The bill amends the "Improved Workforce Opportunity Wage Act" by updating definitions and provisions related to minimum wage and employee classifications. Key changes include redefining the roles of the "Commissioner" to "director" of the Department of Labor and Economic Opportunity, and clarifying the definition of "employer" to include state entities and their subdivisions. The minimum wage rates are adjusted, with specific increases scheduled for 2025, 2026, and 2027, culminating in a minimum wage of $15.00 by 2027. Additionally, the bill mandates that the state treasurer calculate an adjusted minimum wage rate annually based on inflation, with the adjusted rate taking effect the following January.

The bill also introduces new provisions regarding gratuities, specifying conditions under which employees receiving tips can have a lower minimum wage. It establishes a tiered percentage of the minimum wage for tipped employees, starting at 38% in 2025 and increasing to 50% by 2031. Furthermore, it outlines the enforcement mechanisms for violations of the act, including civil actions for employees and increased fines for employers who fail to comply with minimum wage requirements. The bill stipulates that it will not take effect unless House Bill No. 4002 is also enacted into law.

Statutes affected:
Substitute (S-10): 408.934
Senate Introduced Bill: 408.934
As Passed by the Senate: 408.934