HF 439

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/22/2021 05:15pm

A bill for an act
relating to wages; eliminating subminimum wage; creating a task force on
eliminating subminimum wage; repealing statute and rules allowing payment of
subminimum wage to employees with disabilities; requiring a report; appropriating
money; amending Minnesota Statutes 2020, section 177.24, by adding a
subdivision; repealing Minnesota Statutes 2020, section 177.28, subdivision 5;
Minnesota Rules, parts 5200.0030; 5200.0040.

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

Section 1.

Minnesota Statutes 2020, section 177.24, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Subminimum wage. new text end

new text begin Notwithstanding any law to the contrary, beginning
August 1, 2025, an employer must not pay an employee with a disability less than the
minimum wage required by this section.
new text end

Sec. 2. new text begin TASK FORCE ON ELIMINATING SUBMINIMUM WAGE.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin The purpose of the task force on eliminating subminimum wage
is to develop and implement a plan to phase out payment of subminimum wage authorized
under Minnesota Statutes, section 177.28, subdivision 5, and Minnesota Rules, parts
5200.0030 and 5200.0040, on or before August 1, 2025.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The task force consists of the following members:
new text end

new text begin (1) two members of the senate, one appointed by the majority leader and one appointed
by the minority leader;
new text end

new text begin (2) two members of the house of representatives, one appointed by the speaker of the
house and one appointed by the minority leader;
new text end

new text begin (3) the commissioner of labor and industry or a designee;
new text end

new text begin (4) the commissioner of employment and economic development or a designee;
new text end

new text begin (5) the commissioner of human services or a designee;
new text end

new text begin (6) the commissioner of education or a designee;
new text end

new text begin (7) three members of organizations working to protect the rights and opportunities of
persons with disabilities selected by the commissioner of labor and industry;
new text end

new text begin (8) three employers authorized to pay subminimum wage pursuant to Minnesota Statutes,
section 177.28, subdivision 5, and Minnesota Rules, parts 5200.0030 and 5200.0040, selected
by the commissioner of labor and industry;
new text end

new text begin (9) one or more employees with a disability paid subminimum wage pursuant to
Minnesota Statutes, section 177.28, subdivision 5, and Minnesota Rules, parts 5200.0030
and 5200.0040, selected by the commissioner of labor and industry;
new text end

new text begin (10) one or more learners or apprentices paid subminimum wage pursuant to Minnesota
Statutes, section 177.28, subdivision 5, and Minnesota Rules, parts 5200.0030 and 5200.0040,
selected by the commissioner of labor and industry;
new text end

new text begin (11) a representative of the Department of Employment and Economic Development's
Vocational Rehabilitation Services division; and
new text end

new text begin (12) a representative of the State Rehabilitation Council.
new text end

new text begin (b) To the extent possible, membership on the task force under paragraph (a) shall reflect
geographic parity throughout the state.
new text end

new text begin (c) The commissioner of labor and industry shall appoint the members under clause (7)
so that the three most predominant percentages of individuals with disabilities utilizing
sheltered workshops are represented.
new text end

new text begin Subd. 3. new text end

new text begin Appointment deadline; first meeting; chair. new text end

new text begin Appointing authorities must
complete member selections by July 15, 2021. The commissioner of labor and industry shall
convene the first meeting of the task force by August 17, 2021. The task force shall select
a chair from among their members at their first meeting.
new text end

new text begin Subd. 4. new text end

new text begin Compensation. new text end

new text begin Members shall be compensated and may be reimbursed for
expenses as provided in Minnesota Statutes, section 15.059, subdivision 3.
new text end

new text begin Subd. 5. new text end

new text begin Duties. new text end

new text begin The task force shall:
new text end

new text begin (1) develop and implement a plan to phase out the payment of subminimum wage
authorized under Minnesota Statutes, section 177.28, subdivision 5, and Minnesota Rules,
parts 5200.0030 and 5200.0040, by August 1, 2025;
new text end

new text begin (2) identify and collaborate with employees, employers, businesses, organizations,
agencies, and stakeholders impacted by the phase out of subminimum wage on how to
implement the plan and create sustainable work opportunities for employees with disabilities;
new text end

new text begin (3) propose a plan to establish and evaluate benchmarks for measuring progress for each
year of the phase out;
new text end

new text begin (4) propose a plan to monitor and track outcomes of employees with disabilities;
new text end

new text begin (5) identify initiatives, investment, training, and services designed to improve wages,
reduce unemployment rates, and provide support and sustainable work opportunities for
persons with disabilities;
new text end

