AB477: Bill Text

LRB-3469/1

GMM:jlg:mrc

1999 - 2000 LEGISLATURE

1999 Assembly BILL 477

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 An Act to renumber and amend 104.045, 104.08 (1), 104.08 (2) and 104.08 (3); to amend 49.141 (1) (g), 104.01 (intro.), 104.01 (5), 104.01 (8), 104.02, 104.03, 104.04, 104.05, 104.06, 104.07 (1), 104.07 (2), 104.10, 104.11, 104.12, 234.94 (5), 234.94 (8), 800.09 (1) (b), 800.095 (4) (b) 3. and 895.035 (2m) (c); and to create 104.01 (5m), 104.01 (5p), 104.01 (7m), 104.035, 104.045 (2) and (3) and 104.08 (1) (b) of the statutes; relating to: a state minimum wage, providing an exemption from emergency rule procedures, providing an exemption from rule-making procedures, granting rule-making authority and providing a penalty.

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

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 Section 1. 49.141 (1) (g) of the statutes is amended to read:

AB477,3,4 49.141 (1) (g) "Minimum wage" means the state minimum hourly wage under ch. 104 s. 104.035 (2) or the federal minimum hourly wage under 29 USC 206 (a) (1), whichever is applicable.

AB477, s. 2 Section 2. 104.01 (intro.) of the statutes is amended to read:

AB477,3,7 104.01 Definitions. (intro.) The following terms as used in ss. 104.01 to 104.12 shall be construed as follows In this chapter:

AB477, s. 3 Section 3. 104.01 (5) of the statutes is amended to read:

AB477,4,2 104.01 (5) The term "living-wage" shall mean "Living wage" means compensation for labor paid, whether by time, piecework or otherwise, sufficient to enable the employe receiving it to maintain himself or herself under conditions consistent with his or her welfare.

AB477, s. 4 Section 4. 104.01 (5m) of the statutes is created to read:

AB477,4,6 104.01 (5m) "Opportunity employe" means a person under 20 years of age who has been employed for a cumulative total of 30 calendar days or less within the preceding 3-year period.

AB477, s. 5 Section 5. 104.01 (5p) of the statutes is created to read:

AB477,4,10 104.01 (5p) "Poverty line" means the poverty guidelines for the continental United States, as revised annually by the federal department of health and human services under 42 USC 9902 (2).

AB477, s. 6 Section 6. 104.01 (7m) of the statutes is created to read:

AB477,4,14 104.01 (7m) "Tipped employe" means an employe who in the course of employment customarily and regularly receives money or other gratuities from persons other than the employe's employer.

AB477, s. 7 Section 7. 104.01 (8) of the statutes is amended to read:

AB477,4,17 104.01 (8) The term "wage" and the term "wages" shall each mean "Wage" means any compensation for labor measured by time, piece or otherwise.

AB477, s. 8 Section 8. 104.02 of the statutes is amended to read:

AB477,4,21 104.02 Living-wage prescribed Living wage required. Every wage paid or agreed to be paid by any employer to any employe, except as otherwise provided in s. 104.07, shall be not less than a living-wage living wage.

AB477, s. 9 Section 9. 104.03 of the statutes is amended to read:

AB477,4,25 104.03 Unlawful wages. Any employer paying, offering to pay, or agreeing to pay any employe a wage lower or less in value than a living-wage living wage is guilty of a violation of ss. 104.01 to 104.12 this chapter.

AB477, s. 10 Section 10. 104.035 of the statutes is created to read:

AB477,5,15 104.035 Minimum wage. (1) Department to promulgate rules. The department shall promulgate rules providing minimum hourly wages for the employes specified in subs. (2) to (5). The department shall calculate those minimum hourly wages according to the methods specified in subs. (2) to (5). Annually, within 30 days after the federal department of health and human services publishes its annual revision of the poverty line, the department, using the procedure under s. 227.24 and the methods specified in subs. (2) to (5), shall promulgate rules revising the minimum hourly wages provided under subs. (2) to (5). Notwithstanding s. 227.24 (1) (a) and (2) (b), the department is not required to provide evidence of the necessity of preserving the public peace, health, safety or welfare in promulgating rules revising the minimum wages provided under subs. (2) to (5). A revised minimum wage provided under subs. (2) to (5) shall first apply to wages earned beginning on the first day of the first month beginning after the date on which that minimum wage is revised.

AB477,5,19 (2) Employes generally. Subject to the minimum wages provided under subs. (3) to (7), the department shall calculate the minimum hourly wage for employes generally by dividing the poverty line for a family of 3 persons by 2,080 and rounding the quotient to the nearest multiple of 5 cents.

AB477,5,24 (3) Opportunity employes. Notwithstanding the minimum wage provided under sub. (2), but subject to the minimum wages provided under subs. (4) to (7), the department shall calculate the minimum wage for opportunity employes by multiplying the result obtained under sub. (2) by 92.9% and rounding the product to the nearest multiple of 5 cents.

AB477,6,3 (4) Tipped employes. (a) Notwithstanding the minimum wages provided under subs. (2) and (3), but subject to the minimum wages provided under subs. (5) to (7), the department shall calculate the minimum wage for tipped employes as follows:

AB477,6,6 1. For persons who are not opportunity employes, by multiplying the result obtained under sub. (2) by 54.8% and rounding the product to the nearest multiple of 5 cents.

AB477,6,9 2. For persons who are opportunity employes, by multiplying the result obtained under sub. (2) by 51.7% and rounding the product to the nearest multiple of 5 cents.

