HF 2284

as introduced - 87th Legislature (2011 - 2012) Posted on 02/15/2012 01:57pm

A bill for an act
relating to workforce development; designating the Middle Class Jobs Act;
providing for early warning; modifying sick leave; amending business subsidy
disclosure requirements; clarifying workplace communications; modifying
minimum wage requirements; creating penalties; amending Minnesota Statutes
2010, sections 16C.08, subdivision 4; 116J.035, by adding subdivisions;
116J.994, subdivisions 7, 8, by adding a subdivision; 116L.976, subdivision 1,
by adding a subdivision; 177.24, subdivision 1; proposing coding for new law in
Minnesota Statutes, chapters 16C; 181.

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

ARTICLE 1

TITLE

Section 1. TITLE.

This act shall be known as the "Middle Class Jobs Act."

EFFECTIVE DATE.

This section is effective the day following final enactment.

ARTICLE 2

EARLY WARNING PLANT CLOSINGS, JOB RELOCATION, MASS LAYOFFS

Section 1.

Minnesota Statutes 2010, section 116J.035, is amended by adding a
subdivision to read:

Subd. 8.

Compliance orders.

The commissioner may issue an order requiring an
employer to comply with section 116L.976. 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. 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.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 2.

Minnesota Statutes 2010, section 116J.035, is amended by adding a subdivision
to read:

Subd. 9.

Civil actions.

The commissioner may bring an action in the district court
where an employer resides or where the commissioner maintains an office to enforce or
require compliance with orders issued under subdivision 8.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 3.

Minnesota Statutes 2010, section 116J.035, is amended by adding a subdivision
to read:

Subd. 10.

Employer liability.

If an employer is found by the commissioner to
have violated a section identified in subdivision 8, or any rule adopted under section
116L.976, and the commissioner issues an order to comply, the commissioner shall order
the employer to cease and desist from engaging in the violative practice and to take such
affirmative steps that in the judgment of the commissioner will effectuate the purposes
of the section or rule violated. The commissioner shall order the employer to pay to
the aggrieved parties back pay, gratuities, and compensatory treble damages, less any
amount actually paid to the employee by the employer, and an additional equal amount as
liquidated damages. Any employer who is found by the commissioner to have repeatedly
or willfully violated section 116L.976 shall be subject to a civil penalty of $1,000 for each
violation for each employee. In determining the amount of a civil penalty under this
subdivision, the appropriateness of the penalty to the size of the employer's business and
the gravity of the violation shall be considered. In addition, the commissioner may order
the employer to reimburse the department and the attorney general for all appropriate
litigation and hearing costs expended in preparation for and in conducting the contested
case proceeding, unless payment of costs would impose extreme financial hardship
on the employer. If the employer is able to establish extreme financial hardship, the
commissioner may order the employer to pay a percentage of the total costs that will not
cause extreme financial hardship. Costs include but are not limited to the following:

(1) costs of services rendered by the attorney general, including reasonable attorney
fees;

(2) costs of services of private attorneys if engaged by the department and reasonable
attorney fees;

(3) costs of services of administrative law judges, court reporters, and expert
witnesses; and

(4) the cost of transcripts.

Interest shall accrue on and be added to the unpaid balance of a commissioner's order from
the date the order is signed by the commissioner until it is paid, at an annual rate provided
in section 549.09, subdivision 1, paragraph (c). The commissioner may establish escrow
accounts for purposes of distributing damages.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 4.

Minnesota Statutes 2010, section 116J.035, is amended by adding a subdivision
to read:

Subd. 11.

Court actions; suits brought by private parties.

An employee may
bring a civil action seeking redress for a violation or violations of section 116L.976
directly to district court. An employer who violates the requirements under section
116L.976 is liable to the employee for the full amount of the wages, gratuities, and
overtime compensation, and for an additional equal amount as liquidated damages. In
addition, in an action under this subdivision the employee may seek treble damages and
other appropriate relief provided by subdivision 10 and otherwise provided by law.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 5.

Minnesota Statutes 2010, section 116J.035, is amended by adding a subdivision
to read:

Subd. 12.

District court jurisdiction.

Any action brought under subdivision 11
may be filed in the district court of the county where a violation of section 116L.976 is
alleged to have been committed, where the respondent resides or has a principal place
of business, or any other court of competent jurisdiction. The action may be brought by
one or more employees.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 6.

Minnesota Statutes 2010, section 116J.035, is amended by adding a subdivision
to read:

Subd. 13.

