Minnesota Legislature
HF 2091
2nd Unofficial Engrossment - 88th Legislature (2013 - 2014) Posted on 04/09/2014 03:05pm
KEY: stricken = removed, old language.
underscored = added, new language.
1.2relating to employment; providing labor standards for private and public
1.3employees; regulating the minimum wage; regulating state employee use of
1.4donated vacation leave;amending Minnesota Statutes 2012, sections 43A.1815;
1.5177.24, subdivision 1.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 43A.1815, is amended to read:
1.843A.1815 VACATION DONATION TO SICK LEAVE ACCOUNT.
1.9 (a) In addition to donations under section43A.181 , a state employee may donate a
1.10total of up to 40 hours of accrued vacation leave each fiscal year to the sick leave account
1.11of one or more state employees. A state employee may not be paid for more than 80 hours
1.12in a payroll period during which the employee uses sick leave credited to the employee's
1.13account as a result of a transfer from another state employee's vacation account.
1.14(b) The recipient employee must receive donations, as available, for a life-threatening
1.15condition of the employee or spouse or dependent child that prevents the employee from
1.16working. A recipient may use program donations retroactively to when all forms of
1.17paid leave are exhausted if the employee has sufficient donations to cover the period of
1.18retroactivity. A recipient who receives program donations under this section may use up to
1.1980 hours of program donations after the death of a spouse or dependent child.
1.20(c) An applicant for benefits under this section who receives an unfavorable
1.21determination may select a designee to consult with the commissioner or commissioner's
1.22designee on the reasons for the determination.
2.1 (d) The commissioner shall establish procedures under section43A.04, subdivision
2.24 , for eligibility, duration of need based on individual cases, monitoring and evaluation of
2.3individual eligibility status, and other topics related to administration of this program.
2.4 Sec. 2. Minnesota Statutes 2012, section 177.24, subdivision 1, is amended to read:
2.5 Subdivision 1. Amount. (a) For purposes of this subdivision, the terms defined in
2.6this paragraph have the meanings given them.
2.7(1) "Large employer" means an enterprise whose annual gross volume of sales made
2.8or business done is not less than$625,000 $500,000 (exclusive of excise taxes at the
2.9retail level that are separately stated) and covered by the Minnesota Fair Labor Standards
2.10Act, sections177.21 to
177.35 .
2.11(2) "Small employer" means an enterprise whose annual gross volume of sales
2.12made or business done is less than$625,000 $500,000 (exclusive of excise taxes at the
2.13retail level that are separately stated) and covered by the Minnesota Fair Labor Standards
2.14Act, sections177.21 to
177.35 .
2.15(b) Except as otherwise provided in sections177.21 to
177.35 , every large employer
2.16must pay each employee wages at a rate of at least $5.15 an hour beginning September
2.171, 1997, and at a rate of at least $6.15 an hour beginning August 1, 2005. Every small
2.18employer must pay each employee at a rate of at least $4.90 an hour beginning January 1,
2.191998, and at a rate of at least $5.25 an hour beginning August 1, 2005:
2.20(1) every large employer must pay each employee wages at a rate of at least:
2.21(i) $8.00 per hour beginning August 1, 2014;
2.22(ii) $9.00 per hour beginning August 1, 2015;
2.23(iii) $9.50 per hour beginning August 1, 2016; and
2.24(iv) the rate established under paragraph (f) beginning January 1, 2018; and
2.25(2) every small employer must pay each employee at a rate of at least:
2.26(i) $6.50 per hour beginning August 1, 2014;
2.27(ii) $7.25 per hour beginning August 1, 2015;
2.28(iii) $7.75 per hour beginning August 1, 2016; and
2.29(iv) the rate established under paragraph (f) beginning January 1, 2018.
2.30(c) Notwithstanding paragraph (b), during the first 90 consecutive days of
2.31employment, an employer may pay an employee under the age of 20 years a wage of$4.90
2.32an hour. No employer may take any action to displace any employee, including a partial
2.33displacement through a reduction in hours, wages, or employment benefits, in order to hire
2.34an employee at the wage authorized in this paragraph at least:
2.35(1) $6.50 per hour beginning August 1, 2014;
3.1(2) $7.25 per hour beginning August 1, 2015;
3.2(3) $7.75 per hour beginning August 1, 2016; and
3.3(4) the rate established under paragraph (f) beginning January 1, 2018.
