SF4060
Quality service wage requirement for covered airport or related location workers
Legislative Session 94 (2025-2026)
Related bill: HF3878
AI Generated Summary
Purpose
- Establish a new wage standard for workers at covered airports or related locations (primarily airport food preparation and delivery work) and strengthen enforcement of wage and labor rules for those locations.
Key Provisions
- Quality Service Wage (QSW) requirement:
- Beginning July 1, 2026 and every July 1 after, each covered airport or related location employer must pay workers at least a quality service wage (QSW).
- The QSW is the combined hourly wage and benefits rate determined by the commissioner, based on the U.S. General Services Administration (GSA) determinations under the McNamara-O’Hara Service Contract Act (SCA) for the local area and job classifications.
- The QSW must not be less than:
- The local minimum wage set by the Metropolitan Airports Commission (MAC) or MAC contracts/licensing agreements.
- The health and welfare benefits rate determined by the SCA for the geographic region, as adjusted for the date of designation.
- The local guard SCA wage determination applicable to the location.
- Supplemental benefits:
- The portion of compensation covering health and welfare benefits must adjust annually to the rate required by the SCA for the region.
- Scope and geographic/apparent coverage:
- Applies to MSP (Minneapolis–St. Paul International Airport) and related MAC properties, including all MAC-owned property at MSP.
- The term “covered airport or related location” includes employees or contractors who perform work related to food preparation or delivery for consumption on airplanes departing from a covered airport or related location.
- Excludes the United States government, the Metropolitan Airports Commission, and other state/county/local government entities from being considered the employer under this section.
- Employer and worker definitions:
- “Covered airport or related location employer” includes any person, corporation, LLC, or association employing any covered worker, or contracting with someone to perform work related to food preparation or delivery for flights from the airport.
- An employer may include a contractor that has assumed a subcontractor’s liability.
- “Covered airport or related location worker” includes individuals who spend at least half of their workweek at the covered location, or who perform the food prep/delivery work for flights from the airport; independent contractors and certain executives/administrators may be excluded.
- Enforcement and penalties:
- In addition to other penalties, a separate penalty of at least $1,000 and up to $10,000 per violation may be imposed for violations of the QSW provisions.
- When setting penalties, the commissioner will consider the size of the employer, the employer’s good faith, the seriousness of the violation, prior violations, and whether other requirements were violated.
- Compliance orders and enforcement process:
- The commissioner can issue compliance orders requiring employers to follow applicable wage and related requirements and can assess penalties for repeated violations.
- A violation can be deemed repeated if, in the two years before the current violation, the commissioner had issued a final order or a settlement requiring back wages for similar violations.
- Orders can be served in person or by certified mail; employers may object within 15 calendar days, after which a contested case proceeding is held.
- If no objection is filed within 15 days, the order becomes final.
- Contested cases follow existing Minnesota rules (or specific sections) for hearings; the concept of “repeated” violations includes settlements that required back wages.
Definitions and Scope (Key Terms)
- Covered airport or related location: MSP (Minneapolis–St. Paul International Airport), Wold-Chamberlain Field, and MAC-owned property under MAC supervision and control.
- Covered airport or related location worker: any worker meeting the time-and-location criteria described above; excludes independent contractors and certain executive/administrative/professional roles.
- Quality service wage (QSW): the wage-plus-benefits rate determined annually by the commissioner, based on SCA determinations, and adjusted as described.
- Health and welfare benefits rate: portion of compensation to be aligned with SCA requirements.
- Local guard SCA wage determination: wage baseline for security-related positions as applicable.
Enforcement and Accountability
- Repeated violations within two years can trigger higher penalties and compliance orders.
- Contested hearings provide due process for employers challenging orders.
- The enforcement framework references and integrates with existing Minnesota labor standards and SCA-based wage determinations.
Effective Date and Implementation
- The QSW framework starts July 1, 2026, with annual updates on July 1 of each subsequent year.
- Ongoing enforcement capabilities apply to violations of the QSW provisions and related wage rules.
Significant Changes to Existing Law
- Creates a new, separate wage floor (QSW) for workers at covered airports or related locations, tying the wage floor to federal SCA determinations and MAC-based minimums.
- Establishes a defined enforcement mechanism with compliance orders, two-year lookback for “repeated” violations, and formal contested-case procedures.
- Expands the liability to include certain contractors who have assumed subcontractor liability.
- Requires annual adjustment of the health and welfare benefits component in line with SCA and creates a structured penalty scheme for violations.
Relevant Terms - Quality service wage (QSW) - Covered airport or related location - MSP (Minneapolis–St. Paul International Airport) - Wold-Chamberlain Field - Metropolitan Airports Commission (MAC) - McNamara-O’Hara Service Contract Act (SCA) - General Services Administration (GSA) determinations - Health and welfare benefits rate - Local guard SCA wage determination - Compliance orders - Repeated violation - Back wages - Contested case hearing - MAC contracts or licensing agreements - Contractor liability
Past committee meetings
- Labor on: March 12, 2026 12:30
- State and Local Government on: March 26, 2026 00:00
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 02, 2026 | Senate | Action | Introduction and first reading | ||
| March 02, 2026 | Senate | Action | Referred to | Labor | |
| March 17, 2026 | Senate | Action | Comm report: To pass as amended and re-refer to | State and Local Government | |
| March 17, 2026 | Senate | Action | Author added |
Citations
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]Progress through the legislative process
In Committee