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, who 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 as
well as separate minimum wages for opportunity 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 wages because of a disability. For employees generally and for
tipped employees, however, the bill sets the minimum wages as follows: - See PDF for table PDF
Beginning three years after the bill's effective date for employees generally and
one year after the bill's effective date for tipped employees, the bill requires DWD
annually to promulgate rules revising the minimum wages established under the bill
by determining the percentage difference between the consumer price index for the
preceding 12-month period (year) and the consumer price index for the year before
the preceding year, adjusting the minimum wages then in effect by that percentage
difference, and rounding that result to the nearest multiple of five cents. For tipped
employees, the bill requires DWD to increase the minimum wage by 95 cents each
year until the minimum wage for tipped employees equals 70 percent of the
minimum wage for employees generally and then in subsequent years to revise the
minimum wage for tipped employees so that the minimum wage for tipped employees
remains equal to 70 percent of the minimum wage for employees generally, rounded

to the nearest multiple of five cents. DWD, however, is not required to revise the
minimum wage if the consumer price index for the preceding year has not increased
over the consumer price index for the year before the preceding year.
Finally, current law prohibits a city, village, town, or county from enacting and
administering an ordinance establishing a living wage. This bill eliminates that
prohibition.
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:
AB12,1 1Section 1. 49.141 (1) (g) of the statutes is amended to read:
AB12,3,42 49.141 (1) (g) "Minimum wage" means the state minimum hourly wage under
3ch. 104 s. 104.035 (1) or the federal minimum hourly wage under 29 USC 206 (a) (1),
4whichever is applicable.
AB12,2 5Section 2. 103.67 (2) (fm) 3. of the statutes is amended to read:
AB12,3,76 103.67 (2) (fm) 3. The minor is paid the applicable minimum wage under ch.
7104
s. 104.035 or under federal law, whichever is greater, for the work.
AB12,3 8Section 3. 103.70 (2) (b) 3. of the statutes is amended to read:
AB12,3,109 103.70 (2) (b) 3. The minor is paid the applicable minimum wage under ch. 104
10s. 104.035 or under federal law, whichever is greater, for the work.
AB12,4 11Section 4. 104.001 of the statutes is repealed.
AB12,5 12Section 5. 104.01 (intro.) of the statutes is amended to read:
AB12,3,14 13104.01 Definitions. (intro.) The following terms as used in In this chapter
14shall be construed as follows:
AB12,6 15Section 6. 104.01 (1) of the statutes is renumbered 104.01 (1m).
AB12,7 16Section 7. 104.01 (1d) of the statutes is created to read:
AB12,3,1817 104.01 (1d) "Agricultural employee" means an employee who is employed in
18the operation of farm premises, as described in s. 102.04 (3).
AB12,8
1Section 8. 104.01 (1g) of the statutes is created to read:
AB12,4,52 104.01 (1g) "Consumer price index" means the average of the consumer price
3index over each 12-month period for all urban consumers, U.S. city average, all
4items, not seasonally adjusted, as determined by the bureau of labor statistics of the
5U.S. department of labor.
AB12,9 6Section 9. 104.01 (5m) of the statutes is created to read:
AB12,4,87 104.01 (5m) "Opportunity employee" means a person under 20 years of age who
8is in the first 90 consecutive days of employment with his or her employer.
AB12,10 9Section 10. 104.01 (7m) of the statutes is created to read:
AB12,4,1210 104.01 (7m) "Tipped employee" means an employee who in the course of
11employment customarily and regularly receives money or other gratuities from
12persons other than the employee's employer.
AB12,11 13Section 11. 104.01 (8) of the statutes is amended to read:
AB12,4,1514 104.01 (8) The term "wage" and the term "wages" shall each mean "Wage"
15means
any compensation for labor measured by time, piece, or otherwise.
AB12,12 16Section 12. 104.035 of the statutes is created to read:
AB12,4,18 17104.035 Minimum wage. (1) Employees generally. Except as provided in
18subs. (2) to (4), the minimum wage is as follows:
AB12,4,2019 (a) For wages earned before the first day of the 15th month beginning after
20publication .... [LRB inserts date], $8.20 per hour.
