HF 1221 exempts reported tip income from Minnesota's individual income tax and employer tax withholding requirements. The bill adds a new definition to state tax law specifying that "tips" include amounts workers report to employers under federal tax rules (IRC 6053(a)) or to the IRS as taxable wages (IRC 3121(q)). This means tipped workers, such as restaurant servers, will no longer have their reported tips counted toward their taxable income for Minnesota state taxes, and employers will not need to withhold state income tax on those amounts. The change takes effect for tax years beginning after December 31, 2024.
HF 1368 exempts tip income from Minnesota's individual income tax and eliminates the requirement for employers to withhold state income tax on tips. This affects service industry workers (such as restaurant servers and bartenders) who earn tips, as these earnings will no longer be included in their taxable income for state tax purposes. The bill amends state tax law to define "tips" as amounts reported to employers under federal guidelines or to the IRS as taxable wages, and removes withholding obligations for these amounts. The change takes effect for tax years beginning after December 31, 2024.
SF 1006 would exempt reported tip income from Minnesota's individual income tax. Specifically, it adds a new "tip income" subtraction to the tax code, meaning tips that workers already report to their employers (as required by federal law) won't be counted as taxable income. This directly affects tipped workers, such as servers and bartenders, who currently report tips to employers under federal rules. The exemption applies to taxable years beginning after December 31, 2024, and does not change how tips are reported to employers or the IRS.
HF 417 modifies Minnesota's individual income tax code to exclude tips (gratuities paid to employees) from taxable income. This change directly affects service industry workers, such as restaurant staff, who receive tips as part of their earnings. The bill amends Minnesota Statutes section 290.0132 by adding a new provision stating that tip amounts are a subtraction from taxable income, meaning these earnings will not be subject to state income tax. The provision takes effect for tax years beginning after December 31, 2024.
This bill makes Minnesota Rules (parts 5200.2060-5200.2090) effective starting January 1, 2026 (or after federal approval), which establish minimum wage standards for nursing home workers. It directly affects nursing home facilities that receive medical assistance payments, as their reimbursement rates from the state will now be tied to these mandated wage standards. The key mechanism links the minimum wage requirements for nursing home staff directly to how much the state reimburses facilities for medical assistance services. This change ensures that facilities receiving public funds must meet specific wage thresholds for their workforce.
SF 3490 establishes minimum salary thresholds for teachers and unlicensed school staff in Minnesota, effective July 1, 2026. It sets a 2026-2027 teacher compensation threshold of $80,000 for master’s degree holders with experience, $100,000 for those with 10+ years of experience, and $60,000 for others, with annual inflation adjustments using the Consumer Price Index. For unlicensed staff, it mandates a $25 hourly wage minimum, also subject to inflation adjustments. The bill includes state aid programs to cover the difference between current salaries and the new thresholds for school districts, requiring districts to pay at least the established minimums for both teachers and unlicensed staff.
This bill makes Minnesota's existing Nursing Home Workforce Standards Board rule (published October 2024) effective starting January 1, 2026, or after federal approval. The rule establishes minimum wage standards for nursing home workers and links these standards to medical assistance reimbursement rates paid to nursing homes. Nursing homes receiving state medical assistance funding will directly be affected, as their reimbursement rates will be adjusted based on compliance with these minimum wage requirements. The change focuses on aligning worker compensation with state payment systems for long-term care facilities.
This bill increases Minnesota's minimum wage to $15.00 per hour starting August 1, 2025, with incremental rises to $20.00 per hour by August 1, 2029. It establishes an automatic annual adjustment for the minimum wage beginning January 1, 2030, tied to national inflation data (capped at 5% annually). The bill also maintains a lower starting wage for employees under 20 years old during their first 90 days of employment. These changes apply to all employers in Minnesota subject to state minimum wage requirements.
This bill prohibits Minnesota's Commissioner of Human Services from changing current policies that limit access to day services or special minimum wage options for people receiving disability waivers. It specifically blocks the commissioner from adopting rules or policies that would reduce or eliminate available day services or restrict participation in special minimum wage programs (like federal 14(c) certificates or state permits). The law ensures waiver recipients aged 18-65 continue to have the option to work for competitive wages before being directed solely to day services. It directly affects individuals receiving disability waiver services under Minnesota's human services system.
HF 1671 updates Minnesota labor laws by prohibiting employers from paying workers with disabilities less than the state's minimum wage after specific dates (August 1, 2026 for new hires, August 1, 2028 for existing employees), regardless of federal "special certificate" status. It also establishes detailed requirements for internet-based continuing education courses, mandating security protocols, interactivity standards, and specific technical features like encryption and identity verification. These changes directly affect employers hiring people with disabilities and training providers offering online courses for professions like manufactured home installers and elevator constructors. The bill modifies existing statutes (177.24, 177.27, 326B.0981, etc.) and repeals outdated sections.
