SF 3612 Summary

• Implements phased-in minimum wage increases for large employers reaching $15/hour by August 1, 2022, and for small employers reaching $13/hour by the same date, with subsequent annual adjustments tied to inflation up to 2.5 percent beginning in 2023.

• Expands child care assistance to cover all low-income workers by removing limits on eligible participants, eliminating waiting lists, and increasing maximum reimbursement rates to the 75th percentile of market rate surveys.

• Increases Minnesota Working Family Tax Credit to 120 percent of the federal earned income tax credit, providing enhanced benefits for low-income workers with and without qualifying children.

• Creates the Minnesota Emergency Employment Development (MEED) Act providing $200 million in fiscal year 2017 to fund temporary employment in government and nonprofit agencies and wage subsidies for private sector job creation, with employer accountability requirements.

• Requires state budget forecasts to include child care assistance program obligations and directs rulemaking to implement program changes.