Attorney fees and costs.

In any action brought pursuant to subdivision
11, the court shall order an employer who is found to have committed a violation of
section 116L.976 to pay the employee's costs, disbursements, witness fees, and reasonable
attorney fees.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 7.

Minnesota Statutes 2010, section 116L.976, subdivision 1, is amended to read:

Subdivision 1.

Notice.

(a) The commissioner shall encourage those business
establishments An employer considering a decision to effect a plant closing, substantial
layoff, or relocation of operations located in this state to shall give 60 days' notice of
that decision as early as possible to the commissioner, the employees of the affected
establishment, any employee organization representing the employees, and the local
government unit in which the affected establishment is located. This notice shall be in
addition to any notice required under the Worker Adjustment and Retraining Notification
Act, United States Code, title 29, section 2101. All exemptions provided by United States
Code, title 29, sections 2101 to 2109, under the Worker Adjustment and Retraining
Notification Act shall be recognized and enforced under this provision.

(b) For purposes of this section, "plant closing" means the announced or actual
permanent or temporary shutdown of a single site of employment, or one or more facilities
or operating units within a single site of employment, if the shutdown results in an
employment loss at the single site of employment during any 30-day period for 50 or more
employees excluding employees who work less than 20 hours per week.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 8.

Minnesota Statutes 2010, section 116L.976, is amended by adding a subdivision
to read:

Subd. 3.

Penalties for noncompliance.

In addition to other fines and penalties
provided by law, an aggrieved person may bring a civil action against an employer who:

(1) violates the provisions of this section;

(2) violates federal requirements under the Worker Adjustment and Retraining
Notification Act, United States Code, title 29, sections 2101 to 2109; and

(3) intentionally denies payment of back pay and benefits for the period of violation,
up to 60 days as required under the Worker Adjustment Retraining Notification Act.

A plaintiff prevailing in an action under this subdivision is entitled to treble damages,
along with an award of costs, disbursements, and reasonable attorney fees.

EFFECTIVE DATE.

This section is effective August 1, 2012, and applies to crimes
committed and causes of action arising on or after that date.

ARTICLE 3

HEALTHY FAMILIES, HEALTHY WORKPLACES

Section 1.

[181.9395] SICK LEAVE.

Subdivision 1.

Citation; Healthy Families, Healthy Workplaces Act.

This section
may be cited as the "Healthy Families, Healthy Workplaces Act."

Subd. 2.

Definitions.

(a) For purposes of this section, the following definitions
apply.

(b) "Child" means biological child, adopted or foster child, stepchild or legal ward,
or a child to whom the employee stands in loco parentis who is under the age of 18 years
or who is 18 years of age or older but incapable of self care or earning a living due to a
physical or mental disability or incapacity.

(c) "Commissioner" means the commissioner of labor and industry or an authorized
designee or representative.

(d) "Department" means the Department of Labor and Industry.

(e) "Domestic abuse" is as defined in the Domestic Abuse Act, section 518B.01,
subdivision 2, paragraph (a), and includes a threat of such acts committed against
an individual, regardless of whether these acts or threats have been reported to law
enforcement officers.

(f) "Employ" has the meaning given in section 177.23, subdivision 5.

(g) "Employee" has the meaning given in section 177.23, subdivision 7, and
includes recipients of public benefits who are engaged in work activity as a condition of
receiving public assistance.

(h) "Employer" has the meaning given in section 177.23, subdivision 6.

(i) "Extended family member" means any other individual related by blood or affinity
whose close association with the employee is the equivalent of a family relationship.

(j) "Grandparent" means a parent of a parent.

(k) "Paid sick leave" means leave that is compensated at the same hourly rate as the
employee earns from employment and is provided by an employer to an employee for
the purposes described in subdivision 4.

(l) "Parent" means a biological parent, foster parent, stepparent or adoptive parent,
or legal guardian of an employee or an employee's spouse, or a person who stood in loco
parentis when the employee was a minor child.

(m) "Retaliatory personnel action" means the discharge, suspension, or demotion
by an employer of an employee or any other adverse employment action taken by an
employer against an employee in the terms and conditions of employment.

(n) "Sexual assault" includes criminal sexual conduct in the first, second, third,
fourth, and fifth degrees as defined in sections 609.342 to 609.3451 and includes a threat
of such acts committed against an individual, regardless of whether these acts or threats
have been reported to law enforcement officers.

(o) "Spouse" means a person to whom the employee is legally married under the
laws of Minnesota.

