Update on Minimum Wage Increase

Monday – April 14, 2014:

Following several weeks of no movement on the minimum wage bill, the House and Senate DFL leadership announced an agreement on a minimum wage increase. The bill was passed by the Senate and House April 7th and 9th respectively. The provisions of the bill are as follows:

  1. Increases the minimum wage for large employers (gross sales over $500,000) to $8.00 on August 1, 2014; $9.00 on August 1, 2015; and $9.50 August 1, 2016.
  2. Increases the minimum wage for small employers (gross sales under $500,000) to $6.50 on August 1, 2014; $7.25 on August 1, 2015; and $7.75 on August 1, 2016.
  3. Employees under the age of 18 may be paid the same rate as the small employer rate. Also, during the first 90 days of employment, an employer may pay an employee under the age of 20 the same rate as the small employer rate.
  4. Employers that are a hotel, motel, resort, or lodging establishment employing workers under a federal summer work travel exchange visitor program nonimmigrant visa may pay a wage of $7.25 on August 1, 2014; $7.50 on August 1, 2015; and $7.75 on August 1, 2016.
  5. Provides the minimum wage will increase annually beginning on January 1, 2018 according to an indexing using the “implicit price deflator”. The increase may not exceed 2.5% annually. The bill allows the Commissioner of Labor and Industry to suspend the inflation increase due to a substantial downturn in the economy.

The bill passed the Senate on Wednesday, April 9th by a vote of 35-31 and passed the House on Thursday by a vote of 71-60. The votes in the Senate and House were along mostly party lines with most Democrats voting yes, all Republicans voting no and a few Democrats voting no The 3 DFL senators voting no where Jenson – Dist. 24, Koenen – 17 and Sparks – 27, and the one house DFLer voting no was Pelowski – 28A. Governor Dayton signed the bill on Monday, April 14th.

The language of the bill can be found at this link:

https://www.revisor.mn.gov/bills/text.php?number=HF2091&version=1&session=ls88&session_year=2014&session_number=0&type=ue&format=pdf

 

~ Frank Ball, MLBA Executive Director