Minnesota House of Representatives
Public Information Services

Menu

Public Information Services Menu

Deal struck on minimum wage

By Sonja Hegman
Rep. Ryan Winkler answers a question at a Monday press conference where House and Senate leaders announced an agreement to raise the minimum wage to $9.50 over three years, and index it to inflation starting in 2018. Photo by Paul Battaglia

After months of negotiation, Minnesotans could see their minimum hourly wage go up now that a deal has been struck between the House and the Senate. A vote in both bodies is expected this week.

During a Monday press conference, House and Senate leadership laid out a new agreement that would increase the state’s hourly minimum wage to $9.50, phasing it in by 2016. It would also be indexed for inflation beginning in 2018. The state’s current minimum wage is $6.15 per hour, but most businesses use the federal $7.25 rate.

House/Senate DFL Press Conference

“This is a good day for hard-working Minnesotans and for a brighter economic future for our state,” said House Speaker Paul Thissen (DFL-Mpls). “There are too many Minnesotans who work hard every day but cannot make enough to make ends meet. This is about making sure Minnesotans can earn a wage they can raise a family on. That’s what this bill is about. No one should work 40 hours a week and still live in poverty.”

If passed, the bill would give more than 350,000 Minnesotans a raise. To make the agreement possible, a 40-hour work week for overtime and 12-week unpaid sick leave provisions were removed.

Representative Zellers Press Conference

“By raising the minimum wage to $9.50 and indexing it to inflation, we set a higher floor for all workers' wages, and ensure inflation does not erode those wages in the future,” Said Rep. Ryan Winkler (DFL-Golden Valley), who sponsors HF92 in the House

Lawmakers said the deal was not contingent on a plan to build a new $77 million legislative office building that would be used to house the Senate.

Details of the minimum wage agreement include:

  • $9.50 minimum hourly wage for businesses with gross sales over $500,000 in 2016 after increases to $8 in August 2014 and $8.50 in August 2015;
  • $7.75 minimum hourly wage for businesses under $500,000 in gross sales in 2016 after increases to $6.50 in August 2014 and $7.25 in August 2015;
  • the $7.75 minimum hourly 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.

Search Session Daily

Priority Dailies

Conferees wrap up $283 million supplemental budget

The House and Senate early Friday morning wrapped up negotiations on the supplemental budget bill...

Clock ticks down to sine die and governor’s actions on bills

It’s not only the Legislature that feels the pressure of May 19, the constitutionally-mandated la...

Recent Dailies

2014 Minnesota State Fair poll results

Minnesota State Fair polltakers are narrowly opposed to the legalization of recreational marijuan...

Your House at the Minnesota State Fair

(UPDATED) Fairgoers are invited to meet and greet legislators and weigh in on hot political t...

Race track underpaid purses, lawmakers hear

A Legislative Auditor’s report delivered Tuesday to a joint House and Senate hearing charges that...

New laws provide look back at the 2014 legislative session

Now available on the web is New Laws 2014, overviews of the 169 bills acted on by the governor du...

Session by the numbers

How many bills were sent to Gov. Mark Dayton by the Legislature in 2014? How many House files wer...

Lawmakers finish jam-packed session early

The 2014 Legislature gaveled in on the relatively late date of Feb. 25. But lawmakers surprised e...

House holds a two-day marathon to close out 2014 session

The Legislature was able to complete its work for the 2014 session on Friday, three days short of...

House passes supplemental budget package

The House on Friday passed the omnibus supplemental budget bill 75-55. A variety of state pro...

Medical marijuana bill makes its final passage from House

Medical marijuana has cleared its final hurdle in the legislative branch and now awaits the gover...

Tax bill: A little of this and a lot of property tax relief

The Lewis and Clark Regional Water System project that would bring water to parts of southwestern...

Public Information Services  ·   175 State Office Building, Saint Paul, MN 55155   ·   Public.Information@house.mn