AB12,4,2321 (b) For wages earned beginning on the first day of the 15th month beginning
22after publication .... [LRB inserts date], and ending on the last day of the 26th month
23beginning after publication .... [LRB inserts date], $9.15 per hour.
AB12,5,3
1(c) For wages earned beginning on the first day of the 27th month beginning
2after publication .... [LRB inserts date], and ending on the last day of the 38th month
3beginning after publication .... [LRB inserts date], $10.10 per hour.
AB12,5,64 (d) For wages earned beginning on the first day of the 39th month beginning
5after publication .... [LRB inserts date], the amount determined by the department
6by rule promulgated under sub. (5).
AB12,5,12 7(2) Tipped employees. Except as provided in subs. (3) and (4), if an employer
8of a tipped employee establishes by the employer's payroll records that, when adding
9the tips received by the tipped employee in a week to the wages paid to the tipped
10employee in that week, the tipped employee receives not less than the applicable
11minimum wage specified in sub. (1), the minimum wage for the tipped employee is
12as follows:
AB12,5,1413 (a) For wages earned before the first day of the 15th month beginning after
14publication .... [LRB inserts date], $3 per hour.
AB12,5,1715 (b) For wages earned beginning on the first day of the 15th month beginning
16after publication .... [LRB inserts date], the amounts determined by the department
17by rule promulgated under sub. (5).
AB12,5,19 18(3) Minimum wage established by department. The department shall
19promulgate rules providing the minimum wage for all of the following:
AB12,5,2020 (a) Opportunity employees.
AB12,5,2121 (b) Agricultural employees.
AB12,5,2222 (c) Camp counselors.
AB12,5,2323 (d) Golf caddies.
AB12,5,2524 (e) An employee or worker with a disability covered under a license under s.
25104.07.
AB12,6,1
1(f) A student learner.
AB12,6,32 (g) A student employed by an independent college or university for less than
320 hours per week.
AB12,6,6 4(4) Employment exempted by department. The department shall promulgate
5rules exempting from the minimum wage requirements under subs. (1) to (3) all of
6the following:
AB12,6,87 (a) A person engaged in casual employment in and around an employer's home
8on an irregular or intermittent basis for not more than 15 hours per week.
AB12,6,129 (b) A person who resides in the home of an employer who, due to advanced age
10or physical or mental disability, cannot care for his or her own needs, for the purpose
11of companionship and who spends not more than 15 hours per week on general
12household work for the employer.
AB12,6,1413 (c) An elementary or secondary school student performing student work-like
14activities in the student's school.
AB12,6,24 15(5) Department to revise. (a) 1. Subject to pars. (b) and (c), by the date
16specified in sub. (1) (d) or (2) (b), whichever is applicable, and annually thereafter,
17the department shall promulgate rules to revise the minimum wages established
18under subs. (1) and (2). Subject to subd. 2., the department shall determine those
19revised minimum wages by calculating the percentage difference between the
20consumer price index for the 12-month period ending on the last day of the last
21month for which that information is available and the consumer price index for the
2212-month period ending on the last day of the month 12 months prior to that month,
23adjusting the minimum wages then in effect by that percentage difference, and
24rounding that result to the nearest multiple of 5 cents.
AB12,7,10
12. In revising the minimum wage for tipped employees under sub. (2), each year
2the department shall increase that minimum wage by 95 cents or by the amount that
3is necessary for that minimum wage to equal 70 percent of the minimum wage under
4sub. (1) as determined under subd. 1., rounded to the nearest multiple of 5 cents,
5whichever is less. For years subsequent to the first year in which the minimum wage
6under sub. (2) equals 70 percent of the minimum wage under sub. (1) as determined
7under subd. 1., the department shall revise the minimum wage under sub. (2) by the
8amount that is necessary for that minimum wage to remain equal to 70 percent of
9the minimum wage under sub. (1) as determined under subd. 1., rounded to the
10nearest multiple of 5 cents.
