Tag Archives: Minnesota

NEW LAW – Minnesota’s Minimum Wage to Increase January 1, 2019

Minnesota employers, mark your calendars.  The Minnesota Department of Labor and Industry recently announced that on January 1, 2018, Minnesota’s minimum wage will increase as follows:

  • Large Employers – minimum wage will increase from $9.65 to $9.86 per hour
  • Small Employers – minimum wage will increase from $7.87 to $8.04 per hour.

For purposes of Minnesota’s minimum wage, the following definitions apply

  • A large employer is an employer with an annual gross sales volume of $500,000 or greater,
  • A small employer is one with an annual gross sales volume of less than $500,000.

The training wage that may be paid to employees 20 years old or younger for their first 90 consecutive days of employment, the youth minimum wage for employees younger than 18 years old, and the “J visa” rates will also increase from $7.87 to $8.04 per hour.

It is recommended that all Minnesota employers prepare for these increases.

Is The Minimum Pay Required For Commissioned Employees To Qualify For An Overtime Exemption Increasing In Your State In 2018?

While the minimum pay required for commissioned employees to qualify for an overtime exemption is not changing in 2018, there are several states where the minimum pay requirements for a “commissioned employee overtime exemption” are increasing.

These increases (i.e. in California, Colorado, Minnesota, Oregon, Washington, and Washington DC) are occurring because the pay an inside or commissioned salesperson must receive to qualify for the inside or “commissioned” sales exemption (as established under state law) are scheduled to increase in 2018 (December 31st for New York employers).

Under the Fair Labor Standards Act (FLSA), in order for a commissioned salesperson to qualify for the FLSA’s 7(i) overtime exception (Commissioned Salesperson Exemption), the following three conditions must be met:

  1. The employee must be employed by a retail or service establishment, and
  2. The employee’s regular rate of pay must exceed one and one-half times the applicable minimum wage for every hour worked in a workweek in which overtime hours are worked, and
  3. More than half the employee’s total earnings in a representative period must consist of commissions.

Unless all three conditions are met, the Commissioned Salesperson Exemption is not applicable, and overtime premium pay must be paid for all hours worked over 40 in a workweek at time and one-half the regular rate of pay.

The below table sets forth the changes to the minimum salary requirements for exempt employees in these states.  In those instances where the state minimum salary requirements are lower than the above-listed FLSA requirements, the higher salary threshold applies for employers who are subject to FLSA in order for employees to qualify for an exemption under the FLSA. Continue reading Is The Minimum Pay Required For Commissioned Employees To Qualify For An Overtime Exemption Increasing In Your State In 2018?

2018 MINIMUM WAGE CHECK-UP

With various cities and counties having enacted local minimum wages and 18 states (Alaska, Arizona, California, Colorado, Florida, Hawaii, Maine, Michigan, Minnesota, Montana, Missouri, New Jersey, New York*, Ohio, Rhode Island, South Dakota, Vermont, Washington) are increasing their own minimum wages on January 1st (December 31st for New York), employers should take time to verify that they are meeting the minimum wage requirements of their state/city/county.

The below chart sets forth the minimum wage effective January 1, 2018.

employer PAYS $1.50/hr towards medical benefits$11.91

Federal $7.25
State City/County  Amount?
Alabama  $7.25
Alaska*  $9.84
Arizona* — all cities/counties except …  $10.50
Flagstaff* $11.00
Arkansas  $8.50
California* — all cities/counties except …                                  small employer (25 or less) $10.50
large employer (26 or more) $11.00
Berkeley  $13.75
Cupertino* $13.50
El Cerrito*  $13.60
Emeryville                                           small employer (55 or less) $14.00
large employer (56 or more) $15.20
Los Altos* $13.50
Los Angeles                                         small employer (25 or less) $10.50
large employer (26 or more) $12.00
Malibu                                                  small employer (25 or less) $10.50
large employer (26 or more) $12.00
Milpitas* $12.00
Mountain View* $15.00
Oakland $12.86
Palo Alto* $13.50
Pasadena                                             small employer (25 or less) $10.50
large employer (26 or more) $12.00
Richmond*                                             employer does NOT pay $1.50/hr towards medical benefits $13.41
employer PAYS $1.50/hr towards medical benefits $11.91
Sacramento*                                      small employer (100 or less) $10.50
large employer (101 or more) $11.00
San Diego $11.50
San Francisco $14.00
San Jose* $13.50
San Leandro $13.00
San Mateo*                                                 For-profit organizations $13.50
Non-profit organizations $12.00
Santa Clara* $13.00
Santa Monica                                       small employer (25 or less) $10.50
large employer (26 or more) $12.00
Sunnyvale* $15.00
Los Angeles County                            small employer (25 or less)

unincorporated areas                            large employer (26 or more)

