AB274: Bill Text

LRB-2164/1

GMM:kjf:rs

2007 - 2008 LEGISLATURE

2007 Assembly BILL 274

April 23, 2007 - Introduced by Representatives Mason, Zepnick, Turner, Black, Pocan, Young, Boyle, Sinicki, Sheridan, Sherman, Pope-Roberts, Kreuser, Travis, Van Akkeren, Kessler, Berceau and A. Williams, cosponsored by Senators Decker, Hansen, Carpenter, Miller, Jauch, Lehman, Risser, Sullivan, Erpenbach and Breske. Referred to Committee on Jobs and The Economy.

AB274,1,6 An Act to renumber 104.01 (1); to renumber and amend 104.045; to amend 49.141 (1) (g), 104.01 (intro.), 104.01 (8), 104.05, 104.07 (1), 104.07 (2), 104.10, 104.11, 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 (1d), 104.01 (1g), 104.01 (5g), 104.01 (5m), 104.01 (7m), 104.035 and 104.045 (2) and (3) of the statutes; relating to: a state minimum wage and granting rule-making authority.

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; minor employees; 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 bill, 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 bill sets the minimum wages, effective on September 1, 2007, or on the day after publication of the bill, whichever is later, as follows: - See PDF for table - See PDF for table - See PDF for table

The bill also increases the allowance against the minimum wage that an employer who provides room and board for an employee may take, as follows: - See PDF for table

Beginning on September 1, 2008, the bill requires DWD annually to promulgate rules revising the minimum wages and allowances for meals and lodging established under the bill by determining the percentage difference between the consumer price index for the preceding year and the consumer price index for the current year, adjusting the minimum wages and allowances in effect on August 31 of the current year by that percentage difference, and rounding that result to the nearest multiple of five cents or, in the case of a camp counselor, the nearest dollar.

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:

AB274, s. 1 Section 1. 49.141 (1) (g) of the statutes is amended to read:

AB274,5,4 49.141 (1) (g) "Minimum wage" means the state minimum hourly wage under ch. 104 s. 104.035 (1) or the federal minimum hourly wage under 29 USC 206 (a) (1), whichever is applicable.

AB274, s. 2 Section 2. 104.01 (intro.) of the statutes is amended to read:

AB274,6,2 104.01 Definitions. (intro.) The following terms as used in In this chapter shall be construed as follows:

AB274, s. 3 Section 3. 104.01 (1) of the statutes is renumbered 104.01 (1m).

AB274, s. 4 Section 4. 104.01 (1d) of the statutes is created to read:

AB274,6,6 104.01 (1d) "Agricultural employee" means an employee who is employed in farming, as defined in s. 102.04 (3).

AB274, s. 5 Section 5. 104.01 (1g) of the statutes is created to read:

AB274,6,10 104.01 (1g) "Consumer price index" means the average of the consumer price index over each 12-month period for all urban consumers, U.S. city average, as determined by the bureau of labor statistics of the U.S. department of labor.

AB274, s. 6 Section 6. 104.01 (5g) of the statutes is created to read:

AB274,6,13 104.01 (5g) "Minor employee" means a minor who is paid at the applicable minimum wage rate for minors.

AB274, s. 7 Section 7. 104.01 (5m) of the statutes is created to read:

AB274,6,16 104.01 (5m) "Opportunity employee" means a person under 20 years of age who is in the first 90 consecutive days of employment with his or her employer.

AB274, s. 8 Section 8. 104.01 (7m) of the statutes is created to read:

AB274,6,20 104.01 (7m) "Tipped employee" means an employee who in the course of employment customarily and regularly receives money or other gratuities from persons other than the employee's employer.

AB274, s. 9 Section 9. 104.01 (8) of the statutes is amended to read:

AB274,6,23 104.01 (8) The term "wage" and the term "wages" shall each mean "Wage" means any compensation for labor measured by time, piece, or otherwise.

