2005 - 2006 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 2,
TO 2005 ASSEMBLY BILL 49
May 3, 2005 - Offered by Representatives Sheridan, Kreuser, Sherman and
Richards.
AB49-ASA2,1,9
1An Act to renumber 104.01 (1);
to renumber and amend 104.045, 104.08 (1),
2104.08 (2) and 104.08 (3);
to amend 49.141 (1) (g), 104.01 (intro.), 104.01 (5),
3104.01 (8), 104.02, 104.03, 104.04, 104.05, 104.06, 104.07 (1), 104.07 (2), 104.10,
4104.11, 104.12, 234.94 (5), 234.94 (8), 800.09 (1) (b), 800.095 (4) (b) 3. and
5895.035 (2m) (c); and
to create 104.001, 104.01 (1d), 104.01 (5g), 104.01 (5m),
6104.01 (7m), 104.035, 104.045 (2) and (3), 104.08 (1m) (b) and 104.08 (3) (a) of
7the statutes;
relating to: a state minimum wage; permitting cities, villages,
8towns, and counties to enact living wage ordinances; granting rule-making
9authority; 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 employees. Under that law, the Department of Workforce Development
(DWD) has provided, by rule, minimum wages for various types of employees,
including employees, generally; opportunity employees, which are defined as
employees under 20 years of age in their first 90 days of employment with a
particular employer; tipped employees; agricultural employees; camp counselors;
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. 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. DWD
has also promulgated rules providing allowances against the minimum wage for
employers that provide meals or lodging for their employees.
Under this substitute amendment, DWD will continue to provide the
exemptions listed above and separate minimum wages for 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 wages because of a disability. For other
employees, however, the substitute amendment sets the minimum wages as follows:
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The substitute amendment also increases the allowance against the minimum
wage that an employer who provides room and board for an employee may take, as
follows:
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Under current constitutional and statutory home rule provisions, a city or
village may determine its own local affairs subject only to the Wisconsin Constitution
and to any enactment of the legislature that is of statewide concern and that affects
every city or village with uniformity.
This substitute amendment permits a city, village, town, or county to enact an
ordinance providing for a living wage within its boundaries (local living wage
ordinance). A local living wage ordinance may strictly conform to the state minimum
wage law or may provide for a living wage that is higher than the living wage
established under the state minimum wage law. A local living wage ordinance may
also be more inclusive than the state minimum wage law with respect to the different
types of employees covered under the ordinance.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB49-ASA2, s. 1
1Section
1. 49.141 (1) (g) of the statutes is amended to read:
AB49-ASA2,8,3
149.141
(1) (g) "Minimum wage" means the state minimum hourly wage under
2ch. 104 s. 104.035 (1) or the federal minimum hourly wage under
29 USC 206 (a) (1),
3whichever is applicable.
AB49-ASA2,8,12
5104.001 Local living wage ordinances. (1) Declaration of policy. The
6right of all persons to earn compensation for their labor, whether by time, piecework,
7or otherwise, that is sufficient to enable them to maintain themselves under
8conditions that are consistent with their welfare is a matter both of statewide
9concern and of local interest. The enactment of this chapter by the legislature does
10not preempt a city, village, town, or county from considering the subject matter of a
11living wage and does not exempt cities, villages, towns, or counties from their duty,
12or deprive them of their right, to enact ordinances providing for a living wage.
AB49-ASA2,8,22
13(2) Local living wage ordinances permitted. A city, village, town, or county
14may enact an ordinance providing for a living wage within its boundaries, except that
15a county ordinance enacted under this subsection does not apply within a city,
16village, or town that has enacted or enacts an ordinance under this subsection. An
17ordinance enacted under this subsection may strictly conform to this chapter and any
18rules promulgated under this chapter or may provide for a living wage that is higher
19than the living wage established under this chapter or under any rules promulgated
20under this chapter. An ordinance enacted under this subsection may also be more
21inclusive than this chapter or any rules promulgated under this chapter with respect
22to the different types of employees covered under the ordinance.
AB49-ASA2, s. 3
23Section
3. 104.01 (intro.) of the statutes is amended to read:
AB49-ASA2,8,25
24104.01 Definitions. (intro.)
The following terms as used in ss. 104.01 to
25104.12 shall be construed as follows In this chapter:
AB49-ASA2, s. 4
1Section
4. 104.01 (1) of the statutes is renumbered 104.01 (1m).
AB49-ASA2, s. 5
2Section
5. 104.01 (1d) of the statutes is created to read:
AB49-ASA2,9,43
104.01
(1d) "Agricultural employee" means an employee who is employed in
4farming, as defined in s. 102.04 (3).
AB49-ASA2,9,96
104.01
(5) The term "living-wage" shall mean "Living wage" means 7compensation for labor paid, whether by time, piecework
, or otherwise, sufficient to
8enable the employee receiving it to maintain himself or herself under conditions
9consistent with his or her welfare.
AB49-ASA2, s. 7
10Section
7. 104.01 (5g) of the statutes is created to read:
AB49-ASA2,9,1211
104.01
(5g) "Minor employee" means a minor who is paid at the applicable
12minimum wage rate for minors.
AB49-ASA2, s. 8
13Section
8. 104.01 (5m) of the statutes is created to read:
AB49-ASA2,9,1514
104.01
(5m) "Opportunity employee" means a person under 20 years of age who
15is in the first 90 consecutive days of employment with his or her employer.
AB49-ASA2, s. 9
16Section
9. 104.01 (7m) of the statutes is created to read:
AB49-ASA2,9,1917
104.01
(7m) "Tipped employee" means an employee who in the course of
18employment customarily and regularly receives money or other gratuities from
19persons other than the employee's employer.
AB49-ASA2,9,2221
104.01
(8) The term "wage" and the term "wages" shall each mean "Wage"
22means any compensation for labor measured by time, piece
, or otherwise.
AB49-ASA2,10,3
1104.02 Living-wage prescribed Living wage required. Every wage paid
2or agreed to be paid by any employer to any employee, except as otherwise provided
3in s. 104.07, shall be not less than a
living-wage
living wage.
AB49-ASA2,10,7
5104.03 Unlawful wages. Any employer paying, offering to pay, or agreeing
6to pay any employee a wage lower or less in value than a
living-wage living wage is
7guilty of a violation of
ss. 104.01 to 104.12 this chapter.
AB49-ASA2,10,10
9104.035 Minimum wage. (1) Employees generally. (a)
Minimum rates.
10Except as provided in subs. (2) to (8), the minimum wage is as follows:
AB49-ASA2,10,1111
1. For wages earned before October 1, 2005, $5.70 per hour.
AB49-ASA2,10,1212
2. For wages earned beginning on October 1, 2005, $6.50 per hour.
AB49-ASA2,10,1613
(b)
Allowances for meals and lodging. Except as provided in subs. (2) (b) and
14(4) (b), if an employer furnishes an employee with meals or lodging in accordance
15with rules promulgated by the department under s. 104.045 (2), the employer may
16deduct the following amounts from the wages of the employee:
AB49-ASA2,10,1917
1. For lodging furnished before October 1, 2005, $45.60 per week or $6.50 per
18day and for meals furnished before October 1, 2005, $68.40 per week or $3.25 per
19meal.
AB49-ASA2,10,2220
2. For lodging furnished beginning on October 1, 2005, $52 per week or $7.40
21per day and for meals furnished beginning on October 1, 2005, $78 per week or $3.70
22per meal.
AB49-ASA2,10,25
23(2) Minor and opportunity employees. (a)
Minimum rates. Except as provided
24in subs. (3) to (8), the minimum wage for a minor employee or an opportunity
25employee is as follows:
AB49-ASA2,11,1
11. For wages earned before October 1, 2005, $5.30 per hour.
AB49-ASA2,11,22
2. For wages earned beginning on October 1, 2005, $5.90 per hour.
AB49-ASA2,11,63
(b)
Allowances for meals and lodging. Except as provided in sub. (4) (b), if an
4employer furnishes a minor employee or an opportunity employee with meals or
5lodging in accordance with rules promulgated by the department under s. 104.045
6(2), the employer may deduct the following amounts from the wages of the employee:
AB49-ASA2,11,87
1. For lodging furnished before October 1, 2005, $42.40 per week or $6.05 per
8day and for meals furnished before October 1, 2005, $63.60 per week or $3 per meal.
AB49-ASA2,11,119
2. For lodging furnished beginning on October 1, 2005, $47.20 per week or $6.75
10per day and for meals furnished beginning on October 1, 2005, $70.80 per week or
11$3.35 per meal.
AB49-ASA2,11,17
12(3) Tipped employees. (a)
Minimum rates. Except as provided in subs. (4) to
13(8), if an employer of a tipped employee establishes by the employer's payroll records
14that, when adding the tips received by the tipped employee in a week to the wages
15paid to the tipped employee in that week, the tipped employee receives not less than
16the applicable minimum wage specified in sub. (1) or (2), the minimum wage for the
17tipped employee is as follows:
AB49-ASA2,11,1918
1. For wages earned by a tipped employee who is not an opportunity employee,
19$2.33 per hour.
AB49-ASA2,11,2120
2. For wages earned by a tipped employee who is an opportunity employee,
21$2.13 per hour.
AB49-ASA2,11,2522
(b)
Allowances for meals and lodging. If an employer furnishes a tipped
23employee with meals or lodging in accordance with rules promulgated by the
24department under s. 104.045 (2), the employer may deduct the applicable amounts
25specified in subs. (1) (b) or (2) (b) from the wages of the tipped employee.
AB49-ASA2,12,2
1(4) Agricultural employees. (a)
Minimum rates. Except as provided in subs.
2(7) and (8), the minimum wage for an agricultural employee is as follows:
AB49-ASA2,12,33
1. For wages earned by an adult agricultural employee, $5.15 per hour.
AB49-ASA2,12,44
2. For wages earned by a minor agricultural employee, $4.25 per hour.
AB49-ASA2,12,85
(b)
Allowances for meals and lodging. If an employer furnishes an agricultural
6employee with meals or lodging in accordance with rules promulgated by the
7department under s. 104.045 (2), the employer may deduct the following amounts
8from the wages of the employee:
AB49-ASA2,12,119
1. For lodging furnished to an adult agricultural employee, $41.20 per week or
10$5.90 per day and for meals furnished to an adult agricultural employee, $61.80 per
11week or $2.95 per meal.
AB49-ASA2,12,1412
2. For lodging furnished to a minor agricultural employee, $34 per week or
13$4.85 per day and for meals furnished to a minor agricultural employee, $51 per week
14or $2.40 per meal.
AB49-ASA2,12,17
15(5) Camp counselors. (a)
Minimum rates for adult counselors. The minimum
16wage for a counselor at a seasonal recreational or educational camp, including a day
17camp, who is an adult is as follows:
AB49-ASA2,12,2018
1. For wages earned before October 1, 2005, $215 per week if meals and lodging
19are not furnished, $164 per week if only meals are furnished, and $129 per week if
20both meals and lodging are furnished.
AB49-ASA2,12,2321
2. For wages earned beginning on October 1, 2005, $270 per week if meals and
22lodging are not furnished, $217 per week if only meals are furnished, and $171 per
23week if both meals and lodging are furnished.
AB49-ASA2,13,3
13. For wages earned beginning on October 1, 2006, $315 per week if meals and
2lodging are not furnished, $240 per week if only meals are furnished, and $189 per
3week if both meals and lodging are furnished.
