2007 Minnesota Statutes

177.24 PAYMENT OF MINIMUM WAGES.
    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 $625,000 (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 $625,000 (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, every large employer must
pay each employee wages at a rate of at least $5.15 an hour beginning September 1, 1997, and
at a rate of at least $6.15 an hour beginning August 1, 2005. Every small employer must pay
each employee at a rate of at least $4.90 an hour beginning January 1, 1998, and at a rate of at
least $5.25 an hour beginning August 1, 2005.
(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 $4.90 an hour. No
employer may take any action to displace any 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.
    Subd. 1a.[Expired]
    Subd. 2. Gratuities not applied. No employer may directly or indirectly credit, apply, or
utilize gratuities towards payment of the minimum wage set by this section or federal law.
    Subd. 3. Sharing of gratuities. For purposes of this chapter, any gratuity received by
an employee or deposited in or about a place of business for personal services rendered by
an employee is the sole property of the employee. No employer may require an employee to
contribute or share a gratuity received by the employee with the employer or other employees or
to contribute any or all of the gratuity to a fund or pool operated for the benefit of the employer
or employees. This section does not prevent an employee from voluntarily and individually
sharing gratuities with other employees. The agreement to share gratuities must be made by the
employees free of any employer participation. The commissioner may require the employer to
pay restitution in the amount of the gratuities diverted. If the records maintained by the employer
do not provide sufficient information to determine the exact amount of gratuities diverted, the
commissioner may make a determination of gratuities diverted based on available evidence
and mediate a settlement with the employer.
    Subd. 4. Unreimbursed expenses deducted. Deductions, direct or indirect, from wages or
gratuities not authorized by this subdivision may only be taken as authorized by sections 177.28,
subdivision 3 , 181.06, and 181.79. Deductions, direct or indirect, for up to the full cost of the
uniform or equipment as listed below, may not exceed $50. No deductions, direct or indirect,
may be made for the items listed below which when subtracted from wages would reduce the
wages below the minimum wage:
(a) purchased or rented uniforms or specially designed clothing required by the employer, by
the nature of the employment, or by statute as a condition of employment, which is not generally
appropriate for use except in that employment;
(b) purchased or rented equipment used in employment, except tools of a trade, a motor
vehicle, or any other equipment which may be used outside the employment;
(c) consumable supplies required in the course of that employment;
(d) travel expenses in the course of employment except those incurred in traveling to and
from the employee's residence and place of employment.
    Subd. 5. Expense reimbursement. An employer, at the termination of an employee's
employment, must reimburse the full amount deducted, directly or indirectly, for any of the items
listed in subdivision 4. When reimbursement is made, the employer may require the employee to
surrender any existing items for which the employer provided reimbursement.
History: 1973 c 721 s 4; 1976 c 165 s 1; 1977 c 183 s 1; 1977 c 369 s 2; 1979 c 281 s 2;
1981 c 87 s 1,2; 1984 c 628 art 4 s 1; 1Sp1985 c 13 s 276-278; 1986 c 444; 1987 c 324 s 1; 1987
c 384 art 2 s 45; 1990 c 418 s 2-4; 1996 c 305 art 1 s 49,50; 2Sp1997 c 1 s 1; 2005 c 44 s 1