AB477,6,14 (b) An employer may pay the minimum wages specified in par. (a) only if the employer establishes by the employer's payroll records that, when adding the tips received by an employe to the wages under par. (a) paid to that employe, the employe receives not less than the minimum wage specified in sub. (2) or (3), whichever is applicable.

AB477,6,22 (5) Agricultural employes. Notwithstanding the minimum wages provided under subs. (2) to (4), but subject to the minimum wages provided under subs. (6) and (7), the department shall calculate the minimum wage for persons 18 years of age or over who are agricultural employes by multiplying the result obtained under sub. (2) by 95.3% and rounding the product to the nearest multiple of 5 cents and shall calculate the minimum wage for persons under 18 years of age who are agricultural employes by multiplying the result obtained under sub. (2) by 87.0% and rounding the product to the nearest multiple of 5 cents.

AB477,6,24 (6) Minimum wage established by department. The department shall promulgate rules providing the minimum wage for all of the following:

AB477,7,2 (a) A counselor employed at a seasonal recreational or educational camp, including a day camp, for campers under 18 years of age.

AB477,7,4 (b) A person engaged in casual employment in and around an employer's home on an irregular or intermittent basis for not more than 15 hours per week.

AB477,7,8 (c) A person who resides with and who provides companionship, care, not including practical or professional nursing, as defined in s. 441.11 (3) and (4), and not more than 15 hours per week of general household work for an employer who, due to advanced age or physical or mental disability, cannot care for his or her own needs.

AB477,7,9 (d) A caddy on a golf course.

AB477,7,11 (e) An employe or worker with a disability covered under a license under s. 104.07.

AB477,7,12 (f) A student learner.

AB477,7,13 (g) A student employed by an independent college or university.

AB477,7,15 (7) Department may revise. The department may promulgate rules to increase a minimum wage provided under subs. (2) to (5).

AB477, s. 11 Section 11. 104.04 of the statutes is amended to read:

AB477,8,4 104.04 Classifications; department's authority. The department shall investigate, ascertain, determine and fix such reasonable classifications, and shall impose general or special orders, determining the living-wage living wage, and shall carry out the purposes of ss. 104.01 to 104.12 this chapter. Such investigations, classifications and orders shall be made as provided under s. 103.005, and the penalties specified in s. 103.005 (12) shall apply to and be imposed for any violation of ss. 104.01 to 104.12. In determining the living-wage, the department 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 chapter. The department may not establish a different minimum wage for men and women. Said orders shall be subject to review in the manner provided in ch. 227.

AB477, s. 12 Section 12. 104.045 of the statutes is renumbered 104.045 (intro.) and amended to read:

AB477,8,9 104.045 Tipped employes Tips, meals and lodging, and hours worked. (intro.) The department shall by rule determine what amount of promulgate rules governing all of the following:

AB477,8,11 (1) The counting of tips or similar gratuities may be counted toward fulfillment of the employer's obligation under this chapter.

AB477, s. 13 Section 13. 104.045 (2) and (3) of the statutes are created to read:

AB477,8,14 104.045 (2) The deduction of meals or lodging provided by an employer to an employe from the employer's obligations under this chapter.

AB477,8,16 (3) The determination of hours worked by an employe during which the employe is entitled to a living wage under this chapter.

AB477, s. 14 Section 14. 104.05 of the statutes is amended to read:

AB477,8,23 104.05 Complaints; investigation. The department shall, within 20 days after the filing of a verified complaint of any person setting forth alleging that the wages paid to any employe in any occupation are not sufficient to enable the employe to maintain himself or herself under conditions consistent with his or her welfare, investigate and determine whether there is reasonable cause to believe that the wage paid to any the employe is not a living-wage living wage.

AB477, s. 15 Section 15. 104.06 of the statutes is amended to read:

AB477,9,9 104.06 Wage council; determination. If, upon investigation, the department finds that there is reasonable cause to believe that the wages paid to any employe are not a living-wage, it living wage, the department shall appoint a wage council, selected so as fairly to represent employers, employes and the public, to assist in its investigations and determinations. The living-wage department may use the results of an investigation under this section to establish a living wage. A living wage so determined upon shall be the living-wage living wage for all employes within the same class as established by the classification of the department under s. 104.04.

AB477, s. 16 Section 16. 104.07 (1) of the statutes is amended to read:

AB477,9,17 104.07 (1) The department shall make promulgate rules and, except as provided under subs. (5) and (6), grant licenses, to any employer who employs any employe who is unable to earn the living-wage theretofore determined upon, permitting such person to a living wage so that the employe may work for a wage which shall be that is commensurate with the employe's ability and each. Each license so granted shall establish a wage for the licensee employes of the licensee who are unable to earn a living wage.

AB477, s. 17 Section 17. 104.07 (2) of the statutes is amended to read:

AB477,9,24 104.07 (2) The department shall make promulgate rules and, except as provided under subs. (5) and (6), grant licenses to sheltered workshops to permit the employment of workers with disabilities who are unable to earn the living-wage at a living wage so that those workers may work for a wage that is commensurate with their ability and productivity. A license granted to a sheltered workshop under this section may be issued for the entire workshop or a department of the workshop.

AB477, s. 18 Section 18. 104.08 (1) of the statutes is renumbered 104.08 (2m) and amended to read:

AB477,10,6 104.08 (2m) All persons Any person working in an occupation a trade industry for which a living-wage living wage has been established for minors, and who shall have has no trade, shall, if employed in an occupation which is a trade industry, be indentured under the provisions of s. 106.01.

AB477, s. 19 Section 19. 104.08 (1) (b) of the statutes is created to read:

AB477,10,10 104.08 (1) (b) "Trade industry" means an industry involving physical labor and characterized by mechanical skill and training such as render a period of instruction reasonably necessary.