HF 409

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to employment; proposing an amendment to the
Minnesota Constitution, article XIII, adjusting the
minimum wage rate to account for annual inflation;
amending Minnesota Statutes 2004, section 177.24,
subdivision 1.

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

Section 1. new text begin CONSTITUTIONAL AMENDMENT.
new text end

new text begin An amendment to the Minnesota Constitution is proposed to
the people. If the amendment is adopted, a new section shall be
added to article XIII, to read:
new text end

new text begin Sec. 13. The minimum wage rates in Minnesota shall be
adjusted each year on January 1 to account for inflation, as
provided under Minnesota law. The legislature may not enact a
law that lowers a minimum wage rate or expands the definition of
a small employer for minimum wage purposes. However, the
legislature may enact a law that raises a minimum wage rate or
expands the definition of a large employer for minimum wage
purposes. If the legislature enacts a law that raises a minimum
wage rate, that rate shall be used as the basis for the next
annual adjustment to account for inflation.
new text end

Sec. 2. new text begin QUESTION SUBMITTED TO VOTERS; SCHEDULE.
new text end

new text begin The proposed amendment shall be submitted to the people at
the 2006 general election. The question submitted shall be:
new text end

new text begin "Shall the Minnesota Constitution be amended to provide for
minimum wage rates that will be adjusted annually for inflation?
new text end

new text begin Yes .......
No ........"
new text end

Sec. 3.

Minnesota Statutes 2004, section 177.24,
subdivision 1, is amended to read:

Subdivision 1.

Amount.

(a) For purposes of this
subdivision, the terms defined in this paragraph have the
meanings given them.

(1) "Large employer" means an enterprise whose annual gross
volume of sales made or business done is not less than $500,000
(exclusive of excise taxes at the retail level that are
separately stated) and covered by the Minnesota Fair Labor
Standards Act, sections 177.21 to 177.35.

(2) "Small employer" means an enterprise whose annual gross
volume of sales made or business done is less than $500,000
(exclusive of excise taxes at the retail level that are
separately stated) and covered by the Minnesota Fair Labor
Standards Act, sections 177.21 to 177.35.

(b) Except as otherwise provided in sections 177.21 to
177.35, every large employer must pay each employee wages at a
rate of at least $5.15 an hour beginning September 1, 1997.
Every small employer must pay each employee at a rate of at
least $4.90 an hour beginning January 1, 1998. new text begin Every employer
must pay each employee at least the current adjusted minimum
wage rate applicable to that employer, as calculated under
paragraph (d), beginning January 1, 2008.
new text end

(c) Notwithstanding paragraph (b), during the first 90
consecutive days of employment, an employer may pay an employee
under the age of 20 years a wage of $4.25 an hour. new text begin Beginning
January 1, 2008, every employer paying an employee under this
paragraph shall pay the employee the current adjusted wage rate,
as calculated under paragraph (d). new text end No employer may take any
action to displace any employee, including a partial
displacement through a reduction in hours, wages, or employment
benefits, in order to hire an employee at the wage authorized in
this paragraph.

new text begin (d) No later than November 1 of each year, beginning in
calendar year 2007, the commissioner shall calculate an
adjustment of the wage rates specified in paragraphs (b) and (c)
to account for the percentage increase in the rate of inflation
during the most recent 12-month period for which data is
available. The commissioner shall determine the percentage
increase in the rate of inflation by consulting the Consumer
Price Index for all urban consumers, United States city average,
as prepared by the United States Department of Labor. The
commissioner shall then increase the current minimum wage rates
by the same percentage, rounding to the nearest cent. Each
adjustment to the minimum wage calculated under this paragraph
takes effect on the following January 1.
new text end

Sec. 4. new text begin EFFECTIVE DATE.
new text end

new text begin Section 3 is effective upon ratification of the amendment
proposed in section 1.
new text end