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As expected, the Republican-controlled Minnesota House of Representatives late Monday night passed a bill that allows workers who make more than $4 an hour in tips to be paid a lower minimum wage than is required under current state statute.
For three hours, the house debated a slew of amendments and then debated the actual bill which passed by a 78 to 55 vote.
The bill was sponsored by Rep. Pat Garofolo from Farmington and supported by every member of the Republican caucus. However, it has probably seen its moment in the sun for this legislative session as virtually every observer at the state legislature is convinced it will get nowhere in the DFL-controlled Senate. Even if by miracle, it passed out of there, Gov. Mark Dayton has said he would veto it.
The bill primarily focuses in on workers who get tips as part of their jobs, mostly wait staff in restaurants and bars. Strongly backed by the Minnesota Restaurants Association, it would — if it became law — cap the minimum wage at the current $8 an hour and would apply only if a worker earned at least $12 an hour over a two week period when factoring in tips. If not, the worker would earn the prevailing minimum wage.
In the 2014 legislative session, the DFL, which controlled both chambers of the legislature and the governor’s office, passed a three-phase minimum wage bill that became law. The first phase which went into effect last year, sets the minimum wage in Minnesota at $8 an hour. That will rise to $9 an hour next year and then indexing relative to inflation will kick in starting in 2018.
For those reasons, labor unions and workers who receive tips argue that the Republican bill would freeze wages the cost of living increases.
Republicans and restaurant owners say the current law increases labor costs, forces layoffs and will lead to more automated or non-server operations in eating and drinking establishments.
Approximately a dozen-and-a-half amendments from the DFL were offered. Most were voted down. However, three provisions did pass muster. One was to require more disclosure to potential employees on the details of the minimum wage / tips structure. The second was to protect workers from sexual harassment and the third would allow workers to keep all tips offered on credit cards.
According to Kris Fredson from the Minnesota AFL-CIO, earlier in the mid-afternoon, approximately one hundred pro worker and union rank n’ file were at the capitol to voice disapproval of the bill. Originally, the debate on the bill was to take place starting at 3:30, but the house voted to begin debate at 7:15.