LRB-3831/1
GMM:kjf:jm
2013 - 2014 LEGISLATURE
February 3, 2014 - Introduced by Representative Sinicki. Referred to Committee
on Labor.
AB720,1,9 1An Act to renumber 104.01 (1); to renumber and amend 104.045; to amend
249.141 (1) (g), 103.67 (2) (fm) 3., 103.70 (2) (b) 3., 104.01 (intro.), 104.01 (8),
3104.04, 104.05, 104.07 (1), 104.07 (2), 104.10, 104.11, 234.94 (5), 234.94 (8),
4800.09 (1j), 800.095 (1) (d) and 895.035 (2m) (c); to repeal and recreate
5104.06; and to create 15.227 (1), 19.85 (1) (ej), 104.01 (1d), 104.01 (1g), 104.01
6(5m), 104.01 (7m), 104.035 and 104.045 (2) and (3) of the statutes; relating to:
7creation of a wage council to study and make recommendations concerning
8increases in the living wage, increasing the state minimum wage, and granting
9rule-making authority.
Analysis by the Legislative Reference Bureau
Under the current state minimum wage law, employers are required to pay to
their employees a living wage, which is defined as compensation that is sufficient to
enable an employee to maintain himself or herself under conditions consistent with
his or her welfare. Under that law, the Department of Workforce Development
(DWD) is required to investigate and determine the living wage. If, upon
investigation, DWD finds that there is reasonable cause to believe that the wages
paid to any employee are not a living wage, DWD must appoint a wage council,

selected so as fairly to represent employers, employees, and the public, to assist DWD
in its investigations and determinations. In determining the living wage, DWD may
consider the effect that an increase in the living wage might have on the economy of
the state, including the effect of a living wage increase on job creation, retention, and
expansion; on the availability of entry-level jobs; and on regional economic
conditions within the state.
This bill creates a permanent wage council in DWD and requires the wage
council, early in each regular session of the legislature, to convene for the purpose
of studying the need for an increase in the living wage and making recommendations
to DWD for any changes in the living wage that may be necessary to ensure that the
wages paid to any employee are a living wage. The wage council, in conducting that
study and making those recommendations, and DWD, in revising the living wage,
must consider: 1) any changes in the consumer price index; 2) the effect of those
changes on the real income of employees in this state; and 3) the effect that an
increase in the living wage might have on the economy of the state, including the
effect of a living wage increase on job creation, retention, and expansion; on the
availability of entry-level jobs; and on regional economic conditions within the state.
If DWD approves the findings and recommendations of the wage council, DWD may
promulgate rules to revise the living wage.
In addition, the bill specifies that the biennial living wage revision procedure
created under the bill does not preclude DWD from convening the wage council at
other times during the regular session of the legislature if, upon investigation, DWD
finds that there is reasonable cause to believe that the wages paid to any employee
are not a living wage. If DWD so convenes the wage council, the wage council so
convened must study the need for an increase in the living wage and report its
recommendations as provided in the bill.
Finally, the bill increases the minimum wage for employees generally,
beginning on January 1, 2015, from $7.25 per hour to $8 per hour or an amount
determined by DWD by rule, whichever is greater.
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:
AB720,1 1Section 1. 15.227 (1) of the statutes is created to read:
AB720,2,32 15.227 (1) Wage council. There is created in the department of workforce
3development a wage council consisting of all of the following members:
AB720,3,3
1(a) Five representatives of employers, including a representative of an
2association that is primarily composed of small businesses, appointed by the
3secretary of workforce development for 3-year terms.
AB720,3,54 (b) Five representatives of employees appointed by the secretary of workforce
5development for 3-year terms.
AB720,3,96 (c) The chairpersons and ranking minority party members of one senate
7standing committee and one assembly standing committee concerned with labor
8issues, appointed as are the members of standing committees in their respective
9houses.
AB720,3,1210 (d) Five representatives of the public interest who do not have the
11qualifications of the members described in pars. (a) to (c) appointed by the secretary
12of workforce development for 3-year terms.
AB720,2 13Section 2. 19.85 (1) (ej) of the statutes is created to read:
AB720,3,1614 19.85 (1) (ej) Deliberating by the wage council in a meeting at which all
15employer members of the council or all employee members of the council are
16excluded.
AB720,3 17Section 3. 49.141 (1) (g) of the statutes is amended to read:
AB720,3,2018 49.141 (1) (g) "Minimum wage" means the state minimum hourly wage under
19ch. 104 s. 104.035 (1) or the federal minimum hourly wage under 29 USC 206 (a) (1),
20whichever is applicable.
