ST. PAUL, MN – On Friday, August 1, Minnesota’s first minimum wage increase in nearly a decade went into effect, as well as a new law to close the gender pay gap. State Representative Will Morgan (DFL – Burnsville) says both measures will help more Minnesotans and their families share in the benefits of the state’s robust economic recovery.
“This is a good day for Minnesota, especially women and their families,” said Morgan. “Over half of all minimum wage workers are women. Many work multiple jobs to simply make ends meet. A Republican Governor signed the last minimum wage increase into law nearly a decade ago, so I think this year’s modest increase was the right thing to do. As the cost of groceries, gas, clothing and other necessities go up over time, wages should, too.
Morgan added that phasing in the full increase to $9.50 per hour over several years is a reasonable approach that addresses concerns expressed by some of Minnesota’s business owners. Over 300,000 workers will receive a raise when increase is fully implemented by 2016. Of those workers, 45 percent have some college education and 57 percent are women.
Information about the minimum wage increase:
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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 will 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.
Information about reducing the gender pay gap:
Women in Minnesota earn on average 80 cents for every dollar men earn. To help reduce that gap and prevent women and their families from losing thousands of dollars in income every year, the legislature approved a new law to ensure businesses with state contracts comply with existing equal pay laws – a signature piece of the Women’s Economic Security Act approved by state lawmakers with strong bipartisan support earlier this year.
The new law requires businesses with more than 40 employees seeking state contracts over $500,000 to obtain an equal pay certificate of compliance from the Minnesota Department of Human Rights. Businesses must state that they are in compliance with existing equal pay laws and that average compensation for female employees is not below average compensation for male employees within major job categories as defined in the EEO-1 employee information report.
“We need to continue reducing the gender pay gap in the years ahead,” said Morgan. “If we don’t, women and their families will continue losing thousands of dollars in income every year. Ensuring equal pay for all women is a priority for me and I think it should be at the top of the list in terms of priorities for the legislature in 2015.”
Most provisions in the Women’s Economic Security Act went into effect the day after Governor Dayton signed the bill into law on Mother’s Day. Beginning October 5, unemployment insurance eligibility will be expanded from victims of domestic violence to also include victims of stalking and sexual assault. A report on the potential for a state-administered plan for workers without access to workplace retirement savings plans; along with other alternative private sector options is due back to the Legislature by January 15, 2015.
Women’s Economic Security Act provisions already in effect:
-Unpaid leave under the Minnesota Parental Leave Act expanded from 6 weeks to 12 weeks and female employees allowed to use unpaid leave for pregnancy-related needs.
-Employers required to provide reasonable accommodations to an employee for health conditions related to pregnancy or childbirth if she so requests, with the advice of her licensed health care provider, unless the employer demonstrates that the accommodation would impose an undue hardship on the operation of the employer's business.
-Employers required to provide reasonable unpaid break time each day to an employee who needs to express breast milk for her infant child. The break time must, if possible, run concurrently with any break time already provided to the employee. An employer is not required to provide break time if it would unduly disrupt the operations of the employer.
-Employees allowed to voluntarily disclose and discuss their compensation without fear of retaliation from their employers.
-Equal employment treatment required regardless of “familial status” (Pregnant women and parents and legal guardians of children under 18 who live with them).
-Employees allowed to use existing earned sick leave to recover from sexual assault, domestic violence, or stalking.
-Support expanded for employers; workforce organizations; and others to recruit, prepare, place and retain women in nontraditional occupations and apprenticeships, especially low income and older women (authored by Rep. Morgan)
-Support expanded for the development of high economic impact women-owned businesses in nontraditional industries.
-Grandparents allowed to use existing earned sick leave to care for an ill or injured grandchild.
Rep. Morgan encourages his constituents to contact him with any questions or feedback. He can be reached by phone at (651) 296-5387, by email at rep.will.morgan@house.mn or by postal mail at 401 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., Saint Paul, MN 55155.