Labor & Employment (Minimum Wage)

Minnesota's SF 1052 prohibits employers from paying subminimum wages to people with disabilities under any circumstances. Effective August 1, 2025, new hires cannot be paid below the state minimum wage regardless of special certificates, and by August 1, 2027, all current employees must receive at least the state minimum wage. The bill requires home and community-based service providers to report data on individuals previously paid subminimum wages (including name, disability type, and employment status) annually, with privacy protections. It also appropriates $38,000 in 2026 and $75,000 in 2027 to update the MnCHOICES system for employment-related features. This directly affects employers providing services under Minnesota's disability support programs.

Minnesota Senate File 2053 (SF 2053) requires the state Commissioner of Human Services to submit a report by March 15, 2027, detailing cost calculations for proposed wage and benefit increases in collective bargaining agreements between the state and direct support service providers. The report must estimate reimbursement rates, including costs for wage floor increases, paid time off adjustments, holiday pay, benefits, and related tax impacts (like FICA and unemployment taxes) for all providers. It mandates that the commissioner assume all providers would receive full rate increases equal to proposed changes, without assuming any cost absorption by employers. This bill directly affects human services providers in covered programs and the state’s budgeting process for implementing future agreements.

HF 1851 requires Minnesota's Commissioner of Employment and Economic Development to submit annual reports starting January 15, 2026, on organizations receiving workforce development grants. The reports must detail each grant's purpose, amount, the number of Minnesotans served and placed in living wage jobs, and cost-effectiveness metrics like how much grant money was used per job placement. If grants were used for non-Minnesotans, the report must explain why. These reports will be sent to relevant legislative committees, with exceptions for organizations without measurable outcomes.

HF 689 allows county attorneys to use official orders (administrative subpoenas) to obtain specific records during wage theft investigations. The bill amends Minnesota law to let county attorneys subpoena payroll, banking, and financial records from employers, including documents required under state labor laws. This directly affects employers facing wage theft allegations and county attorneys conducting these investigations. The change takes effect August 1, 2025, and applies only to business records, not private individuals' personal information.

This bill requires Minnesota employers to pay non-exempt employees 1.5 times their regular hourly rate for work performed on designated holidays. It directly affects hourly workers who work on holidays recognized under Minnesota law (as defined in section 645.44, subdivision 5). The key provision amends state labor law to mandate this premium pay rate for holiday work, rather than requiring overtime pay only for hours worked beyond 40 in a week. The change applies to all covered employees in Minnesota workplaces under the state's overtime rules.

HF 3068 requires staffing services in Minnesota to pay employees wages for canceled assignments if the employee reasonably relied on the placement for a shift or day. This directly affects temporary workers hired through staffing agencies who lose assignments after preparing to work. The bill amends Minnesota Statutes 2024, section 181.03, to mandate payment regardless of whether the assignment is completed. It applies specifically to staffing services defined under state law and takes effect upon final enactment.