A bill for an act
relating to labor and industry; modifying minimum wage provisions; amending
Minnesota Statutes 2022, sections 177.23, by adding subdivisions; 177.24,
subdivision 1; Minnesota Statutes 2023 Supplement, section 204B.19, subdivision
6.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2022, section 177.23, is amended by adding a subdivision
to read:


new text begin Subd. 12. new text end

new text begin Large Employer. new text end

new text begin "Large employer" means an enterprise whose annual gross
volume of sales made or business done is not less than $500,000, exclusive of excise taxes
at the retail level that are separately stated, and covered by the Minnesota Fair Labor
Standards Act, sections 177.21 to 177.35.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 2.

Minnesota Statutes 2022, section 177.23, is amended by adding a subdivision to
read:


new text begin Subd. 13. new text end

new text begin Small Employer. new text end

new text begin "Small employer" means an enterprise whose annual gross
volume of sales made or business done is less than $500,000, exclusive of excise taxes at
the retail level that are separately stated, and covered by the Minnesota Fair Labor Standards
Act, sections 177.21 to 177.35.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 3.

Minnesota Statutes 2022, section 177.24, subdivision 1, is amended to read:


Subdivision 1.

Amount.

deleted text begin (a) For purposes of this subdivision, the terms defined in this
paragraph have the meanings given them.
deleted text end

deleted text begin (1) "Large employer" means an enterprise whose annual gross volume of sales made or
business done is not less than $500,000 (exclusive of excise taxes at the retail level that are
separately stated) and covered by the Minnesota Fair Labor Standards Act, sections 177.21
to 177.35.
deleted text end

deleted text begin (2) "Small employer" means an enterprise whose annual gross volume of sales made or
business done is less than $500,000 (exclusive of excise taxes at the retail level that are
separately stated) and covered by the Minnesota Fair Labor Standards Act, sections 177.21
to 177.35.
deleted text end

deleted text begin (b)deleted text end new text begin (a)new text end Except as otherwise provided in sections 177.21 to 177.35deleted text begin :
deleted text end

deleted text begin (1)deleted text end new text begin ,new text end every deleted text begin largedeleted text end employer must pay each employee wages at a rate of at least:

deleted text begin (i)deleted text end new text begin (1)new text end $8.00 per hour beginning August 1, 2014;

deleted text begin (ii)deleted text end new text begin (2)new text end $9.00 per hour beginning August 1, 2015;

deleted text begin (iii)deleted text end new text begin (3)new text end $9.50 per hour beginning August 1, 2016; and

deleted text begin (iv)deleted text end new text begin (4)new text end the rate established under paragraph deleted text begin (f)deleted text end new text begin (c)new text end beginning January 1, 2018deleted text begin ; anddeleted text end new text begin .
new text end

deleted text begin (2) every small employer must pay each employee at a rate of at least:
deleted text end

deleted text begin (i) $6.50 per hour beginning August 1, 2014;
deleted text end

deleted text begin (ii) $7.25 per hour beginning August 1, 2015;
deleted text end

deleted text begin (iii) $7.75 per hour beginning August 1, 2016; and
deleted text end

deleted text begin (iv) the rate established under paragraph (f) beginning January 1, 2018.
deleted text end

deleted text begin (c)deleted text end new text begin (b)new text end Notwithstanding paragraph deleted text begin (b)deleted text end new text begin (a)new text end , during the first 90 consecutive days of
employment, an employer may pay an employee under the age of 20 years a wage of at
least:

(1) $6.50 per hour beginning August 1, 2014;

(2) $7.25 per hour beginning August 1, 2015;

(3) $7.75 per hour beginning August 1, 2016; and

(4) the rate established under paragraph deleted text begin (f)deleted text end new text begin (c)new text end beginning January 1, 2018.

No employer may take any action to displace an employee, including a partial displacement
through a reduction in hours, wages, or employment benefits, in order to hire an employee
at the wage authorized in this paragraph.

deleted text begin (d) Notwithstanding paragraph (b), an employer that is a "hotel or motel," "lodging
establishment," or "resort" as defined in Minnesota Statutes 2012, section 157.15,
subdivisions 7, 8, and 11, must pay an employee working under a contract with the employer
that includes the provision by the employer of a food or lodging benefit, if the employee is
working under authority of a summer work travel exchange visitor program (J) nonimmigrant
visa, a wage of at least:
deleted text end

deleted text begin (1) $7.25 per hour beginning August 1, 2014;
deleted text end

deleted text begin (2) $7.50 per hour beginning August 1, 2015;
deleted text end

deleted text begin (3) $7.75 per hour beginning August 1, 2016; and
deleted text end

deleted text begin (4) the rate established under paragraph (f) beginning January 1, 2018.
deleted text end

deleted text begin No employer may take any action to displace an employee, including a partial displacement
through a reduction in hours, wages, or employment benefits, in order to hire an employee
at the wage authorized in this paragraph.
deleted text end

deleted text begin (e) Notwithstanding paragraph (b), a large employer must pay an employee under the
age of 18 at a rate of at least:
deleted text end

deleted text begin (1) $6.50 per hour beginning August 1, 2014;
deleted text end

deleted text begin (2) $7.25 per hour beginning August 1, 2015;
deleted text end

deleted text begin (3) $7.75 per hour beginning August 1, 2016; and
deleted text end

deleted text begin (4) the rate established under paragraph (f) beginning January 1, 2018.
deleted text end

deleted text begin No employer may take any action to displace an employee, including a partial displacement
through a reduction in hours, wages, or employment benefits, in order to hire an employee
at the wage authorized in this paragraph.
deleted text end

deleted text begin (f)deleted text end new text begin (c)new text end No later than August 31 of each year, deleted text begin beginning in 2017,deleted text end the commissioner shall
determine the percentage increase in the rate of inflation, as measured by the implicit p