1.2relating to employment; regulating the minimum wage; amending Minnesota
1.3Statutes 2012, section 177.24, subdivision 1.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2012, section 177.24, subdivision 1, is amended to read:
1.6 Subdivision 1.
Amount. (a) For purposes of this subdivision, the terms defined in
1.7this paragraph have the meanings given them.
1.8(1) "Large employer" means an enterprise whose annual gross volume of sales
1.9made or business done is not less than $625,000 (exclusive of excise taxes at the retail
1.10level that are separately stated) and covered by the Minnesota Fair Labor Standards Act,
1.11sections
177.21 to
177.35.
1.12(2) "Small employer" means an enterprise whose annual gross volume of sales made
1.13or business done is less than $625,000 (exclusive of excise taxes at the retail level that
1.14are separately stated) and covered by the Minnesota Fair Labor Standards Act, sections
1.15177.21
to
177.35.
1.16(b) Except as otherwise provided in sections
177.21 to
177.35, every large employer
1.17must pay each employee wages at a rate of at least $5.15 an hour beginning September
1.181, 1997, and at a rate of at least $6.15 an hour beginning August 1, 2005. Every small
1.19employer must pay each employee at a rate of at least $4.90 an hour beginning January 1,
1.201998, and at a rate of at least $5.25 an hour beginning August 1, 2005:
1.21(1) every large employer must pay each employee wages at a rate of at least:
1.22(i) $9.57 per hour beginning August 1, 2013;
1.23(ii) $9.76 per hour beginning August 1, 2014;
1.24(iii) $9.95 per hour beginning August 1, 2015; and
2.1(iv) the rate established under paragraph (d) beginning January 1, 2016; and
2.2(2) every small employer must pay each employee at a rate of at least:
2.3(i) $7.45 per hour beginning August 1, 2013;
2.4(ii) $8.00 per hour beginning August 1, 2014;
2.5(iii) $8.49 per hour beginning August 1, 2015; and
2.6(iv) the rate established under paragraph (d) beginning January 1, 2016.
2.7(c) Notwithstanding paragraph (b), during the first 90 consecutive days of
2.8employment, an employer may pay an employee under the age of 20 years a wage of
$4.90
2.9an hour. No employer may take any action to displace any employee, including a partial
2.10displacement through a reduction in hours, wages, or employment benefits, in order to hire
2.11an employee at the wage authorized in this paragraph at least:
2.12(1) $6.96 per hour beginning August 1, 2013;
2.13(2) $7.48 per hour beginning August 1, 2014;
2.14(3) $7.93 per hour beginning August 1, 2015; and
2.15(4) the rate established under paragraph (d) beginning January 1, 2016.
2.16No employer may take any action to displace an employee, including a partial
2.17displacement through a reduction in hours, wages, or employment benefits, in order to
2.18hire an employee at the wage authorized in this paragraph.
2.19(d) No later than November 1 of each year, beginning in 2015, the commissioner
2.20shall determine the percentage increase in the rate of inflation, as measured by the
2.21Consumer Price Index for all urban consumers, United States city average, as determined
2.22by the United States Department of Labor, during the most recent 12-month period for
2.23which data is available. The minimum wage rates in paragraphs (b) and (c) are increased
2.24by the percentage calculated by the commissioner, rounded to the nearest cent. The new
2.25minimum wage rates determined under this paragraph take effect on the next January 1.
2.26EFFECTIVE DATE.This section is effective the day following final enactment.