HF 3878

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/02/2026 02:40 p.m.

A bill for an act
relating to employment; requiring a quality service wage for covered airport or
related location workers; providing penalties; amending Minnesota Statutes 2024,
section 177.27, subdivision 4; proposing coding for new law in Minnesota Statutes,
chapter 181.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 177.27, subdivision 4, is amended to read:

Subd. 4.

Compliance orders.

The commissioner may issue an order requiring an
employer to comply with sections 177.21 to 177.435, 177.50, 179.86, 181.02, 181.03,
181.031, 181.032, 181.10, 181.101, 181.11, 181.13, 181.14, 181.145, 181.15, 181.165,
181.172, paragraph (a) or (d), new text begin 181.174, new text end 181.214 to 181.217, 181.275, subdivision 2a, 181.635,
181.64, 181.722, 181.723, 181.79, 181.85 to 181.89, 181.939 to 181.943, 181.9445 to
181.9448, 181.987, 181.991, 268B.09, subdivisions 1 to 6, and 268B.14, subdivision 3,
with any rule promulgated under section 177.28, 181.213, or 181.215. The commissioner
shall issue an order requiring an employer to comply with sections 177.41 to 177.435,
181.165, or 181.987 if the violation is repeated. For purposes of this subdivision only, a
violation is repeated if at any time during the two years that preceded the date of violation,
the commissioner issued an order to the employer for violation of sections 177.41 to 177.435,
181.165, or 181.987 and the order is final or the commissioner and the employer have
entered into a settlement agreement that required the employer to pay back wages that were
required by sections 177.41 to 177.435. The department shall serve the order upon the
employer or the employer's authorized representative in person or by certified mail at the
employer's place of business. An employer who wishes to contest the order must file written
notice of objection to the order with the commissioner within 15 calendar days after being
served with the order. A contested case proceeding must then be held in accordance with
sections 14.57 to 14.69 or 181.165. If, within 15 calendar days after being served with the
order, the employer fails to file a written notice of objection with the commissioner, the
order becomes a final order of the commissioner. For the purposes of this subdivision, an
employer includes a contractor that has assumed a subcontractor's liability within the meaning
of section 181.165.

Sec. 2.

new text begin [181.174] QUALITY SERVICE WAGE.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Covered airport or related location" means the Minneapolis-St. Paul International
Airport, Wold-Chamberlain Field, or a public airport under the supervision, operation,
direction, and control of the Metropolitan Airports Commission, including all property
owned by the Metropolitan Airports Commission at Minneapolis-St. Paul International
Airport.
new text end

new text begin (c) "Covered airport or related location employer" or "employer" means:
new text end

new text begin (1) any person, corporation, limited liability company, or association employing any
covered airport or related location worker in an occupation, industry, trade, business or
service; or
new text end

new text begin (2) any person who contracts with a person to perform work related to the preparation
or delivery of food for consumption on airplanes departing from a covered airport or related
location.
new text end

new text begin Covered airport or related location employer does not include the United States government;
the Metropolitan Airports Commission; or other state, county, or local political subdivision.
new text end

new text begin (d) "Covered airport or related location worker" means:
new text end

new text begin (1) any person employed to perform work at a covered airport or related location, provided
at least half of the employee's time during any workweek is performed at a covered airport
and related location; or
new text end

new text begin (2) any person who performs work related to the preparation or delivery of food for
consumption on airplanes departing from a covered airport or related location.
new text end

new text begin Covered airport or related location worker does not include independent contractors or
persons employed in an executive, administrative, or professional capacity.
new text end

new text begin (e) "Quality service wage" or "QSW" means the combined hourly wage rate and benefit
rate designated by the commissioner to be the QSW. The QSW must be based on the
determinations made by the General Services Administration pursuant to the federal
McNamara-O'Hara Service Contract Act, United States Code, title 41, section 6701 to 6707,
for the applicable localities and job classifications of employees. Effective July 1, 2026,
and each July 1 thereafter, the quality service wage applicable to a covered airport must not
be less than the following:
new text end

new text begin (1) any otherwise applicable minimum wage rate established by or through the
Metropolitan Airports Commission (MAC), including through MAC contracts or licensing
agreements;
new text end

new text begin (2) the amount of wages or supplements equal to the rate for health and welfare for all
occupations, designated by the commissioner of labor and industry based on the
determinations made by the federal Department of Labor pursuant to the McNamara-O'Hara
Service Contract Act (SCA) requirements under United States Code, title 41, sections 6701
to 6707, for the geographic region in which the covered airport location is located and in
effect on the date of the designation by the commissioner; and
new text end

new text begin (3) the local guard SCA wage determination, as applicable.
new text end

new text begin Subd. 2. new text end

new text begin Quality service wage requirements. new text end

new text begin Beginning ....., 2026, each covered airport
or related location employer must pay a covered airport or related location worker a wage
of not less than the quality service wage applicable to that covered airport or related location
worker.
new text end

new text begin Subd. 3. new text end

new text begin Supplemental benefits rate. new text end

new text begin The amount of wages or supplements equal to
the rate for health and welfare benefits must be adjusted annually to the rate provided
pursuant to the McNamara-O'Hara Service Contract Act (SCA) requirements under United
States Code, title 41, sections 6701 to 6707.
new text end

new text begin Subd. 4. new text end

new text begin Penalty. new text end

new text begin (a) In addition to any penalties provided under section 177.27,
subdivision 7, the commissioner may issue a penalty to the employer of not less than $1,000
and not more than $10,000 per violation of this section.
new text end

new text begin (b) In assessing the amount of the penalty under paragraph (a), the commissioner shall
consider the size of the covered airport or related location, employer's business, the good
faith of the covered airport or related location employer, the gravity of the violation, the
history of previous violations, and the failure to comply with other requirements.
new text end