AB49-ASA2,13,64
(b)
Minimum rates for minor counselors. The minimum wage for a counselor
5at a seasonal recreational or educational camp, including a day camp, who is a minor
6is as follows:
AB49-ASA2,13,97
1. For wages earned before October 1, 2005, $175 per week if meals and lodging
8are not furnished, $133 per week if only meals are furnished, and $105 per week if
9both meals and lodging are furnished.
AB49-ASA2,13,1210
2. For wages earned beginning on October 1, 2005, $225 per week if meals and
11lodging are not furnished, $171 per week if only meals are furnished, and $135 per
12week if both meals and lodging are furnished.
AB49-ASA2,13,1513
3. For wages earned beginning on October 1, 2006, $275 per week if meals and
14lodging are not furnished, $209 per week if only meals are furnished, and $165 per
15week if both meals and lodging are furnished.
AB49-ASA2,13,16
16(6) Golf caddies. The minimum wage for a golf caddy is as follows:
AB49-ASA2,13,1717
(a) For 18 holes, $10.50.
AB49-ASA2,13,1818
(b) For 9 holes, $5.90.
AB49-ASA2,13,20
19(7) Minimum wage established by department. The department shall
20promulgate rules providing the minimum wage for all of the following:
AB49-ASA2,13,2221
(a) An employee or worker with a disability covered under a license under s.
22104.07.
AB49-ASA2,13,2323
(b) A student learner.
AB49-ASA2,13,2524
(c) A student employed by an independent college or university for less than
2520 hours per week.
AB49-ASA2,14,3
1(8) Employment exempted by department. The department shall promulgate
2rules exempting from the minimum wage requirements under subs. (1) to (7) all of
3the following:
AB49-ASA2,14,54
(a) A person engaged in casual employment in and around an employer's home
5on an irregular or intermittent basis for not more than 15 hours per week.
AB49-ASA2,14,96
(b) A person who resides with and who provides companionship and care, not
7including practical or professional nursing, as defined in s. 441.001 (3) and (4), and
8not more than 15 hours per week of general household work for an employer who, due
9to advanced age or physical or mental disability, cannot care for his or her own needs.
AB49-ASA2,14,1110
(c) An elementary or secondary school student performing student work-like
11activities in the student's school.
AB49-ASA2,14,14
12(9) Department may revise. The department may promulgate rules to increase
13a minimum wage or an allowance for meals and lodging provided under subs. (1) to
14(7).
AB49-ASA2,15,4
16104.04 Classifications; department's authority. The department shall
17investigate, ascertain, determine
, and fix such reasonable classifications, and shall
18impose general or special orders, determining the
living-wage living wage, and shall
19carry out the purposes of
ss. 104.01 to 104.12. Such
this chapter. Those 20investigations, classifications
, and orders shall be made as provided under s.
21103.005, and the penalties specified in s. 103.005 (12) shall apply to and be imposed
22for any violation of
ss. 104.01 to 104.12 this chapter. In determining the
living-wage 23living wage, the department may consider the effect that an increase in the
24living-wage living wage might have on the economy of the state, including the effect
25of a
living-wage living wage increase on job creation, retention
, and expansion, on
1the availability of entry-level jobs
, and on regional economic conditions within the
2state. The department may not establish a different minimum wage for men and
3women.
Said Those orders shall be subject to review in the manner provided in ch.
4227.
AB49-ASA2, s. 15
5Section
15. 104.045 of the statutes is renumbered 104.045 (intro.) and
6amended to read:
AB49-ASA2,15,9
7104.045 Tipped employees Tips, meals, lodging, and hours worked. 8(intro.) The department shall
by rule determine what amount of promulgate rules
9governing all of the following:
AB49-ASA2,15,11
10(1) The counting of tips or similar gratuities
may be counted toward fulfillment
11of the employer's obligation under this chapter.