Amendment SSA3-SB147

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 wage because of a disability. For other employees, however, the substitute amendment sets the minimum wages as follows: - See PDF for table - See PDF for table - See PDF for table

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: - See PDF for table

Finally, 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 requires that the state minimum wage law be construed as an enactment of statewide concern for the purpose of providing a living wage that is uniform throughout the state. As such, the substitute amendment permits a city, village, town, or county to enact an ordinance establishing a living wage only if the ordinance strictly conforms to the state minimum wage law.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB147-SSA3, s. 1 Section 1. 49.141 (1) (g) of the statutes is amended to read:

SB147-SSA3,7,4 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.

SB147-SSA3, s. 2 Section 2. 104.001 of the statutes is created to read:

SB147-SSA3,8,4 104.001 Statewide concern; uniformity. (1) This chapter shall be construed as an enactment of statewide concern for the purpose of providing a living wage that is uniform throughout the state.

SB147-SSA3,8,10 (2) A city, village, town, or county may enact and administer an ordinance establishing a living wage only if the ordinance strictly conforms to this chapter and any rules promulgated under this chapter. Except as provided in sub. (3), a city, village, town, or county may not administer an ordinance establishing a living wage unless that ordinance strictly conforms to this chapter and any rules promulgated under this chapter.

SB147-SSA3,8,22 (3) A city, village, town, or county that has a living wage ordinance in effect on the effective date of this subsection .... [revisor inserts date], may maintain and administer that ordinance if the department reviews the ordinance and determines that the ordinance strictly conforms to this chapter and any rules promulgated under this chapter. If the department determines that any part of the existing ordinance does not strictly conform to this chapter and any rules promulgated under this chapter, the city, village, town, or county may amend the ordinance and submit the amended ordinance to the department for a determination of whether the amended ordinance strictly conforms to this chapter and any rules promulgated under this chapter. A city, village, town, or county may not amend a living wage ordinance except to maintain strict conformity with this chapter and any rules promulgated under this chapter.

SB147-SSA3,8,24 (4) A county ordinance enacted under this section does not apply within any city, village, or town that has enacted or enacts an ordinance under this section.

SB147-SSA3,9,3 (5) This section does not affect the requirement that employees employed on a public works project contracted for by a city, village, town, or county be paid at the prevailing wage rate, as defined in s. 66.0903 (1) (g), as required under s. 66.0903.

SB147-SSA3, s. 3 Section 3. 104.01 (intro.) of the statutes is amended to read:

SB147-SSA3,9,6 104.01 Definitions. (intro.) The following terms as used in ss. 104.01 to 104.12 shall be construed as follows In this chapter:

SB147-SSA3, s. 4 Section 4. 104.01 (1) of the statutes is renumbered 104.01 (1m).

SB147-SSA3, s. 5 Section 5. 104.01 (1d) of the statutes is created to read:

SB147-SSA3,9,10 104.01 (1d) "Agricultural employee" means an employee who is employed in farming, as defined in s. 102.04 (3).

SB147-SSA3, s. 6 Section 6. 104.01 (5) of the statutes is amended to read:

SB147-SSA3,9,15 104.01 (5) The term "living-wage" shall mean "Living wage" means compensation for labor paid, whether by time, piecework, or otherwise, sufficient to enable the employee receiving it to maintain himself or herself under conditions consistent with his or her welfare.

SB147-SSA3, s. 7 Section 7. 104.01 (5g) of the statutes is created to read:

SB147-SSA3,9,18 104.01 (5g) "Minor employee" means a minor who is paid at the applicable minimum wage rate for minors.

SB147-SSA3, s. 8 Section 8. 104.01 (5m) of the statutes is created to read:

SB147-SSA3,9,21 104.01 (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.

SB147-SSA3, s. 9 Section 9. 104.01 (7m) of the statutes is created to read:

SB147-SSA3,9,25 104.01 (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.

SB147-SSA3, s. 10 Section 10. 104.01 (8) of the statutes is amended to read:

SB147-SSA3,10,3 104.01 (8) The term "wage" and the term "wages" shall each mean "Wage" means any compensation for labor measured by time, piece, or otherwise.

SB147-SSA3, s. 11 Section 11. 104.02 of the statutes is amended to read:

SB147-SSA3,10,7 104.02 Living-wage prescribed Living wage required. Every wage paid or agreed to be paid by any employer to any employee, except as otherwise provided in s. 104.07, shall be not less than a living-wage living wage.