$10.50

$12.00

Colorado* $10.20
Connecticut $10.10
Delaware $8.25
Florida* $8.25
Georgia $7.25
Hawaii* $10.10
Idaho $7.25
Illinois — all cities/counties except … $8.25
Chicago $11.00
Cook County

(except for the Village of Barrington)

$10.00
Indiana $7.25
Iowa $7.25
Kansas $7.25
Kentucky $7.25
Louisiana $7.25
Maine* — all cities/counties except … $10.00
Portland $10.68
Maryland — all cities/counties except … $9.25
Montgomery County $11.50
Prince George’s County $11.50
Massachusetts $11.00
Michigan* $9.25
Minnesota* — all cities/counties except … “small employers” (employers with an annual sales volume of less than $500,000) $7.87
“large employers” (employers with an annual sales volume of $500,000+) $9.65
Minneapolis                                         large employer (101 or more) $10.00
Mississippi $7.25
Missouri $7.85
Montana* $8.30
Nebraska $9.00
Nevada $8.25
New Hampshire $7.25
New Jersey* $8.60
New Mexico — all cities/counties except … $7.50
Albuquerque*                                             employer provides benefits $7.95
employer does NOT provide benefits $8.95
Las Cruces* $9.45
Santa Fe $11.09
Bernalillo County*unincorporated areas                                             employer provides benefits $7.85
employer does NOT provide benefits $8.85
Santa Fe County unincorporated areas $11.09
New York**  “Upstate” employers (excluding fast food employees) $10.40
“Downstate” employers (excluding fast food employees) $11.00
“Small” NYC employers (excluding fast food employees $12.00
Fast food employees outside NYC $11.75
“Large” NYC employers (excluding fast food employees) $13.00
Fast food employees inside NYC $13.50
North Carolina $7.25
North Dakota $7.25
Ohio* $8.30
Oklahoma $7.25
Oregon — all cities/counties except … $10.25
Portland $11.25
Nonurban Counties 

(Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klmath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa Wheeler counties)

$10.00
Pennsylvania $7.25
Rhode Island* $10.10
South Carolina $7.25
South Dakota* $8.85
Tennessee $7.25
Texas $7.25
Utah $7.25
Vermont* $10.50
Virginia $7.25
Washington* — all cities/counties except … $11.50
City of SeaTac* (hospitality and transportation workers) $15.64
Seattle* $14.00
small employer who does not pay towards medical benefits

(500 or less)

small employer who does pay towards medical benefits

(500 or less)

$11.50
large employer who does not pay towards medical benefits

(501 or more)

$15.00
large employer who does pay towards medical benefits

(501 or more)

$15.45
Tacoma* $12.00
Washington DC $12.50
West Virginia $8.75
Wisconsin $7.25
Wyoming $7.25
 * = increase in minimum wage effective January 1, 2018

** = increase in minimum wage effective December 31, 2017

 

Caveat: Please be advised that this information is being provided as a courtesy and that ePlace Solutions, Inc. does not track local laws and ordinances and will not update this information with changes in local laws and ordinances.

 

 

NEW LAW – Minnesota’s Minimum Wage to Increase January 1, 2018

Minnesota employers, mark your calendars.  The Minnesota Department of Labor and Industry recently announced that on January 1, 2018, Minnesota’s minimum wage will increase as follows:

  • Large Employers – minimum wage will increase from $9.50 to $9.65 per hour
  • Small Employers – minimum wage will increase from $7.75 to $7.87 per hour.

For purposes of Minnesota’s minimum wage, the following definitions apply

  • A large employer is an employer with an annual gross sales volume of $500,000 or greater,
  • A small employer is one with an annual gross sales volume of less than $500,000.

