1.1.................... moves to amend H.F. No. 1027, the first engrossment, as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2014, section 177.24, subdivision 1, is amended to read:
1.4    Subdivision 1. Amount. (a) For purposes of this subdivision, the terms defined in
1.5this paragraph have the meanings given them.
1.6(1) "Large employer" means an enterprise whose annual gross volume of sales
1.7made or business done is not less than $500,000 (exclusive of excise taxes at the retail
1.8level that are separately stated) and covered by the Minnesota Fair Labor Standards Act,
1.9sections 177.21 to 177.35.
1.10(2) "Small employer" means an enterprise whose annual gross volume of sales made
1.11or business done is less than $500,000 (exclusive of excise taxes at the retail level that
1.12are separately stated) and covered by the Minnesota Fair Labor Standards Act, sections
1.13177.21 to 177.35.
1.14(b) Except as otherwise provided in sections 177.21 to 177.35:
1.15(1) every large employer must pay each employee wages at a rate of at least:
1.16(i) $8.00 per hour beginning August 1, 2014;
1.17(ii) $9.00 per hour beginning August 1, 2015;
1.18(iii) $9.50 per hour beginning August 1, 2016; and
1.19(iv) the rate established under paragraph (f) beginning January 1, 2018; and
1.20(2) every small employer must pay each employee at a rate of at least:
1.21(i) $6.50 per hour beginning August 1, 2014;
1.22(ii) $7.25 per hour beginning August 1, 2015;
1.23(iii) $7.75 per hour beginning August 1, 2016; and
1.24(iv) the rate established under paragraph (f) beginning January 1, 2018.
1.25(c) Notwithstanding paragraph (b), during the first 90 consecutive days of
1.26employment, an employer may pay an employee under the age of 20 years a wage of at least:
1.27(1) $6.50 per hour beginning August 1, 2014;
2.1(2) $7.25 per hour beginning August 1, 2015;
2.2(3) $7.75 per hour beginning August 1, 2016; and
2.3(4) the rate established under paragraph (f) beginning January 1, 2018.
2.4No employer may take any action to displace an employee, including a partial
2.5displacement through a reduction in hours, wages, or employment benefits, in order to
2.6hire an employee at the wage authorized in this paragraph.
2.7(d) Notwithstanding paragraph (b), an employer that is a "hotel or motel," "lodging
2.8establishment," or "resort" as defined in Minnesota Statutes 2012, section 157.15,
2.9subdivisions 7, 8, and 11, must pay an employee working under a contract with the
2.10employer that includes the provision by the employer of a food or lodging benefit, if the
2.11employee is working under authority of a summer work travel exchange visitor program
2.12(J) nonimmigrant visa, a wage of at least:
2.13(1) $7.25 per hour beginning August 1, 2014;
2.14(2) $7.50 per hour beginning August 1, 2015;
2.15(3) $7.75 per hour beginning August 1, 2016; and
2.16(4) the rate established under paragraph (f) beginning January 1, 2018.
2.17No employer may take any action to displace an employee, including a partial
2.18displacement through a reduction in hours, wages, or employment benefits, in order to
2.19hire an employee at the wage authorized in this paragraph.
2.20(e) (d) Notwithstanding paragraph (b), a large employer must pay an employee under
2.21the age of 18 at a rate of at least:
2.22(1) $6.50 per hour beginning August 1, 2014;
2.23(2) $7.25 per hour beginning August 1, 2015;
2.24(3) $7.75 per hour beginning August 1, 2016; and
2.25(4) the rate established under paragraph (f) beginning January 1, 2018.
2.26No employer may take any action to displace an employee, including a partial
2.27displacement through a reduction in hours, wages, or employment benefits, in order to
2.28hire an employee at the wage authorized in this paragraph.
2.29(e) Notwithstanding paragraph (b), every employer must pay an employee receiving
2.30gratuities a wage of at least:
2.31(1) $8.00 per hour if the employee earns sufficient gratuities during the workweek
2.32so that the sum of $8.00 per hour and gratuities received averages at least $12.00 per
2.33hour for the workweek; or
2.34(2) the greater of the wage rate under this section or United States Code, title 29,
2.35section 206(a)(1), if the employee does not earn sufficient gratuities during the workweek
3.1so that the sum of $8.00 per hour and gratuities received averages at least $12.00 per
3.2hour for the workweek.
