SF 2126

as introduced - 88th Legislature (2013 - 2014) Posted on 03/04/2014 08:54am

A bill for an act
relating to employment; regulating payment of the minimum wage and overtime
compensation; requiring a report; amending Minnesota Statutes 2012, sections
177.24, subdivision 1; 177.25, by adding a subdivision.

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 deleted text begin $5.15 an hour beginning September 1,
1997, and at a rate of at least $6.15 deleted text end new text begin $7.25 new text end an hour beginning August 1, deleted text begin 2005 deleted text end new text begin 2014 new text end . 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), a large employer must, beginning August 1,
2014, except if eligible to pay the wage under paragraph (c), pay each employee under the
age of 18 wages at a rate of at least $7.25 an hour.
new text end

new text begin (e) Notwithstanding paragraph (b) and subdivision 2, every employer must pay
an employee receiving gratuities at a rate equal to: (1) at least $7.25 an hour if the
employee earns sufficient gratuities during the pay period so that the sum of $7.25 an hour
and gratuities received averages at least $12 an 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 an hour and gratuities received averages at least $12 an 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 August 1, 2014.
new text end

Sec. 2.

Minnesota Statutes 2012, section 177.25, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Agricultural employment. new text end

new text begin (a) Notwithstanding subdivision 1, hourly
individuals employed in agriculture are required to be compensated for employment in
excess of 48 hours per week at the same rate as provided in subdivision 1.
new text end

new text begin (b) For the purposes of this section, "agriculture" has the meaning given in
Minnesota Rules, part 5200.0260.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2014.
new text end

Sec. 3. new text begin REPORT ON MINIMUM WAGE INCREASE.
new text end

new text begin The commissioner of employment and economic development shall, by June 15,
2015, submit a report to the chairs and ranking minority members of the senate and
house of representatives committees with primary jurisdiction over minimum wage
policy. The report must contain a recommendation on the appropriate level of increase, if
any, in the state minimum wage. Any recommended increase must be based on written
findings contained in the report describing the effect of the increase on job creation, cost
of goods, and the state's economy. In preparing the report, the commissioner must consult
with representatives from groups who would be affected by a minimum wage increase,
including, without limitation, representatives of retailers, the hospitality industry, the
grocery industry, the restaurant industry, health care, manufacturers, agriculture, local
government, and consumers.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end