HF4061 Summary

• Establishes separate minimum wage requirements for employees receiving gratuities, requiring employers to pay $8.00 per hour if gratuities average at least $12.00 per hour combined with base wage, or the higher of state or federal minimum wage if gratuities fall short of $12.00.

• Defines "employee receiving gratuities" as one who customarily and regularly receives more than $30 per month in tips, and requires employers to inform such employees in writing during job interviews with signed acknowledgment.

• Removes the gratuity wage provision for employers with three or more probable cause sexual harassment determinations by the Minnesota Department of Human Rights, requiring them to pay standard minimum wage instead.

• Implements automatic annual minimum wage adjustments beginning January 1, 2018, based on inflation rates (lesser of 2.5% or calculated percentage increase), with commissioner authority to delay increases during economic downturns.

• Adds requirement that credit card, debit card, or charge card gratuities must be fully credited to employees in the pay period received and appear on tip statements.