(p) "Stalking" means acts criminalized under section 609.749 and includes a threat
of such acts committed against an individual, regardless of whether these acts or threats
have been reported to law enforcement officers.

Subd. 3.

Accrual of paid sick leave.

(a) An employee who works at least 56 hours
in the state has the right to paid sick leave as provided in this section.

(b) An employer that employs at least 15 but not more than 50 employees must
provide a minimum of one hour of paid sick leave for every 80 hours worked by an
employee, except that the employer is not required to provide more than 26 hours of paid
sick leave to an employee in a calendar year.

(c) An employer that employs more than 50 employees must provide a minimum of
one hour of paid sick leave for every 40 hours worked by an employee, except that the
employer is not required to provide more than 52 hours of paid sick leave to an employee
in a calendar year.

(d) An employee who is exempt from overtime requirements under United States
Code, title 29, section 213(a)(1) of the Federal Fair Labor Standards Act, is assumed
to work 40 hours in each work week for purposes of paid sick leave accrual under this
subdivision, unless the employee's normal work week is less than 40 hours, in which case
paid sick leave accrues based upon that normal work week.

(e) Paid sick leave must accrue in hour-unit or smaller increments.

(f) Paid sick leave must begin to accrue at the commencement of employment.

(g) An employee is entitled to use accrued paid sick leave beginning on the 90th
day following commencement of employment. After the 90th day of employment, an
employee may use sick leave as it is accrued.

(h) An employee may carry forward unused paid sick leave from one calendar
year to the next.

(i) An employer that employs at least 15 but not more than 50 employees may limit
the amount of paid sick leave an employee may use in each calendar year to 26 hours.

(j) An employer that employs more than 50 employees may limit the amount of paid
sick leave an employee may use in each calendar year to 52 hours.

(k) An employer complies with this section if it has a paid leave policy that makes
available an amount of paid leave that may be used for the same purposes and under the
same conditions as paid sick leave under this section.

(l) An employer may adopt or retain leave policies that are more generous to an
employee than the policies required under this section.

(m) When an employee separates from employment and is rehired within 12 months
of separation by the same employer, previously accrued paid sick leave that has not been
used must be reinstated. The employee is entitled to use accrued paid sick leave and to
accrue additional sick leave at the recommencement of employment.

(n) At its discretion, an employer may loan paid sick leave to an employee in
advance of accrual by the employee.

Subd. 4.

Use of paid sick leave.

(a) Subject to subdivision 3, an employer must
allow an employee to use accrued paid sick leave for:

(1) an employee's mental or physical illness, injury, or health condition; medical
diagnosis, care, or treatment of a mental or physical illness, injury, or health condition; or
preventive medical care;

(2) care of a spouse, child, parent, grandparent, or extended family member with a
mental or physical illness, injury, or health condition who needs medical diagnosis, care,
or treatment of a mental or physical illness, injury, or health condition, or who needs
preventive medical care; and

(3) any absence necessary due to domestic abuse, provided the leave is to:

(i) seek medical attention for the employee or employee's child, spouse, parent,
grandparent, or extended family member to recover from physical or psychological injury
or disability caused by domestic abuse or sexual assault;

(ii) obtain services from a victim services organization;

(iii) obtain psychological or other counseling;

(iv) seek relocation due to domestic abuse, sexual assault, or stalking; or

(v) take legal action, including preparing for or participating in any civil or criminal
legal proceeding related to or resulting from the domestic abuse or sexual assault.

(b) An employer may require reasonable notice of the need for paid sick leave. If
the need for the leave is foreseeable, an employer may require no more than seven days'
advance notice of the intention to take the leave. If the need is not foreseeable, an employer
may require an employee to give notice of the need for leave as soon as practicable.

(c) An employer may not require as a condition of providing paid sick leave under
this section that an employee search for or find a replacement worker to cover the hours
during which the employee is on paid sick leave.

Subd. 5.

Retaliation prohibited.

An employer shall not take retaliatory personnel
action or discriminate against an employee because the employee has requested paid
sick leave under this section, taken paid sick leave guaranteed by this section, or made a
complaint or filed an action to enforce a right to paid sick leave under this section.

Subd. 6.

Notice and posting.

(a) An employer must provide to each employee
notice of the following:

(1) an employee's entitlement to and amount of paid sick leave and the terms of its
use guaranteed under this section;

(2) that retaliation against an employee who requests or uses paid sick leave is
prohibited; and

(3) that each employee has the right to file a complaint or bring a civil action if an
employer denies sick leave as required by this section or retaliates against the employee
for requesting or taking paid sick leave.

