RELEASE: Minnesota House Passes 2024 Labor Policy Bill

NEWS RELEASE 

Minnesota House of Representatives 

DFL House Majority 

FOR IMMEDIATE RELEASE 

CONTACT:  Marlee Schlegel 

651-296-9873 or marlee.schlegel@house.mn.gov 

April 11, 2024 

Minnesota House Passes 2024 Labor Policy Bill 

SAINT PAUL, Minn. - Tonight, the Minnesota House passed the 2024 Labor Policy Bill, which includes provisions to enhance worker protections, strengthen the minimum wage, ban shadow non-competes, increase pay transparency, and more. The bill passed with a vote of 70-61. 

Rep. Michael V. Nelson (DFL – Brooklyn Park), Chair of the House Labor Committee, authored the legislation.  

“Last year we laid a solid foundation for worker protections in Minnesota, and this year, we’re building on that,” said Rep. Nelson. “These policies will put Minnesota workers in a stronger position financially and will close loopholes and gaps that until now, have left workers vulnerable to mistreatment. This bill is a building block, and our work is not done.” 

Notably, the policy package addresses pay transparency, requiring all job postings to list a salary range. This transparency will put jobseekers, especially women, in a stronger negotiating position and help them to identify genuine professional opportunities. It will also help employers attract a larger and better-suited pool of applicants, leading to a better hiring process for both employers and prospective employees. 

The Labor Bill also standardizes the minimum wage and eliminates inconsistencies with minimum wage requirements, and implements the 2024 minimum wage, $10.85 per hour, for all employers and all employees. Legislative action on the minimum wage has not been taken since 2014, when DFLers statutorily increased the minimum wage in three steps from $7.25 per hour to $8 in 2014, to $9 in 2015, and to $9.50 in 2016. Since then, it has increased each year to account for inflation, up to 2.5%. This cap has led to insufficient increases commensurate with the inflation rate. The Labor Policy Bill increases that cap to 5% so that the wage can better keep up with the reality of the cost of living. 

“As a proud union member, I know firsthand that when we lift up our workers, it benefits not just them, but all Minnesotans,” said Rep. Kaela Berg, DFL -- (Burnsville), Vice Chair of the Labor Committee. “By addressing pay transparency, we can help close the gender pay gap, and create a stronger economy for all Minnesotans.” 

The legislation also tackles “shadow non-compete" agreements, a hidden barrier to worker mobility. These restrictive clauses, embedded within service contracts, limit employees' ability to seek and retain jobs in their chosen field and location, often without their knowledge. While traditional non-compete agreements were banned last session, these shadow agreements operate in a similar insidious manner, stifling competition and hindering the development of a strong workforce. By removing these hidden barriers, the bill will empower workers, stimulate competition across industries, and contribute to the development of a skilled and adaptable workforce. 

Shadow non-competes are not the only insidious practice addressed by the Labor Policy Bill; it also repeals a rule that allowed restaurants and other employers to charge servers credit card fees, often taken out of tips. This practice unfairly places operating costs on the backs of employees, who often rely on tips as a significant amount of their income.  

Other notable provisions include increased penalties for employers that violate Child Labor laws, pay standards for publicly funded non-building projects, easier reporting procedures for employers who repeatedly violate OSHA requirements, the requirement of smoke evacuation systems in hospitals for procedures that generate surgical smoke, and more flexibility on workplace drug tests. 

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