3.4No employer may take any action to displace an employee, including a partial
3.5displacement through a reduction in hours, wages, or employment benefits, in order to
3.6hire an employee at the wage authorized in this paragraph.
3.7(d) Notwithstanding paragraph (b), an employer that is a "hotel or motel," "lodging
3.8establishment," or "resort" as defined in Minnesota Statutes 2012, section 157.15,
3.9subdivisions 7, 8, and 11, must pay an employee working under a contract with the
3.10employer that includes the provision by the employer of a food or lodging benefit, if the
3.11employee is working under authority of a summer work travel exchange visitor program
3.12(J) nonimmigrant visa, a wage of at least:
3.13(1) $7.25 per hour beginning August 1, 2014;
3.14(2) $7.50 per hour beginning August 1, 2015;
3.15(3) $7.75 per hour beginning August 1, 2016; and
3.16(4) the rate established under paragraph (f) beginning January 1, 2018.
3.17No employer may take any action to displace an employee, including a partial
3.18displacement through a reduction in hours, wages, or employment benefits, in order to
3.19hire an employee at the wage authorized in this paragraph.
3.20(e) Notwithstanding paragraph (b), a large employer must pay an employee under
3.21the age of 18 at a rate of at least:
3.22(1) $6.50 per hour beginning August 1, 2014;
3.23(2) $7.25 per hour beginning August 1, 2015;
3.24(3) $7.75 per hour beginning August 1, 2016; and
3.25(4) the rate established under paragraph (f) beginning January 1, 2018.
3.26No employer may take any action to displace an employee, including a partial
3.27displacement through a reduction in hours, wages, or employment benefits, in order to
3.28hire an employee at the wage authorized in this paragraph.
3.29(f) No later than August 31 of each year, beginning in 2017, the commissioner shall
3.30determine the percentage increase in the rate of inflation, as measured by the implicit
3.31price deflator, national data for personal consumption expenditures as determined by
3.32the United States Department of Commerce, Bureau of Economic Analysis during the
3.3312-month period immediately preceding that August or, if that data is unavailable, during
3.34the most recent 12-month period for which data is available. The minimum wage rates in
3.35paragraphs (b), (c), (d), and (e) are increased by the lesser of: (1) 2.5 percent, rounded
4.1to the nearest cent; or (2) the percentage calculated by the commissioner, rounded to the
4.2nearest cent. A minimum wage rate shall not be reduced under this paragraph. The new
4.3minimum wage rates determined under this paragraph take effect on the next January 1.
4.4(g)(1) No later than September 30 of each year, beginning in 2017, the commissioner
4.5may issue an order that an increase calculated under paragraph (f) not take effect. The
4.6commissioner may issue the order only if the commissioner, after consultation with
4.7the commissioner of management and budget, finds that leading economic indicators,
4.8including but not limited to projections of gross domestic product calculated by the United
4.9States Department of Commerce, Bureau of Economic Analysis; the Consumer Confidence
4.10Index issued by the Conference Board; and seasonally adjusted Minnesota unemployment
4.11rates, indicate the potential for a substantial downturn in the state's economy. Prior to
4.12issuing an order, the commissioner shall also calculate and consider the ratio of the rate
4.13of the calculated change in the minimum wage rate to the rate of change in state median
4.14income over the same time period used to calculate the change in wage rate. Prior to issuing
4.15the order, the commissioner shall hold a public hearing, notice of which must be published
4.16in the state register, on the department's Web site, in newspapers of general circulation, and
4.17by other means likely to inform interested persons of the hearing, at least 10 days prior to
4.18the hearing. The commissioner must allow interested persons to submit written comments
4.19to the commissioner before the public hearing and for 20 days after the public hearing.
4.20(2) The commissioner may in a year subsequent to issuing an order under clause (1),
4.21make a supplemental increase in the minimum wage rate in addition to the increase for
4.22a year calculated under paragraph (f). The supplemental increase may be in an amount
4.23up to the full amount of the increase not put into effect because of the order. If the
4.24supplemental increase is not the full amount, the commissioner may make a supplemental
4.25increase of the difference, or any part of a difference, in a subsequent year until the full
4.26amount of the increase ordered not to take effect has been included in a supplemental
4.27increase. In making a determination to award a supplemental increase under this clause,
4.28the commissioner shall use the same considerations and use the same process as for an
4.29order under clause (1). A supplemental wage increase is not subject to and shall not be
4.30considered in determining whether a wage rate increase exceeds the limits for annual wage
4.31rate increases allowed under paragraph (f).
