SAINT PAUL, Minn. - Today, the Minnesota House of Representatives passed the 2024 Labor Policy Bill, which includes provisions to enhance worker protections, standardize the minimum wage, ban shadow non-competes, increase pay transparency, and more. The bill passed on a vote of 70-61.
The policy package includes a provision authored by Representative Alicia ‘Liish’ Kozlowski (DFL-Duluth) presented HF 4050, a bill to make changes to the Minnesota Fair Labor Standards Act.
The bill simplifies the minimum wage across all employers by establishing an even floor for minimum wage and revamping the minimum wage from $8.85 to $10.85 for small employers, and employers who utilize youth wage and for J-1 visa holders. Additionally, the bill increases the inflation cap from 2.5% to 5%, which will help hard-working Minnesotans afford their lives and bolster their economic security. Our state must update its laws to ensure that hardworking Minnesotans are dignified and fairly compensated for their labor.
“Minnesota thrives when everyone thrives. Today, we took a step forward updating our laws to ensure they dignify and compensate hardworking Minnesotans equitably for their labor,” said Rep. Liish Kozlowski. “Raising the minimum wage and tying it to inflation boosts earnings, improves health, lowers employee turnover, increases consumer spending, and strengthens our economy. This is the very minimum we can do for the people who are making the very minimum. By ensuring a minimum wage that more accurately reflects the cost of living, we can promote economic security for workers and their families while also strengthening our state's overall economy.
“We are working to finally close the racial and gender wealth gaps and put Minnesotans on more even ground. This is not just about equal pairs for equal work; it's about fostering a culture of economic justice in Minnesota where everyone can contribute, succeed, and thrive. When Minnesotans have the chance to contribute their skills and reach their full potential, we all win. Better wages mean a stronger, more successful economy and future for our state.”
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.
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