AB477: Bill Text

LRB-3469/1

GMM:jlg:mrc

1999 - 2000 LEGISLATURE

1999 Assembly BILL 477

September 20, 1999 - Introduced by Representatives Balow, Black, Sinicki, Young, Plouff, Boyle, Pocan, Krug, Hasenohrl, Riley, Bock, J. Lehman, Ryba, Colon, Miller, Turner, Morris-Tatum, Coggs and Meyerhofer, cosponsored by Senators Chvala, Moen, Jauch, Erpenbach and Decker. Referred to Committee on Labor and Employment.

AB477,1,9 An Act to renumber and amend 104.045, 104.08 (1), 104.08 (2) and 104.08 (3); to amend 49.141 (1) (g), 104.01 (intro.), 104.01 (5), 104.01 (8), 104.02, 104.03, 104.04, 104.05, 104.06, 104.07 (1), 104.07 (2), 104.10, 104.11, 104.12, 234.94 (5), 234.94 (8), 800.09 (1) (b), 800.095 (4) (b) 3. and 895.035 (2m) (c); and to create 104.01 (5m), 104.01 (5p), 104.01 (7m), 104.035, 104.045 (2) and (3) and 104.08 (1) (b) of the statutes; relating to: a state minimum wage, providing an exemption from emergency rule procedures, providing an exemption from rule-making procedures, granting rule-making authority and providing a penalty.

Analysis by the Legislative Reference Bureau

Currently, the state minimum wage law requires that employers pay a living wage to their employes. Under that law, the department of workforce development (DWD) has provided, by rule, minimum hourly wages for various classes of employment as follows: - See PDF for table

Also under current law, DWD has provided, by rule, separate minimum wage rates for counselors at recreational or educational camps, employes who perform less than 15 hours a week of casual employment, such as baby sitting or lawn mowing, in and around an employer's home, employes hired as personal companions for elderly or disabled individuals, golf caddies, students employed at independent colleges and universities, student learners employed in bona fide school training programs and individuals who are unable to earn the standard minimum wage because of a disability.

Under this bill, DWD will continue to provide, by rule, separate minimum wage rates for camp counselors, persons in casual employment, personal companions, golf caddies, independent college and university students, student learners and those who are unable to earn the standard minimum wage because of a disability. For other employes, however, including agricultural employes and tipped employes, the bill provides the method by which DWD must calculate the minimum wage.

Specifically, for employes generally, that is, employes who are not agricultural employes, tipped employes, opportunity employes (defined in the bill as employes under 20 years of age who have been employed for a cumulative total of 30 calendar days or less within the preceding three-year period) or employes for whom DWD provides a separate minimum wage, the bill directs DWD to calculate the minimum hourly wage by dividing the federal poverty line for a family of three persons (federal poverty line) (currently $13,650 per year), by 2,080 (52 weeks in a year times 40 hours per week), and rounding the quotient to the nearest multiple of five cents. Accordingly, at the current federal poverty line, this bill raises the minimum wage for employes generally to $6.55 per hour.

For other employes, the bill directs DWD to calculate the minimum hourly wage by multiplying the result obtained under the previous paragraph as follows:

1. For opportunity employes, by 92.9% and rounding the product to the nearest multiple of five cents, resulting in a minimum wage of $6.10 per hour when calculated based on the current federal poverty line.

2. For tipped employes who are not opportunity employes, by 54.8% and rounding the product to the nearest multiple of five cents, resulting in a minimum wage of $3.55 per hour when calculated based on the current poverty line.

3. For tipped employes who are opportunity employes, by 51.7% and rounding the product to the nearest multiple of five cents, resulting in a minimum wage of $3.40 per hour when calculated based on the current poverty line.

4. For agricultural employes 18 years of age or over, by 95.3% and rounding the product to the nearest multiple of five cents, resulting in a minimum wage of $6.25 per hour when calculated based on the current poverty line.

5. For agricultural employes under 18 years of age, by 87.0% and rounding the product to the nearest multiple of five cents, resulting in a minimum wage of $5.70 per hour when calculated based on the current poverty line.

The bill further requires DWD to revise the minimum wages specified above annually within 30 days after the federal department of health and human services publishes its annual revision of the poverty line.

Finally, current law requires DWD, in determining the living wage, to consider the effect that an increase in the living wage might have on the economy of this state, including the effect of such an increase on job creation, retention and expansion, on the availability of entry level jobs and on regional economic conditions within this state. This bill eliminates that requirement.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB477, s. 1 Section 1. 49.141 (1) (g) of the statutes is amended to read:

AB477,3,4 49.141 (1) (g) "Minimum wage" means the state minimum hourly wage under ch. 104 s. 104.035 (2) or the federal minimum hourly wage under 29 USC 206 (a) (1), whichever is applicable.

