1.1 	A bill for an act
1.2 	relating to economic development; providing a phased-in minimum wage to help 
1.3 	low-income workers meet basic needs;amending Minnesota Statutes 2020, section 
1.4 	177.24, subdivision 1.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2020, section 177.24, subdivision 1, is amended to read:
1.7 		Subdivision 1.Amount. (a) For purposes of this subdivision, the terms defined in this 
1.8 	paragraph have the meanings given them.
1.9 	(1) "Large employer" means an enterprise whose annual gross volume of sales made or 
1.10 	business done is not less than $500,000 (exclusive of excise taxes at the retail level that are 
1.11 	separately stated) and covered by the Minnesota Fair Labor Standards Act, sections 177.21
1.12 	to 177.35.
1.13 	(2) "Small employer" means an enterprise whose annual gross volume of sales made or 
1.14 	business done is less than $500,000 (exclusive of excise taxes at the retail level that are 
1.15 	separately stated) and covered by the Minnesota Fair Labor Standards Act, sections 177.21
1.16 	to 177.35.
1.17 	(b) Except as otherwise provided in sections 177.21 to 177.35:
1.18 	(1) every large employer must pay each employee wages at a rate of at least:
1.19 	(i) $8.00 per hour beginning August 1, 2014;
1.20 	(ii) $9.00 per hour beginning August 1, 2015;
1.21 	(iii) $9.50 per hour beginning August 1, 2016; and
2.1 	(i) $10.08 per hour beginning the day following final enactment;
2.2 	(ii) $11.50 per hour beginning August 1, 2021;
2.3 	(iii) $13 per hour beginning August 1, 2022;
2.4 	(iv) $14 per hour beginning August 1, 2023;
2.5 	(v) $15 per hour beginning August 1, 2024;
2.6 	(vi) $16 per hour beginning August 1, 2025;
2.7 	(vii) $17 per hour beginning August 1, 2026; and
2.8 	(iv) (viii) the rate established under paragraph (f) (e) beginning January 1, 2018 2027; 
2.9 	and
2.10 	(2) every small employer must pay each employee at a rate of at least:
2.11 	(i) $6.50 per hour beginning August 1, 2014;
2.12 	(ii) $7.25 per hour beginning August 1, 2015;
2.13 	(iii) $7.75 per hour beginning August 1, 2016; and
2.14 	(i) $8.21 per hour beginning the day following final enactment;
2.15 	(ii) $9.50 per hour beginning August 1, 2021;
2.16 	(iii) $11 per hour beginning August 1, 2022;
2.17 	(iv) $12 per hour beginning August 1, 2023;
2.18 	(v) $13 per hour beginning August 1, 2024;
2.19 	(vi) $14 per hour beginning August 1, 2025;
2.20 	(vii) $15 per hour beginning August 1, 2026; and
2.21 	(iv) (viii) the rate established under paragraph (f) (e) beginning January 1, 2018 2027.
2.22 	(c) Notwithstanding paragraph (b), during the first 90 consecutive days of employment, 
2.23 	an employer may pay an employee under the age of 20 years who is claimed as a dependent 
2.24 	on a federal income tax return a wage of at least:
2.25 	(1) $6.50 per hour beginning August 1, 2014;
2.26 	(2) $7.25 per hour beginning August 1, 2015;
2.27 	(3) $7.75 per hour beginning August 1, 2016; and
2.28 	(1) $8.21 per hour beginning the day following final enactment;
3.1 	(2) $9.50 per hour beginning August 1, 2021;
3.2 	(3) $11 per hour beginning August 1, 2022;
3.3 	(4) $12 per hour beginning August 1, 2023;
3.4 	(5) $13 per hour beginning August 1, 2024;
3.5 	(6) $14 per hour beginning August 1, 2025;
3.6 	(7) $15 per hour beginning August 1, 2026; and
3.7 	(4) (8) the rate established under paragraph (f) (e) beginning January 1, 2018 2027.
3.8 	No employer may take any action to displace an employee, including a partial displacement 
3.9 	through a reduction in hours, wages, or employment benefits, in order to hire an employee 
3.10 	at the wage authorized in this paragraph.
3.11 	(d) Notwithstanding paragraph (b), an employer that is a "hotel or motel," "lodging 
3.12 	establishment," or "resort" as defined in Minnesota Statutes 2012, section 157.15, 
3.13 	subdivisions 7, 8, and 11, must pay an employee working under a contract with the employer 
3.14 	that includes the provision by the employer of a food or lodging benefit, if the employee is 
3.15 	working under authority of a summer work travel exchange visitor program (J) nonimmigrant 
3.16 	visa, a wage of at least:
3.17 	(1) $7.25 per hour beginning August 1, 2014;
3.18 	(2) $7.50 per hour beginning August 1, 2015;
3.19 	(3) $7.75 per hour beginning August 1, 2016; and
3.20 	(4) the rate established under paragraph (f) beginning January 1, 2018.
