SF 1941

as introduced - 89th Legislature (2015 - 2016) Posted on 03/24/2015 09:04am

A bill for an act
relating to employment; modifying the minimum wage for certain employees
receiving gratuities; amending Minnesota Statutes 2014, section 177.24,
subdivision 1; repealing Minnesota Statutes 2014, section 177.24, subdivision 2.

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

Section 1.

Minnesota Statutes 2014, 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:

(i) $8.00 per hour beginning August 1, 2014;

(ii) $9.00 per hour beginning August 1, 2015;

(iii) $9.50 per hour beginning August 1, 2016; and

(iv) the rate established under paragraph (f) beginning January 1, 2018; and

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

(i) $6.50 per hour beginning August 1, 2014;

(ii) $7.25 per hour beginning August 1, 2015;

(iii) $7.75 per hour beginning August 1, 2016; and

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

(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 at least:

(1) $6.50 per hour beginning August 1, 2014;

(2) $7.25 per hour beginning August 1, 2015;

(3) $7.75 per hour beginning August 1, 2016; and

(4) the rate established under paragraph (f) beginning January 1, 2018.

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.

(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:

(1) $7.25 per hour beginning August 1, 2014;

(2) $7.50 per hour beginning August 1, 2015;

(3) $7.75 per hour beginning August 1, 2016; and

(4) the rate established under paragraph (f) beginning January 1, 2018.

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.

(e) Notwithstanding paragraph (b), a large employer must pay an employee under
the age of 18 at a rate of at least:

(1) $6.50 per hour beginning August 1, 2014;

(2) $7.25 per hour beginning August 1, 2015;

(3) $7.75 per hour beginning August 1, 2016; and

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

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.

new text begin (f) Notwithstanding paragraph (b), every employer must pay an employee receiving
gratuities a wage of at least:
new text end

new text begin (1) $8.00 per hour if the employee earns sufficient gratuities during the pay period
so that the sum of $8.00 per hour and gratuities received averages at least $12.00 per
hour for the pay period; or
new text end

new text begin (2) 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 $8.00 per hour and gratuities received averages at least $12.00 per
hour for the pay period.
new text end

new text begin 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. This paragraph
does not apply to employees covered under a valid collective bargaining agreement.
new text end

deleted text begin (f) deleted text end new text begin (g) new text end No later than August 31 of each year, beginning in 2017, 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), (d), and (e) 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) deleted text end new text begin (h) new text end (1) No later than September 30 of each year, beginning in 2017, the
commissioner may issue an order that an increase calculated under paragraph deleted text begin (f) deleted text end new text begin (g)
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 Web
site, 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 end new text begin (g) 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 end new text begin (g) new text end .

Sec. 2. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, section 177.24, subdivision 2, new text end new text begin is repealed.
new text end