4.32EFFECTIVE DATE.This section is effective August 1, 2014.
4.33 Sec. 3. SEVERABILITY.
4.34If any provision of this act or its application to any person or circumstance is judged
4.35invalid, the invalidity shall not affect other provisions or applications of the act which can
5.1be given effect without the invalid provision or application, and to this end the provisions
5.2of this act are declared severable.
5.3EFFECTIVE DATE.This section is effective the day following final enactment.
1.3employees; regulating the minimum wage; regulating state employee use of
1.4donated vacation leave;amending Minnesota Statutes 2012, sections 43A.1815;
1.5177.24, subdivision 1.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 43A.1815, is amended to read:
1.843A.1815 VACATION DONATION TO SICK LEAVE ACCOUNT.
1.9 (a) In addition to donations under section
1.10total of up to 40 hours of accrued vacation leave each fiscal year to the sick leave account
1.11of one or more state employees. A state employee may not be paid for more than 80 hours
1.12in a payroll period during which the employee uses sick leave credited to the employee's
1.13account as a result of a transfer from another state employee's vacation account.
1.14(b) The recipient employee must receive donations, as available, for a life-threatening
1.15condition of the employee or spouse or dependent child that prevents the employee from
1.16working. A recipient may use program donations retroactively to when all forms of
1.17paid leave are exhausted if the employee has sufficient donations to cover the period of
1.18retroactivity. A recipient who receives program donations under this section may use up to
1.1980 hours of program donations after the death of a spouse or dependent child.
1.20(c) An applicant for benefits under this section who receives an unfavorable
1.21determination may select a designee to consult with the commissioner or commissioner's
1.22designee on the reasons for the determination.
2.1 (d) The commissioner shall establish procedures under section
2.24
2.3individual eligibility status, and other topics related to administration of this program.
2.4 Sec. 2. Minnesota Statutes 2012, section 177.24, subdivision 1, is amended to read:
2.5 Subdivision 1. Amount. (a) For purposes of this subdivision, the terms defined in
2.6this paragraph have the meanings given them.
2.7(1) "Large employer" means an enterprise whose annual gross volume of sales made
2.8or business done is not less than
2.9retail level that are separately stated) and covered by the Minnesota Fair Labor Standards
2.10Act, sections
2.11(2) "Small employer" means an enterprise whose annual gross volume of sales
2.12made or business done is less than
2.13retail level that are separately stated) and covered by the Minnesota Fair Labor Standards
2.14Act, sections
2.15(b) Except as otherwise provided in sections
2.16
2.17
2.18
2.19
2.20(1) every large employer must pay each employee wages at a rate of at least:
2.21(i) $8.00 per hour beginning August 1, 2014;
2.22(ii) $9.00 per hour beginning August 1, 2015;
2.23(iii) $9.50 per hour beginning August 1, 2016; and
2.24(iv) the rate established under paragraph (f) beginning January 1, 2018; and
2.25(2) every small employer must pay each employee at a rate of at least:
2.26(i) $6.50 per hour beginning August 1, 2014;
2.27(ii) $7.25 per hour beginning August 1, 2015;
2.28(iii) $7.75 per hour beginning August 1, 2016; and
2.29(iv) the rate established under paragraph (f) beginning January 1, 2018.
2.30(c) Notwithstanding paragraph (b), during the first 90 consecutive days of
2.31employment, an employer may pay an employee under the age of 20 years a wage of
2.32
2.33
2.34
2.35(1) $6.50 per hour beginning August 1, 2014;
3.1(2) $7.25 per hour beginning August 1, 2015;
3.2(3) $7.75 per hour beginning August 1, 2016; and
3.3(4) the rate established under paragraph (f) beginning January 1, 2018.
3.4No employer may take any action to displace an employee, including a partial
3.5displacement through a reduction in hours, wages, or employment benefits, in order to
3.6hire an employee at the wage authorized in this paragraph.
3.7(d) Notwithstanding paragraph (b), an employer that is a "hotel or motel," "lodging
3.8establishment," or "resort" as defined in Minnesota Statutes 2012, section 157.15,
3.9subdivisions 7, 8, and 11, must pay an employee working under a contract with the
3.10employer that includes the provision by the employer of a food or lodging benefit, if the
3.11employee is working under authority of a summer work travel exchange visitor program
3.12(J) nonimmigrant visa, a wage of at least:
3.13(1) $7.25 per hour beginning August 1, 2014;
3.14(2) $7.50 per hour beginning August 1, 2015;
3.15(3) $7.75 per hour beginning August 1, 2016; and
3.16(4) the rate established under paragraph (f) beginning January 1, 2018.
