LRB-3469/1
GMM:jlg:mrc
1999 - 2000 LEGISLATURE
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
1An Act to renumber and amend 104.045, 104.08 (1), 104.08 (2) and 104.08 (3);
2to amend 49.141 (1) (g), 104.01 (intro.), 104.01 (5), 104.01 (8), 104.02, 104.03,
3104.04, 104.05, 104.06, 104.07 (1), 104.07 (2), 104.10, 104.11, 104.12, 234.94 (5),
4234.94 (8), 800.09 (1) (b), 800.095 (4) (b) 3. and 895.035 (2m) (c); and
to create
5104.01 (5m), 104.01 (5p), 104.01 (7m), 104.035, 104.045 (2) and (3) and 104.08
6(1) (b) of the statutes;
relating to: a state minimum wage, providing an
7exemption from emergency rule procedures, providing an exemption from
8rule-making procedures, granting rule-making authority and providing a
9penalty.
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 ![PDF](https://docs.legis.wisconsin.gov/assets/image/file_acrobat.gif)
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
1Section
1. 49.141 (1) (g) of the statutes is amended to read:
AB477,3,42
49.141
(1) (g) "Minimum wage" means the state minimum hourly wage under
3ch. 104 s. 104.035 (2) or the federal minimum hourly wage under
29 USC 206 (a) (1),
4whichever is applicable.
AB477, s. 2
5Section
2. 104.01 (intro.) of the statutes is amended to read:
AB477,3,7
6104.01 Definitions. (intro.)
The following terms as used in ss. 104.01 to
7104.12 shall be construed as follows In this chapter:
AB477, s. 3
8Section
3. 104.01 (5) of the statutes is amended to read:
AB477,4,29
104.01
(5) The term "living-wage" shall mean "Living wage" means 10compensation for labor paid, whether by time, piecework or otherwise, sufficient to
1enable the employe receiving it to maintain himself or herself under conditions
2consistent with his or her welfare.
AB477, s. 4
3Section
4. 104.01 (5m) of the statutes is created to read:
AB477,4,64
104.01
(5m) "Opportunity employe" means a person under 20 years of age who
5has been employed for a cumulative total of 30 calendar days or less within the
6preceding 3-year period.
AB477, s. 5
7Section
5. 104.01 (5p) of the statutes is created to read:
AB477,4,108
104.01
(5p) "Poverty line" means the poverty guidelines for the continental
9United States, as revised annually by the federal department of health and human
10services under
42 USC 9902 (2).
AB477, s. 6
11Section
6. 104.01 (7m) of the statutes is created to read:
AB477,4,1412
104.01
(7m) "Tipped employe" means an employe who in the course of
13employment customarily and regularly receives money or other gratuities from
14persons other than the employe's employer.
AB477, s. 7
15Section
7. 104.01 (8) of the statutes is amended to read:
AB477,4,1716
104.01
(8) The term "wage" and the term "wages" shall each mean "Wage"
17means any compensation for labor measured by time, piece or otherwise.
AB477, s. 8
18Section
8. 104.02 of the statutes is amended to read:
AB477,4,21
19104.02 Living-wage prescribed
Living wage required. Every wage paid
20or agreed to be paid by any employer to any employe, except as otherwise provided
21in s. 104.07, shall be not less than a
living-wage
living wage.
AB477, s. 9
22Section
9. 104.03 of the statutes is amended to read:
AB477,4,25
23104.03 Unlawful wages. Any employer paying, offering to pay
, or agreeing
24to pay any employe a wage lower or less in value than a
living-wage living wage is
25guilty of a violation of
ss. 104.01 to 104.12 this chapter.
AB477, s. 10
1Section
10. 104.035 of the statutes is created to read:
AB477,5,15
2104.035 Minimum wage. (1) Department to promulgate rules. The
3department shall promulgate rules providing minimum hourly wages for the
4employes specified in subs. (2) to (5). The department shall calculate those minimum
5hourly wages according to the methods specified in subs. (2) to (5). Annually, within
630 days after the federal department of health and human services publishes its
7annual revision of the poverty line, the department, using the procedure under s.
8227.24 and the methods specified in subs. (2) to (5), shall promulgate rules revising
9the minimum hourly wages provided under subs. (2) to (5). Notwithstanding s.
10227.24 (1) (a) and (2) (b), the department is not required to provide evidence of the
11necessity of preserving the public peace, health, safety or welfare in promulgating
12rules revising the minimum wages provided under subs. (2) to (5). A revised
13minimum wage provided under subs. (2) to (5) shall first apply to wages earned
14beginning on the first day of the first month beginning after the date on which that
15minimum wage is revised.
AB477,5,19
16(2) Employes generally. Subject to the minimum wages provided under subs.
17(3) to (7), the department shall calculate the minimum hourly wage for employes
18generally by dividing the poverty line for a family of 3 persons by 2,080 and rounding
19the quotient to the nearest multiple of 5 cents.
AB477,5,24
20(3) Opportunity employes. Notwithstanding the minimum wage provided
21under sub. (2), but subject to the minimum wages provided under subs. (4) to (7), the
22department shall calculate the minimum wage for opportunity employes by
23multiplying the result obtained under sub. (2) by 92.9% and rounding the product to
24the nearest multiple of 5 cents.
AB477,6,3
1(4) Tipped employes. (a) Notwithstanding the minimum wages provided under
2subs. (2) and (3), but subject to the minimum wages provided under subs. (5) to (7),
3the department shall calculate the minimum wage for tipped employes as follows:
AB477,6,64
1. For persons who are not opportunity employes, by multiplying the result
5obtained under sub. (2) by 54.8% and rounding the product to the nearest multiple
6of 5 cents.
AB477,6,97
2. For persons who are opportunity employes, by multiplying the result
8obtained under sub. (2) by 51.7% and rounding the product to the nearest multiple
9of 5 cents.
AB477,6,1410
(b) An employer may pay the minimum wages specified in par. (a) only if the
11employer establishes by the employer's payroll records that, when adding the tips
12received by an employe to the wages under par. (a) paid to that employe, the employe
13receives not less than the minimum wage specified in sub. (2) or (3), whichever is
14applicable.
AB477,6,22
15(5) Agricultural employes. Notwithstanding the minimum wages provided
16under subs. (2) to (4), but subject to the minimum wages provided under subs. (6) and
17(7), the department shall calculate the minimum wage for persons 18 years of age or
18over who are agricultural employes by multiplying the result obtained under sub. (2)
19by 95.3% and rounding the product to the nearest multiple of 5 cents and shall
20calculate the minimum wage for persons under 18 years of age who are agricultural
21employes by multiplying the result obtained under sub. (2) by 87.0% and rounding
22the product to the nearest multiple of 5 cents.
AB477,6,24
23(6) Minimum wage established by department. The department shall
24promulgate rules providing the minimum wage for all of the following:
AB477,7,2
1(a) A counselor employed at a seasonal recreational or educational camp,
2including a day camp, for campers under 18 years of age.
AB477,7,43
(b) A person engaged in casual employment in and around an employer's home
4on an irregular or intermittent basis for not more than 15 hours per week.
AB477,7,85
(c) A person who resides with and who provides companionship, care, not
6including practical or professional nursing, as defined in s. 441.11 (3) and (4), and not
7more than 15 hours per week of general household work for an employer who, due
8to advanced age or physical or mental disability, cannot care for his or her own needs.
AB477,7,99
(d) A caddy on a golf course.
AB477,7,1110
(e) An employe or worker with a disability covered under a license under s.
11104.07.
AB477,7,1212
(f) A student learner.
AB477,7,1313
(g) A student employed by an independent college or university.
AB477,7,15
14(7) Department may revise. The department may promulgate rules to increase
15a minimum wage provided under subs. (2) to (5).
