A host of new laws passed by the 2014 Legislature, and more than 1,000 stripped away via the “Unsession” movement, goes into effect today.
The most notable is the rise of the state’s minimum wage, which was adjusted by the Legislature for the first time in a decade.
The state’s minimum hourly wage begins its climb to $9.50 by 2016. Under the new law, sponsored by Rep. Ryan Winkler (DFL-Golden Valley) and Sen. Jeff Hayden (DFL-Mpls), the state’s minimum hourly wage will increase to $8 today, Aug. 1, up from $6.15.
Details of the law include:
• for businesses with gross annual sales of at least $500,000, $8 minimum hourly wage beginning August 2014, $9 in August 2015 and $9.50 one year later;
• for businesses under $500,000 in gross annual sales, $6.50 minimum hourly wage beginning August 2014, $7.25 in August 2015 and $7.75 one year later;
• the $7.75 minimum wage rate would also apply for large businesses in the following circumstances: 90-day training wage for 18 and 19 year olds, all 16 and 17 year olds and employees working under a J1 visa;
• beginning in 2018, all wages would increase each year on Jan. 1 by inflation measured by the implicit price deflator capped at 2.5 percent; and
• the indexed increase could be suspended for one year by the commissioner of the Department of Labor and Industry if leading economic indicators indicate the possibility of a substantial downturn in the economy. The suspension could only be implemented after a public hearing and public comment period. In better economic times, the suspended inflationary increase or a lesser amount could be added back into the minimum wage rate in a subsequent year.
A complete list of law changes can be found online, via the Minnesota House of Representatives website.