ST. PAUL, MN – Today the Minnesota House approved legislation to increase the state’s minimum wage to $9.50 per hour by 2016 and give minimum wage workers an annual pay raise tied to the rate of inflation starting in January 2018.
Governor Dayton intends to sign the bill into law on Monday, April 14.
State Representative Tina Liebling (DFL – Rochester) said the bill is a big step towards ensuring greater economic security for Minnesota’s working families.
“We’ve gone nearly ten years since the last minimum wage increase,” said Liebling. “It’s very problematic when people are working over 40 hours a week and living in poverty. The bill we passed will help lift thousands of Minnesotans out of poverty. That’s good for our economy right now and into the future.”
At $6.15 per hour for small employers, Minnesota currently has the third lowest minimum wage in the entire country.
Over 357,000 workers will see a raise when the bill is fully implemented. Of those workers, 45 percent have some college education and 57 percent, or 200,000 are women.
The bill is expected to have significant impact on Minnesota families. Of the workers expected to receive a raise, 62,850 are parents. And 14,200 of those are the sole wage earner in their household.
Details of the bill’s minimum wage increases include:
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$8.00 per hour in August 2014, $9.00 per hour in August 2015, and $9.50 per hour for large employers (businesses with gross sales over $500,000) in 2016.
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$6.50 per hour in August 2014, $7.25 per hour in August 2015, and $7.75 per hour for smaller employers (businesses with gross sales under $500,000) in 2016.
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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.
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Beginning in 2018, the minimum wage would increase annually on January 1st by inflation measured by the implicit price deflator capped at 2.5 percent.
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The annual increase could be suspended for one year by the Commissioner of the Department of Labor and Industry (DOLI) 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.
Rep. Liebling encourages her constituents to contact her with any questions or comments about the 2014 Legislative Session. She can be reached by phone at (651) 296-0573, by email at rep.tina.liebling@house.mn, or by postal mail at 367 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155.