LRB-2361/1
GMM:kmg:km
1995 - 1996 LEGISLATURE
January 23, 1996 - Introduced by Senators Chvala, Andrea, Moen, Risser, Decker,
Clausing and Burke, cosponsored by Representatives Coggs, Baldwin,
Notestein, R. Young, Krug, Bock, Riley, Plombon, L. Young, Black, Plache,
Bell, Turner, Baldus, Boyle, Williams, Ryba, Hasenohrl, Kreuser,
Gronemus and Robson. Referred to Committee on Human Resources, Labor,
Tourism, Veterans and Military Affairs.
SB495,1,7
1An Act to renumber 104.08 (3);
to renumber and amend 104.045, 104.08 (1)
2and 104.08 (2);
to amend 104.01 (intro.), 104.01 (5), 104.01 (8), 104.02, 104.03,
3104.04, 104.05, 104.06, 104.07 (1) and (2), 104.10, 104.11, 104.12, 800.09 (1) (b)
4and 800.095 (4) (b) 3.; and
to create 103.027, 104.01 (7m), 104.035, 104.045 (2)
5and (3) and 104.08 (1) (b) of the statutes;
relating to: a state minimum wage,
6overtime pay for executive, administrative and professional employes, granting
7rule-making authority and providing a penalty.
Analysis by the Legislative Reference Bureau
Currently, the state minimum wage laws require that employers pay a living
wage to their employes. Under those laws, the department of industry, labor and hu
man relations (DILHR) has established, by rule, minimum wages for various classes
of employment as follows:
-
See PDF for table ![PDF](https://docs.legis.wisconsin.gov/assets/image/file_acrobat.gif)
Also under current law, DILHR has established, by rule, separate minimum
wage rates for counselors at seasonal recreational or educational camps for minors,
for employes who perform less than 15 hours a week of casual employment in and
around an employer's home, for employes hired as personal companions for disabled
individuals, for golf caddies and for individuals who because of a handicap are unable
to earn the standard minimum wage.
Under this bill, DILHR will continue to establish, by rule, separate minimum
wage rates for camp counselors, persons in casual employment, personal compan
ions, golf caddies and those who are unable to earn the standard minimum wage.
For other employes, however, including agricultural employes, employes under 18
years of age and employes who receive tips, the bill sets a new minimum wage by stat
ute.
Under the bill, the minimum wage, beginning on May 1, 1996, or on the first
day of the first month beginning after publication of the bill, whichever is later, for
an employe, including an agricultural employe and an employe under 18 years of age,
who is not a tipped employe (and who is neither a camp counselor, a casual employe,
a personal companion, a caddy nor an employe unable to earn the standard minimum
wage) is $4.75 per hour or the federal minimum hourly wage, whichever is greater.
In 1997 the minimum wage is $5.25 per hour or the federal minimum hourly wage,
whichever is greater. After December 31, 1997, the minimum wage is 50% of the na
tional average hourly wage earned by nonsupervisory employes employed by pri
vate, nonagricultural employers, as determined by the bureau of labor statistics of
the federal department of labor for November of the previous year, rounded to the
nearest multiple of 5 cents or the federal minimum hourly wage, whichever is great
er.
Under the bill, the minimum wage, beginning on May 1, 1996, or on the first
day of the first month beginning after publication of the bill, whichever is later, for
a tipped employe, including a tipped employe under 18 years of age, is $2.40 per hour
or the federal minimum hourly wage, if any, for a tipped employe, whichever is great
er. In 1997 the minimum wage for a tipped employe is $2.65 per hour or the federal
minimum hourly wage, if any, for a tipped employe, whichever is greater. After De
cember 31, 1997, the minimum wage for a tipped employe is 50% of the minimum
wage for a nontipped employe, as determined under the bill, or the federal minimum
hourly wage, if any, for a tipped employe, whichever is greater. The bill provides,
however, that an employer may pay the minimum wage for tipped employes only if
the employer establishes by his or her payroll records that, when adding the tips re
ceived by an employe to the minimum wage for tipped employes, the employe re
ceives not less than the minimum wage for employes generally.
The bill authorizes DILHR to raise the minimum wages specified in this bill.
Also, the bill requires DILHR to promulgate rules concerning the counting of tips to
ward the minimum wage, the deduction from the minimum wage of meals and lodg
ing provided by the employer and the determination of hours worked during which
the employe is entitled to the minimum wage.
