Dayton to sign minimum wage increase into law Monday

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Gov. Mark Dayton will sign the minimum wage bill into law Monday afternoon, FOX 9 reports.

The signing ceremony is scheduled for Monday at 2:30 p.m. in the Capitol Rotunda. The event is free and open to the public.

The measure, which cleared the House and Senate last week, will raise the minimum wage to $9.50 per hour for employees at most large businesses.

Currently, Minnesota’s minimum wage is $6.15 per hour, one of the nation’s lowest, although most larger businesses must pay the federal standard of $7.25. The increase to $9.50 will make Minnesota one of the highest minimum-wage states.

More than 357,000 workers will see a raise when the bill is fully implemented, according to the Minnesota Legislature.

Labor, religious and nonprofit groups had urged the wage increase, while restaurant and business groups said it will force them to lay off workers and raise prices.

Here’s a look at the specifics of the bill:

– $9.50 minimum wage for businesses with gross sales over $500,000 in 2016. $8 in August 2014 and $9 in August 2015.

– $7.75 minimum wage for businesses under $500,000 in gross sales in 2016. $6.50 in August 2014 and $7.25 in August 2015.

– The $7.75 minimum wage rate would also apply for large businesses in the following circumstances: 90-day training wage for 18- and 19-year-olds, all 16- and 17-year-old employees working under a J-1 visa.

– Starting in 2018, all wages would increase each year on Jan. 1 by the rate of inflation measured by the implicit price deflator; capped at 2.5 percent.

– Indexed increase could be suspended for one year if there’s a substantial downturn in the economy, pending a public hearing and public comment period.

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