Bill Text: MN HF92 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: Minimum wage regulated, and overtime and parental leave provisions modified.
Spectrum: Partisan Bill (Democrat 24-0)
Status: (Engrossed - Dead) 2014-03-10 - Author added Kahn [HF92 Detail]
Download: Minnesota-2013-HF92-Engrossed.html
1.2relating to employment; regulating the minimum wage; modifying overtime and
1.3parental leave provisions;amending Minnesota Statutes 2012, sections 177.24,
1.4subdivision 1, by adding a subdivision; 177.25, subdivisions 1, 3, 5, by adding a
1.5subdivision; 181.941, subdivision 1; 181.943; repealing Minnesota Rules, part
1.65200.0080, subpart 7.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2012, section 177.24, subdivision 1, is amended to read:
1.9 Subdivision 1. Amount. (a) For purposes of this subdivision, the terms defined in
1.10this paragraph have the meanings given them.
1.11(1) "Large employer" means an enterprise whose annual gross volume of sales made
1.12or business done is not less than$625,000 $500,000 (exclusive of excise taxes at the
1.13retail level that are separately stated) and covered by the Minnesota Fair Labor Standards
1.14Act, sections177.21 to
177.35 .
1.15(2) "Small employer" means an enterprise whose annual gross volume of sales
1.16made or business done is less than$625,000 $500,000 (exclusive of excise taxes at the
1.17retail level that are separately stated) and covered by the Minnesota Fair Labor Standards
1.18Act, sections177.21 to
177.35 .
1.19(b) Except as otherwise provided in sections177.21 to
177.35 , every large employer
1.20must pay each employee wages at a rate of at least $5.15 an hour beginning September
1.211, 1997, and at a rate of at least $6.15 an hour beginning August 1, 2005. Every small
1.22employer must pay each employee at a rate of at least $4.90 an hour beginning January 1,
1.231998, and at a rate of at least $5.25 an hour beginning August 1, 2005:
1.24(1) every large employer must pay each employee wages at a rate of at least:
1.25(i) $8.00 per hour beginning August 1, 2013;
2.1(ii) $9.00 per hour beginning August 1, 2014;
2.2(iii) $9.50 per hour beginning August 1, 2015; and
2.3(iv) the rate established under paragraph (d) beginning January 1, 2016; and
2.4(2) every small employer must pay each employee at a rate of at least:
2.5(i) $7.00 per hour beginning August 1, 2013;
2.6(ii) $8.00 per hour beginning August 1, 2014;
2.7(iii) $8.50 per hour beginning August 1, 2015; and
2.8(iv) the rate established under paragraph (d) beginning January 1, 2016.
2.9(c) Notwithstanding paragraph (b), during the first 90 consecutive days of
2.10employment, an employer may pay an employee under the age of 20 years a wage of$4.90
2.11an hour. No employer may take any action to displace any employee, including a partial
2.12displacement through a reduction in hours, wages, or employment benefits, in order to hire
2.13an employee at the wage authorized in this paragraph at least:
2.14(1) $6.50 per hour beginning August 1, 2013;
2.15(2) $7.50 per hour beginning August 1, 2014;
2.16(3) $8.00 per hour beginning August 1, 2015; and
2.17(4) the rate established under paragraph (d) beginning January 1, 2016.
2.18No employer may take any action to displace an employee, including a partial
2.19displacement through a reduction in hours, wages, or employment benefits, in order to
2.20hire an employee at the wage authorized in this paragraph.
2.21(d) No later than November 1 of each year, beginning in 2015, the commissioner
2.22shall determine the percentage increase in the rate of inflation, as measured by the
2.23Consumer Price Index for all urban consumers, United States city average, as determined
2.24by the United States Department of Labor, during the most recent 12-month period for
2.25which data is available. The minimum wage rates in paragraphs (b) and (c) are increased
2.26by the lesser of: (1) 2.5 percent, rounded to the nearest cent; or (2) the percentage
2.27calculated by the commissioner, rounded to the nearest cent. The new minimum wage
2.28rates determined under this paragraph take effect on the next January 1.
2.29(e) Minimum wage standards and inflation must be reflected in statewide
2.30reimbursement rates and county and state purchase of service contracts for social services
2.31including those provided by direct service staff through home and community-based
2.32services waivers for seniors and persons with disabilities.