new text begin (6) identify benefits to the state in eliminating subminimum wage by August 1, 2025;
new text end

new text begin (7) identify barriers to eliminating subminimum wage by August 1, 2025, and make
recommendations for compliance; and
new text end

new text begin (8) identify and make recommendations for sustainable financial support, funding, and
resources for eliminating subminimum wage by August 1, 2025, including the cost of
implementing and providing ongoing employment services, training, and support for
employees with disabilities and the cost of paying minimum wage to employees with
disabilities.
new text end

new text begin Subd. 6. new text end

new text begin Report. new text end

new text begin The task force shall report to the chairs and ranking minority members
of the committees in the senate and the house of representatives with primary jurisdiction
over employment and wages and health and human services by January 14, 2023, with
recommendations to eliminate the payment of subminimum wage authorized under Minnesota
Statutes, section 177.28, subdivision 5, and Minnesota Rules, parts 5200.0030 and 5200.0040,
by August 1, 2025, and any legislation or rulemaking required to implement the
recommendations.
new text end

new text begin Subd. 7. new text end

new text begin Administrative support. new text end

new text begin The commissioner of labor and industry shall provide
meeting space and administrative services to the task force.
new text end

new text begin Subd. 8. new text end

new text begin Sunset. new text end

new text begin The task force sunsets August 31, 2023.
new text end

Sec. 3. new text begin APPROPRIATION.
new text end

new text begin $....... in fiscal year 2022 is appropriated from the general fund to the commissioner of
labor and industry for the task force on eliminating subminimum wage.
new text end

Sec. 4. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2020, section 177.28, subdivision 5, new text end new text begin and new text end new text begin Minnesota Rules, parts
5200.0030; and 5200.0040, new text end new text begin are repealed effective August 1, 2025.
new text end

APPENDIX

Repealed Minnesota Statutes: 21-01676

177.28 POWER TO MAKE RULES.

Subd. 5.

Rules regarding people with disabilities.

In order to prevent curtailment of opportunities for employment, avoid undue hardship, and safeguard the minimum wage rates under sections 177.24 and 177.25, the department shall also issue rules providing for the employment of disabled workers at wages lower than the wage rates applicable under sections 177.24 and 177.25, under permits and for periods of time as specified therein. The rules must provide for the employment of learners and apprentices at wages lower than the wage rates applicable under sections 177.24 and 177.25, under permits and subject to limitations on number, proportion, length of learning period, occupations, and other conditions as the department may prescribe. The rules must provide that where a disabled person is performing or is being considered for employment where work must be performed which is equal to work performed by a nondisabled person, the disabled person must be paid the same wage as a nondisabled person with similar experience and skill.

Repealed Minnesota Rule: 21-01676

5200.0030 SUBMINIMUM WAGE RATES FOR WORKERS WITH DISABILITIES.

Subpart 1.

Permit required.

Subminimum wage rates may be paid to workers with disabilities only after receiving a permit from the Labor Standards Division. If no permit is issued, a worker, no matter how severely disabled, shall be paid the minimum wage. The subminimum rate will be based on the extent to which the worker's performance is limited but in no case may it fall below 50 percent of minimum wage, except as provided under subpart 4. "Performance" is based on a time study of workers with disabilities as compared to a time study of nondisabled workers on the same job. The time study must be conducted under the same working conditions for the disabled and the nondisabled.

Subp. 2.

Limit on work force at subminimum wage.

No profit-making organization may employ disabled workers at a subminimum wage for more than ten percent of its total work force unless granted a special permit by the commissioner of labor and industry to exceed the ten percent limitation.

Subp. 3.

Rehabilitation facilities.

Rehabilitation facilities are excluded from the percentage limitations of numbers of employees and percentage of minimum wage contained in subparts 1 and 2, but not from the permit requirement.

Subp. 4.

United States labor permits.

Permits issued by the United States Department of Labor under Code of Federal Regulations, title 29, part 524 or 525, authorizing subminimum wage rates shall be accepted by the division in lieu of the permit required in subpart 1. Where the worker would otherwise be employed in a rehabilitation facility, the commissioner of labor and industry may grant a special permit authorizing a wage rate of less than 50 percent of the minimum wage.

5200.0040 EQUAL PAY FOR WORKERS WITH DISABILITIES.

Where a person with a disability is now performing or is being considered for employment where he or she will perform work which is equal to work performed by a nondisabled person, such person with a disability shall be paid the same wage as a nondisabled person with similar experiences.