Raise Employees Wages and Help Them Thrive

 

To mandate pro-rata profit sharing for all businesses operating in Minnesota. This profit sharing would be required only

for businesses reporting a net positive in earnings, and would require a minimum profit-shared contribution of 5% by

employers.

This mandate would be on a by-store basis, meaning that each location of a corporate business or franchisee would have

its own profit shared among that store's employees.

 

According to the Minnesota Department of Labor and Industry, the living wage for just one adult with no kids is $21.25

as of 2025. 16.1% of Minnesota workers earn less than $17 an hour. According to a 2024 report, $17.80 an hour is needed

to afford basic necessities like food, housing, and healthcare.

The issue of these workers barely sustaining themselves is amplified when trying to sustain a family.

 

Profit Sharing: An employer-sponsored benefit where a company distributes a portion of its profits to eligible

employees, often as a retirement plan contribution

Pro Rata: A profit sharing method where all employees, regardless of position in a staff's hierarchy, receive the same

percent share of profit.

Enforcement Division: A division within the Minnesota Department of Commerce consisting of 500 employees tasked with

regulating businesses and enforcing laws related to them.

 

 

Appropriate Department of Commerce general fund appropriations to provide its enforcement division with .3% raises to

properly regulate businesses and supervise their implementation of pro rata.

 

 

If a business’ fiscal year reports don't reflect a pro-rata profit sharing initiative that meets this act’s requirement

of a share of 5% of profit at minimum, said business will be made to pay that minimum share out to its employees and a

fine of that same cumulative amount to the state.

The Enforcement Division of the Department of Commerce will be tasked with regulating this, with its estimated 500

employees getting .3% raises for the additional workload.

Businesses found lowering salaries to negate the cost of sharing profits with employees will be fined

Businesses are already required to submit annual reports with the Minnesota Secretary of State to maintain good

standing, and it is with those that pro rata will be enforced. The Department of Commerce also already has a way for

employees to file complaints, and they can use that to report a lack of compliance with pro rata.

 

 

October 1st, 2026. The beginning of the 2027 fiscal year.