1.1                          A bill for an act 
  1.2             relating to employment; increasing the minimum wage; 
  1.3             amending Minnesota Statutes 2002, section 177.24, 
  1.4             subdivision 1. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 2002, section 177.24, 
  1.7   subdivision 1, is amended to read: 
  1.8      Subdivision 1.  [AMOUNT.] (a) For purposes of this 
  1.9   subdivision, the terms defined in this paragraph have the 
  1.10  meanings given them.  
  1.11     (1) "Large employer" means an enterprise whose annual gross 
  1.12  volume of sales made or business done is not less than $500,000 
  1.13  (exclusive of excise taxes at the retail level that are 
  1.14  separately stated) and covered by the Minnesota Fair Labor 
  1.15  Standards Act, sections 177.21 to 177.35. 
  1.16     (2) "Small employer" means an enterprise whose annual gross 
  1.17  volume of sales made or business done is less than $500,000 
  1.18  (exclusive of excise taxes at the retail level that are 
  1.19  separately stated) and covered by the Minnesota Fair Labor 
  1.20  Standards Act, sections 177.21 to 177.35.  
  1.21     (b) Except as otherwise provided in sections 177.21 to 
  1.22  177.35, every large employer must pay each employee wages at a 
  1.23  rate of at least $5.15 an hour beginning September 1, 1997, at a 
  1.24  rate of at least $5.65 an hour beginning July 1, 2003, and at a 
  1.25  rate of at least $6.15 an hour beginning January 1, 2004. Every 
  2.1   small employer must pay each employee at a rate of at least 
  2.2   $4.90 an hour beginning January 1, 1998, at a rate of at least 
  2.3   $5.40 an hour beginning July 1, 2003, and at a rate of at least 
  2.4   $5.90 an hour beginning January 1, 2004.  On January 1, 2005, 
  2.5   and annually on January 1 thereafter, the minimum wage required 
  2.6   to be paid under this paragraph shall be increased by the 
  2.7   percentage increase for the 12-month period ending June 30 of 
  2.8   the previous calendar year in the Consumer Price Index for all 
  2.9   urban consumers for the St. Paul-Minneapolis area prepared by 
  2.10  the United States Department of Labor.  The increase shall be 
  2.11  rounded up to the nearest cent. 
  2.12     (c) Notwithstanding paragraph (b), during the first 90 
  2.13  consecutive days of employment, an employer may pay an employee 
  2.14  under the age of 20 years a wage of $4.25 an hour.  No employer 
  2.15  may take any action to displace any employee, including a 
  2.16  partial displacement through a reduction in hours, wages, or 
  2.17  employment benefits, in order to hire an employee at the wage 
  2.18  authorized in this paragraph.  
  2.19     Sec. 2.  [EFFECTIVE DATE.] 
  2.20     Section 1 is effective July 1, 2003.