SB147-SSA3, s. 12 Section 12. 104.03 of the statutes is amended to read:

SB147-SSA3,10,11 104.03 Unlawful wages. Any employer paying, offering to pay, or agreeing to pay any employee a wage lower or less in value than a living-wage living wage is guilty of a violation of ss. 104.01 to 104.12 this chapter.

SB147-SSA3, s. 13 Section 13. 104.035 of the statutes is created to read:

SB147-SSA3,10,14 104.035 Minimum wage. (1) Employees generally. (a) Minimum rates. Except as provided in subs. (2) to (8), the minimum wage is as follows:

SB147-SSA3,10,15 1. For wages earned before October 1, 2005, $5.70 per hour.

SB147-SSA3,10,16 2. For wages earned beginning on October 1, 2005, $6.50 per hour.

SB147-SSA3,10,20 (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:

SB147-SSA3,10,23 1. For lodging furnished before October 1, 2005, $45.60 per week or $6.50 per day and for meals furnished before October 1, 2005, $68.40 per week or $3.25 per meal.

SB147-SSA3,11,3 2. For lodging furnished beginning on October 1, 2005, $52 per week or $7.40 per day and for meals furnished beginning on October 1, 2005, $78 per week or $3.70 per meal.

SB147-SSA3,11,6 (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:

SB147-SSA3,11,7 1. For wages earned before October 1, 2005, $5.30 per hour.

SB147-SSA3,11,8 2. For wages earned beginning on October 1, 2005, $5.90 per hour.

SB147-SSA3,11,12 (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:

SB147-SSA3,11,14 1. For lodging furnished before October 1, 2005, $42.40 per week or $6.05 per day and for meals furnished before October 1, 2005, $63.60 per week or $3 per meal.

SB147-SSA3,11,17 2. For lodging furnished beginning on October 1, 2005, $47.20 per week or $6.75 per day and for meals furnished beginning on October 1, 2005, $70.80 per week or $3.35 per meal.

SB147-SSA3,11,23 (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:

SB147-SSA3,11,25 1. For wages earned by a tipped employee who is not an opportunity employee, $2.33 per hour.

SB147-SSA3,12,2 2. For wages earned by a tipped employee who is an opportunity employee, $2.13 per hour.

SB147-SSA3,12,6 (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.

SB147-SSA3,12,8 (4) Agricultural employees. (a) Minimum rates. Except as provided in subs. (7) and (8), the minimum wage for an agricultural employee is as follows:

SB147-SSA3,12,9 1. For wages earned by an adult agricultural employee, $5.15 per hour.

SB147-SSA3,12,10 2. For wages earned by a minor agricultural employee, $4.25 per hour.

SB147-SSA3,12,14 (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:

SB147-SSA3,12,17 1. For lodging furnished to an adult agricultural employee, $41.20 per week or $5.90 per day and for meals furnished to an adult agricultural employee, $61.80 per week or $2.95 per meal.

SB147-SSA3,12,20 2. For lodging furnished to a minor agricultural employee, $34 per week or $4.85 per day and for meals furnished to a minor agricultural employee, $51 per week or $2.40 per meal.

SB147-SSA3,12,23 (5) Camp counselors. (a) Minimum rates for adult counselors. The minimum wage for a counselor at a seasonal recreational or educational camp, including a day camp, who is an adult is as follows:

SB147-SSA3,13,3 1. For wages earned before October 1, 2005, $215 per week if meals and lodging are not furnished, $164 per week if only meals are furnished, and $129 per week if both meals and lodging are furnished.

SB147-SSA3,13,6 2. For wages earned beginning on October 1, 2005, $270 per week if meals and lodging are not furnished, $217 per week if only meals are furnished, and $171 per week if both meals and lodging are furnished.

SB147-SSA3,13,9 3. For wages earned beginning on October 1, 2006, $315 per week if meals and lodging are not furnished, $240 per week if only meals are furnished, and $189 per week if both meals and lodging are furnished.

SB147-SSA3,13,12 (b) Minimum rates for minor counselors. The minimum wage for a counselor at a seasonal recreational or educational camp, including a day camp, who is a minor is as follows:

SB147-SSA3,13,15 1. For wages earned before October 1, 2005, $175 per week if meals and lodging are not furnished, $133 per week if only meals are furnished, and $105 per week if both meals and lodging are furnished.

SB147-SSA3,13,18 2. For wages earned beginning on October 1, 2005, $225 per week if meals and lodging are not furnished, $171 per week if only meals are furnished, and $135 per week if both meals and lodging are furnished.