Finally, the bill authorizes DILHR to classify, by rule, certain employes as
executive, administrative or professional employes and to exempt employers of those
employes from the administrative rules that require overtime pay. The bill provides,
however, that if DILHR does so classify and exempt those employes, it may not classi
fy an employe as an executive or administrative employe unless that employe earns,
on a salary basis, not less than $1,000 per month, beginning on May 1, 1996, or on
the first day of the first month beginning after publication of the bill, whichever is
later; and it may not classify an employe as a professional employe unless that em
ploye earns, in salary or fees, not less than $1,075 per month, beginning on May 1,
1996, or on the first day of the first month beginning after publication of the bill,
whichever is later. After December 31, 1996, an employe must earn not less than
$1,125 per month to be classified as an executive or administrative employe and not
less than $1,200 per month to be classified as a professional employe.
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:
SB495, s. 1
1Section
1. 103.027 of the statutes is created to read:
SB495,3,6
2103.027 Hours of labor; executive, administrative and professional em
3ployes. (1) Subject to sub. (2), the department may, by rule, classify employes as
4executive, administrative or professional employes and exempt employers of those
5employes from the rules promulgated under s. 103.02 that require certain periods of
6work to be paid for at the rate of at least 1.5 times the employe's regular rate of pay.
SB495,4,4
7(2) If the department promulgates rules under sub. (1), the department may
8not classify an employe as an executive or administrative employe unless that em
9ploye is compensated for his or her services on a salary basis at a rate of not less than
10$1,000 per month, after the day before the effective date of this subsection .... [revisor
11inserts date], and before January 1, 1997, and not less than $1,125 per month after
12December 31, 1996. If the department promulgates rules under sub. (1), the depart
13ment may not classify an employe as a professional employe unless that employe is
1compensated for his or her services on a salary or fee basis at a rate of not less than
2$1,075 per month, after the day before the effective date of this subsection .... [revisor
3inserts date], and before January 1, 1997, and not less than $1,200 per month after
4December 31, 1996.
SB495, s. 2
5Section
2. 104.01 (intro.) of the statutes is amended to read:
SB495,4,7
6104.01 Definitions. (intro.)
The following terms as used in ss. 104.01 to
7104.12 shall be construed as follows In this chapter:
SB495, s. 3
8Section
3. 104.01 (5) of the statutes is amended to read:
SB495,4,129
104.01
(5) The term "living-wage" shall mean "Living wage" means compensa
10tion for labor paid, whether by time, piecework or otherwise, sufficient to enable the
11employe receiving it to maintain himself or herself under conditions consistent with
12his or her welfare.
SB495, s. 4
13Section
4. 104.01 (7m) of the statutes is created to read:
SB495,4,1614
104.01
(7m) "Tipped employe" means an employe who in the course of employ
15ment customarily and regularly receives money or other gratuities from persons oth
16er than the employe's employer.
SB495, s. 5
17Section
5. 104.01 (8) of the statutes is amended to read:
SB495,4,1918
104.01
(8) The term "wage" and the term "wages" shall each mean "Wage"
19means any compensation for labor measured by time, piece or otherwise.
SB495, s. 6
20Section
6. 104.02 of the statutes is amended to read:
SB495,4,23
21104.02 (title)
Living-wage prescribed Living wage required. Every wage
22paid or agreed to be paid by any employer to any employe, except as otherwise pro
23vided in s. 104.07, shall be not less than a
living-wage living wage.
SB495, s. 7
24Section
7. 104.03 of the statutes is amended to read:
SB495,5,3
1104.03 Unlawful wages. Any employer paying, offering to pay
, or agreeing
2to pay any employe a wage lower or less in value than a
living-wage living wage is
3guilty of a violation of
ss. 104.01 to 104.12 this chapter.
SB495, s. 8
4Section
8. 104.035 of the statutes is created to read:
SB495,5,7
5104.035 Minimum wage. (1) Employes generally. Except as provided in
6subs. (2) and (3) and s. 104.07, and subject to sub. (4), the minimum wage is whichev
7er of the following applies:
SB495,5,108
(a) For wages earned beginning on the effective date of this paragraph .... [revi
9sor inserts date], $4.75 per hour or the federal minimum hourly wage, whichever is
10greater.
SB495,5,1211
(b) For wages earned in 1997, $5.25 per hour or the federal minimum hourly
12wage, whichever is greater.
SB495,5,1713
(c) For wages earned after December 31, 1997, 50% of the national average
14hourly wage earned by nonsupervisory employes employed by private, nonagricul
15tural employers, as determined by the bureau of labor statistics in the federal depart
16ment of labor for November of the previous year, rounded to the nearest multiple of
175 cents or the federal minimum hourly wage, whichever is greater.