2.33EFFECTIVE DATE.This section is effective August 1, 2013.
3.1 Sec. 2. Minnesota Statutes 2012, section 177.24, is amended by adding a subdivision
3.2to read:
3.3 Subd. 3a. Gratuities; credit cards or charges. (a) Gratuities presented to an
3.4employee via inclusion on a debit, charge, or credit card shall be credited to that pay
3.5period in which they are received by the employee and for which they appear on the
3.6employee's tip statement.
3.7(b) Where a tip is given by a customer through a debit, charge, or credit card, the full
3.8amount of tip must be allowed the employee.
3.9EFFECTIVE DATE.This section is effective August 1, 2013.
3.10 Sec. 3. Minnesota Statutes 2012, section 177.25, subdivision 1, is amended to read:
3.11 Subdivision 1. Compensation required. No employer may employ an employee
3.12for a workweek longer than48 40 hours, unless the employee receives compensation for
3.13employment in excess of48 40 hours in a workweek at a rate of at least 1-1/2 times the
3.14regular rate at which the employee is employed. The state of Minnesota or a political
3.15subdivision may grant time off at the rate of 1-1/2 hours for each hour worked in excess of
3.1648 40 hours in a week in lieu of monetary compensation. An employer does not violate
3.17the overtime pay provisions of this section by employing any employees for a workweek
3.18in excess of48 40 hours without paying the compensation for overtime employment
3.19prescribed (1) if the employee is employed under an agreement meeting the requirement
3.20of section 7(b)(2) of the Fair Labor Standards Act of 1938, as amended, or (2) if the
3.21employee is employed as a sugar beet hand laborer on a piece rate basis, provided that the
3.22regular rate of pay received per hour of work exceeds the applicable wage provided in
3.23section177.24, subdivision 1, by at least 40 cents.
3.24EFFECTIVE DATE.This section is effective August 1, 2013.
3.25 Sec. 4. Minnesota Statutes 2012, section 177.25, subdivision 3, is amended to read:
3.26 Subd. 3. Motor vehicle salespeople; mechanics. Subdivision 1 does not apply to
3.27any salesperson, parts person, or mechanic primarily engaged in selling or servicing
3.28automobiles, trailers, trucks, or farm implementsand paid on a commission or incentive
3.29basis, if employed by a nonmanufacturing establishment primarily engaged in selling the
3.30vehicles to ultimate purchasers.
3.31EFFECTIVE DATE.This section is effective August 1, 2013.
3.32 Sec. 5. Minnesota Statutes 2012, section 177.25, subdivision 5, is amended to read:
4.1 Subd. 5. Air carrier employees. Subdivision 1 does not apply to employees of air
4.2carriers subject to the provisions of title II of the Railway Labor Act, when the hours worked
4.3by an employee in excess of48 40 in a workweek are not required by the carrier, but are
4.4arranged through a voluntary agreement among employees to trade scheduled work hours.
4.5EFFECTIVE DATE.This section is effective August 1, 2013.
4.6 Sec. 6. Minnesota Statutes 2012, section 177.25, is amended by adding a subdivision
4.7to read:
4.8 Subd. 6. Agricultural employment. (a) Notwithstanding subdivision 1, hourly
4.9individuals employed in agriculture are required to be compensated for employment in
4.10excess of 48 hours per week at the same rate as provided in subdivision 1.
4.11(b) For the purposes of this section, "agriculture" has the meaning given in
4.12Minnesota Rules, part 5200.0260.
4.13(c) The commissioner of labor and industry shall report to the legislature by January
4.141, 2014, on the number of agricultural employees who are using a 48 hour work week and
4.15the number of employees affected. The commissioner shall include recommendations for
4.16appropriate compensation for such agricultural employees.
4.17(d) This subdivision expires February 1, 2014.
4.18 Sec. 7. Minnesota Statutes 2012, section 181.941, subdivision 1, is amended to read:
4.19 Subdivision 1.Six Twelve-week leave; birth or adoption. An employer must
4.20grant an unpaid leave of absence to an employee who is a natural or adoptive parent in
4.21conjunction with the birth or adoption of a child. The length of the leave shall be determined
4.22by the employee, but may not exceedsix 12 weeks, unless agreed to by the employer.
4.23EFFECTIVE DATE.This section is effective August 1, 2013.
4.24 Sec. 8. Minnesota Statutes 2012, section 181.943, is amended to read:
4.25181.943 RELATIONSHIP TO OTHER LEAVE.
4.26(a) The length of parental leave provided under section181.941 may be reduced
4.27by any period of paid parental or disability leave, but not accrued sick leave, provided
4.28by the employer, so that the total leave does not exceedsix 12 weeks, unless agreed
4.29to by the employer.
4.30(b) Nothing in sections181.940 to
181.943 prevents any employer from providing
4.31leave benefits in addition to those provided in sections181.940 to
181.944 or otherwise
4.32affects an employee's rights with respect to any other employment benefit.
5.1EFFECTIVE DATE.This section is effective August 1, 2013.
5.2 Sec. 9. REPEALER.
5.3Minnesota Rules, part 5200.0080, subpart 7, is repealed.
5.4EFFECTIVE DATE.This section is effective August 1, 2013.
1.3parental leave provisions;amending Minnesota Statutes 2012, sections 177.24,
1.4subdivision 1, by adding a subdivision; 177.25, subdivisions 1, 3, 5, by adding a
1.5subdivision; 181.941, subdivision 1; 181.943; repealing Minnesota Rules, part
1.65200.0080, subpart 7.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2012, section 177.24, subdivision 1, is amended to read:
1.9 Subdivision 1. Amount. (a) For purposes of this subdivision, the terms defined in
1.10this paragraph have the meanings given them.
1.11(1) "Large employer" means an enterprise whose annual gross volume of sales made
1.12or business done is not less than
1.13retail level that are separately stated) and covered by the Minnesota Fair Labor Standards
1.14Act, sections
1.15(2) "Small employer" means an enterprise whose annual gross volume of sales
1.16made or business done is less than
1.17retail level that are separately stated) and covered by the Minnesota Fair Labor Standards
1.18Act, sections
1.19(b) Except as otherwise provided in sections
1.20
1.21
1.22
1.23
1.24(1) every large employer must pay each employee wages at a rate of at least:
1.25(i) $8.00 per hour beginning August 1, 2013;
2.1(ii) $9.00 per hour beginning August 1, 2014;
2.2(iii) $9.50 per hour beginning August 1, 2015; and
2.3(iv) the rate established under paragraph (d) beginning January 1, 2016; and
2.4(2) every small employer must pay each employee at a rate of at least:
2.5(i) $7.00 per hour beginning August 1, 2013;
2.6(ii) $8.00 per hour beginning August 1, 2014;
2.7(iii) $8.50 per hour beginning August 1, 2015; and
2.8(iv) the rate established under paragraph (d) beginning January 1, 2016.
2.9(c) Notwithstanding paragraph (b), during the first 90 consecutive days of
2.10employment, an employer may pay an employee under the age of 20 years a wage of
2.11
2.12
2.13
2.14(1) $6.50 per hour beginning August 1, 2013;
2.15(2) $7.50 per hour beginning August 1, 2014;
2.16(3) $8.00 per hour beginning August 1, 2015; and
2.17(4) the rate established under paragraph (d) beginning January 1, 2016.
2.18No employer may take any action to displace an employee, including a partial
2.19displacement through a reduction in hours, wages, or employment benefits, in order to
2.20hire an employee at the wage authorized in this paragraph.
2.21(d) No later than November 1 of each year, beginning in 2015, the commissioner
2.22shall determine the percentage increase in the rate of inflation, as measured by the
2.23Consumer Price Index for all urban consumers, United States city average, as determined
2.24by the United States Department of Labor, during the most recent 12-month period for
2.25which data is available. The minimum wage rates in paragraphs (b) and (c) are increased
2.26by the lesser of: (1) 2.5 percent, rounded to the nearest cent; or (2) the percentage
2.27calculated by the commissioner, rounded to the nearest cent. The new minimum wage
2.28rates determined under this paragraph take effect on the next January 1.
2.29(e) Minimum wage standards and inflation must be reflected in statewide
2.30reimbursement rates and county and state purchase of service contracts for social services
2.31including those provided by direct service staff through home and community-based
2.32services waivers for seniors and persons with disabilities.
2.33EFFECTIVE DATE.This section is effective August 1, 2013.
