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.
This bill repeals references to and provisions for a living wage and replaces
them with provisions requiring a minimum wage, described as follows. Under this
bill, DWD must 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, however, including tipped
employees, the bill sets the minimum wage as follows:
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Beginning six years after the bill's effective date, 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. DWD,
however, is not required to revise the general 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:
AB264,1
1Section
1. 49.141 (1) (g) of the statutes is amended to read:
AB264,3,42
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)
4(1), whichever is applicable.
AB264,2
5Section
2. 103.06 (1) (b) 5. of the statutes is amended to read:
AB264,3,86
103.06
(1) (b) 5. For purposes of maintaining records under sub. (3) (a) 4. as
7required under rules promulgated under s.
104.04
104.035, an employee, as defined
8in s. 104.01 (2).
AB264,3
9Section
3. 103.06 (1) (c) 5. of the statutes is amended to read:
AB264,3,1210
103.06
(1) (c) 5. For purposes of maintaining records under sub. (3) (a) 4. as
11required under rules promulgated under s.
104.04
104.035, an employer, as defined
12in s. 104.01 (3).
AB264,4
13Section
4. 103.06 (3) (a) 4. of the statutes is amended to read:
AB264,3,1814
103.06
(3) (a) 4. That the employer is maintaining records of the hours worked
15by its employees, the wages paid to those employees, any deductions from those
16wages, and any other information that the employer is required to keep under rules
17promulgated under s. 103.02 or
104.04 104.035, and is listing deductions from wages
18as required under s. 103.457.
AB264,5
1Section
5. 103.06 (4) (a) 1. of the statutes is amended to read:
AB264,4,82
103.06
(4) (a) 1. Enter and inspect any place of business or place of employment
3and examine and copy any records that the employer is required to keep under rules
4promulgated under s. 103.02 or
104.04 104.035; any books, registers, payroll records,
5records of wage withholdings, records of work activity and hours of work, and records
6or indicia of the employment status of persons performing work for the employer; and
7any other records relating to compliance with the requirements specified in sub. (3)
8(a).
AB264,6
9Section
6. 103.67 (2) (fm) 3. of the statutes is amended to read:
AB264,4,1110
103.67
(2) (fm) 3. The minor is paid the applicable minimum wage under
ch.
11104 s. 104.035 or under federal law, whichever is greater, for the work.
AB264,7
12Section
7. 103.70 (2) (b) 3. of the statutes is amended to read:
AB264,4,1413
103.70
(2) (b) 3. The minor is paid the applicable minimum wage under
ch. 104
14s. 104.035 or under federal law, whichever is greater, for the work.
AB264,8
15Section
8. 104.001 of the statutes is repealed.
AB264,9
16Section
9. 104.01 (intro.) of the statutes is amended to read:
AB264,4,18
17104.01 Definitions. (intro.)
The following terms as used in In this chapter
18shall be construed as follows:
AB264,10
19Section
10. 104.01 (1) of the statutes is renumbered 104.01 (1m).
AB264,11
20Section
11. 104.01 (1d) of the statutes is created to read:
AB264,4,2221
104.01
(1d) "Agricultural employee" means an employee who is employed in
22the operation of farm premises, as described in s. 102.04 (3).
AB264,12
23Section
12. 104.01 (1g) of the statutes is created to read:
AB264,5,224
104.01
(1g) "Consumer price index" means the average of the consumer price
25index over each 12-month period for all urban consumers, U.S. city average, all
1items, not seasonally adjusted, as determined by the bureau of labor statistics of the
2U.S. department of labor.
AB264,13
3Section
13. 104.01 (5) of the statutes is repealed.
AB264,14
4Section
14. 104.01 (5m) of the statutes is created to read:
AB264,5,65
104.01
(5m) "Opportunity employee" means a person under 20 years of age who
6is in the first 90 consecutive days of employment with his or her employer.
AB264,15
7Section
15. 104.01 (8) of the statutes is amended to read:
AB264,5,98
104.01
(8) The term "wage" and the term "wages" shall each mean "Wage"
9means any compensation for labor measured by time, piece
, or otherwise.
AB264,16
10Section
16. 104.02 and 104.03 of the statutes are consolidated, renumbered
11104.02 and amended to read:
AB264,5,18
12104.02 Living Minimum wage prescribed: requirement to pay. Every
13wage paid or agreed to be paid by any employer to any employee, except as otherwise
14provided in s. 104.07, shall be not less than
a living the applicable minimum wage
15established under s. 104.035.
104.03 Unlawful wages. Any employer paying,
16offering to pay, or agreeing to pay any employee a wage lower or less in value than
17 a living the applicable minimum wage
established under s. 104.035 is guilty of a
18violation of this chapter.
AB264,17
19Section
17. 104.035 of the statutes is created to read:
AB264,5,21
20104.035 Minimum wage; established. (1) Employees generally. Except
21as provided in subs. (2) and (3), the minimum wage is as follows:
AB264,5,2322
(a) For wages earned before the first day of the 15th month beginning after
23publication .... [LRB inserts date], $8.50 per hour.