3.21 	No employer may take any action to displace an employee, including a partial displacement 
3.22 	through a reduction in hours, wages, or employment benefits, in order to hire an employee 
3.23 	at the wage authorized in this paragraph.
3.24 	(e) (d) Notwithstanding paragraph (b), a large employer must pay an employee under 
3.25 	the age of 18 who is claimed as a dependent on a federal income tax return at a rate of at 
3.26 	least:
3.27 	(1) $6.50 per hour beginning August 1, 2014;
3.28 	(2) $7.25 per hour beginning August 1, 2015;
3.29 	(3) $7.75 per hour beginning August 1, 2016; and
3.30 	(1) $8.21 per hour beginning the day following final enactment;
4.1 	(2) $9.50 per hour beginning August 1, 2021;
4.2 	(3) $11 per hour beginning August 1, 2022;
4.3 	(4) $12 per hour beginning August 1, 2023;
4.4 	(5) $13 per hour beginning August 1, 2024;
4.5 	(6) $14 per hour beginning August 1, 2025;
4.6 	(7) $15 per hour beginning August 1, 2026; and
4.7 	(4) (8) the rate established under paragraph (f) (e) beginning January 1, 2018 2027.
4.8 	No employer may take any action to displace an employee, including a partial displacement 
4.9 	through a reduction in hours, wages, or employment benefits, in order to hire an employee 
4.10 	at the wage authorized in this paragraph.
4.11 	(f) (e) No later than August 31 of each year, beginning in 2017 2027, the commissioner 
4.12 	shall determine the percentage increase in the rate of inflation, as measured by the implicit 
4.13 	price deflator, national data for personal consumption expenditures as determined by the 
4.14 	United States Department of Commerce, Bureau of Economic Analysis during the 12-month 
4.15 	period immediately preceding that August or, if that data is unavailable, during the most 
4.16 	recent 12-month period for which data is available. The minimum wage rates in paragraphs 
4.17 	(b), (c), and (d), and (e) are increased by the lesser of: (1) 2.5 percent, rounded to the nearest 
4.18 	cent; or (2) the percentage calculated by the commissioner, rounded to the nearest cent. A 
4.19 	minimum wage rate shall not be reduced under this paragraph. The new minimum wage 
4.20 	rates determined under this paragraph take effect on the next January 1.
4.21 	(g)(1) No later than September 30 of each year, beginning in 2017, the commissioner 
4.22 	may issue an order that an increase calculated under paragraph (f) not take effect. The 
4.23 	commissioner may issue the order only if the commissioner, after consultation with the 
4.24 	commissioner of management and budget, finds that leading economic indicators, including 
4.25 	but not limited to projections of gross domestic product calculated by the United States 
4.26 	Department of Commerce, Bureau of Economic Analysis; the Consumer Confidence Index 
4.27 	issued by the Conference Board; and seasonally adjusted Minnesota unemployment rates, 
4.28 	indicate the potential for a substantial downturn in the state's economy. Prior to issuing an 
4.29 	order, the commissioner shall also calculate and consider the ratio of the rate of the calculated 
4.30 	change in the minimum wage rate to the rate of change in state median income over the 
4.31 	same time period used to calculate the change in wage rate. Prior to issuing the order, the 
4.32 	commissioner shall hold a public hearing, notice of which must be published in the State 
4.33 	Register, on the department's website, in newspapers of general circulation, and by other 
5.1 	means likely to inform interested persons of the hearing, at least ten days prior to the hearing. 
5.2 	The commissioner must allow interested persons to submit written comments to the 
5.3 	commissioner before the public hearing and for 20 days after the public hearing.
5.4 	(2) The commissioner may in a year subsequent to issuing an order under clause (1), 
5.5 	make a supplemental increase in the minimum wage rate in addition to the increase for a 
5.6 	year calculated under paragraph (f). The supplemental increase may be in an amount up to 
5.7 	the full amount of the increase not put into effect because of the order. If the supplemental 
5.8 	increase is not the full amount, the commissioner may make a supplemental increase of the 
5.9 	difference, or any part of a difference, in a subsequent year until the full amount of the 
5.10 	increase ordered not to take effect has been included in a supplemental increase. In making 
5.11 	a determination to award a supplemental increase under this clause, the commissioner shall 
5.12 	use the same considerations and use the same process as for an order under clause (1). A 
5.13 	supplemental wage increase is not subject to and shall not be considered in determining 
5.14 	whether a wage rate increase exceeds the limits for annual wage rate increases allowed 
5.15 	under paragraph (f).

5.16 	EFFECTIVE DATE. This section is effective the day following final enactment.