AB720,4 21Section 4. 103.67 (2) (fm) 3. of the statutes is amended to read:
AB720,3,2322 103.67 (2) (fm) 3. The minor is paid the applicable minimum wage under ch.
23104
s. 104.035 or under federal law, whichever is greater, for the work.
AB720,5 24Section 5. 103.70 (2) (b) 3. of the statutes is amended to read:
AB720,4,2
1103.70 (2) (b) 3. The minor is paid the applicable minimum wage under ch. 104
2s. 104.035 or under federal law, whichever is greater, for the work.
AB720,6 3Section 6. 104.01 (intro.) of the statutes is amended to read:
AB720,4,5 4104.01 Definitions. (intro.) The following terms as used in In this chapter
5shall be construed as follows:
AB720,7 6Section 7. 104.01 (1) of the statutes is renumbered 104.01 (1m).
AB720,8 7Section 8. 104.01 (1d) of the statutes is created to read:
AB720,4,98 104.01 (1d) "Agricultural employee" means an employee who is employed in
9the operation of farm premises, as described in s. 102.04 (3).
AB720,9 10Section 9. 104.01 (1g) of the statutes is created to read:
AB720,4,1411 104.01 (1g) "Consumer price index" means the average of the consumer price
12index over each 12-month period for all urban consumers, U.S. city average, all
13items, not seasonally adjusted, as determined by the bureau of labor statistics of the
14federal department of labor.
AB720,10 15Section 10. 104.01 (5m) of the statutes is created to read:
AB720,4,1716 104.01 (5m) "Opportunity employee" means a person under 20 years of age who
17is in the first 90 consecutive days of employment with his or her employer.
AB720,11 18Section 11. 104.01 (7m) of the statutes is created to read:
AB720,4,2119 104.01 (7m) "Tipped employee" means an employee who in the course of
20employment customarily and regularly receives money or other gratuities from
21persons other than the employee's employer.
AB720,12 22Section 12. 104.01 (8) of the statutes is amended to read:
AB720,4,2423 104.01 (8) The term "wage" and the term "wages" shall each mean "Wage"
24means
any compensation for labor measured by time, piece, or otherwise.
AB720,13 25Section 13. 104.035 of the statutes is created to read:
AB720,5,4
1104.035 Minimum wage. (1) Employees generally. Except as provided in
2subs. (2) and (3), the minimum wage for wages earned beginning on January 1, 2015,
3is $8 per hour or the amount determined by the department by rule promulgated
4under s. 106.04, whichever is greater.
AB720,5,6 5(2) Minimum wage established by department. The department shall
6promulgate rules providing the minimum wage for all of the following:
AB720,5,77 (a) Tipped employees.
AB720,5,88 (b) Opportunity employees.
AB720,5,99 (c) Agricultural employees.
AB720,5,1010 (d) Camp counselors.
AB720,5,1111 (e) Golf caddies.
AB720,5,1312 (f) An employee or worker with a disability covered under a license under s.
13104.07.
AB720,5,1414 (g) A student learner.
AB720,5,1615 (h) A student employed by an independent college or university for less than
1620 hours per week.
AB720,5,19 17(3) Employment exempted by department. The department shall promulgate
18rules exempting from the minimum wage requirements under subs. (1) to (3) all of
19the following:
AB720,5,2120 (a) A person engaged in casual employment in and around an employer's home
21on an irregular or intermittent basis for not more than 15 hours per week.
AB720,5,2522 (b) A person who resides in the home of an employer who, due to advanced age
23or physical or mental disability, cannot care for his or her own needs, for the purpose
24of companionship and who spends not more than 15 hours per week on general
25household work for the employer.
AB720,6,2
1(c) An elementary or secondary school student performing student work-like
2activities in the student's school.
AB720,14 3Section 14. 104.04 of the statutes is amended to read:
AB720,6,19 4104.04 Classifications; department's authority. The department, with the
5assistance of the wage council as provided in s. 104.06,
shall investigate, ascertain,
6determine, and fix such reasonable classifications, and shall impose general or
7special orders, determining the living wage, and shall carry out the purposes of this
8chapter. Such investigations, classifications, and orders shall be made as provided
9under s. 103.005, and the penalties specified in s. 103.005 (12) shall apply to and be
10imposed for any violation of this chapter. In determining the living wage, the
11department may consider the effect that an increase in the living wage might have
12on the economy of the state, including the effect of a living wage increase on job
13creation, retention, and expansion, on the availability of entry-level jobs, and on
14regional economic conditions within the state
and the wage council shall use the
15procedures specified in s. 104.06. A living wage determined under this section shall
16be the living wage for all employees within the same class as established by the
17classification of the department
. The department may not establish a different
18minimum wage for men and women. Said orders shall be subject to review in the
19manner provided in ch. 227.
