivision 4, is amended to read:
1.8 		Subd. 4.Compliance orders. The commissioner may issue an order requiring an 
1.9 	employer to comply with sections 177.21 to 177.435, 177.50, 179.86, 181.02, 181.03, 
1.10 	181.031, 181.032, 181.10, 181.101, 181.11, 181.13, 181.14, 181.145, 181.15, 181.165, 
1.11 	181.172, paragraph (a) or (d), 181.174, 181.214 to 181.217, 181.275, subdivision 2a, 181.635, 
1.12 	181.64, 181.722, 181.723, 181.79, 181.85 to 181.89, 181.939 to 181.943, 181.9445 to 
1.13 	181.9448, 181.987, 181.991, 268B.09, subdivisions 1 to 6, and 268B.14, subdivision 3, 
1.14 	with any rule promulgated under section 177.28, 181.213, or 181.215. The commissioner 
1.15 	shall issue an order requiring an employer to comply with sections 177.41 to 177.435, 
1.16 	181.165, or 181.987 if the violation is repeated. For purposes of this subdivision only, a 
1.17 	violation is repeated if at any time during the two years that preceded the date of violation, 
1.18 	the commissioner issued an order to the employer for violation of sections 177.41 to 177.435, 
1.19 	181.165, or 181.987 and the order is final or the commissioner and the employer have 
1.20 	entered into a settlement agreement that required the employer to pay back wages that were 
1.21 	required by sections 177.41 to 177.435. The department shall serve the order upon the 
1.22 	employer or the employer's authorized representative in person or by certified mail at the 
1.23 	employer's place of business. An employer who wishes to contest the order must file written 
1.24 	notice of objection to the order with the commissioner within 15 calendar days after being 
2.1 	served with the order. A contested case proceeding must then be held in accordance with 
2.2 	sections 14.57 to 14.69 or 181.165. If, within 15 calendar days after being served with the 
2.3 	order, the employer fails to file a written notice of objection with the commissioner, the 
2.4 	order becomes a final order of the commissioner. For the purposes of this subdivision, an 
2.5 	employer includes a contractor that has assumed a subcontractor's liability within the meaning 
2.6 	of section 181.165.

2.7 	Sec. 2. [181.174] QUALITY SERVICE WAGE.
2.8 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
2.9 	the meanings given.
2.10 	(b) "Covered airport or related location" means the Minneapolis-St. Paul International 
2.11 	Airport, Wold-Chamberlain Field, or a public airport under the supervision, operation, 
2.12 	direction, and control of the Metropolitan Airports Commission, including all property 
2.13 	owned by the Metropolitan Airports Commission at Minneapolis-St. Paul International 
2.14 	Airport.
2.15 	(c) "Covered airport or related location employer" or "employer" means:
2.16 	(1) any person, corporation, limited liability company, or association employing any 
2.17 	covered airport or related location worker in an occupation, industry, trade, business or 
2.18 	service; or
2.19 	(2) any person who contracts with a person to perform work related to the preparation 
2.20 	or delivery of food for consumption on airplanes departing from a covered airport or related 
2.21 	location.
2.22 	Covered airport or related location employer does not include the United States government; 
2.23 	the Metropolitan Airports Commission; or other state, county, or local political subdivision.
2.24 	(d) "Covered airport or related location worker" means:
2.25 	(1) any person employed to perform work at a covered airport or related location, provided 
2.26 	at least half of the employee's time during any workweek is performed at a covered airport 
2.27 	and related location; or
2.28 	(2) any person who performs work related to the preparation or delivery of food for 
2.29 	consumption on airplanes departing from a covered airport or related location.
2.30 	Covered airport or related location worker does not include independent contractors or 
2.31 	persons employed in an executive, administrative, or professional capacity.
3.1 	(e) "Quality service wage" or "QSW" means the combined hourly wage rate and benefit 
3.2 	rate designated by the commissioner to be the QSW. The QSW must be based on the 
3.3 	determinations made by the General Services Administration pursuant to the federal 
3.4 	McNamara-O'Hara Service Contract Act, United States Code, title 41, section 6701 to 6707, 
3.5 	for the applicable localities and job classifications of employees. Effective July 1, 2026, 
3.6 	and each July 1 thereafter, the quality service wage applicable to a covered airport must not 
3.7 	be less than the following:
3.8 	(1) any otherwise applicable minimum wage rate established by or through the 
3.9 	Metropolitan Airports Commission (MAC), including through MAC contracts or licensing 
3.10 	agreements;
3.11 	(2) the amount of wages or supplements equal to the rate for health and welfare for all 
3.12 	occupations, designated by the commissioner of labor and industry based on the 
3.13 	determinations made by the federal Department of Labor pursuant to the McNamara-O'Hara 
3.14 	Service Contract Act (SCA) requirements under United States Code, title 41, sections 6701 
3.15 	to 6707, for the geographic region in which the covered airport location is located and in 
3.16 	effect on the date of the designation by the commissioner; and
3.17 	(3) the local guard SCA wage determination, as applicable.
3.18 		Subd. 2.Quality service wage requirements. Beginning ....., 2026, each covered airport 
3.19 	or related location employer must pay a covered airport or related location worker a wage 
3.20 	of not less than the quality service wage applicable to that covered airport or related location 
3.21 	worker.
3.22 		Subd. 3.Supplemental benefits rate. The amount of wages or supplements equal to 
3.23 	the rate for health and welfare benefits must be adjusted annually to the rate provided 
3.24 	pursuant to the McNamara-O'Hara Service Contract Act (SCA) requirements under United 
3.25 	States Code, title 41, sections 6701 to 6707.
3.26 		Subd. 4.Penalty. (a) In addition to any penalties provided under section 177.27, 
3.27 	subdivision 7, the commissioner may issue a penalty to the employer of not less than $1,000 
3.28 	and not more than $10,000 per violation of this section.
3.29 	(b) In assessing the amount of the penalty under paragraph (a), the commissioner shall 
3.30 	consider the size of the covered airport or related location, employer's business, the good 
3.31 	faith of the covered airport or related location employer, the gravity of the violation, the 
3.32 	history of previous violations, and the failure to comply with other requirements.