AB477, s. 2 Section 2. 104.01 (intro.) of the statutes is amended to read:

AB477,3,7 104.01 Definitions. (intro.) The following terms as used in ss. 104.01 to 104.12 shall be construed as follows In this chapter:

AB477, s. 3 Section 3. 104.01 (5) of the statutes is amended to read:

AB477,4,2 104.01 (5) The term "living-wage" shall mean "Living wage" means compensation for labor paid, whether by time, piecework or otherwise, sufficient to enable the employe receiving it to maintain himself or herself under conditions consistent with his or her welfare.

AB477, s. 4 Section 4. 104.01 (5m) of the statutes is created to read:

AB477,4,6 104.01 (5m) "Opportunity employe" means a person under 20 years of age who has been employed for a cumulative total of 30 calendar days or less within the preceding 3-year period.

AB477, s. 5 Section 5. 104.01 (5p) of the statutes is created to read:

AB477,4,10 104.01 (5p) "Poverty line" means the poverty guidelines for the continental United States, as revised annually by the federal department of health and human services under 42 USC 9902 (2).

AB477, s. 6 Section 6. 104.01 (7m) of the statutes is created to read:

AB477,4,14 104.01 (7m) "Tipped employe" means an employe who in the course of employment customarily and regularly receives money or other gratuities from persons other than the employe's employer.

AB477, s. 7 Section 7. 104.01 (8) of the statutes is amended to read:

AB477,4,17 104.01 (8) The term "wage" and the term "wages" shall each mean "Wage" means any compensation for labor measured by time, piece or otherwise.

AB477, s. 8 Section 8. 104.02 of the statutes is amended to read:

AB477,4,21 104.02 Living-wage prescribed Living wage required. Every wage paid or agreed to be paid by any employer to any employe, except as otherwise provided in s. 104.07, shall be not less than a living-wage living wage.

AB477, s. 9 Section 9. 104.03 of the statutes is amended to read:

AB477,4,25 104.03 Unlawful wages. Any employer paying, offering to pay, or agreeing to pay any employe a wage lower or less in value than a living-wage living wage is guilty of a violation of ss. 104.01 to 104.12 this chapter.

AB477, s. 10 Section 10. 104.035 of the statutes is created to read:

AB477,5,15 104.035 Minimum wage. (1) Department to promulgate rules. The department shall promulgate rules providing minimum hourly wages for the employes specified in subs. (2) to (5). The department shall calculate those minimum hourly wages according to the methods specified in subs. (2) to (5). Annually, within 30 days after the federal department of health and human services publishes its annual revision of the poverty line, the department, using the procedure under s. 227.24 and the methods specified in subs. (2) to (5), shall promulgate rules revising the minimum hourly wages provided under subs. (2) to (5). Notwithstanding s. 227.24 (1) (a) and (2) (b), the department is not required to provide evidence of the necessity of preserving the public peace, health, safety or welfare in promulgating rules revising the minimum wages provided under subs. (2) to (5). A revised minimum wage provided under subs. (2) to (5) shall first apply to wages earned beginning on the first day of the first month beginning after the date on which that minimum wage is revised.

AB477,5,19 (2) Employes generally. Subject to the minimum wages provided under subs. (3) to (7), the department shall calculate the minimum hourly wage for employes generally by dividing the poverty line for a family of 3 persons by 2,080 and rounding the quotient to the nearest multiple of 5 cents.

AB477,5,24 (3) Opportunity employes. Notwithstanding the minimum wage provided under sub. (2), but subject to the minimum wages provided under subs. (4) to (7), the department shall calculate the minimum wage for opportunity employes by multiplying the result obtained under sub. (2) by 92.9% and rounding the product to the nearest multiple of 5 cents.

AB477,6,3 (4) Tipped employes. (a) Notwithstanding the minimum wages provided under subs. (2) and (3), but subject to the minimum wages provided under subs. (5) to (7), the department shall calculate the minimum wage for tipped employes as follows:

AB477,6,6 1. For persons who are not opportunity employes, by multiplying the result obtained under sub. (2) by 54.8% and rounding the product to the nearest multiple of 5 cents.

AB477,6,9 2. For persons who are opportunity employes, by multiplying the result obtained under sub. (2) by 51.7% and rounding the product to the nearest multiple of 5 cents.

AB477,6,14 (b) An employer may pay the minimum wages specified in par. (a) only if the employer establishes by the employer's payroll records that, when adding the tips received by an employe to the wages under par. (a) paid to that employe, the employe receives not less than the minimum wage specified in sub. (2) or (3), whichever is applicable.

AB477,6,22 (5) Agricultural employes. Notwithstanding the minimum wages provided under subs. (2) to (4), but subject to the minimum wages provided under subs. (6) and (7), the department shall calculate the minimum wage for persons 18 years of age or over who are agricultural employes by multiplying the result obtained under sub. (2) by 95.3% and rounding the product to the nearest multiple of 5 cents and shall calculate the minimum wage for persons under 18 years of age who are agricultural employes by multiplying the result obtained under sub. (2) by 87.0% and rounding the product to the nearest multiple of 5 cents.

AB477,6,24 (6) Minimum wage established by department. The department shall promulgate rules providing the minimum wage for all of the following: