Bill Text: MN SF1447 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Minimum wage for employees receiving gratuities modification
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2013-03-18 - Referred to Jobs, Agriculture and Rural Development [SF1447 Detail]
Download: Minnesota-2013-SF1447-Introduced.html
1.2relating to employment; modifying the minimum wage for certain employees
1.3receiving gratuities;amending Minnesota Statutes 2012, section 177.24,
1.4subdivision 1.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 177.24, subdivision 1, is amended to read:
1.7 Subdivision 1. Amount. (a) For purposes of this subdivision, the terms defined in
1.8this paragraph have the meanings given them.
1.9(1) "Large employer" means an enterprise whose annual gross volume of sales
1.10made or business done is not less than $625,000 (exclusive of excise taxes at the retail
1.11level that are separately stated) and covered by the Minnesota Fair Labor Standards Act,
1.12sections177.21 to
177.35 .
1.13(2) "Small employer" means an enterprise whose annual gross volume of sales made
1.14or business done is less than $625,000 (exclusive of excise taxes at the retail level that
1.15are separately stated) and covered by the Minnesota Fair Labor Standards Act, sections
1.16177.21
to
177.35 .
1.17(b) Except as otherwise provided in sections177.21 to
177.35 , every large employer
1.18must pay each employee wages at a rate of at least $5.15 an hour beginning September
1.191, 1997, and at a rate of at least $6.15 an hour beginning August 1, 2005. Every small
1.20employer must pay each employee at a rate of at least $4.90 an hour beginning January 1,
1.211998, and at a rate of at least $5.25 an hour beginning August 1, 2005.
1.22(c) Notwithstanding paragraph (b), during the first 90 consecutive days of
1.23employment, an employer may pay an employee under the age of 20 years a wage of $4.90
1.24an hour. No employer may take any action to displace any employee, including a partial
2.1displacement through a reduction in hours, wages, or employment benefits, in order to
2.2hire an employee at the wage authorized in this paragraph.
2.3(d) Notwithstanding paragraph (b) and subdivision 2, every employer must pay
2.4an employee receiving gratuities at a rate equal to: (1) at least $7.25 per hour if the
2.5employee earns sufficient gratuities during the pay period so that the sum of $7.25 per
2.6hour and gratuities received averages at least $12 per hour for the pay period; or (2) at
2.7least the greater of the wage rate under this section or United States Code, title 29, section
2.8206(a)(1), if the employee does not earn sufficient gratuities during the pay period so that
2.9the sum of $7.25 per hour and gratuities received averages at least $12 per hour for the
2.10pay period. For the purposes of this section, an "employee receiving gratuities" means an
2.11employee who customarily and regularly receives more than $30 per month in gratuities
2.12and "gratuity" means a voluntary payment received by an employee from a customer, the
2.13amount of which is determined by the customer. The amount of the gratuity must not be
2.14dictated by employer policy or subject to negotiation with the employer.
2.15EFFECTIVE DATE.This section is effective the day following the effective date
2.16of any increase in the state or federal minimum wage rate.
1.3receiving gratuities;amending Minnesota Statutes 2012, section 177.24,
1.4subdivision 1.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 177.24, subdivision 1, is amended to read:
1.7 Subdivision 1. Amount. (a) For purposes of this subdivision, the terms defined in
1.8this paragraph have the meanings given them.
1.9(1) "Large employer" means an enterprise whose annual gross volume of sales
1.10made or business done is not less than $625,000 (exclusive of excise taxes at the retail
1.11level that are separately stated) and covered by the Minnesota Fair Labor Standards Act,
1.12sections
1.13(2) "Small employer" means an enterprise whose annual gross volume of sales made
1.14or business done is less than $625,000 (exclusive of excise taxes at the retail level that
1.15are separately stated) and covered by the Minnesota Fair Labor Standards Act, sections
1.17(b) Except as otherwise provided in sections
1.18must pay each employee wages at a rate of at least $5.15 an hour beginning September
1.191, 1997, and at a rate of at least $6.15 an hour beginning August 1, 2005. Every small
1.20employer must pay each employee at a rate of at least $4.90 an hour beginning January 1,
1.211998, and at a rate of at least $5.25 an hour beginning August 1, 2005.
1.22(c) Notwithstanding paragraph (b), during the first 90 consecutive days of
1.23employment, an employer may pay an employee under the age of 20 years a wage of $4.90
1.24an hour. No employer may take any action to displace any employee, including a partial
2.1displacement through a reduction in hours, wages, or employment benefits, in order to
2.2hire an employee at the wage authorized in this paragraph.
2.3(d) Notwithstanding paragraph (b) and subdivision 2, every employer must pay
2.4an employee receiving gratuities at a rate equal to: (1) at least $7.25 per hour if the
2.5employee earns sufficient gratuities during the pay period so that the sum of $7.25 per
2.6hour and gratuities received averages at least $12 per hour for the pay period; or (2) at
2.7least the greater of the wage rate under this section or United States Code, title 29, section
2.8206(a)(1), if the employee does not earn sufficient gratuities during the pay period so that
2.9the sum of $7.25 per hour and gratuities received averages at least $12 per hour for the
2.10pay period. For the purposes of this section, an "employee receiving gratuities" means an
2.11employee who customarily and regularly receives more than $30 per month in gratuities
2.12and "gratuity" means a voluntary payment received by an employee from a customer, the
2.13amount of which is determined by the customer. The amount of the gratuity must not be
2.14dictated by employer policy or subject to negotiation with the employer.
2.15EFFECTIVE DATE.This section is effective the day following the effective date
2.16of any increase in the state or federal minimum wage rate.