3.1 Sec. 2. Minnesota Statutes 2012, section 177.24, is amended by adding a subdivision
3.2to read:
3.3 Subd. 3a. Gratuities; credit cards or charges. (a) Gratuities presented to an
3.4employee via inclusion on a debit, charge, or credit card shall be credited to that pay
3.5period in which they are received by the employee and for which they appear on the
3.6employee's tip statement.
3.7(b) Where a tip is given by a customer through a debit, charge, or credit card, the full
3.8amount of tip must be allowed the employee.
3.9EFFECTIVE DATE.This section is effective August 1, 2013.
3.10 Sec. 3. Minnesota Statutes 2012, section 177.25, subdivision 1, is amended to read:
3.11 Subdivision 1. Compensation required. No employer may employ an employee
3.12for a workweek longer than
3.13employment in excess of
3.14regular rate at which the employee is employed. The state of Minnesota or a political
3.15subdivision may grant time off at the rate of 1-1/2 hours for each hour worked in excess of
3.16
3.17the overtime pay provisions of this section by employing any employees for a workweek
3.18in excess of
3.19prescribed (1) if the employee is employed under an agreement meeting the requirement
3.20of section 7(b)(2) of the Fair Labor Standards Act of 1938, as amended, or (2) if the
3.21employee is employed as a sugar beet hand laborer on a piece rate basis, provided that the
3.22regular rate of pay received per hour of work exceeds the applicable wage provided in
3.23section
3.24EFFECTIVE DATE.This section is effective August 1, 2013.
3.25 Sec. 4. Minnesota Statutes 2012, section 177.25, subdivision 3, is amended to read:
3.26 Subd. 3. Motor vehicle salespeople; mechanics. Subdivision 1 does not apply to
3.27any salesperson, parts person, or mechanic primarily engaged in selling or servicing
3.28automobiles, trailers, trucks, or farm implements
3.29
3.30vehicles to ultimate purchasers.
3.31EFFECTIVE DATE.This section is effective August 1, 2013.
3.32 Sec. 5. Minnesota Statutes 2012, section 177.25, subdivision 5, is amended to read:
4.1 Subd. 5. Air carrier employees. Subdivision 1 does not apply to employees of air
4.2carriers subject to the provisions of title II of the Railway Labor Act, when the hours worked
4.3by an employee in excess of
4.4arranged through a voluntary agreement among employees to trade scheduled work hours.
4.5EFFECTIVE DATE.This section is effective August 1, 2013.
4.6 Sec. 6. Minnesota Statutes 2012, section 177.25, is amended by adding a subdivision
4.7to read:
4.8 Subd. 6. Agricultural employment. (a) Notwithstanding subdivision 1, hourly
4.9individuals employed in agriculture are required to be compensated for employment in
4.10excess of 48 hours per week at the same rate as provided in subdivision 1.
4.11(b) For the purposes of this section, "agriculture" has the meaning given in
4.12Minnesota Rules, part 5200.0260.
4.13(c) The commissioner of labor and industry shall report to the legislature by January
4.141, 2014, on the number of agricultural employees who are using a 48 hour work week and
4.15the number of employees affected. The commissioner shall include recommendations for
4.16appropriate compensation for such agricultural employees.
4.17(d) This subdivision expires February 1, 2014.
4.18 Sec. 7. Minnesota Statutes 2012, section 181.941, subdivision 1, is amended to read:
4.19 Subdivision 1.
4.20grant an unpaid leave of absence to an employee who is a natural or adoptive parent in
4.21conjunction with the birth or adoption of a child. The length of the leave shall be determined
4.22by the employee, but may not exceed
4.23EFFECTIVE DATE.This section is effective August 1, 2013.
4.24 Sec. 8. Minnesota Statutes 2012, section 181.943, is amended to read:
4.25181.943 RELATIONSHIP TO OTHER LEAVE.
4.26(a) The length of parental leave provided under section
4.27by any period of paid parental or disability leave, but not accrued sick leave, provided
4.28by the employer, so that the total leave does not exceed
4.29to by the employer.
4.30(b) Nothing in sections
4.31leave benefits in addition to those provided in sections
4.32affects an employee's rights with respect to any other employment benefit.
5.1EFFECTIVE DATE.This section is effective August 1, 2013.
5.2 Sec. 9. REPEALER.
5.3Minnesota Rules, part 5200.0080, subpart 7, is repealed.
5.4EFFECTIVE DATE.This section is effective August 1, 2013.
