HF 1419

as introduced - 89th Legislature (2015 - 2016) Posted on 03/04/2015 11:29am

A bill for an act
relating to employment; eliminating the minimum wage inflation escalator;
amending Minnesota Statutes 2014, section 177.24, subdivision 1.

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

Section 1.

Minnesota Statutes 2014, 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:

(1) every large employer must pay each employee wages at a rate of at least:

(i) $8.00 per hour beginning August 1, 2014;

(ii) $9.00 per hour beginning August 1, 2015; new text begin and
new text end

(iii) $9.50 per hour beginning August 1, 2016; and

deleted text begin (iv) the rate established under paragraph (f) beginning January 1, 2018; and
deleted text end

(2) every small employer must pay each employee at a rate of at least:

(i) $6.50 per hour beginning August 1, 2014;

(ii) $7.25 per hour beginning August 1, 2015; new text begin and
new text end

(iii) $7.75 per hour beginning August 1, 2016 deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (iv) the rate established under paragraph (f) beginning January 1, 2018.
deleted 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 at least:

(1) $6.50 per hour beginning August 1, 2014;

(2) $7.25 per hour beginning August 1, 2015; new text begin and
new text end

(3) $7.75 per hour beginning August 1, 2016 deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (4) the rate established under paragraph (f) beginning January 1, 2018.
deleted text end

No employer may take any action to displace an 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.

(d) Notwithstanding paragraph (b), an employer that is a "hotel or motel," "lodging
establishment," or "resort" as defined in Minnesota Statutes 2012, section 157.15,
subdivisions 7, 8, and 11, must pay an employee working under a contract with the
employer that includes the provision by the employer of a food or lodging benefit, if the
employee is working under authority of a summer work travel exchange visitor program
(J) nonimmigrant visa, a wage of at least:

(1) $7.25 per hour beginning August 1, 2014;

(2) $7.50 per hour beginning August 1, 2015; new text begin and
new text end

(3) $7.75 per hour beginning August 1, 2016 deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (4) the rate established under paragraph (f) beginning January 1, 2018.
deleted text end

No employer may take any action to displace an 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.

(e) Notwithstanding paragraph (b), a large employer must pay an employee under
the age of 18 at a rate of at least:

(1) $6.50 per hour beginning August 1, 2014;

(2) $7.25 per hour beginning August 1, 2015; new text begin and
new text end

(3) $7.75 per hour beginning August 1, 2016 deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (4) the rate established under paragraph (f) beginning January 1, 2018.
deleted text end

No employer may take any action to displace an 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.

deleted text begin (f) No later than August 31 of each year, beginning in 2017, the commissioner shall
determine the percentage increase in the rate of inflation, as measured by the implicit
price deflator, national data for personal consumption expenditures as determined by
the United States Department of Commerce, Bureau of Economic Analysis during the
12-month period immediately preceding that August or, if that data is unavailable, during
the most recent 12-month period for which data is available. The minimum wage rates in
paragraphs (b), (c), (d), and (e) are increased by the lesser of: (1) 2.5 percent, rounded
to the nearest cent; or (2) the percentage calculated by the commissioner, rounded to the
nearest cent. A minimum wage rate shall not be reduced under this paragraph. The new
minimum wage rates determined under this paragraph take effect on the next January 1.
deleted text end

deleted text begin (g)(1) No later than September 30 of each year, beginning in 2017, the commissioner
may issue an order that an increase calculated under paragraph (f) not take effect. The
commissioner may issue the order only if the commissioner, after consultation with the
commissioner of management and budget, finds that leading economic indicators, including
but not limited to projections of gross domestic product calculated by the United States
Department of Commerce, Bureau of Economic Analysis; the Consumer Confidence Index
issued by the Conference Board; and seasonally adjusted Minnesota unemployment rates,
indicate the potential for a substantial downturn in the state's economy. Prior to issuing
an order, the commissioner shall also calculate and consider the ratio of the rate of the
calculated change in the minimum wage rate to the rate of change in state median income
over the same time period used to calculate the change in wage rate. Prior to issuing the
order, the commissioner shall hold a public hearing, notice of which must be published in
the State Register, on the department's Web site, in newspapers of general circulation, and
by other means likely to inform interested persons of the hearing, at least ten days prior to
the hearing. The commissioner must allow interested persons to submit written comments
to the commissioner before the public hearing and for 20 days after the public hearing.
deleted text end

deleted text begin (2) The commissioner may in a year subsequent to issuing an order under clause (1),
make a supplemental increase in the minimum wage rate in addition to the increase for
a year calculated under paragraph (f). The supplemental increase may be in an amount
up to the full amount of the increase not put into effect because of the order. If the
supplemental increase is not the full amount, the commissioner may make a supplemental
increase of the difference, or any part of a difference, in a subsequent year until the full
amount of the increase ordered not to take effect has been included in a supplemental
increase. In making a determination to award a supplemental increase under this clause,
the commissioner shall use the same considerations and use the same process as for an
order under clause (1). A supplemental wage increase is not subject to and shall not be
considered in determining whether a wage rate increase exceeds the limits for annual wage
rate increases allowed under paragraph (f).
deleted text end