SB147-SSA3,13,21 3. For wages earned beginning on October 1, 2006, $275 per week if meals and lodging are not furnished, $209 per week if only meals are furnished, and $165 per week if both meals and lodging are furnished.

SB147-SSA3,13,22 (6) Golf caddies. The minimum wage for a golf caddy is as follows:

SB147-SSA3,13,23 (a) For 18 holes, $10.50.

SB147-SSA3,13,24 (b) For 9 holes, $5.90.

SB147-SSA3,14,2 (7) Minimum wage established by department. The department shall promulgate rules providing the minimum wage for all of the following:

SB147-SSA3,14,4 (a) An employee or worker with a disability covered under a license under s. 104.07.

SB147-SSA3,14,5 (b) A student learner.

SB147-SSA3,14,7 (c) A student employed by an independent college or university for less than 20 hours per week.

SB147-SSA3,14,10 (8) Employment exempted by department. The department shall promulgate rules exempting from the minimum wage requirements under subs. (1) to (7) all of the following:

SB147-SSA3,14,12 (a) A person engaged in casual employment in and around an employer's home on an irregular or intermittent basis for not more than 15 hours per week.

SB147-SSA3,14,16 (b) A person who resides with and who provides companionship and care, not including practical or professional nursing, as defined in s. 441.001 (3) and (4), and not more than 15 hours per week of general household work for an employer who, due to advanced age or physical or mental disability, cannot care for his or her own needs.

SB147-SSA3,14,18 (c) An elementary or secondary school student performing student work-like activities in the student's school.

SB147-SSA3,14,21 (9) Department may revise. The department may promulgate rules to increase a minimum wage or an allowance for meals and lodging provided under subs. (1) to (7).

SB147-SSA3, s. 14 Section 14. 104.04 of the statutes is amended to read:

SB147-SSA3,15,11 104.04 Classifications; department's authority. The department shall investigate, ascertain, determine, and fix such reasonable classifications, and shall impose general or special orders, determining the living-wage living wage, and shall carry out the purposes of ss. 104.01 to 104.12. Such this chapter. Those investigations, classifications, and orders shall be made as provided under s. 103.005, and the penalties specified in s. 103.005 (12) shall apply to and be imposed for any violation of ss. 104.01 to 104.12 this chapter. In determining the living-wage living wage, the department may consider the effect that an increase in the living-wage living wage might have on the economy of the state, including the effect of a living-wage living wage increase on job creation, retention, and expansion, on the availability of entry-level jobs, and on regional economic conditions within the state. The department may not establish a different minimum wage for men and women. Said Those orders shall be subject to review in the manner provided in ch. 227.

SB147-SSA3, s. 15 Section 15. 104.045 of the statutes is renumbered 104.045 (intro.) and amended to read:

SB147-SSA3,15,16 104.045 Tipped employees Tips, meals, lodging, and hours worked. (intro.) The department shall by rule determine what amount of promulgate rules governing all of the following:

SB147-SSA3,15,18 (1) The counting of tips or similar gratuities may be counted toward fulfillment of the employer's obligation under this chapter.

SB147-SSA3, s. 16 Section 16. 104.045 (2) and (3) of the statutes are created to read:

SB147-SSA3,15,21 104.045 (2) The deduction of meals or lodging provided by an employer to an employee from the employer's obligation under this chapter.

SB147-SSA3,15,23 (3) The determination of hours worked by an employee during which the employee is entitled to a living wage under this chapter.

SB147-SSA3, s. 17 Section 17. 104.05 of the statutes is amended to read:

SB147-SSA3,16,6 104.05 Complaints; investigation. The department shall, within 20 days after the filing of a verified complaint of any person setting forth alleging that the wages paid to any employee in any occupation are not sufficient to enable the employee to maintain himself or herself under conditions consistent with his or her welfare, investigate and determine whether there is reasonable cause to believe that the wage paid to any the employee is not a living-wage living wage.

SB147-SSA3, s. 18 Section 18. 104.06 of the statutes is amended to read:

SB147-SSA3,16,16 104.06 Wage council; determination. If, upon investigation, the department finds that there is reasonable cause to believe that the wages paid to any employee are not a living-wage, it living wage, the department shall appoint a wage council, selected so as fairly to represent employers, employees, and the public, to assist in its investigations and determinations. The living-wage department may use the results of an investigation under this section to establish a living wage. A living wage so determined upon shall be the living-wage living wage for all employees within the same class as established by the classification of the department under s. 104.04.