AB12,7,2211 3. The department may use the emergency rule procedures under s. 227.24 to
12promulgate the rules required under subds. 1. and 2. Notwithstanding s. 227.24 (1)
13(a) and (3), the department may promulgate those rules as emergency rules without
14providing evidence that promulgating those rules as emergency rules is necessary
15to preserve the public peace, health, safety, or welfare and without a finding of
16emergency. Notwithstanding s. 227.24 (1) (e) 1d. and 1g., the department is not
17required to prepare a statement of the scope of those rules or to submit those rules
18in final draft form to the governor for approval. A revised minimum wage
19determined under subd. 1. or 2. shall first apply to wages earned on the first day of
20the 3rd month beginning after the month of publication .... [LRB inserts date], of the
21year in which the wage is revised and, notwithstanding s. 227.24 (1) (c) and (2), shall
22remain in effect until that same date the following year.
AB12,8,223 (b) Paragraph (a) does not apply if the consumer price index for the 12-month
24period ending on the last day of the last month for which that information is available

1has not increased over the consumer price index for the 12-month period ending on
2the last day of the month 12 months prior to that month.
AB12,8,43 (c) Paragraph (a) does not preclude the department from promulgating rules
4to increase a minimum wage provided under subs. (1) to (3).
AB12,13 5Section 13. 104.045 of the statutes is renumbered 104.045 (intro.) and
6amended to read:
AB12,8,9 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:
AB12,8,11 10(1) The counting of tips or similar gratuities may be counted toward fulfillment
11of the employer's obligation under this chapter.
AB12,14 12Section 14. 104.045 (2) and (3) of the statutes are created to read:
AB12,8,1413 104.045 (2) The deduction of meals or lodging provided by an employer to an
14employee from the employer's obligation under this chapter.
AB12,8,16 15(3) The determination of hours worked by an employee during which the
16employee is entitled to a living wage under this chapter.
AB12,15 17Section 15. 104.05 of the statutes is amended to read:
AB12,8,23 18104.05 Complaints; investigation. The department shall, within Within 20
19days after the filing of a verified complaint of any person setting forth alleging that
20the wages paid to any employee in any occupation are not sufficient to enable the
21employee to maintain himself or herself under conditions consistent with his or her
22welfare, the department shall investigate and determine whether there is
23reasonable cause to believe that the wage paid to any employee is not a living wage.
AB12,16 24Section 16. 104.07 (1) of the statutes is amended to read:
AB12,9,6
1104.07 (1) The department shall make promulgate rules, and, except as
2provided under subs. (5), (6), and (7), grant licenses a license to any employer who
3employs any employee who is unable to earn the living wage determined by the
4department, permitting the employee to work for a wage that is commensurate with
5the employee's ability. Each license so granted shall establish a wage for the licensee
6employees of the licensee who are unable to earn a living wage.
AB12,17 7Section 17. 104.07 (2) of the statutes is amended to read:
AB12,9,138 104.07 (2) The department shall make promulgate rules, and, except as
9provided under subs. (5), (6), and (7), grant licenses to sheltered workshops, to permit
10the employment of workers with disabilities who are unable to earn the living wage
11at a wage that is commensurate with their ability and productivity. A license granted
12to a sheltered workshop under this subsection may be issued for the entire workshop
13or a department of the workshop.
AB12,18 14Section 18. 104.10 of the statutes is amended to read:
AB12,9,21 15104.10 Penalty for intimidating witness. Any employer who discharges or
16threatens to discharge, or who in any way discriminates , or threatens to discriminate
17against, any employee because the employee has testified or is about to testify, or
18because the employer believes that the employee may testify, in any investigation or
19proceeding relative to the enforcement of this chapter, is guilty of a misdemeanor,
20and upon conviction thereof shall be punished by a fine of
may be fined $25 for each
21offense.
AB12,19 22Section 19. 104.11 of the statutes is amended to read:
AB12,9,24 23104.11 Definition of violation. Each day during which any employer shall
24employ
employs a person for whom a living wage has been fixed at a wage that is less

1than the living wage fixed shall constitute a separate and distinct violation of this
2chapter.
AB12,20 3Section 20. 234.94 (5) of the statutes is amended to read:
AB12,10,74 234.94 (5) "Primary employment" means work which that pays at least the
5minimum wage as established under ch. 104 s. 104.035 (1) or under federal law,
6whichever is greater,; offers adequate fringe benefits, including health insurance,;
7and is not seasonal or part time.
AB12,21 8Section 21. 234.94 (8) of the statutes is amended to read:
AB12,10,149 234.94 (8) "Target group" means a population group for which the
10unemployment level is at least 25% 25 percent higher than the statewide
11unemployment level, or a population group for which the average wage received is
12less than 1.2 times the minimum wage as established under ch. 104 s. 104.035 (1) or
13under federal law, whichever is greater. No population group is required to be located
14within a contiguous geographic area to be considered a target group.
AB12,22 15Section 22. 800.09 (1j) of the statutes is amended to read:
AB12,11,216 800.09 (1j) If the court orders the defendant to perform community service
17work in lieu of making restitution or of paying the forfeiture, surcharges, fees and
18costs, or both, the court may order that the defendant perform community service
19work for a public agency or a nonprofit charitable organization that is approved by
20the court and agreed to by the public agency or nonprofit charitable organization.
21Community service work may be in lieu of restitution only if also agreed to by the
22person to whom restitution is owed. The number of hours of community service work
23required may not exceed the number determined by dividing the amount owed on the
24forfeiture by the minimum wage established under ch. 104 for adults in
25nonagriculture, nontipped employment
s. 104.035 (1). The court shall ensure that

1the defendant is provided a written statement of the terms of the community service
2order and that the community service order is monitored.
AB12,23 3Section 23. 800.095 (1) (d) of the statutes is amended to read:
AB12,11,144 800.095 (1) (d) That the defendant perform community service work for a
5public agency or nonprofit charitable organization approved by the court and agreed
6to by the agency or nonprofit charitable organization. If the community service work
7is in lieu of restitution, then the person to whom restitution is owed must agree; the
8defendant shall be given credit at the rate of not less than the minimum wage
9established under ch. 104 for adults in nonagriculture, nontipped employment s.
10104.035 (1)
for each one hour of community service completed. The defendant shall
11be given a written statement of the community service order. Nothing in this
12paragraph makes the defendant an employee or agent of the court or the
13municipality. The defendant shall be responsible for providing the court with proof
14that the community service hours have been completed.
AB12,24 15Section 24. 895.035 (2m) (c) of the statutes is amended to read:
AB12,12,716 895.035 (2m) (c) The court assigned to exercise jurisdiction under chs. 48 and
17938 may order that the juvenile perform community service work for a public agency
18or nonprofit charitable organization that is designated by the court in lieu of making
19restitution or paying the forfeiture or surcharge. If the parent agrees to perform
20community service work in lieu of making restitution or paying the forfeiture or
21surcharge, the court may order that the parent perform community service work for
22a public agency or a nonprofit charitable organization that is designated by the court.
23Community service work may be in lieu of restitution only if also agreed to by the
24public agency or nonprofit charitable organization and by the person to whom
25restitution is owed. The court may utilize any available resources, including any

1community service work program, in ordering the juvenile or parent to perform
2community service work. The number of hours of community service work required
3may not exceed the number determined by dividing the amount owed on the
4restitution, forfeiture, or surcharge by the minimum wage established under ch. 104
5for adults in nonagriculture, nontipped employment
s. 104.035 (1). The court shall
6ensure that the juvenile or parent is provided with a written statement of the terms
7of the community service order and that the community service order is monitored.
AB12,25 8Section 25. Effective date.
AB12,12,109 (1) Minimum wage. This act takes effect on the first day of the 3rd month
10beginning after publication.
AB12,12,1111 (End)
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