MN HF2859

Allows employers to apply gratuities toward minimum wage calculations for employees receiving tips, effective July 1, 2012.

Requires employers to pay tipped employees either $7.25 per hour or the applicable minimum wage rate, whichever ensures total hourly compensation (wages plus gratuities) reaches at least $12 per hour for the pay period.

Modifies Minnesota Statutes section 177.24 to permit gratuity credits under specified conditions while maintaining the general prohibition on applying gratuities toward minimum wage in other circumstances.

Establishes different minimum wage thresholds for large employers ($625,000+ annual gross sales) and small employers (less than $625,000 annual gross sales) under the Minnesota Fair Labor Standards Act.