SF671

The legislative bill SF No 671 is designed to update and increase the minimum wage rates in Minnesota. Here's a breakdown of the changes proposed:

1. General Minimum Wage Increases:

   • From August 1, 2025, the minimum hourly wage will be raised to $15.00.
   • It will then increase each year, reaching $16.25 in 2026, $17.50 in 2027, $18.75 in 2028, and $20.00 in 2029.
   • Post 2029, the minimum wage will continue to adjust annually starting from January 1, 2030, based on a formula determined by the commissioner.

2. Youth Employees:

   • Employers can pay workers under 20 years old a lower wage for their first 90 days of employment.
   • This starts at $13.00 per hour in 2025 and increases each year, reaching $14.25 in 2026, $15.50 in 2027, $16.75 in 2028, and $18.00 in 2029.
   • Just like the general minimum wage, the youth rate will also adjust from January 1, 2030, based on annual changes determined by the commissioner.

3. Protection Against Displacement:

   • The bill prohibits employers from displacing existing employees (either fully or partially by reducing their hours, wages, or benefits) to hire others at the new lower youth wage rates.

4. Annual Adjustments Based on Inflation:

   • Every year by August 31, the commissioner is required to adjust the minimum wage rates based on inflation, specifically the implicit price deflator for personal consumption expenditures by the U.S. Department of Commerce.
   • The increase will be capped at the lesser of 5% or the inflation rate, rounded to the nearest cent. Minimum wage rates cannot be reduced under this rule.

Overall, this bill aims to incrementally raise the minimum wage over several years while providing a consistent method for future adjustments based on economic conditions, ensuring that wages keep pace with inflation.