AB264,6,3
1(b) For wages earned beginning on the first day of the 15th month beginning
2after publication .... [LRB inserts date], and ending on the last day of the 26th month
3beginning after publication .... [LRB inserts date], $10 per hour.
AB264,6,64
(c) For wages earned beginning on the first day of the 27th month beginning
5after publication .... [LRB inserts date], and ending on the last day of the 38th month
6beginning after publication .... [LRB inserts date], $11.50 per hour.
AB264,6,97
(d) For wages earned beginning on the first day of the 39th month beginning
8after publication .... [LRB inserts date], and ending on the last day of the 50th month
9beginning after publication .... [LRB inserts date], $13 per hour.
AB264,6,1210
(e) For wages earned beginning on the first day of the 51st month beginning
11after publication .... [LRB inserts date], and ending on the last day of the 62nd month
12beginning after publication .... [LRB inserts date], $14 per hour.
AB264,6,1513
(f) For wages earned beginning on the first day of the 63rd month beginning
14after publication .... [LRB inserts date], and ending on the last day of the 74th month
15beginning after publication .... [LRB inserts date], $15 per hour.
AB264,6,1816
(g) For wages earned beginning on the first day of the 75th month beginning
17after publication .... [LRB inserts date], the amount determined by the department
18by rule promulgated under sub. (4).
AB264,6,20
19(2) Minimum wage established by department. The department shall
20promulgate rules providing the minimum wage for all of the following:
AB264,6,2121
(a) Opportunity employees.
AB264,6,2222
(b) Agricultural employees.
AB264,6,2323
(c) Camp counselors.
AB264,6,2424
(d) Golf caddies.
AB264,7,2
1(e) An employee or worker with a disability covered under a license under s.
2104.07.
AB264,7,33
(f) A student learner.
AB264,7,54
(g) A student employed by an independent college or university for less than
520 hours per week.
AB264,7,8
6(3) Employment exempted by department. The department shall promulgate
7rules exempting from the minimum wage requirement under subs. (1) and (2) all of
8the following:
AB264,7,109
(a) A person engaged in casual employment in and around an employer's home
10on an irregular or intermittent basis for not more than 15 hours per week.
AB264,7,1411
(b) A person who resides in the home of an employer who, due to advanced age
12or physical or mental disability, cannot care for his or her own needs, for the purpose
13of companionship and who spends not more than 15 hours per week on general
14household work for the employer.
AB264,7,1615
(c) An elementary or secondary school student performing student work-like
16activities in the student's school.
AB264,7,25
17(4) Department to revise. (a) 1. Subject to par. (b), by the date specified in sub.
18(1) (g) and annually thereafter, the department shall promulgate rules to revise the
19minimum wages established under sub. (1). Subject to subd. 2., the department shall
20determine the revised minimum wages by calculating the percentage difference
21between the consumer price index for the 12-month period ending on the last day of
22the last month for which that information is available and the consumer price index
23for the 12-month period ending on the last day of the month 12 months prior to that
24month, adjusting the minimum wage then in effect by that percentage difference,
25and rounding that result to the nearest multiple of 5 cents.
AB264,8,12
12. The department may use the emergency rule procedures under s. 227.24 to
2promulgate the rules required under subd. 1. Notwithstanding s. 227.24 (1) (a) and
3(3), the department may promulgate those rules as emergency rules without
4providing evidence that promulgating those rules as emergency rules is necessary
5to preserve the public peace, health, safety, or welfare and without a finding of
6emergency. Notwithstanding s. 227.24 (1) (e) 1d. and 1g., the department is not
7required to prepare a statement of the scope of those rules or to submit those rules
8in final draft form to the governor for approval. A revised minimum wage
9determined under subd. 1. shall first apply to wages earned on the first day of the
103rd month beginning after the month of publication .... [LRB inserts date], of the year
11in which the wage is revised and, notwithstanding s. 227.24 (1) (c) and (2), shall
12remain in effect until that same date the following year.
AB264,8,1613
(b) Paragraph (a) 1. does not apply if the consumer price index for the 12-month
14period ending on the last day of the last month for which that information is available
15has not increased over the consumer price index for the 12-month period ending on
16the last day of the month 12 months prior to that month.
AB264,8,17
17(5) Gender-specific minimum wage prohibited.
AB264,18
18Section
18. 104.04 (title) of the statutes is repealed.
AB264,19
19Section
19. 104.04 of the statutes is renumbered 104.035 (5) and amended to
20read:
AB264,9,721
104.035
(5) The department shall investigate, ascertain, determine, and fix
22such reasonable classifications, and shall impose general or special orders,
23determining the living wage, and shall carry out the purposes of this chapter. Such
24investigations, classifications, and orders shall be made as provided under s.
