LRB-2068/1
MED&GMM:eev&kjf
2015 - 2016 LEGISLATURE
June 10, 2015 - Introduced by Representatives Sargent, Subeck, Hesselbein,
Johnson, Bowen, Berceau, Goyke, Stuck, Brostoff, Ohnstad, Pope, Barnes,
Kessler, Young, Sinicki, C. Taylor and Riemer, cosponsored by Senators
Wirch, C. Larson, Miller, Risser, Harris Dodd and Ringhand. Referred to
Committee on Small Business Development.
AB264,1,12 1An Act to repeal 104.001, 104.01 (5), 104.04 (title), 104.05, 104.06 and 104.11;
2to renumber 104.01 (1); to renumber and amend 104.04 and 104.045; to
3consolidate, renumber and amend
104.02 and 104.03; to amend 49.141 (1)
4(g), 103.06 (1) (b) 5., 103.06 (1) (c) 5., 103.06 (3) (a) 4., 103.06 (4) (a) 1., 103.67
5(2) (fm) 3., 103.70 (2) (b) 3., 104.01 (intro.), 104.01 (8), 104.07 (1) and (2), 104.08
6(2m), 104.10, 104.12, 234.94 (5), 234.94 (8), 800.09 (1j), 800.095 (1) (d) and
7895.035 (2m) (c); and to create 104.01 (1d), 104.01 (1g), 104.01 (5m), 104.035
8and 104.045 (1) and (2) of the statutes; relating to: a state minimum wage,
9permitting the enactment of local living wage ordinances, extending the time
10limit for emergency rule procedures, providing an exemption from emergency
11rule procedures, providing an exemption from rule-making procedures, and
12requiring the exercise of rule-making authority.
Analysis by the Legislative Reference Bureau
Currently, the state minimum wage law requires that employers pay a living
wage to their employees. Under that law, the Department of Workforce Development

(DWD) has provided, by rule, minimum wages for various types of employees,
including employees, generally; minor employees; opportunity employees, who are
defined as employees under 20 years of age in their first 90 days of employment with
a particular employer; tipped employees; agricultural employees; camp counselors;
golf caddies; students employed at independent colleges and universities for less
than 20 hours per week; student learners employed in bona fide school training
programs; and individuals who are unable to earn the standard minimum wage
because of a disability. DWD has exempted, by rule, from the minimum wage law
employees who perform less than 15 hours per week of casual employment, such as
baby-sitting or lawn mowing, in and around an employer's home; employees who
provide companionship services to elderly or infirm individuals; and elementary and
secondary school students performing work-like activities in their schools. DWD
has also promulgated rules providing allowances against the minimum wage for
employers that provide meals or lodging for their employees.
This bill repeals references to and provisions for a living wage and replaces
them with provisions requiring a minimum wage, described as follows. Under this
bill, DWD must continue to provide the exemptions listed above as well as separate
minimum wages for opportunity employees, agricultural employees, camp
counselors, golf caddies, students employed at independent colleges and universities
for less than 20 hours per week, student learners employed in bona fide school
training programs, and individuals who are unable to earn the standard minimum
wages because of a disability. For employees generally, however, including tipped
employees, the bill sets the minimum wage as follows: - See PDF for table PDF
Beginning six years after the bill's effective date, the bill requires DWD
annually to promulgate rules revising the minimum wages established under the bill
by determining the percentage difference between the consumer price index for the
preceding 12-month period (year) and the consumer price index for the year before
the preceding year, adjusting the minimum wages then in effect by that percentage
difference, and rounding that result to the nearest multiple of five cents. DWD,
however, is not required to revise the general minimum wage if the consumer price

index for the preceding year has not increased over the consumer price index for the
year before the preceding year.
Finally, current law prohibits a city, village, town, or county from enacting and
administering an ordinance establishing a living wage. This bill eliminates that
prohibition.
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:
AB264,1 1Section 1. 49.141 (1) (g) of the statutes is amended to read:
AB264,3,42 49.141 (1) (g) "Minimum wage" means the state minimum hourly wage under
3ch. 104 s. 104.035 (1) or the federal minimum hourly wage under 29 USC 206 (a)
4(1), whichever is applicable.
AB264,2 5Section 2. 103.06 (1) (b) 5. of the statutes is amended to read:
AB264,3,86 103.06 (1) (b) 5. For purposes of maintaining records under sub. (3) (a) 4. as
7required under rules promulgated under s. 104.04 104.035, an employee, as defined
8in s. 104.01 (2).
AB264,3 9Section 3. 103.06 (1) (c) 5. of the statutes is amended to read:
AB264,3,1210 103.06 (1) (c) 5. For purposes of maintaining records under sub. (3) (a) 4. as
11required under rules promulgated under s. 104.04 104.035, an employer, as defined
12in s. 104.01 (3).