AB720,15 20Section 15. 104.045 of the statutes is renumbered 104.045 (intro.) and
21amended to read:
AB720,6,24 22104.045 Tipped employees Tips, meals, lodging, and hours worked.
23(intro.) The department shall by rule determine what amount of promulgate rules
24governing all of the following:
AB720,7,2
1(1) The counting of tips or similar gratuities may be counted toward fulfillment
2of the employer's obligation under this chapter.
AB720,16 3Section 16. 104.045 (2) and (3) of the statutes are created to read:
AB720,7,54 104.045 (2) The deduction of meals or lodging provided by an employer to an
5employee from the employer's obligation under this chapter.
AB720,7,7 6(3) The determination of hours worked by an employee during which the
7employee is entitled to a living wage under this chapter.
AB720,17 8Section 17. 104.05 of the statutes is amended to read:
AB720,7,14 9104.05 Complaints; investigation. The department shall, within Within 20
10days after the filing of a verified complaint of any person setting forth alleging that
11the wages paid to any employee in any occupation are not sufficient to enable the
12employee to maintain himself or herself under conditions consistent with his or her
13welfare, the department shall investigate and determine whether there is
14reasonable cause to believe that the wage paid to any employee is not a living wage.
AB720,18 15Section 18. 104.06 of the statutes is repealed and recreated to read:
AB720,7,21 16104.06 Wage council; determination of living wage. (1) Living wage
17study and recommendations.
(a) Early in each regular session of the legislature, the
18wage council shall convene for the purpose of studying the need for an increase in the
19living wage and making recommendations to the department for any changes in the
20living wage that may be necessary to ensure that the wages paid to any employee are
21a living wage.
AB720,7,2422 (b) The wage council, in conducting the study and making the
23recommendations under par. (a), and the department, in revising the living wage
24under sub. (3), shall consider all of the following:
AB720,8,8
11. The percentage difference between the consumer price index, as defined in
2s. 49.455 (1) (b), for the 12-month period ending on December 31 of the preceding
3year and the consumer price index for the 12-month period ending on December 31
4of the most recent even-numbered year before the preceding year, except that the
5wage council may not consider that percentage difference if the consumer price index
6for the 12-month period ending on December 31 of the preceding year did not
7increase over the consumer price index for the 12-month period ending on December
831 of the most recent even-numbered year before the preceding year.
AB720,8,119 2. The effect that any change in the consumer price index might have on the
10real incomes of employees in this state, unless the department is precluded from
11considering such a change under subd. 1.
AB720,8,1512 3. The effect that an increase in the living wage might have on the economy of
13the state, including the effect of a living wage increase on job creation, retention, and
14expansion; on the availability of entry-level jobs; and on regional economic
15conditions within the state.
AB720,8,1916 (c) If the wage council recommends an increase in the living wage for a class
17of employees for whom the living wage is determined on an hourly basis, the wage
18council shall recommend the same increase for all classes of employees for whom the
19living wage is determined on an hourly basis.
AB720,8,25 20(2) Report of findings and recommendations. The wage council shall submit
21a report of its findings and recommendations, together with an explanation for those
22findings and recommendations, to the secretary, the governor, the speaker of the
23assembly, the senate majority leader, and the minority leaders of each house of the
24legislature and to the standing committee of each house of the legislature that is
25concerned with labor issues under s. 13.172 (3).
AB720,9,4
1(3) Rules revising living wage. The department shall consider the findings
2and recommendations of the wage council and, if the department approves those
3findings and recommendations, the department may promulgate rules under s.
4104.04 to revise the living wage.
AB720,9,12 5(4) Other living wage increases not precluded. The biennial living wage
6revision procedure specified in subs. (1) to (3) does not preclude the department from
7convening the wage council at other times during the regular session of the
8legislature if, upon investigation, the department finds that there is reasonable
9cause to believe that the wages paid to any employee are not a living wage. If the
10department so convenes the wage council, the wage council so convened shall study
11the need for an increase in the living wage as provided in sub. (1) and report its
12findings and recommendations as provided in sub. (2).
AB720,19 13Section 19. 104.07 (1) of the statutes, as affected by 2013 Wisconsin Act 36,
14is amended to read:
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