Minnesota passes minimum wage increase, $9.50 by 2016 - KMSP-TV

Minnesota passes minimum wage increase, $9.50 by 2016

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ST. PAUL, Minn. (KMSP) -

The Minnesota House passed a minimum wage bill on a 71-60 vote Thursday afternoon and Gov. Mark Dayton is set to sign it.

The bill, which cleared the Senate on Wednesday, will raise the minimum wage to $9.50 for large companies in a series of phases, and is indexed to inflation.


August 2014: Minimum wage climbs to $8 per hour

August 2015: Minimum wage climbs to $9.00 per hour

August 2016: Minimum wage climbs to $9.50 per hour, can rise through inflation starting in 2018


Quote of the day from Rep. Tom Anzelc (DFL) on the House floor: "I'll be brief because I want to go home."


Last week, the House and Senate agreed to phase in the hike by 2016, which means most large businesses would have to pay employees $9.50 an hour at that time.

Lawmakers agreed to index the minimum wage for inflation starting in 2018 with an annual cap of 2.5 percent, so in the first year of inflation, a worker could make $9.74 an hour at the most.

Minnesota's lower minimum wage would stay intact for small companies with annual gross sales below $500,000. For those companies, minimum wage would top out at $7.75 in 2016.

"I congratulate the House and Senate leaders for reaching agreement on Minimum Wage legislation. I am very pleased that it will raise Minnesota's minimum wage to $9.50 per hour, and index it to inflation. I look forward to signing this legislation into law," Gov. Mark Dayton said in a news release.

At the last conference committee session, the House offered an inflator mechanism that measures inflation based upon growth in gross domestic product (GDP) instead of the consumer price index (CPI). Senate negotiators still rejected it.

EXPLAINER: Minnesota minimum wage negotiations

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