Local Government Minimum Wage

Minimum wage - local government to establish - limitations - enforcement - reports - eligible nursing facility provider reimbursement. The act allows a unit of local government to establish a minimum wage for individuals performing, or expected to perform, 4 or more hours of work for an employer in the local government's jurisdiction.

A minimum wage established by a local government is subject to the following limitations:

• Prior to enacting a minimum wage law, the local government is required to consult with surrounding local governments and various stakeholders;
• A minimum wage established by a local government must provide a tip offset equal to the tip offset provided in the state constitution;
• The minimum wage law must not apply to time spent in a local government's jurisdiction solely for the purpose of traveling through the jurisdiction to a destination outside of the local government's boundaries;
• All employed adult employees and emancipated minors shall be paid not less than the enacted minimum wage;
• A local minimum wage increase must take effect on the same date as a scheduled increase to the statewide minimum wage; and
• If a local minimum wage exceeds the statewide minimum wage, the local government may only increase the local minimum wage each year by up to $1.75 or 15%, whichever is higher.

A local government that enacts a minimum wage law may adopt provisions for the local enforcement of the law.

By July 1, 2021, the executive director of the department of labor and employment is required to issue a written report regarding local minimum wage laws in the state. If notified by the executive director of the department of labor and employment that a local government has enacted a minimum wage that exceeds the statewide minimum wage, the executive director of the department of health care policy and financing is required to submit a report to the joint budget committee with certain recommendations related to provider rates.

If 10% of local governments enact local minimum wage laws, a local government that has not enacted a local minimum wage law is prohibited from enacting a local minimum wage law until the general assembly has given authorization for additional local minimum wage laws by amending this act.

The executive director of the department of health care policy and financing is required to establish a process for eligible nursing facility providers to apply for a local minimum wage enhancement payment to be used to increase the compensation of its employees whenever a local government increases its minimum wage above the statewide minimum wage.

(Note: This summary applies to this bill as enacted.)