March 2, 2017 - Introduced by Senators L. Taylor, Risser, Johnson and Vinehout,
cosponsored by Representatives Fields, Sinicki, Berceau, Goyke, Crowley,
Young, Subeck, Milroy and Brostoff. Referred to Committee on Labor and
Regulatory Reform.
SB87,1,3 1An Act to amend 104.035 (3) (a) (intro.), 104.035 (3) (a) 1., 104.035 (3) (a) 2. and
2104.045 (1); and to create 104.035 (3) (a) 3. to 7. and (am) of the statutes;
3relating to: the minimum wage required to be paid to tipped employees.
Analysis by the Legislative Reference Bureau
This bill raises the separate minimum wage required to be paid to tipped
employees by $0.95 per year until it reaches $7.08 per hour, one year after which the
bill eliminates the separate minimum wage for tipped employees altogether, making
tipped employees subject to the general minimum wage.
Generally under current law, every wage paid by any employer to any employee
must be not less than the applicable minimum wage established under the statutes.
However, if an employer of a tipped employee establishes that, when adding the tips
received by the tipped employee in a week to the wages paid to the tipped employee
in that week, the tipped employee receives not less than the applicable minimum
wage (generally $7.25 per hour), the minimum wage for the tipped employee is $2.33
per hour or, with respect to an employee under 20 years of age in the first 90
consecutive days of employment with his or her employer (opportunity employee),
$2.13 per hour.
Beginning approximately six months after enactment, this bill eliminates the
alternate minimum wage for tipped employees who are opportunity employees and
raises the minimum wage for all tipped employees by $0.95, to $3.28 per hour. The
bill further raises the minimum wage for tipped employees by $0.95 per year until
it reaches $7.08 per hour. Beginning one year after it reaches $7.08 per hour, the bill

eliminates the separate minimum wage for tipped employees altogether, making
tipped employees subject to the general minimum wage of $7.25 per hour or, for
opportunity employees, $5.90 per hour.
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:
SB87,1 1Section 1. 104.035 (3) (a) (intro.) of the statutes is amended to read:
SB87,2,72 104.035 (3) (a) Minimum rates. (intro.) Except as provided in par. (am) and
3subs. (4) to (8), if an employer of a tipped employee establishes by the employer's
4payroll records that, when adding the tips received by the tipped employee in a week
5to the wages paid to the tipped employee in that week, the tipped employee receives
6not less than the applicable minimum wage specified in sub. (1), (2), or (2m), the
7minimum wage for the tipped employee is as follows:
SB87,2 8Section 2. 104.035 (3) (a) 1. of the statutes is amended to read:
SB87,2,119 104.035 (3) (a) 1. For wages earned before the effective date of this subdivision
10.... [LRB inserts date],
by a tipped employee who is not an opportunity employee,
11$2.33 per hour.
SB87,3 12Section 3. 104.035 (3) (a) 2. of the statutes is amended to read:
SB87,2,1513 104.035 (3) (a) 2. For wages earned before the effective date of this subdivision
14.... [LRB inserts date],
by a tipped employee who is an opportunity employee, $2.13
15per hour.
SB87,4 16Section 4. 104.035 (3) (a) 3. to 7. and (am) of the statutes are created to read:
SB87,2,1917 104.035 (3) (a) 3. For wages earned beginning on the effective date of this
18subdivision .... [LRB inserts date], and prior to the date that is one year after the
19effective date of this subdivision .... [LRB inserts date], $3.28 per hour.
SB87,3,3
14. For wages earned beginning on the date that is one year after the effective
2date of this subdivision .... [LRB inserts date], and prior to the date that is 2 years
3after the effective date of this subdivision .... [LRB inserts date], $4.23 per hour.
SB87,3,64 5. For wages earned beginning on the date that is 2 years after the effective date
5of this subdivision .... [LRB inserts date], and prior to the date that is 3 years after
6the effective date of this subdivision .... [LRB inserts date], $5.18 per hour.
SB87,3,97 6. For wages earned beginning on the date that is 3 years after the effective date
8of this subdivision .... [LRB inserts date], and prior to the date that is 4 years after
9the effective date of this subdivision .... [LRB inserts date], $6.13 per hour.
SB87,3,1210 7. For wages earned beginning on the date that is 4 years after the effective date
11of this subdivision .... [LRB inserts date], and prior to the date that is 5 years after
12the effective date of this subdivision .... [LRB inserts date], $7.08 per hour.
SB87,3,1813 (am)   Nonapplicability. Paragraph (a) does not apply to wages earned
14beginning on the date that is 5 years after the effective date of this paragraph ....
15[LRB inserts date]. Except as provided in subs. (4) to (8), beginning on the date that
16is 5 years after the effective date of this paragraph .... [LRB inserts date], the
17minimum wage for tipped employees shall be the applicable minimum wage
18specified in sub. (1), (2), or (2m).
SB87,5 19Section 5. 104.045 (1) of the statutes is amended to read:
SB87,3,2320 104.045 (1) The counting of tips or similar gratuities toward fulfillment of the
21employer's obligation under this chapter. Rules promulgated under this subsection
22do not apply beginning on the date that is 5 years after the effective date of this
23subsection .... [LRB inserts date].
SB87,6 24Section 6. Effective date.
SB87,4,2
1(1) This act takes effect on the first day of the 7th month beginning after
2publication.
SB87,4,33 (End)
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