25103.005, and the penalties specified in s. 103.005 (12) shall apply to and be imposed
1for any violation of this chapter. In determining the living wage, the department may
2consider the effect that an increase in the living wage might have on the economy of
3the state, including the effect of a living wage increase on job creation, retention, and
4expansion, on the availability of entry-level jobs, and on regional economic
5conditions within the state. The department may not establish a different minimum
6wage for men and women.
Said orders shall be subject to review in the manner
7provided in ch. 227.
AB264,20
8Section
20. 104.045 of the statutes is renumbered 104.045 (intro.) and
9amended to read:
AB264,9,13
10104.045 Tipped employees Meals, lodging, and hours worked. (intro.)
11The department shall
by rule determine what amount of tips or similar gratuities 12may be counted toward fulfillment of the employer's obligation under this chapter. 13promulgate rules governing all of the following:
AB264,21
14Section
21. 104.045 (1) and (2) of the statutes are created to read:
AB264,9,1615
104.045
(1) The deduction of meals or lodging provided by an employer to an
16employee from the employer's obligation under this chapter.
AB264,9,18
17(2) The determination of hours worked by an employee during which the
18employee is entitled to the minimum wage established under s. 104.035.
AB264,22
19Section
22. 104.05 of the statutes is repealed.
AB264,23
20Section
23. 104.06 of the statutes is repealed.
AB264,24
21Section
24. 104.07 (1) and (2) of the statutes are amended to read:
AB264,9,2522
104.07
(1) The department shall
make
promulgate rules, and, except as
23provided under subs. (5), (6), and (7), grant
licenses
a license to any employer who
24employs any employee
who is unable to earn the living wage determined by the
25department, permitting the employee to work for a wage that for whom the minimum
1wage established under s. 104.035 is
not commensurate with the employee's ability.
2Each license so granted shall establish a wage for
the licensee any such employees
3of the licensee.
AB264,10,9
4(2) The department shall
make promulgate rules, and, except as provided
5under subs. (5), (6), and (7), grant
licenses a license to
a sheltered
workshops 6workshop, to permit the employment of workers with disabilities
who are unable to
7earn the living wage at a wage that is commensurate with their ability and
8productivity. A license granted to a sheltered workshop under this subsection may
9be issued for the entire workshop or a department of the workshop.
AB264,25
10Section
25. 104.08 (2m) of the statutes is amended to read:
AB264,10,1311
104.08
(2m) Any person working in a trade industry for which a
living 12minimum wage has been established for minors, and who has no trade, shall be
13employed under an apprentice contract under s. 106.01.
AB264,26
14Section
26. 104.10 of the statutes is amended to read:
AB264,10,21
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.
AB264,27
22Section
27. 104.11 of the statutes is repealed.
AB264,28
23Section
28. 104.12 of the statutes is amended to read:
AB264,11,5
24104.12 Complaints. Any person may register with the department a
25complaint that the wages paid to an employee for whom a
living minimum wage has
1been established
under s. 104.035 are less than that
living minimum wage, and the
2department shall investigate the matter and take all proceedings necessary to
3enforce the payment of
a that minimum wage
that is not less than the living wage.
4Section 111.322 (2m) applies to discharge and other discriminatory acts arising in
5connection with any proceeding under this section.
AB264,29
6Section
29. 234.94 (5) of the statutes is amended to read:
AB264,11,107
234.94
(5) "Primary employment" means work
which that pays at least the
8minimum wage as established under
ch. 104 s. 104.035 (1) or under federal law,
9whichever is greater
,; offers adequate fringe benefits, including health insurance
,; 10and is not seasonal or part time.
AB264,30
11Section
30. 234.94 (8) of the statutes is amended to read:
AB264,11,1712
234.94
(8) "Target group" means a population group for which the
13unemployment level is at least
25% 25 percent higher than the statewide
14unemployment level, or a population group for which the average wage received is
15less than 1.2 times the minimum wage as established under
ch. 104 s. 104.035 (1) 16or under federal law, whichever is greater. No population group is required to be
17located within a contiguous geographic area to be considered a target group.
AB264,31
18Section
31. 800.09 (1j) of the statutes is amended to read:
AB264,12,519
800.09
(1j) If the court orders the defendant to perform community service
20work in lieu of making restitution or of paying the forfeiture, surcharges, fees and
21costs, or both, the court may order that the defendant perform community service
22work for a public agency or a nonprofit charitable organization that is approved by
23the court and agreed to by the public agency or nonprofit charitable organization.
24Community service work may be in lieu of restitution only if also agreed to by the
25person to whom restitution is owed. The number of hours of community service work
1required may not exceed the number determined by dividing the amount owed on the
2forfeiture by the minimum wage established under
ch. 104 for adults in
3nonagriculture, nontipped employment s. 104.035 (1). The court shall ensure that
4the defendant is provided a written statement of the terms of the community service
5order and that the community service order is monitored.
AB264,32
6Section
32. 800.095 (1) (d) of the statutes is amended to read: