LRB-3457/1
GMM:wlj:rs
2003 - 2004 LEGISLATURE
October 27, 2003 - Introduced by Representatives Sinicki, Zepnick, Balow, Van
Akkeren, Richards, Berceau, Black, Taylor, Young, Pope-Roberts, Miller,
Plouff, Vruwink, Turner, Boyle, Pocan, J. Lehman, Krug and Morris,
cosponsored by Senators Hansen, Erpenbach, Moore, Chvala and Carpenter.
Referred to Committee on Labor.
AB622,1,9
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), 104.08 (1m)
6(b) and 104.08 (3) (a) of the statutes;
relating to: a state minimum wage,
7providing an exemption from emergency rule procedures, providing an
8exemption from rule-making procedures, granting rule-making authority, and
9providing a penalty.
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 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, 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; and
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. Under this bill, DWD will
continue to provide those separate minimum wage rates and exemptions. For other
employees, however, including agricultural employees and tipped employees, the bill
provides the method by which DWD must calculate the minimum wage.
Specifically, for employees generally, that is, employees who are not
agricultural employees, tipped employees, opportunity employees (defined in the bill
as employees 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 employees 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 $15,020 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 employees generally to $7.20 per hour.
For other employees, the bill directs DWD to calculate the minimum hourly
wage by multiplying the result obtained under the previous paragraph as follows:
1. For opportunity employees, by 92.9 percent and rounding the product to the
nearest multiple of five cents, resulting in a minimum wage of $6.70 per hour when
calculated based on the current federal poverty line.
2. For tipped employees who are not opportunity employees, by 54.8 percent
and rounding the product to the nearest multiple of five cents, resulting in a
minimum wage of $3.95 per hour when calculated based on the current poverty line.
3. For tipped employees who are opportunity employees, by 51.7 percent and
rounding the product to the nearest multiple of five cents, resulting in a minimum
wage of $3.70 per hour when calculated based on the current poverty line.
4. For agricultural employees 18 years of age or over, by 95.3 percent and
rounding the product to the nearest multiple of five cents, resulting in a minimum
wage of $6.85 per hour when calculated based on the current poverty line.
5. For agricultural employees under 18 years of age, by 87 percent 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.
The bill further requires DWD to revise annually the minimum wages specified
above within 30 days after the federal Department of Health and Human Services
publishes its annual revision of the poverty line.
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:
AB622, s. 1
1Section
1. 49.141 (1) (g) of the statutes is amended to read:
AB622,3,42
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.
AB622, s. 2
5Section
2. 104.01 (intro.) of the statutes is amended to read:
AB622,3,7
6104.01 Definitions. (intro.)
The following terms as used in ss. 104.01 to
7104.12 shall be construed as follows In this chapter:
AB622, s. 3
8Section
3. 104.01 (5) of the statutes is amended to read:
AB622,4,29
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 employee receiving it to maintain himself or herself under conditions
2consistent with his or her welfare.
AB622, s. 4
3Section
4. 104.01 (5m) of the statutes is created to read:
AB622,4,64
104.01
(5m) "Opportunity employee" 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.
AB622, s. 5
7Section
5. 104.01 (5p) of the statutes is created to read:
AB622,4,108
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).
AB622, s. 6
11Section
6. 104.01 (7m) of the statutes is created to read:
AB622,4,1412
104.01
(7m) "Tipped employee" means an employee who in the course of
13employment customarily and regularly receives money or other gratuities from
14persons other than the employee's employer.
AB622, s. 7
15Section
7. 104.01 (8) of the statutes is amended to read:
AB622,4,1716
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.
AB622, s. 8
18Section
8. 104.02 of the statutes is amended to read:
AB622,4,21
19104.02 Living-wage prescribed
Living wage required. Every wage paid
20or agreed to be paid by any employer to any employee, except as otherwise provided
21in s. 104.07, shall be not less than a
living-wage
living wage.
AB622, s. 9
22Section
9. 104.03 of the statutes is amended to read:
AB622,4,25
23104.03 Unlawful wages. Any employer paying, offering to pay, or agreeing
24to pay any employee 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.
AB622, s. 10
1Section
10. 104.035 of the statutes is created to read:
AB622,5,16
2104.035 Minimum wage. (1) Department to promulgate rules. The
3department shall promulgate rules providing minimum hourly wages for the
4employees specified in subs. (2) to (5). The department shall calculate those
5minimum hourly wages according to the methods specified in subs. (2) to (5).
6Annually, within 30 days after the federal department of health and human services
7publishes its annual revision of the poverty line, the department, using the
8procedure under s. 227.24 and the methods specified in subs. (2) to (5), shall
9promulgate rules revising the minimum hourly wages provided under subs. (2) to (5).
10Notwithstanding s. 227.24 (1) (a), (2) (b) and (3), the department may promulgate an
11emergency rule under s. 227.24 revising the minimum wages provided under subs.
12(2) to (5) without producing evidence that the emergency rule is necessary to preserve
13the public peace, health, safety, or welfare and without a finding of emergency. A
14revised minimum wage provided under subs. (2) to (5) shall first apply to wages
15earned beginning on the first day of the first month beginning after the date on which
16that minimum wage is revised.
AB622,5,20
17(2) Employees generally. Subject to the minimum wages provided under subs.
18(3) to (6) and (8), the department shall calculate the minimum hourly wage for
19employees generally by dividing the poverty line for a family of 3 persons by 2,080
20and rounding the quotient to the nearest multiple of 5 cents.
AB622,5,25
21(3) Opportunity employees. Notwithstanding the minimum wage provided
22under sub. (2), but subject to the minimum wages provided under subs. (4) to (6) and
23(8), the department shall calculate the minimum wage for opportunity employees by
24multiplying the result obtained under sub. (2) by 92.9 percent and rounding the
25product to the nearest multiple of 5 cents.
AB622,6,4
1(4) Tipped employees. (a) Notwithstanding the minimum wages provided
2under subs. (2) and (3), but subject to the minimum wages provided under subs. (5),
3(6), and (8), the department shall calculate the minimum wage for tipped employees
4as follows:
AB622,6,75
1. For persons who are not opportunity employees, by multiplying the result
6obtained under sub. (2) by 54.8 percent and rounding the product to the nearest
7multiple of 5 cents.
AB622,6,108
2. For persons who are opportunity employees, by multiplying the result
9obtained under sub. (2) by 51.7 percent and rounding the product to the nearest
10multiple of 5 cents.
AB622,6,1511
(b) An employer may pay the minimum wages specified in par. (a) only if the
12employer establishes by the employer's payroll records that, when adding the tips
13received by an employee to the wages under par. (a) paid to that employee, the
14employee receives not less than the minimum wage specified in sub. (2) or (3),
15whichever is applicable.
AB622,6,23
16(5) Agricultural employees. Notwithstanding the minimum wages provided
17under subs. (2) to (4), but subject to the minimum wages provided under subs. (6) and
18(8), the department shall calculate the minimum wage for persons 18 years of age or
19over who are agricultural employees by multiplying the result obtained under sub.
20(2) by 95.3 percent and rounding the product to the nearest multiple of 5 cents and
21shall calculate the minimum wage for persons under 18 years of age who are
22agricultural employees by multiplying the result obtained under sub. (2) by 87
23percent and rounding the product to the nearest multiple of 5 cents.
AB622,6,25
24(6) Minimum wage established by department. The department shall
25promulgate rules providing the minimum wage for all of the following:
AB622,7,2
1(a) A counselor employed at a seasonal recreational or educational camp,
2including a day camp, for campers under 18 years of age.
AB622,7,33
(b) A caddy on a golf course.
AB622,7,54
(c) An employee or worker with a disability covered under a license under s.
5104.07.
AB622,7,66
(d) A student learner.
AB622,7,87
(e) A student employed by an independent college or university for less than
820 hours per week.
AB622,7,11
9(7) Employment exempted by department. The department shall promulgate
10rules exempting from the minimum wage requirements under subs. (2) to (5) all of
11the following:
AB622,7,1312
(a) A person engaged in casual employment in and around an employer's home
13on an irregular or intermittent basis for not more than 15 hours per week.
AB622,7,1714
(b) A person who resides with and who provides companionship and care, not
15including practical or professional nursing, as defined in s. 441.001 (3) and (4), and
16not more than 15 hours per week of general household work for an employer who, due
17to advanced age or physical or mental disability, cannot care for his or her own needs.
AB622,7,1918
(c) An elementary or secondary school student performing student work-like
19activities in the student's school.
AB622,7,21
20(8) Department may revise. The department may promulgate rules to increase
21a minimum wage provided under subs. (2) to (5).