3.17No employer may take any action to displace an employee, including a partial
3.18displacement through a reduction in hours, wages, or employment benefits, in order to
3.19hire an employee at the wage authorized in this paragraph.
3.20(e) Notwithstanding paragraph (b), a large employer must pay an employee under
3.21the age of 18 at a rate of at least:
3.22(1) $6.50 per hour beginning August 1, 2014;
3.23(2) $7.25 per hour beginning August 1, 2015;
3.24(3) $7.75 per hour beginning August 1, 2016; and
3.25(4) the rate established under paragraph (f) beginning January 1, 2018.
3.26No employer may take any action to displace an employee, including a partial
3.27displacement through a reduction in hours, wages, or employment benefits, in order to
3.28hire an employee at the wage authorized in this paragraph.
3.29(f) No later than August 31 of each year, beginning in 2017, the commissioner shall
3.30determine the percentage increase in the rate of inflation, as measured by the implicit
3.31price deflator, national data for personal consumption expenditures as determined by
3.32the United States Department of Commerce, Bureau of Economic Analysis during the
3.3312-month period immediately preceding that August or, if that data is unavailable, during
3.34the most recent 12-month period for which data is available. The minimum wage rates in
3.35paragraphs (b), (c), (d), and (e) are increased by the lesser of: (1) 2.5 percent, rounded
4.1to the nearest cent; or (2) the percentage calculated by the commissioner, rounded to the
4.2nearest cent. A minimum wage rate shall not be reduced under this paragraph. The new
4.3minimum wage rates determined under this paragraph take effect on the next January 1.
4.4(g)(1) No later than September 30 of each year, beginning in 2017, the commissioner
4.5may issue an order that an increase calculated under paragraph (f) not take effect. The
4.6commissioner may issue the order only if the commissioner, after consultation with
4.7the commissioner of management and budget, finds that leading economic indicators,
4.8including but not limited to projections of gross domestic product calculated by the United
4.9States Department of Commerce, Bureau of Economic Analysis; the Consumer Confidence
4.10Index issued by the Conference Board; and seasonally adjusted Minnesota unemployment
4.11rates, indicate the potential for a substantial downturn in the state's economy. Prior to
4.12issuing an order, the commissioner shall also calculate and consider the ratio of the rate
4.13of the calculated change in the minimum wage rate to the rate of change in state median
4.14income over the same time period used to calculate the change in wage rate. Prior to issuing
4.15the order, the commissioner shall hold a public hearing, notice of which must be published
4.16in the state register, on the department's Web site, in newspapers of general circulation, and
4.17by other means likely to inform interested persons of the hearing, at least 10 days prior to
4.18the hearing. The commissioner must allow interested persons to submit written comments
4.19to the commissioner before the public hearing and for 20 days after the public hearing.
4.20(2) The commissioner may in a year subsequent to issuing an order under clause (1),
4.21make a supplemental increase in the minimum wage rate in addition to the increase for
4.22a year calculated under paragraph (f). The supplemental increase may be in an amount
4.23up to the full amount of the increase not put into effect because of the order. If the
4.24supplemental increase is not the full amount, the commissioner may make a supplemental
4.25increase of the difference, or any part of a difference, in a subsequent year until the full
4.26amount of the increase ordered not to take effect has been included in a supplemental
4.27increase. In making a determination to award a supplemental increase under this clause,
4.28the commissioner shall use the same considerations and use the same process as for an
4.29order under clause (1). A supplemental wage increase is not subject to and shall not be
4.30considered in determining whether a wage rate increase exceeds the limits for annual wage
4.31rate increases allowed under paragraph (f).
4.32EFFECTIVE DATE.This section is effective August 1, 2014.
4.33 Sec. 3. SEVERABILITY.
4.34If any provision of this act or its application to any person or circumstance is judged
4.35invalid, the invalidity shall not affect other provisions or applications of the act which can
5.1be given effect without the invalid provision or application, and to this end the provisions
5.2of this act are declared severable.
5.3EFFECTIVE DATE.This section is effective the day following final enactment.