A bill for an act
relating to wages; eliminating subminimum wage; creating a task force on
eliminating subminimum wage; repealing statute and rules allowing payment of
subminimum wage to employees with disabilities; requiring a report; appropriating
money; amending Minnesota Statutes 2020, section 177.24, by adding a
subdivision; repealing Minnesota Statutes 2020, section 177.28, subdivision 5;
Minnesota Rules, parts 5200.0030; 5200.0040.

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

Section 1.

Minnesota Statutes 2020, section 177.24, is amended by adding a subdivision
to read:


new text begin Subd. 6. new text end

new text begin Subminimum wage. new text end

new text begin Notwithstanding any law to the contrary, beginning
August 1, 2025, an employer must not pay an employee with a disability less than the
minimum wage required by this section.
new text end

Sec. 2. new text beginTASK FORCE ON ELIMINATING SUBMINIMUM WAGE.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin The purpose of the task force on eliminating subminimum wage
is to develop and implement a plan to phase out payment of subminimum wage authorized
under Minnesota Statutes, section 177.28, subdivision 5, and Minnesota Rules, parts
5200.0030 and 5200.0040, on or before August 1, 2025.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The task force consists of the following members:
new text end

new text begin (1) two members of the senate, one appointed by the majority leader and one appointed
by the minority leader;
new text end

new text begin (2) two members of the house of representatives, one appointed by the speaker of the
house and one appointed by the minority leader;
new text end

new text begin (3) the commissioner of labor and industry or a designee;
new text end

new text begin (4) the commissioner of employment and economic development or a designee;
new text end

new text begin (5) the commissioner of human services or a designee;
new text end

new text begin (6) the commissioner of education or a designee;
new text end

new text begin (7) three members of organizations working to protect the rights and opportunities of
persons with disabilities selected by the commissioner of labor and industry;
new text end

new text begin (8) three employers authorized to pay subminimum wage pursuant to Minnesota Statutes,
section 177.28, subdivision 5, and Minnesota Rules, parts 5200.0030 and 5200.0040, selected
by the commissioner of labor and industry;
new text end

new text begin (9) one or more employees with a disability paid subminimum wage pursuant to
Minnesota Statutes, section 177.28, subdivision 5, and Minnesota Rules, parts 5200.0030
and 5200.0040, selected by the commissioner of labor and industry;
new text end

new text begin (10) one or more learners or apprentices paid subminimum wage pursuant to Minnesota
Statutes, section 177.28, subdivision 5, and Minnesota Rules, parts 5200.0030 and 5200.0040,
selected by the commissioner of labor and industry;
new text end

new text begin (11) a representative of the Department of Employment and Economic Development's
Vocational Rehabilitation Services division; and
new text end

new text begin (12) a representative of the State Rehabilitation Council.
new text end

new text begin (b) To the extent possible, membership on the task force under paragraph (a) shall reflect
geographic parity throughout the state.
new text end

new text begin (c) The commissioner of labor and industry shall appoint the members under clause (7)
so that the three most predominant percentages of individuals with disabilities utilizing
sheltered workshops are represented.
new text end

new text begin Subd. 3. new text end

new text begin Appointment deadline; first meeting; chair. new text end

new text begin Appointing authorities must
complete member selections by July 15, 2021. The commissioner of labor and industry shall
convene the first meeting of the task force by August 17, 2021. The task force shall select
a chair from among their members at their first meeting.
new text end

new text begin Subd. 4. new text end

new text begin Compensation. new text end

new text begin Members shall be compensated and may be reimbursed for
expenses as provided in Minnesota Statutes, section 15.059, subdivision 3.
new text end

new text begin Subd. 5. new text end

new text begin Duties. new text end

new text begin The task force shall:
new text end

new text begin (1) develop and implement a plan to phase out the payment of subminimum wage
authorized under Minnesota Statutes, section 177.28, subdivision 5, and Minnesota Rules,
parts 5200.0030 and 5200.0040, by August 1, 2025;
new text end

new text begin (2) identify and collaborate with employees, employers, businesses, organizations,
agencies, and stakeholders impacted by the phase out of subminimum wage on how to
implement the plan and create sustainable work opportunities for employees with disabilities;
new text end

new text begin (3) propose a plan to establish and evaluate benchmarks for measuring progress for each
year of the phase out;
new text end

new text begin (4) propose a plan to monitor and track outcomes of employees with disabilities;
new text end

new text begin (5) identify initiatives, investment, training, and services designed to improve wages,
reduce unemployment rates, and provide support and sustainable work opportunities for
persons with disabilities;
new text end

new text begin (6) identify benefits to the state in eliminating subminimum wage by August 1, 2025;
new text end

new text begin (7) identify barriers to eliminating subminimum wage by August 1, 2025, and make
recommendations for compliance; and
new text end

new text begin (8) identify and make recommendations for sustainable financial support, funding, and
resources for eliminating subminimum wage by August 1, 2025, including the cost of
implementing and providing ongoing employment services, training, and support for
employees with disabilities and the cost of paying minimum wage to employees with
disabilities.
new text end

new text begin Subd. 6. new text end

new text begin Report. new text end

new text begin The task force shall report to the chairs and ranking minority members
of the committees in the senate and the house of representatives with primary jurisdiction
over employment and wages and health and human services by January 14, 2023, with
recommendations to eliminate the payment of subminimum wage authorized under Minnesota
Statutes, section 177.28, subdivision 5, and Minnesota Rules, parts 5200.0030 and 5200.0040,
by August 1, 2025, and any legislation or rulemaking required to implement the
recommendations.
new text end

new text begin Subd. 7. new text end

new text begin Administrative support. new text end

new text begin The commissioner of labor and industry shall provide
meeting space and administrative services to the task force.
new text end

new text begin Subd. 8. new text end

new text begin Sunset. new text end

new text begin The task force sunsets August 31, 2023.
new text end

Sec. 3. new text beginAPPROPRIATION.
new text end

new text begin $....... in fiscal year 2022 is appropriated from the general fund to the commissioner of
labor and industry for the task force on eliminating subminimum wage.
new text end

Sec. 4. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2020, section 177.28, subdivision 5, new text end new text begin and new text end new text begin Minnesota Rules, parts
5200.0030; and 5200.0040,
new text end new text begin are repealed effective August 1, 2025.
new text end

APPENDIX

Repealed Minnesota Statutes: 21-01676

177.28 POWER TO MAKE RULES.

Subd. 5.