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Minnesota Legislature

Office of the Revisor of Statutes

SF 626

as introduced - 91st Legislature (2019 - 2020) Posted on 01/28/2019 04:34pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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5.11

A bill for an act
relating to economic development; providing a phased-in minimum wage to help
low-income workers meet basic needs; amending Minnesota Statutes 2018, section
177.24, subdivision 1.

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

Section 1.

Minnesota Statutes 2018, 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 $500,000 (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 $500,000 (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:

(1) every large employer must pay each employee wages at a rate of at least:

deleted text begin (i) $8.00 per hour beginning August 1, 2014;
deleted text end

deleted text begin (ii) $9.00 per hour beginning August 1, 2015;
deleted text end

deleted text begin (iii) $9.50 per hour beginning August 1, 2016; and
deleted text end

new text begin (i) $9.86 per hour beginning the day following final enactment;
new text end

new text begin (ii) $11.50 per hour beginning August 1, 2019;
new text end

new text begin (iii) $13 per hour beginning August 1, 2020;
new text end

new text begin (iv) $14 per hour beginning August 1, 2021;
new text end

new text begin (v) $15 per hour beginning August 1, 2022;
new text end

new text begin (vi) $16 per hour beginning August 1, 2023; and
new text end

deleted text begin (iv)deleted text endnew text begin (vii)new text end the rate established under paragraph deleted text begin(f)deleted text endnew text begin (e)new text end beginning January 1, deleted text begin2018deleted text endnew text begin 2024new text end;
and

(2) every small employer must pay each employee at a rate of at least:

deleted text begin (i) $6.50 per hour beginning August 1, 2014;
deleted text end

deleted text begin (ii) $7.25 per hour beginning August 1, 2015;
deleted text end

deleted text begin (iii) $7.75 per hour beginning August 1, 2016; and
deleted text end

new text begin (i) $8.04 per hour beginning the day following final enactment;
new text end

new text begin (ii) $9.50 per hour beginning August 1, 2019;
new text end

new text begin (iii) $11 per hour beginning August 1, 2020;
new text end

new text begin (iv) $12 per hour beginning August 1, 2021;
new text end

new text begin (v) $13 per hour beginning August 1, 2022;
new text end

new text begin (vi) $14 per hour beginning August 1, 2023; and
new text end

deleted text begin (iv)deleted text endnew text begin (vii)new text end the rate established under paragraph deleted text begin(f)deleted text endnew text begin (e)new text end beginning January 1, deleted text begin2018deleted text endnew text begin 2024new text end.

(c) Notwithstanding paragraph (b), during the first 90 consecutive days of employment,
an employer may pay an employee under the age of 20 yearsnew text begin who is claimed as a dependent
on a federal income tax return
new text end a wage of at least:

deleted text begin (1) $6.50 per hour beginning August 1, 2014;
deleted text end

deleted text begin (2) $7.25 per hour beginning August 1, 2015;
deleted text end

deleted text begin (3) $7.75 per hour beginning August 1, 2016; and
deleted text end

new text begin (1) $8.04 per hour beginning the day following final enactment;
new text end

new text begin (2) $9.50 per hour beginning August 1, 2019;
new text end

new text begin (3) $11 per hour beginning August 1, 2020;
new text end

new text begin (4) $12 per hour beginning August 1, 2021;
new text end

new text begin (5) $13 per hour beginning August 1, 2022;
new text end

new text begin (6) $14 per hour beginning August 1, 2023; and
new text end

deleted text begin (4)deleted text endnew text begin (7)new text end the rate established under paragraph deleted text begin(f)deleted text endnew text begin (e)new text end beginning January 1, deleted text begin2018deleted text endnew text begin 2024new text end.

No employer may take any action to displace an 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.

deleted text begin (d) Notwithstanding paragraph (b), an employer that is a "hotel or motel," "lodging
establishment," or "resort" as defined in Minnesota Statutes 2012, section 157.15,
subdivisions 7, 8, and 11, must pay an employee working under a contract with the employer
that includes the provision by the employer of a food or lodging benefit, if the employee is
working under authority of a summer work travel exchange visitor program (J) nonimmigrant
visa, a wage of at least:
deleted text end

deleted text begin (1) $7.25 per hour beginning August 1, 2014;
deleted text end

deleted text begin (2) $7.50 per hour beginning August 1, 2015;
deleted text end

deleted text begin (3) $7.75 per hour beginning August 1, 2016; and
deleted text end