The training wage that may be paid to employees 20 years old or younger for their first 90 consecutive days of employment, the youth minimum wage for employees younger than 18 years old, and the “J visa” rates will also increase from $7.75 to $7.87 per hour.

It is recommended that all Minnesota employers prepare for these increases.

Minneapolis And Saint Paul Employers – Are You Prepared For The New Sick And Safe Leave Laws?

On July 1, 2017, the Minneapolis Sick and Safe Leave Ordinance and the Saint Paul Earned Sick and Safe Time Ordinance go into effect. For the time being, these laws will only be enforced against employers residing within these two cities. Is your business ready for the new law?

Minneapolis Sick and Safe Leave Ordinance

Under this law, all employers who reside in Minneapolis are required to provide employees with 48 hours of sick and safe time per year as follows:

  • Employers with 5 or fewer employees: the sick and safe time may be paid or unpaid (the employer can choose)
  • Employers with 6 or more employees: the sick and safe time must be paid

Sick and safe time may be provided to employees on an “up front” or “accrual” basis.

If an employer chooses to advance (“up front”) the sick and safe time, employers must provide all 48 hours of sick and safe time on July 1st or on an employee’s 90th day of employment. At the beginning of each subsequent calendar year, the employer must advance at least 80 hours of sick and safe time.

If employers choose to use the accrual method, then employees must accrue a minimum of one (1) hour of sick and safe time for every thirty (30) hours worked up to a maximum of forty-eight (48) hours in a calendar year. In addition, employees must be permitted to carry over accrued but unused sick and safe time into the following year until a cap of at least 80 hours is reached.

An employee may use her accrued sick and safe time hours to care for her own health or the health of a family member or member of household, or to address issues caused by domestic violence, sexual harassment, or stalking.

The Sick and Safe Time Ordinance required notice poster must be displayed where employees can easily read it in any/all languages needed by 5% or more of employees. The English version of the poster is available here and all other languages are available here.

Saint Paul Earned Sick and Safe Time Ordinance

Under this law, all employers who reside in Saint Paul are required to provide employees sick and safe time per year as follows:

  • Starting July 1, 2017 — employers with 24 or more employees must provide at least 48 hours of paid sick and safe time on either an “up front” or “accrual” basis.
  • Starting January 1, 2018 employers with 23 or fewer employees must provide at least 48 hours of paid sick and safe time on either an “up front” or “accrual” basis.

If an employer chooses to advance (“up front”) the sick and safe time, employers must provide all 48 hours of sick and safe time on July 1st or on an employee’s 90th day of employment. At the beginning of each subsequent calendar year, the employer must advance at least 80 hours of sick and safe time

If employers choose to use the accrual method, then employees must accrue a minimum of one (1) hour of sick and safe time for every thirty (30) hours worked up to a maximum of forty-eight (48) hours in a calendar year. In addition, employees must be permitted to carry over accrued but unused sick and safe time into the following year until a cap of at least 80 hours is reached.

An employee can use earned sick time for an absence resulting from

  • an employee’s own or an employee’s family member’s mental or physical illness, injury, or health condition;
  • to accommodate the employee’s or an employee’s family member’s need for medical diagnosis, care, or treatment of a mental or physical illness, injury, or health condition; or
  • an employee’s or an employee’s family member’s need for preventive medical care.
  • domestic abuse, sexual assault or stalking of the employee or employee’s family member

The Sick and Safe Time Ordinance required notice poster must be displayed where employees can easily read it. The English version of the poster is available here and all other languages are available here.

Take Home For Employers

The City of Minneapolis and the City of Saint Paul have provided guidance materials (preliminary rules, answers to frequently asked questions, workplace posters, and other resources) to help employers understand these new laws. It is recommended that all employers in these cities review these guidance materials.

DOL Partnership regarding worker misclassification — 34 States and Counting

Thirty-five states have agreed to “team up” with the US Department of Labor to investigate worker misclassification. Is your state one of them?

In 2015, Department of Labor launched an initiative to combat the misclassification of employees as independent contractors. As a part of this initiative, the Department of Labor sought to partner with the state agencies and agree to share information and conduct joint investigations regarding independent contractor misclassification. To date, 35 states have entered into a memorandum of understanding regarding worker misclassification issues.

