SF 1447

as introduced - 88th Legislature (2013 - 2014) Posted on 03/19/2013 09:19am

A bill for an act
relating to employment; modifying the minimum wage for certain employees
receiving gratuities; amending Minnesota Statutes 2012, section 177.24,
subdivision 1.

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

Section 1.

Minnesota Statutes 2012, 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 (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 (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, and at a rate of at least $6.15 an hour beginning August 1, 2005. Every small
employer must pay each employee at a 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.

(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.

new text begin (d) Notwithstanding paragraph (b) and subdivision 2, every employer must pay
an employee receiving gratuities at a rate equal to: (1) at least $7.25 per hour if the
employee earns sufficient gratuities during the pay period so that the sum of $7.25 per
hour and gratuities received averages at least $12 per hour for the pay period; or (2) at
least the greater of the wage rate under this section or United States Code, title 29, section
206(a)(1), if the employee does not earn sufficient gratuities during the pay period so that
the sum of $7.25 per hour and gratuities received averages at least $12 per hour for the
pay period. For the purposes of this section, an "employee receiving gratuities" means an
employee who customarily and regularly receives more than $30 per month in gratuities
and "gratuity" means a voluntary payment received by an employee from a customer, the
amount of which is determined by the customer. The amount of the gratuity must not be
dictated by employer policy or subject to negotiation with the employer.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following the effective date
of any increase in the state or federal minimum wage rate.
new text end