SF 875

1st Unofficial Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

1.1A bill for an act

1.2relating to employment; increasing and indexing the minimum wage; eliminating
1.3the training wage; requiring notice to new employees; amending Minnesota
1.4Statutes 2006, section 177.24, subdivision 1, by adding a subdivision.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6    Section 1. Minnesota Statutes 2006, section 177.24, subdivision 1, is amended to read:
1.7    Subdivision 1. Amount. (a) For purposes of this subdivision, the terms defined in
1.8this paragraph have the meanings given them.
1.9(1) "Large employer" means an enterprise whose annual gross volume of sales
1.10made or business done is not less than $625,000 (exclusive of excise taxes at the retail
1.11level that are separately stated) and covered by the Minnesota Fair Labor Standards Act,
1.12sections 177.21 to 177.35.
1.13(2) "Small employer" means an enterprise whose annual gross volume of sales made
1.14or business done is less than $625,000 (exclusive of excise taxes at the retail level that
1.15are separately stated) and covered by the Minnesota Fair Labor Standards Act, sections
1.16177.21 to 177.35.
1.17(b) Except as otherwise provided in sections 177.21 to 177.35, every large employer
1.18must pay each employee wages at a rate of at least $5.15 an hour beginning September
1.191, 1997, and at a rate of at least $6.15 an hour beginning August 1, 2005 $6.90 an hour
1.20effective July 24, 2008, and at a rate of at least $7.90 an hour effective July 24, 2009.
1.21Every small employer must pay each employee at a rate of at least $4.90 an hour beginning
1.22January 1, 1998, and at a rate of at least $5.25 an hour beginning August 1, 2005 $5.75 an
1.23hour effective July 24, 2008, and at a rate of at least $6.75 an hour effective July 24, 2009.
2.1(c) Notwithstanding paragraph (b), during the first 90 consecutive days of
2.2employment, an employer may pay an employee under the age of 20 years a wage of $4.90
2.3an hour. No employer may take any action to displace any employee, including a partial
2.4displacement through a reduction in hours, wages, or employment benefits, in order to hire
2.5an employee at the wage authorized in this paragraph. No later than November 1 each
2.6year, beginning in 2009, the commissioner shall determine the percentage increase in the
2.7rate of inflation, as measured by the Consumer Price Index for all urban consumers, United
2.8States city average, as determined by the United States Department of Labor, during the
2.9most recent 12-month period for which data is available. The minimum wage rates in
2.10paragraph (b) are increased by the percentage calculated by the commissioner, rounded
2.11to the nearest cent. The new minimum wage rates determined under this paragraph take
2.12effect on the next January 1.
2.13EFFECTIVE DATE.This section is effective the day following final enactment.

2.14    Sec. 2. Minnesota Statutes 2006, section 177.24, is amended by adding a subdivision
2.15to read:
2.16    Subd. 6. Notice. An employer who pays a new employee the current state minimum
2.17wage under subdivision 1 must provide a written statement accompanying the first two
2.18paychecks of the employee or on the first two paydays of the employee if the employee is
2.19paid by electronic transfer. The written statement must be in at least 10-point font and
2.20must include the following information:
2.21(1) the applicable state or federal minimum wage rate required by law; and
2.22(2) contact information for the Department of Labor and Industry for the reporting
2.23of possible minimum wage violations.
2.24EFFECTIVE DATE.This section is effective July 24, 2008.