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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1990 

                        CHAPTER 418-H.F.No. 1839 
           An act relating to employment; raising the minimum 
          wage; amending Minnesota Statutes 1988, sections 
          177.23, subdivision 7; 177.24, subdivisions 1 and 2 
          and by adding a subdivision. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1988, section 177.23, 
subdivision 7, is amended to read: 
    Subd. 7.  "Employee" means any individual employed by an 
employer but does not include:  
    (1) two or fewer specified individuals employed at any 
given time in agriculture on a farming unit or operation who are 
paid a salary; 
    (2) any individual employed in agriculture on a farming 
unit or operation who is paid a salary greater than the 
individual would be paid if the individual worked 48 hours at 
the state minimum wage plus 17 hours at 1-1/2 times the state 
minimum wage per week; 
    (3) an individual under 18 who is employed in agriculture 
on a farm to perform services other than corn detasseling or 
hand field work when one or both of that minor hand field 
worker's parents or physical custodians are also hand field 
workers; 
    (4) for purposes of section 177.24, an individual under 18 
who is employed as a corn detasseler; 
    (5) any staff member employed on a seasonal basis by a an 
nonprofit organization for work in an organized children's 
resident or day camp operating under a permit issued under 
section 144.72; 
    (6) any individual employed in a bona fide executive, 
administrative, or professional capacity, or a salesperson who 
conducts no more than 20 percent of sales on the premises of the 
employer; 
     (7) any individual who renders service gratuitously for a 
nonprofit organization; 
     (8) any individual who serves as an elected official for a 
political subdivision or who serves on any governmental board, 
commission, committee or other similar body, or who renders 
service gratuitously for a political subdivision; 
     (9) any individual employed by a political subdivision to 
provide police or fire protection services or employed by an 
entity whose principal purpose is to provide police or fire 
protection services to a political subdivision; 
     (10) any individual employed by a political subdivision who 
is ineligible for membership in the public employees retirement 
association under section 353.01, subdivision 2b, clause (a), 
(b), (d), or (i); 
     (11) any driver employed by an employer engaged in the 
business of operating taxicabs; 
     (12) any individual engaged in babysitting as a sole 
practitioner; 
     (13) for the purpose of section 177.25, any individual 
employed on a seasonal basis in a carnival, circus, fair, or ski 
facility; 
     (14) any individual under 18 working less than 20 hours per 
workweek for a municipality as part of a recreational program; 
    (15) any individual employed by the state as a natural 
resource manager 1, 2, or 3 (conservation officer); 
    (16) any individual in a position for which the United 
States Department of Transportation has power to establish 
qualifications and maximum hours of service under United States 
Code, title 49, section 304; 
    (17) any individual employed as a seafarer.  The term 
"seafarer" means a master of a vessel or any person subject to 
the authority, direction, and control of the master who is 
exempt from federal overtime standards under United States Code, 
title 29, section 213(b)(6), including but not limited to 
pilots, sailors, engineers, radio operators, firefighters, 
security guards, pursers, surgeons, cooks, and stewards; 
    (18) any individual employed by a county in a single family 
residence owned by a county home school as authorized under 
section 260.094 if the residence is an extension facility of 
that county home school, and if the individual as part of the 
employment duties resides at the residence for the purpose of 
supervising children as defined by section 260.015, subdivision 
2; or 
    (19) nuns, monks, priests, lay brothers, lay sisters, 
ministers, deacons, and other members of religious orders who 
serve pursuant to their religious obligations in schools, 
hospitals, and other nonprofit institutions operated by the 
church or religious order. 
    Sec. 2.  Minnesota Statutes 1988, 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.  "Federal covered employers" means those 
employers covered by the Federal Fair Labor Standards Act of 
1938, as amended, (United States Code, title 29, chapter 201 et 
seq.).  "State covered employers" means those employers not 
covered by the Federal Fair Labor Standards Act of 1938, as 
amended, 
    (1) "Large employer" means an enterprise whose annual gross 
volume of sales made or business done is not less than $362,500 
(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 $362,500 
(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 federal covered employer large employer must pay 
each employee who is 18 years of age or older wages at a rate of 
at least $3.55 an hour beginning January 1, 1988, $3.85 an hour 
beginning January 1, 1989, and $3.95 an hour beginning January 
1, 1990.  Every state covered employer must pay each employee 
who is 18 years of age or older $3.50 an hour beginning January 
1, 1988, $3.65 an hour beginning January 1, 1989, and $3.80 an 
hour beginning January 1, 1990.  Every federal covered employer 
must pay each employee under 18 wages at a rate of at least 
$3.20 an hour beginning January 1, 1988, $3.47 an hour beginning 
January 1, 1989, $3.56 an hour beginning January 1, 1990.  Every 
state covered employer must pay each employee under 18 wages at 
a rate of at least $3.15 an hour beginning January 1, 1988, 
$3.29 an hour beginning January 1, 1989, and $3.42 an hour 
beginning January 1, 1990. 
    (c) Notwithstanding paragraph (b), the minimum hourly wage 
for federal or state covered employees who receive $35 or more 
in gratuities per month shall be $3.35 an hour for those 
employees who are 18 years of age or older and $3.02 an hour for 
those employees who are under 18 years of age.  This paragraph 
applies only until January 1, 1989.  $4.25 an hour beginning 
January 1, 1991.  Every small employer must pay each employee at 
a rate of at least $4.00 an hour beginning January 1, 1991. 
    (c) A large employer must pay each employee at a rate of at 
least the minimum wage set by this section or federal law 
without the reduction for training wage or full-time student 
status allowed under federal law. 
    Sec. 3.  Minnesota Statutes 1988, section 177.24, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [PRESERVATION OF COVERAGE.] Any employer that 
was a federal covered employer on March 31, 1990 and that, 
because of the 1989 amendments to the federal fair labor 
standards act of 1938, as amended, (United States Code, title 
29, chapter 201 et seq.) ceases to be a federal covered employer 
on April 1, 1990 shall pay its employees not less than the 
minimum wage in effect for such employees on March 31, 1990.  
This subdivision applies only until January 1, 1991. 
    Sec. 4.  Minnesota Statutes 1988, section 177.24, 
subdivision 2, is amended to read:  
    Subd. 2.  [GRATUITIES NOT APPLIED.] No employer may 
directly or indirectly credit, apply, or utilize gratuities 
towards payment of the minimum wages, wage set by this section 
or federal law except as provided under section 177.28. 
    Sec.  5.  [EFFECTIVE DATE.] 
    Section 2, paragraphs (a) and (b) are effective January 1, 
1991.  Sections 1, 2, paragraph (c), 3 and 4 are effective the 
day following final enactment. 
    Presented to the governor April 5, 1990 
    Signed by the governor April 9, 1990, 10:21 a.m.