AB477, s. 11
16Section
11. 104.04 of the statutes is amended to read:
AB477,8,4
17104.04 Classifications; department's authority. The department shall
18investigate, ascertain, determine and fix such reasonable classifications, and shall
19impose general or special orders, determining the
living-wage living wage, and shall
20carry out the purposes of
ss. 104.01 to 104.12 this chapter. Such investigations,
21classifications and orders shall be made as provided under s. 103.005, and the
22penalties specified in s. 103.005 (12) shall apply to and be imposed for any violation
23of
ss. 104.01 to 104.12. In determining the living-wage, the department may
24consider the effect that an increase in the living-wage might have on the economy
25of the state, including the effect of a living-wage increase on job creation, retention
1and expansion, on the availability of entry-level jobs and on regional economic
2conditions within the state this chapter. The department may not establish a
3different minimum wage for men and women. Said orders shall be subject to review
4in the manner provided in ch. 227.
AB477, s. 12
5Section
12. 104.045 of the statutes is renumbered 104.045 (intro.) and
6amended to read:
AB477,8,9
7104.045 Tipped employes Tips, meals and lodging, and hours worked. 8(intro.) The department shall
by rule determine what amount of promulgate rules
9governing all of the following:
AB477,8,11
10(1) The counting of tips or similar gratuities
may be counted toward fulfillment
11of the employer's obligation under this chapter.
AB477, s. 13
12Section
13. 104.045 (2) and (3) of the statutes are created to read:
AB477,8,1413
104.045
(2) The deduction of meals or lodging provided by an employer to an
14employe from the employer's obligations under this chapter.
AB477,8,16
15(3) The determination of hours worked by an employe during which the
16employe is entitled to a living wage under this chapter.
AB477, s. 14
17Section
14. 104.05 of the statutes is amended to read:
AB477,8,23
18104.05 Complaints; investigation. The department shall, within 20 days
19after the filing of a verified complaint of any person
setting forth alleging that the
20wages paid to any employe
in any occupation are not sufficient to enable the employe
21to maintain himself or herself under conditions consistent with his or her welfare,
22investigate and determine whether there is reasonable cause to believe that the wage
23paid to
any the employe is not a
living-wage living wage.
AB477, s. 15
24Section
15. 104.06 of the statutes is amended to read:
AB477,9,9
1104.06 Wage council; determination. If, upon investigation, the
2department finds that there is reasonable cause to believe that the wages paid to any
3employe are not a
living-wage, it living wage, the department shall appoint a wage
4council, selected so as fairly to represent employers, employes and the public, to
5assist in its investigations and determinations. The
living-wage department may
6use the results of an investigation under this section to establish a living wage. A
7living wage so determined
upon shall be the
living-wage living wage for all employes
8within the same class as established by the
classification of the department
under
9s. 104.04.
AB477, s. 16
10Section
16. 104.07 (1) of the statutes is amended to read:
AB477,9,1711
104.07
(1) The department shall
make
promulgate rules and, except as
12provided under subs. (5) and (6), grant licenses, to any employer who employs any
13employe
who is unable to earn
the living-wage theretofore determined upon,
14permitting such person to a living wage so that the employe may work for a wage
15which shall be that is commensurate with
the employe's ability
and each. Each 16license so granted shall establish a wage for the
licensee employes of the licensee who
17are unable to earn a living wage.
AB477, s. 17
18Section
17. 104.07 (2) of the statutes is amended to read:
AB477,9,2419
104.07
(2) The department shall
make
promulgate rules and, except as
20provided under subs. (5) and (6), grant licenses to sheltered workshops to permit the
21employment of workers with disabilities who are unable to earn
the living-wage at 22a living wage so that those workers may work for a wage that is commensurate with
23their ability and productivity. A license granted to a sheltered workshop under this
24section may be issued for the entire workshop or a department of the workshop.
AB477, s. 18
1Section
18. 104.08 (1) of the statutes is renumbered 104.08 (2m) and amended
2to read:
AB477,10,63
104.08
(2m) All persons Any person working in
an occupation a trade industry 4for which a
living-wage living wage has been established for minors, and who
shall
5have has no trade, shall
, if employed in an occupation which is a trade industry, be
6indentured under
the provisions of s. 106.01.