Quality service wage for covered airport or related location workers required, and penalties provided.

A bill for an act

relating to employment; requiring a quality service wage for covered airport or

related location workers; providing penalties; amending Minnesota Statutes 2024,

section 177.27, subdivision 4; proposing coding for new law in Minnesota Statutes,

chapter 181.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 177.27, subdivision 4, is amended to read:

Subd. 4.

Compliance orders.

The commissioner may issue an order requiring an

employer to comply with sections
177.21
to
177.435
, 177.50,
179.86
,
181.02
,
181.03
,

181.031
,
181.032
,
181.10
,
181.101
,
181.11
,
181.13
,
181.14
,
181.145
,
181.15, 181.165,

181.172, paragraph (a) or (d),
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181.174,
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181.214 to 181.217, 181.275, subdivision 2a
,
181.635
,

181.64
,
181.722
, 181.723, 181.79,
181.85
to
181.89
, 181.939 to 181.943, 181.9445 to

181.9448,
181.987
, 181.991, 268B.09, subdivisions 1 to 6, and 268B.14, subdivision 3,

with any rule promulgated under section
177.28
,
181.213
, or
181.215
. The commissioner

shall issue an order requiring an employer to comply with sections
177.41
to
177.435
,

181.165, or
181.987
if the violation is repeated. For purposes of this subdivision only, a

violation is repeated if at any time during the two years that preceded the date of violation,

the commissioner issued an order to the employer for violation of sections
177.41
to
177.435
,

181.165, or
181.987
and the order is final or the commissioner and the employer have

entered into a settlement agreement that required the employer to pay back wages that were

required by sections
177.41
to
177.435
. The department shall serve the order upon the

employer or the employer's authorized representative in person or by certified mail at the

employer's place of business. An employer who wishes to contest the order must file written

notice of objection to the order with the commissioner within 15 calendar days after being

served with the order. A contested case proceeding must then be held in accordance with

sections
14.57
to
14.69
or 181.165. If, within 15 calendar days after being served with the

order, the employer fails to file a written notice of objection with the commissioner, the

order becomes a final order of the commissioner. For the purposes of this subdivision, an

employer includes a contractor that has assumed a subcontractor's liability within the meaning

of section 181.165.

Sec. 2.

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[181.174] QUALITY SERVICE WAGE.

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Subdivision 1.

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Definitions.

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(a) For the purposes of this section, the following terms have

the meanings given.

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(b) "Covered airport or related location" means the Minneapolis-St. Paul International

Airport, Wold-Chamberlain Field, or a public airport under the supervision, operation,

direction, and control of the Metropolitan Airports Commission, including all property

owned by the Metropolitan Airports Commission at Minneapolis-St. Paul International

Airport.

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(c) "Covered airport or related location employer" or "employer" means:

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(1) any person, corporation, limited liability company, or association employing any

covered airport or related location worker in an occupation, industry, trade, business or

service; or

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(2) any person who contracts with a person to perform work related to the preparation

or delivery of food for consumption on airplanes departing from a covered airport or related

location.

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Covered airport or related location employer does not include the United States government;

the Metropolitan Airports Commission; or other state, county, or local political subdivision.

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(d) "Covered airport or related location worker" means:

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(1) any person employed to perform work at a covered airport or related location, provided

at least half of the employee's time during any workweek is performed at a covered airport

and related location; or

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(2) any person who performs work related to the preparation or delivery of food for

consumption on airplanes departing from a covered airport or related location.

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Covered airport or related location worker does not include independent contractors or

persons employed in an executive, administrative, or professional capacity.

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(e) "Quality service wage" or "QSW" means the combined hourly wage rate and benefit

rate designated by the commissioner to be the QSW. The QSW must be based on the

determinations made by the General Services Administration pursuant to the federal

McNamara-O'Hara Service Contract Act, United States Code, title 41, section 6701 to 6707,

for the applicable localities and job classifications of employees. Effective July 1, 2026,

and each July 1 thereafter, the quality service wage applicable to a covered airport must not

be less than the following:

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(1) any otherwise applicable minimum wage rate established by or through the

Metropolitan Airports Commission (MAC), including through MAC contracts or licensing

agreements;

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(2) the amount of wages or supplements equal to the rate for health and welfare for all

occupations, designated by the commissioner of labor and industry based on the

determinations made by the federal Department of Labor pursuant to the McNamara-O'Hara

Service Contract Act (SCA) requirements under United States Code, title 41, sections 6701

to 6707, for the geographic region in which the covered airport location is located and in

effect on the date of the designation by the commissioner; and

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(3) the local guard SCA wage determination, as applicable.

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Subd. 2.

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Quality service wage requirements.

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Beginning ....., 2026, each covered airport

or related location employer must pay a covered airport or related location worker a wage

of not less than the quality service wage applicable to that covered airport or related location

worker.

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Subd. 3.

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Supplemental benefits rate.

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The amount of wages or supplements equal to

the rate for health and welfare benefits must be adjusted annually to the rate provided

pursuant to the McNamara-O'Hara Service Contract Act (SCA) requirements under United

States Code, title 41, sections 6701 to 6707.

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Subd. 4.

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Penalty.

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(a) In addition to any penalties provided under section 177.27,

subdivision 7, the commissioner may issue a penalty to the employer of not less than $1,000

and not more than $10,000 per violation of this section.

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(b) In assessing the amount of the penalty under paragraph (a), the commissioner shall

consider the size of the covered airport or related location, employer's business, the good

faith of the covered airport or related location employer, the gravity of the violation, the

history of previous violations, and the failure to comply with other requirements.

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