deleted text begin (4) the rate established under paragraph (f) beginning January 1, 2018.
deleted text end

deleted text begin No employer may take any action to displace an 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.
deleted text end

deleted text begin (e)deleted text endnew text begin (d)new text end Notwithstanding paragraph (b), a large employer must pay an employee under
the age of 18new text begin who is claimed as a dependent on a federal income tax returnnew text end at a rate of at
least:

deleted text begin (1) $6.50 per hour beginning August 1, 2014;
deleted text end

deleted text begin (2) $7.25 per hour beginning August 1, 2015;
deleted text end

deleted text begin (3) $7.75 per hour beginning August 1, 2016; and
deleted text end

new text begin (1) $8.04 per hour beginning the day following final enactment;
new text end

new text begin (2) $9.50 per hour beginning August 1, 2019;
new text end

new text begin (3) $11 per hour beginning August 1, 2020;
new text end

new text begin (4) $12 per hour beginning August 1, 2021;
new text end

new text begin (5) $13 per hour beginning August 1, 2022;
new text end

new text begin (6) $14 per hour beginning August 1, 2023; and
new text end

deleted text begin (4)deleted text endnew text begin (7)new text end the rate established under paragraph deleted text begin(f)deleted text endnew text begin (e)new text end beginning January 1, deleted text begin2018deleted text endnew text begin 2024new text end.

No employer may take any action to displace an 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.

deleted text begin (f)deleted text endnew text begin (e)new text end No later than August 31 of each year, beginning in deleted text begin2017deleted text endnew text begin 2023new text end, the commissioner
shall determine the percentage increase in the rate of inflation, as measured by the implicit
price deflator, national data for personal consumption expenditures as determined by the
United States Department of Commerce, Bureau of Economic Analysis during the 12-month
period immediately preceding that August or, if that data is unavailable, during the most
recent 12-month period for which data is available. The minimum wage rates in paragraphs
(b), (c),new text begin andnew text end (d)deleted text begin, and (e)deleted text end are increased by the lesser of: (1) 2.5 percent, rounded to the nearest
cent; or (2) the percentage calculated by the commissioner, rounded to the nearest cent. A
minimum wage rate shall not be reduced under this paragraph. The new minimum wage
rates determined under this paragraph take effect on the next January 1.

deleted text begin (g)(1)deleted text endnew text begin (f)(1)new text end No later than September 30 of each year, beginning in deleted text begin2017deleted text endnew text begin 2023new text end, the
commissioner may issue an order that an increase calculated under paragraph deleted text begin(f)deleted text endnew text begin (e)new text end not
take effect. The commissioner may issue the order only if the commissioner, after
consultation with the commissioner of management and budget, finds that leading economic
indicators, including but not limited to projections of gross domestic product calculated by
the United States Department of Commerce, Bureau of Economic Analysis; the Consumer
Confidence Index issued by the Conference Board; and seasonally adjusted Minnesota
unemployment rates, indicate the potential for a substantial downturn in the state's economy.
Prior to issuing an order, the commissioner shall also calculate and consider the ratio of the
rate of the calculated change in the minimum wage rate to the rate of change in state median
income over the same time period used to calculate the change in wage rate. Prior to issuing
the order, the commissioner shall hold a public hearing, notice of which must be published
in the State Register, on the department's website, in newspapers of general circulation, and
by other means likely to inform interested persons of the hearing, at least ten days prior to
the hearing. The commissioner must allow interested persons to submit written comments
to the commissioner before the public hearing and for 20 days after the public hearing.

(2) The commissioner may in a year subsequent to issuing an order under clause (1),
make a supplemental increase in the minimum wage rate in addition to the increase for a
year calculated under paragraph deleted text begin(f)deleted text endnew text begin (e)new text end. The supplemental increase may be in an amount up
to the full amount of the increase not put into effect because of the order. If the supplemental
increase is not the full amount, the commissioner may make a supplemental increase of the
difference, or any part of a difference, in a subsequent year until the full amount of the
increase ordered not to take effect has been included in a supplemental increase. In making
a determination to award a supplemental increase under this clause, the commissioner shall
use the same considerations and use the same process as for an order under clause (1). A
supplemental wage increase is not subject to and shall not be considered in determining
whether a wage rate increase exceeds the limits for annual wage rate increases allowed
under paragraph deleted text begin(f)deleted text endnew text begin (e)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