SF2532

Purpose

To require premium pay for work performed by employees on holidays, by adding a specific holiday work provision to Minnesota’s overtime pay law.

Main provisions

• Adds Subdivision 1a to Minnesota Statutes 2024 section 177.25, titled Holidays.
• Content: Work performed by an employee on a holiday (as defined in section 645.44 subdivision 5) must be compensated by the employer at a rate of at least 112 times the regular rate of pay at which the employee is employed.
• Holidays are defined as in section 645.44 subdivision 5.

Significant changes to existing law

• Creates a new holiday-related premium pay requirement within the state’s overtime statute (Minnesota Statutes 2024 section 177.25) by adding Subd. 1a, Holidays.
• Establishes a specific premium multiplier for holiday work, enhancing or altering how holiday work is paid relative to the employee’s regular wage.

Potential effects and considerations

• Employers would need to adjust payroll practices to ensure holiday work is paid at the specified premium rate.
• Employees working on holidays would receive a defined premium in addition to or instead of existing overtime, depending on how the new provision interacts with current overtime rules.
• The exact impact depends on how “112 times the regular rate” is interpreted in practice (the text provided may reflect a formatting issue; the intended multiplier should be clarified in the final bill).

Terminology emphasis (for clarity)

• Holiday
• Holidays definition (645.44 subdivision 5)
• Regular rate of pay
• Overtime and premium pay
• Minnesota Statutes 2024 section 177.25
• Subdivision 1a

Relevant Terms - Holidays - Holiday work - Regular rate of pay - Premium pay - Overtime pay - Minnesota Statutes 2024 section 177.25 - Subd. 1a - Section 645.44 subdivision 5