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:
Minnesota Statutes 2020, section 177.24, is amended by adding a subdivision
to read:
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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.
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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.
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(a) The task force consists of the following members:
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(1) two members of the senate, one appointed by the majority leader and one appointed
by the minority leader;
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(2) two members of the house of representatives, one appointed by the speaker of the
house and one appointed by the minority leader;
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(3) the commissioner of labor and industry or a designee;
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(4) the commissioner of employment and economic development or a designee;
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(5) the commissioner of human services or a designee;
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(6) the commissioner of education or a designee;
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(7) three members of organizations working to protect the rights and opportunities of
persons with disabilities selected by the commissioner of labor and industry;
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(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;
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(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;
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(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;
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(11) a representative of the Department of Employment and Economic Development's
Vocational Rehabilitation Services division; and
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(12) a representative of the State Rehabilitation Council.
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(b) To the extent possible, membership on the task force under paragraph (a) shall reflect
geographic parity throughout the state.
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(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.
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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.
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Members shall be compensated and may be reimbursed for
expenses as provided in Minnesota Statutes, section 15.059, subdivision 3.
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The task force shall:
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(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;
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(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;
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(3) propose a plan to establish and evaluate benchmarks for measuring progress for each
year of the phase out;
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(4) propose a plan to monitor and track outcomes of employees with disabilities;
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(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;
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(6) identify benefits to the state in eliminating subminimum wage by August 1, 2025;
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(7) identify barriers to eliminating subminimum wage by August 1, 2025, and make
recommendations for compliance; and
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(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.
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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.
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The commissioner of labor and industry shall provide
meeting space and administrative services to the task force.
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The task force sunsets August 31, 2023.
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$....... 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.
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Minnesota Statutes 2020, section 177.28, subdivision 5,
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and
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Minnesota Rules, parts
5200.0030; and 5200.0040,
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are repealed effective August 1, 2025.
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Repealed Minnesota Statutes: 21-01676