SB495,6,6
18(2) Tipped employes. Except as provided in sub. (3) and s. 104.07, and subject
19to this subsection and sub. (4), for wages earned beginning on the effective date of
20this subsection .... [revisor inserts date], the minimum wage for a tipped employe is
21$2.40 per hour or the federal minimum hourly wage, if any, for a tipped employe,
22whichever is greater; for wages earned in 1997 the minimum wage for a tipped em
23ploye is $2.65 per hour or the federal minimum hourly wage, if any, for a tipped em
24ploye, whichever is greater; and for wages earned after December 31, 1997, the mini
25mum wage for a tipped employe is 50% of the minimum wage determined under sub.
1(1) (c) rounded to the nearest multiple of 5 cents or the federal minimum hourly wage,
2if any, for a tipped employe, whichever is greater. An employer may pay the mini
3mum wage specified in this subsection only if the employer establishes by his or her
4payroll records that, when adding the tips received by an employe to the wages under
5this subsection paid to that employe, the employe receives not less than the applica
6ble minimum wage specified in sub. (1).
SB495,6,8
7(3) Minimum wage established by department. The department shall promul
8gate rules establishing the minimum wage for all of the following:
SB495,6,109
(a) A counselor employed at a seasonal recreational or educational camp, in
10cluding a day camp, for campers under the age of 18.
SB495,6,1211
(b) A person engaged in casual employment in and around an employer's home
12on an irregular or intermittent basis for not more than 15 hours per week.
SB495,6,1513
(c) A person who lives with someone who has a physical or mental disability and
14who provides companionship, general household work and care, not including practi
15cal or professional nursing as defined in s. 441.11 (3) and (4), for that disabled person.
SB495,6,1616
(d) A caddy on a golf course.
SB495,6,1717
(e) An employe or handicapped worker covered under a license under s. 104.07.
SB495,6,19
18(4) Department may revise. The department may promulgate rules to increase
19a minimum wage established under sub. (1) or (2).
SB495, s. 9
20Section
9. 104.04 of the statutes is amended to read:
SB495,7,7
21104.04 Classifications; department's authority. The department shall in
22vestigate, ascertain, determine and fix such reasonable classifications, and shall im
23pose general or special orders, determining the
living-wage living wage, and shall
24carry out the purposes of
ss. 104.01 to 104.12 this chapter. Such investigations, clas
25sifications and orders shall be made pursuant to the proceeding in ss. 101.01 to
1101.25, which are hereby made a part hereof, so far as not inconsistent with
ss.
2104.01 to 104.12 this chapter; and every order of the department shall have the same
3force and effect as the orders issued pursuant to said ss. 101.01 to 101.25, and the
4penalties therein shall apply to and be imposed for any violation of
ss. 104.01 to
5104.12 this chapter. The department may not establish a different minimum wage
6for men and women. Said orders shall be subject to review in the manner provided
7in ch. 227.
SB495, s. 10
8Section
10. 104.045 of the statutes is renumbered 104.045 (intro.) and
9amended to read:
SB495,7,12
10104.045 (title)
Tipped employes Tips, meals and lodging, and hours
11worked. (intro.) The department shall
by rule determine what amount of promul
12gate rules governing all of the following:
SB495,7,14
13(1) The counting of tips or similar gratuities
may be counted toward fulfillment
14of the employer's obligation under this chapter.
SB495, s. 11
15Section
11. 104.045 (2) and (3) of the statutes are created to read:
SB495,7,1716
104.045
(2) The deduction of meals or lodging provided by an employer to an
17employe from the employer's obligations under this chapter.
SB495,7,19
18(3) The determination of hours worked by an employe during which the em
19ploye is entitled to a living wage under this chapter.
SB495, s. 12
20Section
12. 104.05 of the statutes is amended to read:
SB495,8,2
21104.05 Complaints; investigation. The department shall, within 20 days
22after the filing of a verified complaint of any person
setting forth alleging that the
23wages paid to any employe
in any occupation are not sufficient to enable the employe
24to maintain himself or herself under conditions consistent with his or her welfare,
1investigate and determine whether there is reasonable cause to believe that the wage
2paid to
any the employe is not a
living-wage living wage.
SB495, s. 13
3Section
13. 104.06 of the statutes is amended to read:
SB495,8,11
4104.06 Wage council; determination. If, upon investigation, the depart
5ment finds that there is reasonable cause to believe that the wages paid to any em
6ploye are not a
living-wage living wage, it shall appoint a wage council, selected so
7as fairly to represent employers, employes and the public, to assist in its investiga
8tions and determinations. The
living-wage department may use the results of an
9investigation under this section to establish a living wage. A living wage so deter
10mined
upon shall be the
living-wage
living wage for all employes within the same
11class as established by the
classification of the department
under s. 104.04.