(b) An employer may comply with this section by supplying each employee with a
notice in English and Spanish that contains the information required in paragraph (a).

(c) An employer may comply with this section by displaying a poster in a
conspicuous and accessible place in each establishment where an employee is employed
that contains in English and Spanish the information required under paragraph (a).

(d) The commissioner shall create and make available to employers for their use
in complying with this subdivision posters that contain the information required under
paragraph (a).

Subd. 7.

Confidentiality and nondisclosure.

If an employer possesses health
information or information pertaining to domestic abuse about an employee or employee's
child, parent, spouse, extended family member, or other individual described in subdivision
4, paragraph (a), clause (2), the information shall be treated as confidential and not
disclosed except to the affected employee or with the permission of the affected employee.

Subd. 8.

Encouragement of more generous leave policies.

(a) Nothing in this
section shall be construed to discourage or prohibit an employer from the adoption or
retention of a paid leave policy more generous than the one required by this section.

(b) Nothing in this section shall be construed as diminishing the obligation of an
employer to comply with any contract, collective bargaining agreement, employment
benefit plan, or other agreement providing more generous leave to an employee than
required by this section.

(c) Nothing in this section shall be construed as diminishing the rights of public
employees regarding paid sick leave or use of sick leave as provided in section 43A.1815.

Subd. 9.

Severability.

If any provision of this section or application thereof to any
person or circumstance is judged invalid, the invalidity shall not affect other provisions
or applications of this section which can be given effect without the invalid provision or
application, and to this end the provisions of this section are declared severable.

EFFECTIVE DATE.

This section is effective January 1, 2013.

ARTICLE 4

BUSINESS SUBSIDIES DISCLOSURE

Section 1.

Minnesota Statutes 2010, section 16C.08, subdivision 4, is amended to read:

Subd. 4.

Reports.

(a) The commissioner shall submit to the governor, the chairs and
ranking minority members of the house of representatives Ways and Means and senate
Finance Committees, and the Legislative Reference Library a yearly listing of all contracts
for professional or technical services executed. The report must identify the contractor,
contract amount, duration, and services to be provided. The commissioner shall also issue
yearly reports summarizing the contract review activities of the department by fiscal year.

(b) The fiscal year report must be submitted by September 1 of each year and must:

(1) be sorted by agency and by contractor;

(2) show the aggregate value of contracts issued by each agency and issued to each
contractor;

(3) distinguish between contracts that are being issued for the first time and contracts
that are being extended;

(4) state the termination date of each contract;

(5) identify services by commodity code, including topics such as contracts for
training, contracts for research and opinions, and contracts for computer systems; and

(6) identify which contracts were awarded without following the solicitation process
in this chapter because it was determined that there was only a single source for the
services.

(c) Within 30 days of final completion of a contract over $25,000 covered by this
subdivision, the head of the agency entering into the contract must submit a report to the
commissioner who must make the report publicly available online and submit a copy to
the Legislative Reference Library. The report must:

(1) summarize the purpose of the contract, including why it was necessary to enter
into a contract;

(2) state the amount spent on the contract;

(3) if the contract was awarded without following the solicitation process in this
chapter because it was determined that there was only a single source for the services,
explain why the agency determined there was only a single source for the services; and

(4) specify the extent to which work under the contract was performed in Minnesota,
was performed in the United States but outside Minnesota, or was performed outside the
United States; and

(5) include a written performance evaluation of the work done under the contract.
The evaluation must include an appraisal of the contractor's timeliness, quality, cost, and
overall performance in meeting the terms and objectives of the contract. Contractors may
request copies of evaluations prepared under this subdivision and may respond in writing.
Contractor responses must be maintained with the contract file.

Sec. 2.

[16C.175] RESPONSE TO DISCLOSE WHERE WORK WILL BE
PERFORMED.

A response from a vendor in regard to a solicitation for a contract for professional or
technical services or nonprofessional or nontechnical services must disclose the extent to
which the vendor anticipates that work under the contract will be performed in Minnesota,
in the United States but outside Minnesota, or outside the United States.

Sec. 3.

Minnesota Statutes 2010, section 116J.994, is amended by adding a subdivision
to read:

Subd. 4a.

Disclosure of where work is to be performed.