AB622, s. 11
22Section
11. 104.04 of the statutes is amended to read:
AB622,8,10
23104.04 Classifications; department's authority. The department shall
24investigate, ascertain, determine
, and fix such reasonable classifications, and shall
25impose general or special orders, determining the
living-wage living wage, and shall
1carry out the purposes of
ss. 104.01 to 104.12
this chapter. Such investigations,
2classifications
, and orders shall be made as provided under s. 103.005, and the
3penalties specified in s. 103.005 (12) shall apply to and be imposed for any violation
4of
ss. 104.01 to 104.12 this chapter. In determining the
living-wage living wage, the
5department may consider the effect that an increase in the
living-wage living wage 6might have on the economy of the state, including the effect of a
living-wage living
7wage increase on job creation, retention
, and expansion, on the availability of
8entry-level jobs
, and on regional economic conditions within the state. The
9department may not establish a different minimum wage for men and women. Said
10orders shall be subject to review in the manner provided in ch. 227.
AB622, s. 12
11Section
12. 104.045 of the statutes is renumbered 104.045 (intro.) and
12amended to read:
AB622,8,15
13104.045 Tipped employees Tips, meals, lodging, and hours worked. 14(intro.) The department shall
by rule determine what amount of promulgate rules
15governing all of the following:
AB622,8,17
16(1) The counting of tips or similar gratuities
may be counted toward fulfillment
17of the employer's obligation under this chapter.
AB622, s. 13
18Section
13. 104.045 (2) and (3) of the statutes are created to read:
AB622,8,2019
104.045
(2) The deduction of meals or lodging provided by an employer to an
20employee from the employer's obligation under this chapter.
AB622,8,22
21(3) The determination of hours worked by an employee during which the
22employee is entitled to a living wage under this chapter.
AB622, s. 14
23Section
14. 104.05 of the statutes is amended to read:
AB622,9,4
24104.05 Complaints; investigation. The department shall, within 20 days
25after the filing of a verified complaint of any person
setting forth alleging that the
1wages paid to any employee
in any occupation are not sufficient to enable the
2employee to maintain himself or herself under conditions consistent with his or her
3welfare, investigate and determine whether there is reasonable cause to believe that
4the wage paid to
any the employee is not a
living-wage living wage.
AB622, s. 15
5Section
15. 104.06 of the statutes is amended to read:
AB622,9,14
6104.06 Wage council; determination. If, upon investigation, the
7department finds that there is reasonable cause to believe that the wages paid to any
8employee are not a
living-wage, it living wage, the department shall appoint a wage
9council, selected so as fairly to represent employers, employees
, and the public, to
10assist in its investigations and determinations. The
living-wage department may
11use the results of an investigation under this section to establish a living wage. A
12living wage so determined
upon shall be the
living-wage living wage for all
13employees within the same class as established by the
classification of the 14department
under s. 104.04.
AB622, s. 16
15Section
16. 104.07 (1) of the statutes is amended to read:
AB622,9,2216
104.07
(1) The department shall
make
promulgate rules and, except as
17provided under subs. (5) and (6), grant licenses, to any employer who employs any
18employee
who is unable to earn
the living-wage theretofore determined upon,
19permitting such person to a living wage so that the employee may work for a wage
20which shall be that is commensurate with
the employee's ability
and each
. Each 21license so granted shall establish a wage for the
licensee employees of the licensee
22who are unable to earn a living wage.
AB622, s. 17
23Section
17. 104.07 (2) of the statutes is amended to read:
AB622,9,2524
104.07
(2) The department shall
make
promulgate rules and, except as
25provided under subs. (5) and (6), grant licenses to sheltered workshops to permit the
1employment of workers with disabilities who are unable to earn
the living-wage at 2a living wage so that those workers may work for a wage that is commensurate with
3their
ability abilities and productivity. A license granted to a sheltered workshop
4under this section may be issued for the entire workshop or a department of the
5workshop.
AB622, s. 18
6Section
18. 104.08 (1) of the statutes is renumbered 104.08 (2m) and amended
7to read:
AB622,10,118
104.08
(2m) All persons Any person working in
an occupation a trade industry 9for which a
living-wage living wage has been established for minors, and who
shall
10have has no trade, shall
, if employed in an occupation which is a trade industry, be
11indentured under
the provisions of s. 106.01.
AB622, s. 19
12Section
19. 104.08 (1m) (b) of the statutes is created to read: