It is looking increasingly likely that the legislature will pass a state minimum wage increase this legislative session.  Minnesota Employers should prepare and budget accordingly.  We previously posted on the complications presented by the fact that Minnesota is not, and likely will not become, a tip credit state.  But a potential “patch” is in the works that could take some of the edge off the impact of the increase on hospitality industry employers.

The Minnesota Restaurant Association has proposed a “stepped” system that would keep certain tip earning employees (those who, with tips, average at least $12 an hour) at the lower federal minimum wage of $7.25 per hour and stepped up to the new state minimum wage over a three-year period.  Whatever the ultimate “patch,” if any, this proposal and others show the state employers’ recognition that legislation will likely be passed raising the minimum wage in Minnesota.

Takeaway:  Minnesota Employers should consider what changes they will need to make if the increased minimum wage law passes.  Please let us know if you have any questions concerning implementation and compliance.