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 reduce the gender pay gap.
“These are two issues that go hand in glove,” said State Representative Tom Anzelc (DFL – Balsam Township). “Over half of minimum wage workers are women. Then you have the unacceptable reality that many women are paid less than men. I’m very pleased we tackled these challenges during this year’s legislative session. There is a lot more work to do on this front in the years ahead, but this is a good day for hardworking Minnesotans, especially women and their families. This degree of progress has not come about for a very long time.”
Anzelc says phasing in the full minimum wage increase to $9.50 per hour over several years is a reasonable approach that balances concerns expressed by some northern Minnesota industries like tourism, hospitality and resorts with the need to ensure low-income workers are able to support themselves and their families.
Information about the minimum wage increase:
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By the numbers: Over 300,000 workers will receive a raise when the increase is fully implemented by 2016. Of those workers, 57 percent are women.
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Wage increases for large employers (businesses with gross sales over $500,000): $8.00 per hour in August 2014, $9.00 per hour in August 2015 and $9.50 per hour in 2016.
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Wage increases for smaller employers (businesses with gross sales under $500,000): $6.50 per hour in August 2014, $7.25 per hour in August 2015 and $7.75 per hour for smaller employers 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, minimum wage workers will receive annual pay raises based on the rate of inflation, helping wages keep pace with the cost of groceries, gas, clothing and other necessities for working families.
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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. In northern Minnesota, the gap grows even wider. To help reduce the gender pay 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.
“This new law will have a positive impact on women and their families for generations to come,” said Anzelc. “As the proud father of three daughters and grandfather of three girls, it warms my heart to know we are taking meaningful steps to ensure women are treated with the respect and fairness they deserve.”
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.
-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. Anzelc encourages his constituents to contact him with any questions or feedback. He can be reached by phone at (651) 296-4936 or toll-free at (800) 336-9124, by email at rep.tom.anzelc@house.mn or by postal mail at 517 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155.