AB274, s. 10 Section 10. 104.035 of the statutes is created to read:

AB274,7,2 104.035 Minimum wage. (1) Employees generally. (a) Minimum rates. Except as provided in subs. (2) to (8), the minimum wage is as follows:

AB274,7,3 1. For wages earned before September 1, 2008, $7.25 per hour.

AB274,7,5 2. For wages earned beginning on September 1, 2008, the amount determined by the department by rule promulgated under sub. (9).

AB274,7,9 (b) Allowances for meals and lodging. Except as provided in subs. (2) (b) and (4) (b), if an employer furnishes an employee with meals or lodging in accordance with rules promulgated by the department under s. 104.045 (2), the employer may deduct the following amounts from the wages of the employee:

AB274,7,12 1. For lodging furnished before September 1, 2008, $58 per week or $8.25 per day and for meals furnished before September 1, 2008, $87 per week or $4.15 per meal.

AB274,7,14 2. For meals and lodging furnished beginning on September 1, 2008, the amounts determined by the department by rule promulgated under sub. (9).

AB274,7,17 (2) Minor and opportunity employees. (a) Minimum rates. Except as provided in subs. (3) to (8), the minimum wage for a minor employee or an opportunity employee is as follows:

AB274,7,18 1. For wages earned before September 1, 2008, $6.60 per hour.

AB274,7,20 2. For wages earned beginning on September 1, 2008, the amount determined by the department by rule promulgated under sub. (9).

AB274,7,24 (b) Allowances for meals and lodging. Except as provided in sub. (4) (b), if an employer furnishes a minor employee or an opportunity employee with meals or lodging in accordance with rules promulgated by the department under s. 104.045 (2), the employer may deduct the following amounts from the wages of the employee:

AB274,8,3 1. For lodging furnished before September 1, 2008, $52.65 per week or $7.55 per day and for meals furnished before September 1, 2008, $78.95 per week or $3.75 per meal.

AB274,8,5 2. For meals and lodging furnished beginning on September 1, 2008, the amounts determined by the department by rule promulgated under sub. (9).

AB274,8,11 (3) Tipped employees. (a) Minimum rates. Except as provided in subs. (4) to (8), if an employer of a tipped employee establishes by the employer's payroll records that, when adding the tips received by the tipped employee in a week to the wages paid to the tipped employee in that week, the tipped employee receives not less than the applicable minimum wage specified in sub. (1) or (2), the minimum wage for the tipped employee is as follows:

AB274,8,13 1. For wages earned before September 1, 2008, by a tipped employee who is not an opportunity employee, $2.60 per hour.

AB274,8,15 2. For wages earned before September 1, 2008, by a tipped employee who is an opportunity employee, $2.40 per hour.

AB274,8,17 3. For wages earned beginning on September 1, 2008, the amounts determined by the department by rule promulgated under sub. (9).

AB274,8,21 (b) Allowances for meals and lodging. If an employer furnishes a tipped employee with meals or lodging in accordance with rules promulgated by the department under s. 104.045 (2), the employer may deduct the applicable amounts specified in subs. (1) (b) or (2) (b) from the wages of the tipped employee.

AB274,8,23 (4) Agricultural employees. (a) Minimum rates. Except as provided in subs. (7) and (8), the minimum wage for an agricultural employee is as follows:

AB274,8,25 1. For wages earned before September 1, 2008, by an adult agricultural employee, $5.75 per hour.

AB274,9,2 2. For wages earned before September 1, 2008, by a minor agricultural employee, $4.75.

AB274,9,4 3. For wages earned beginning on September 1, 2008, the amounts determined by the department by rule promulgated under sub. (9).

AB274,9,8 (b) Allowances for meals and lodging. If an employer furnishes an agricultural employee with meals or lodging in accordance with rules promulgated by the department under s. 104.045 (2), the employer may deduct the following amounts from the wages of the employee:

AB274,9,11 1. For lodging furnished to an adult agricultural employee, before September 1, 2008, $45.95 per week or $6.60 per day and for meals furnished to an adult agricultural employee, before September 1, 2008, $68.90 per week or $3.30 per meal.