3.3For the purposes of this section, an "employee receiving gratuities" means an employee who
3.4customarily and regularly receives more than $30 per month in gratuities. This paragraph
3.5does not apply to employees covered under a valid collective bargaining agreement.
3.6(f) No later than August 31 of each year, beginning in 2017, the commissioner shall
3.7determine the percentage increase in the rate of inflation, as measured by the implicit
3.8price deflator, national data for personal consumption expenditures as determined by
3.9the United States Department of Commerce, Bureau of Economic Analysis during the
3.1012-month period immediately preceding that August or, if that data is unavailable, during
3.11the most recent 12-month period for which data is available. The minimum wage rates in
3.12paragraphs (b), (c), (d), and (e) are increased by the lesser of: (1) 2.5 percent, rounded
3.13to the nearest cent; or (2) the percentage calculated by the commissioner, rounded to the
3.14nearest cent. A minimum wage rate shall not be reduced under this paragraph. The new
3.15minimum wage rates determined under this paragraph take effect on the next January 1.
3.16(g)(1) No later than September 30 of each year, beginning in 2017, the commissioner
3.17may issue an order that an increase calculated under paragraph (f) not take effect. The
3.18commissioner may issue the order only if the commissioner, after consultation with the
3.19commissioner of management and budget, finds that leading economic indicators, including
3.20but not limited to projections of gross domestic product calculated by the United States
3.21Department of Commerce, Bureau of Economic Analysis; the Consumer Confidence Index
3.22issued by the Conference Board; and seasonally adjusted Minnesota unemployment rates,
3.23indicate the potential for a substantial downturn in the state's economy. Prior to issuing
3.24an order, the commissioner shall also calculate and consider the ratio of the rate of the
3.25calculated change in the minimum wage rate to the rate of change in state median income
3.26over the same time period used to calculate the change in wage rate. Prior to issuing the
3.27order, the commissioner shall hold a public hearing, notice of which must be published in
3.28the State Register, on the department's Web site, in newspapers of general circulation, and
3.29by other means likely to inform interested persons of the hearing, at least ten days prior to
3.30the hearing. The commissioner must allow interested persons to submit written comments
3.31to the commissioner before the public hearing and for 20 days after the public hearing.
3.32(2) The commissioner may in a year subsequent to issuing an order under clause (1),
3.33make a supplemental increase in the minimum wage rate in addition to the increase for
3.34a year calculated under paragraph (f). The supplemental increase may be in an amount
3.35up to the full amount of the increase not put into effect because of the order. If the
3.36supplemental increase is not the full amount, the commissioner may make a supplemental
4.1increase of the difference, or any part of a difference, in a subsequent year until the full
4.2amount of the increase ordered not to take effect has been included in a supplemental
4.3increase. In making a determination to award a supplemental increase under this clause,
4.4the commissioner shall use the same considerations and use the same process as for an
4.5order under clause (1). A supplemental wage increase is not subject to and shall not be
4.6considered in determining whether a wage rate increase exceeds the limits for annual wage
4.7rate increases allowed under paragraph (f).

4.8    Sec. 2. Minnesota Statutes 2014, section 177.24, is amended by adding a subdivision
4.9to read:
4.10    Subd. 3a. Gratuities; credit cards or charges. (a) Gratuities presented to an
4.11employee via inclusion on a debit, charge, or credit card shall be credited to that pay
4.12period in which they are received by the employee and for which they appear on the
4.13employee's tip statement.
4.14(b) Where a gratuity is given by a customer through a debit, charge, or credit card,
4.15the full amount of gratuity must be allowed the employee.

4.16    Sec. 3. REPEALER.
4.17Minnesota Statutes 2014, section 177.24, subdivision 2, is repealed."
4.18Renumber the sections in sequence and correct the internal references
4.19Amend the title accordingly