Any application for a
business subsidy must disclose the extent to which the applicant anticipates that jobs
created under the subsidy will be performed in Minnesota, in the United States but outside
Minnesota, or outside the United States.

Sec. 4.

Minnesota Statutes 2010, section 116J.994, subdivision 7, is amended to read:

Subd. 7.

Reports by recipients to grantors.

(a) A business subsidy grantor must
monitor the progress by the recipient in achieving agreement goals.

(b) A recipient must provide information regarding goals and results for two years
after the benefit date or until the goals are met, whichever is later. If the goals are not
met, the recipient must continue to provide information on the subsidy until the subsidy
is repaid. The information must be filed on forms developed by the commissioner in
cooperation with representatives of local government. Copies of the completed forms must
be sent to the local government agency that provided the subsidy or to the commissioner if
the grantor is a state agency. If the Iron Range Resources and Rehabilitation Board is the
grantor, the copies must be sent to the board. The report must include:

(1) the type, public purpose, and amount of subsidies and type of district, if the
subsidy is tax increment financing;

(2) the hourly wage of each job created with separate bands of wages;

(3) the sum of the hourly wages and cost of health insurance provided by the
employer with separate bands of wages;

(4) the date the job and wage goals will be reached;

(5) a statement of goals identified in the subsidy agreement and an update on
achievement of those goals;

(6) the location of the recipient prior to receiving the business subsidy;

(7) the number of employees who ceased to be employed by the recipient when the
recipient relocated to become eligible for the business subsidy;

(8) why the recipient did not complete the project outlined in the subsidy agreement
at their previous location, if the recipient was previously located at another site in
Minnesota;

(9) the name and address of the parent corporation of the recipient, if any;

(10) a list of all financial assistance by all grantors for the project; and

(11) the extent to which jobs created by the recipient under the subsidy were
performed in Minnesota, were performed in the United States but outside Minnesota, or
were performed outside the United States; and

(12) other information the commissioner may request.

A report must be filed no later than March 1 of each year for the previous year. The local
agency and the Iron Range Resources and Rehabilitation Board must forward copies of
the reports received by recipients to the commissioner by April 1.

(c) Financial assistance that is excluded from the definition of "business subsidy" by
section 116J.993, subdivision 3, clauses (4), (5), (8), and (16), is subject to the reporting
requirements of this subdivision, except that the report of the recipient must include
instead:

(1) the type, public purpose, and amount of the financial assistance, and type of
district if the assistance is tax increment financing;

(2) progress towards meeting goals stated in the assistance agreement and the public
purpose of the assistance;

(3) if the agreement includes job creation, the hourly wage of each job created with
separate bands of wages;

(4) if the agreement includes job creation, the sum of the hourly wages and cost of
health insurance provided by the employer with separate bands of wages;

(5) the location of the recipient prior to receiving the assistance; and

(6) other information the grantor requests.

(d) If the recipient does not submit its report, the local government agency must mail
the recipient a warning within one week of the required filing date. If, after 14 days of the
postmarked date of the warning, the recipient fails to provide a report, the recipient must
pay to the grantor a penalty of $100 for each subsequent day until the report is filed. The
maximum penalty shall not exceed $1,000.

Sec. 5.

Minnesota Statutes 2010, section 116J.994, subdivision 8, is amended to read:

Subd. 8.

Reports by grantors.

(a) Local government agencies of a local
government with a population of more than 2,500 and state government agencies,
regardless of whether or not they have awarded any business subsidies, must file a report
by April 1 of each year with the commissioner. Local government agencies of a local
government with a population of 2,500 or less are exempt from filing this report if they
have not awarded a business subsidy in the past five years. The report must include a list
of recipients that did not complete the recipient report required under subdivision 7 and a
list of recipients that have not met their job and wage goals within two years and the steps
being taken to bring them into compliance or to recoup the subsidy.

If the commissioner has not received the report by April 1 from an entity required
to report, the commissioner shall issue a warning to the government agency. If the
commissioner has still not received the report by June 1 of that same year from an entity
required to report, then that government agency may not award any business subsidies
until the report has been filed.