AB264,4 13Section 4. 103.06 (3) (a) 4. of the statutes is amended to read:
AB264,3,1814 103.06 (3) (a) 4. That the employer is maintaining records of the hours worked
15by its employees, the wages paid to those employees, any deductions from those
16wages, and any other information that the employer is required to keep under rules
17promulgated under s. 103.02 or 104.04 104.035, and is listing deductions from wages
18as required under s. 103.457.
AB264,5
1Section 5. 103.06 (4) (a) 1. of the statutes is amended to read:
AB264,4,82 103.06 (4) (a) 1. Enter and inspect any place of business or place of employment
3and examine and copy any records that the employer is required to keep under rules
4promulgated under s. 103.02 or 104.04 104.035; any books, registers, payroll records,
5records of wage withholdings, records of work activity and hours of work, and records
6or indicia of the employment status of persons performing work for the employer; and
7any other records relating to compliance with the requirements specified in sub. (3)
8(a).
AB264,6 9Section 6. 103.67 (2) (fm) 3. of the statutes is amended to read:
AB264,4,1110 103.67 (2) (fm) 3. The minor is paid the applicable minimum wage under ch.
11104
s. 104.035 or under federal law, whichever is greater, for the work.
AB264,7 12Section 7. 103.70 (2) (b) 3. of the statutes is amended to read:
AB264,4,1413 103.70 (2) (b) 3. The minor is paid the applicable minimum wage under ch. 104
14s. 104.035 or under federal law, whichever is greater, for the work.
AB264,8 15Section 8. 104.001 of the statutes is repealed.
AB264,9 16Section 9. 104.01 (intro.) of the statutes is amended to read:
AB264,4,18 17104.01 Definitions. (intro.) The following terms as used in In this chapter
18shall be construed as follows:
AB264,10 19Section 10. 104.01 (1) of the statutes is renumbered 104.01 (1m).
AB264,11 20Section 11. 104.01 (1d) of the statutes is created to read:
AB264,4,2221 104.01 (1d) "Agricultural employee" means an employee who is employed in
22the operation of farm premises, as described in s. 102.04 (3).
AB264,12 23Section 12. 104.01 (1g) of the statutes is created to read:
AB264,5,224 104.01 (1g) "Consumer price index" means the average of the consumer price
25index over each 12-month period for all urban consumers, U.S. city average, all

1items, not seasonally adjusted, as determined by the bureau of labor statistics of the
2U.S. department of labor.
AB264,13 3Section 13. 104.01 (5) of the statutes is repealed.
AB264,14 4Section 14. 104.01 (5m) of the statutes is created to read:
AB264,5,65 104.01 (5m) "Opportunity employee" means a person under 20 years of age who
6is in the first 90 consecutive days of employment with his or her employer.
AB264,15 7Section 15. 104.01 (8) of the statutes is amended to read:
AB264,5,98 104.01 (8) The term "wage" and the term "wages" shall each mean "Wage"
9means
any compensation for labor measured by time, piece, or otherwise.
AB264,16 10Section 16. 104.02 and 104.03 of the statutes are consolidated, renumbered
11104.02 and amended to read:
AB264,5,18 12104.02 Living Minimum wage prescribed: requirement to pay. Every
13wage paid or agreed to be paid by any employer to any employee, except as otherwise
14provided in s. 104.07, shall be not less than a living the applicable minimum wage
15established under s. 104.035. 104.03 Unlawful wages. Any employer paying,
16offering to pay, or agreeing to pay any employee a wage lower or less in value than
17 a living the applicable minimum wage established under s. 104.035 is guilty of a
18violation of this chapter.
AB264,17 19Section 17. 104.035 of the statutes is created to read:
AB264,5,21 20104.035 Minimum wage; established. (1) Employees generally. Except
21as provided in subs. (2) and (3), the minimum wage is as follows:
AB264,5,2322 (a) For wages earned before the first day of the 15th month beginning after
23publication .... [LRB inserts date], $8.50 per hour.
AB264,6,3
1(b) For wages earned beginning on the first day of the 15th month beginning
2after publication .... [LRB inserts date], and ending on the last day of the 26th month
3beginning after publication .... [LRB inserts date], $10 per hour.
AB264,6,64 (c) For wages earned beginning on the first day of the 27th month beginning
5after publication .... [LRB inserts date], and ending on the last day of the 38th month
6beginning after publication .... [LRB inserts date], $11.50 per hour.
AB264,6,97 (d) For wages earned beginning on the first day of the 39th month beginning
8after publication .... [LRB inserts date], and ending on the last day of the 50th month
9beginning after publication .... [LRB inserts date], $13 per hour.
AB264,6,1210 (e) For wages earned beginning on the first day of the 51st month beginning
11after publication .... [LRB inserts date], and ending on the last day of the 62nd month
12beginning after publication .... [LRB inserts date], $14 per hour.
AB264,6,1513 (f) For wages earned beginning on the first day of the 63rd month beginning
14after publication .... [LRB inserts date], and ending on the last day of the 74th month
15beginning after publication .... [LRB inserts date], $15 per hour.
