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
prescription discounts cards 2016 viagra coupon discount prescriptions coupons

“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

House GOP offers tab fee hike in effort to break transportation deadlock

House Republicans hoped to move toward a transportation compromise Tuesday morning, offering, for...

Recent Dailies

2016 session goes sine die, but will loose ends mean a special session?

The words “sine die” had barely been uttered before legislators started talking special session. ...

No bonding bill after chaotic close to 2016 legislative session

It could be the bonding year that wasn’t. House and Senate lawmakers failed late Sunday to pa...

House, Senate pass $182 million supplemental budget headed to governor

Although few members had read all of the 599 pages of the supplemental budget bill before it appe...

House repasses LCCMR appropriations bill, sends to governor

The House voted 92-40 to adopt the conference committee report and repass HF2993/SF2963* late Sun...

Omnibus state employee retirement bill passes House

Departing member Rep. Joe Atkins (DFL-Inver Grove Heights) had aimed to “go quietly into the nigh...

Railroad crossing requirements pass House as amended

Additional requirements could be coming to utility companies looking to establish facilities alon...

Omnibus tax bill wins overwhelming House support

The first of this session’s major spending bills was passed off the House Floor 123-10 early Sund...

Supplemental budget coming together one piece at a time

UPDATED at 2:16 a.m. In the waning hours of the legislative session, lawmakers are beginning ...

House passes bill to reform substance use disorder treatment system

Minnesotans struggling with substance use could receive better treatment and support under a bill...

Pared-down game and fish bill, as amended, moves on

The House voted 80-44 to pass HF2845/SF2759* Saturday, amending a bill that deals with penalties ...

Omnibus tax bill ready to return to the House Floor

House and Senate conferees approved the report on the agreed provisions in the omnibus tax bill, ...

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