(b) The report required under paragraph (a) is also required for financial assistance
of $25,000 and greater that is excluded from the definition of "business subsidy" by
section 116J.993, subdivision 3, clause (1), and of $75,000 and greater that is excluded
from the definition of "business subsidy" by section 116J.993, subdivision 3, clause (21).
The report for the financial assistance under this paragraph must be completed within one
year of the granting of the financial assistance. The report required for financial assistance
under this paragraph must include:

(1) the name of the recipient, its organizational structure, its address and contact
information, and its industry sector;

(2) a description of the amount and use of the financial assistance and the total
project budget, including a list of all financial assistance by all grantors for the project and
the private sources of financial assistance;

(3) the public purpose of the financial assistance, the job goals associated with both
the financial assistance and the total project in which the financial assistance is included,
the hourly wage of each job created, and the cost of health insurance provided by the
employer, and the extent to which jobs were created in Minnesota, in the United States but
outside Minnesota, or outside the United States;

(4) the date the project will be completed;

(5) the name and address of the parent corporation of the recipient, if any; and

(6) any other information the commissioner may request.

(c) Within one year of completing a report under paragraph (b), the local government
agency must report to the commissioner on progress in achieving the purposes and goals
under paragraph (b), clause (3).

(d) The commissioner of employment and economic development must provide
information on reporting requirements to state and local government agencies.

Sec. 6. EFFECTIVE DATE.

This article is effective July 1, 2013.

ARTICLE 5

WORKPLACE COMMUNICATIONS

Section 1.

[181.987] WORKPLACE COMMUNICATIONS.

Subdivision 1.

Definitions.

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

(b) "Communication" means any printed or electronic document, letter, brochure,
flyer, advertisement, e-mail, text message, or similar means pertaining to union business
or labor organizing as provided under state or federal law.

(c) "Employee" means a person who performs services for hire in Minnesota for an
employer, but does not include independent contractors.

(d) "Employee organization" and "labor organization" have the meanings given them
in sections 179.01, subdivision 6, and 179A.03, subdivision 6.

(e) "Employer" means any person, business entity, or nonprofit organization having
one or more employees in Minnesota, and includes the state and any political subdivisions
of the state.

Subd. 2.

Prohibited practice.

An employer may not refuse to hire a job applicant
or discipline or discharge an employee because the applicant or employee has received
or responded to a communication from an employee organization or labor organization.
Nor shall an employer prohibit an employee from receiving communications from an
employee organization at the employee's work location, work mailbox, in an employee
break room or meal area, or on the employee's work computer. Reasonable rules
concerning the quantity of the communications, political or other inappropriate content of
the communications, attachments to electronic communications, and appropriate nonwork
times for review of these types of communications are permitted. An employer may
discipline or discharge an employee for violations of these rules in accordance with the
employer's personnel policies or union contract.

Subd. 3.

Remedy.

The remedy for a violation of this section is through any
applicable grievance procedure. Damages are limited to wages and benefits lost by the
individual because of the violation.

EFFECTIVE DATE.

This section is effective the day following final enactment.

ARTICLE 6

MINIMUM WAGE

Section 1.

Minnesota Statutes 2010, 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 $625,000 $750,000, adjusted annually for inflation,
(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 $625,000 $750,000, adjusted annually for inflation,
(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, beginning January
1, 2013, every large employer must pay each employee wages at a rate of at least $5.15
an hour beginning September 1, 1997, and at a an hourly rate of at least $6.15 an hour
beginning August 1, 2005 equal to the quotient of the amount equal to 35 percent of the
median household income for Minnesota as calculated annually by the United States
Census Bureau divided by 2,080, and at an hourly rate at least equal to the quotient of the
amount equal to 50 percent of the median household income for Minnesota as calculated
annually by the United States Census Bureau divided by 2,080 beginning January 1,
2014. Beginning January 1, 2013, every small employer must pay each employee at a
an hourly rate of at least $4.90 an hour beginning January 1, 1998, and at a rate of at
least $5.25 an hour beginning August 1, 2005 equal to 80 percent of the rate calculated
for large employers.

(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 $4.90
an hour. 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.

(d) For the purposes of this subdivision, "adjusted annually for inflation" means
that for the calendar year beginning January 1, 2014, the commissioner shall adjust the
amounts of annual gross volume of sales made or business done under paragraph (a),
clauses (1) and (2), by the percentage change in the Consumer Price Index-All Urban
Consumers as prepared by the United States Bureau of Labor Standards from the 12
months ending December 31, 2011, to the 12 months ending December 31, 2012, and in
each subsequent year, from the 12 months ending on December 31, 2011, to the 12 months
ending on December 31 of the year preceding the calendar year. No later than February 1
of each year, the commissioner shall announce the specific percentage that will be used to
adjust the amounts of gross volume of sales or business done.

EFFECTIVE DATE.

This section is effective January 1, 2013.