These states are:

  • Alabama
  • Alaska
  • Arkansas
  • California
  • Colorado
  • Connecticut
  • Florida
  • Hawaii
  • Idaho
  • Illinois
  • Iowa
  • Kentucky
  • Louisiana
  • Maryland
  • Massachusetts
  • Minnesota
  • Missouri
  • Montana
  • Nebraska
  • New Hampshire
  • New Mexico
  • New York
  • North Carolina
  • Oklahoma
  • Oregon
  • Pennsylvania
  • Rhode Island
  • South Dakota
  • Texas
  • Utah
  • Vermont
  • Virginia
  • Washington
  • Wisconsin
  • Wyoming

What does this mean for employers in these states?

Employers in the above-listed states should expect collaborative efforts between their state agencies and the Department of Labor during a investigation into potential employee misclassification as the state and the Department of Labor will share information. This could lead to simultaneous, multi-agency investigations into worker classification. It is recommended that companies have qualified legal counsel review any existing independent contractor arrangements. In addition, before entering into an independent contractor relationship, speak with an HR Professional or qualified legal counsel to verify that the worker truly is an independent contractor.

Coming This Summer … Minimum Wage Increases in 4 states

Summer is rapidly approaching, and minimum wage is increasing in 4 states.

While this increase potentially impacts the hourly rates of your non-exempt workforce, employers should not forget that the salaries of your exempt employees may also be affected.  Specifically, if the salary basis for exempt employees in your state is based on the state minimum wage, then the salaries of some of your exempt employees may need to increase as well.
Check the list below to see if minimum wage is increasing in your state …

Increase effective July 1, 2016

  • Washington DC
    • Minimum wage increases to $11.50 per hour
  • Maryland
    • Minimum wage increases to $8.75 per hour
  • Oregon
    • Minimum wage increases to $9.50 in “non-urban” counties
    • Minimum wage increases to $9.75 in the remainder of the state

Note: the following eighteen Oregon counties are considered “nonurban” counties:

·         Baker ·         Coos ·         Crook
·         Curry ·         Douglas ·         Gilliam
·         Grant ·         Harney ·         Jefferson
·         Klamath ·         Lake ·         Malheur
·         Morrow ·         Sherman ·         Umatilla
·         Union ·         Wallowa ·         Wheeler

Increase effective August 1, 2016

  • Minnesota
    • Minimum wage increases to $9.50 per hour for “large employers” (i.e. employers with an annual sales volume of $500,000 or more)
    • Minimum wage increases to $7.75 per hour for “small employers” (i.e. employers with an annual sales volume of less than $500,000)

New Minnesota Safety and Health Protection on the Job Notice

The Minnesota Department of Labor and Industry has issued a new Safety and Health Protection on the Job notice. All Minnesota employers are required to post this new notice in a conspicuous place in the workplace effective immediately.

The new Safety and Health Protection on the Job notice can be found on the Minnesota Department of Labor and Industry’s website.

New Minimum Wage for Minnesota

As of August 1, 2015, the minimum wage is $9.00/hour in the state of Minnesota for large employers (any enterprise with an annual gross dollar volume of sales made or business done of $500,000 or more) and $7.25/hour for small employers (any enterprise with an annual gross volume of sales made or business done of less than $500,000).

The Minnesota Department of Labor and Industry published an updated minimum wage poster.  All employers are required to display the new poster.

Minnesota Court – Limits Scope of Drug Testing Law

Minnesota’s Drug and Alcohol Testing in the Workplace Act (the Act) prohibits employers doing business in Minnesota from terminating employment following a positive drug-test without a confirmatory test.

In the case at hand, the employee lived in Minnesota but was hired to work for an employer outside of Minnesota.  The employer required that the employee undergo a drug test, which he ultimately failed.  The employee was immediately terminated and no confirming test was administered.  The employee sued claiming that his termination violated the Act.

The court rejected the employee’s claim and held that that Act only applies to employers doing business in Minnesota or where the employment relationship is in Minnesota.  Accordingly, the Act did not apply to this employee and a subsequent confirming test was not required.