AB264,6,1816 (g) For wages earned beginning on the first day of the 75th month beginning
17after publication .... [LRB inserts date], the amount determined by the department
18by rule promulgated under sub. (4).
AB264,6,20 19(2) Minimum wage established by department. The department shall
20promulgate rules providing the minimum wage for all of the following:
AB264,6,2121 (a) Opportunity employees.
AB264,6,2222 (b) Agricultural employees.
AB264,6,2323 (c) Camp counselors.
AB264,6,2424 (d) Golf caddies.
AB264,7,2
1(e) An employee or worker with a disability covered under a license under s.
2104.07.
AB264,7,33 (f) A student learner.
AB264,7,54 (g) A student employed by an independent college or university for less than
520 hours per week.
AB264,7,8 6(3) Employment exempted by department. The department shall promulgate
7rules exempting from the minimum wage requirement under subs. (1) and (2) all of
8the following:
AB264,7,109 (a) A person engaged in casual employment in and around an employer's home
10on an irregular or intermittent basis for not more than 15 hours per week.
AB264,7,1411 (b) A person who resides in the home of an employer who, due to advanced age
12or physical or mental disability, cannot care for his or her own needs, for the purpose
13of companionship and who spends not more than 15 hours per week on general
14household work for the employer.
AB264,7,1615 (c) An elementary or secondary school student performing student work-like
16activities in the student's school.
AB264,7,25 17(4) Department to revise. (a) 1. Subject to par. (b), by the date specified in sub.
18(1) (g) and annually thereafter, the department shall promulgate rules to revise the
19minimum wages established under sub. (1). Subject to subd. 2., the department shall
20determine the revised minimum wages by calculating the percentage difference
21between the consumer price index for the 12-month period ending on the last day of
22the last month for which that information is available and the consumer price index
23for the 12-month period ending on the last day of the month 12 months prior to that
24month, adjusting the minimum wage then in effect by that percentage difference,
25and rounding that result to the nearest multiple of 5 cents.
AB264,8,12
12. The department may use the emergency rule procedures under s. 227.24 to
2promulgate the rules required under subd. 1. Notwithstanding s. 227.24 (1) (a) and
3(3), the department may promulgate those rules as emergency rules without
4providing evidence that promulgating those rules as emergency rules is necessary
5to preserve the public peace, health, safety, or welfare and without a finding of
6emergency. Notwithstanding s. 227.24 (1) (e) 1d. and 1g., the department is not
7required to prepare a statement of the scope of those rules or to submit those rules
8in final draft form to the governor for approval. A revised minimum wage
9determined under subd. 1. shall first apply to wages earned on the first day of the
103rd month beginning after the month of publication .... [LRB inserts date], of the year
11in which the wage is revised and, notwithstanding s. 227.24 (1) (c) and (2), shall
12remain in effect until that same date the following year.
AB264,8,1613 (b) Paragraph (a) 1. does not apply if the consumer price index for the 12-month
14period ending on the last day of the last month for which that information is available
15has not increased over the consumer price index for the 12-month period ending on
16the last day of the month 12 months prior to that month.
AB264,8,17 17(5) Gender-specific minimum wage prohibited.
AB264,18 18Section 18. 104.04 (title) of the statutes is repealed.
AB264,19 19Section 19. 104.04 of the statutes is renumbered 104.035 (5) and amended to
20read:
AB264,9,721 104.035 (5) The department shall investigate, ascertain, determine, and fix
22such reasonable classifications, and shall impose general or special orders,
23determining the living wage, and shall carry out the purposes of this chapter. Such
24investigations, classifications, and orders shall be made as provided under s.
25103.005, and the penalties specified in s. 103.005 (12) shall apply to and be imposed

1for any violation of this chapter. In determining the living wage, the department may
2consider the effect that an increase in the living wage might have on the economy of
3the state, including the effect of a living wage increase on job creation, retention, and
4expansion, on the availability of entry-level jobs, and on regional economic
5conditions within the state.
The department may not establish a different minimum
6wage for men and women. Said orders shall be subject to review in the manner
7provided in ch. 227.
AB264,20 8Section 20. 104.045 of the statutes is renumbered 104.045 (intro.) and
9amended to read:
AB264,9,13 10104.045 Tipped employees Meals, lodging, and hours worked. (intro.)
11The department shall by rule determine what amount of tips or similar gratuities
12may be counted toward fulfillment of the employer's obligation under this chapter.
13promulgate rules governing all of the following:
AB264,21 14Section 21. 104.045 (1) and (2) of the statutes are created to read:
AB264,9,1615 104.045 (1) The deduction of meals or lodging provided by an employer to an
16employee from the employer's obligation under this chapter.
AB264,9,18 17(2) The determination of hours worked by an employee during which the
18employee is entitled to the minimum wage established under s. 104.035.
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