SENATE SUBSTITUTE AMENDMENT 1,
TO 2009 SENATE BILL 1
January 23, 2009 - Offered by Senator Decker.
SB1-SSA1,1,7 1An Act to repeal 104.001; to renumber 104.01 (1); to renumber and amend
2104.045; to amend 49.141 (1) (g), 104.01 (intro.), 104.01 (8), 104.05, 104.07 (1),
3104.07 (2), 104.10, 104.11, 234.94 (5), 234.94 (8), 800.09 (1) (b), 800.095 (4) (b)
43. and 895.035 (2m) (c); and to create 104.01 (1d), 104.01 (1g), 104.01 (5g),
5104.01 (5m), 104.01 (7m), 104.035 and 104.045 (2) and (3) of the statutes;
6relating to: a state minimum wage, permitting the enactment of local living
7wage ordinances, 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 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, effective
on June 1, 2009, or on the day after publication of the substitute amendment,
whichever is later, as follows: - See PDF for table PDF - See PDF for table PDF - See PDF for table PDF
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 PDF
Beginning on June 1, 2010, the substitute amendment requires DWD annually
to promulgate rules revising the minimum wages and allowances for meals and
lodging established under the substitute amendment 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 May 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. This requirement does not apply, however, if the
consumer price index for the current year has not increased over the consumer price
index for the preceding year.
Finally, current law prohibits a city, village, town, or county from enacting and
administering an ordinance establishing a living wage. This substitute amendment
eliminates that prohibition.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB1-SSA1, s. 1 1Section 1. 49.141 (1) (g) of the statutes is amended to read:
SB1-SSA1,6,42 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.
SB1-SSA1, s. 2 5Section 2. 104.001 of the statutes is repealed.
SB1-SSA1, s. 3 6Section 3. 104.01 (intro.) of the statutes is amended to read:
SB1-SSA1,6,8 7104.01 Definitions. (intro.) The following terms as used in In this chapter
8shall be construed as follows:
SB1-SSA1, s. 4 9Section 4. 104.01 (1) of the statutes is renumbered 104.01 (1m).
SB1-SSA1, s. 5 10Section 5. 104.01 (1d) of the statutes is created to read:
SB1-SSA1,6,1211 104.01 (1d) "Agricultural employee" means an employee who is employed in
12farming, as defined in s. 102.04 (3).
SB1-SSA1, s. 6
1Section 6. 104.01 (1g) of the statutes is created to read:
SB1-SSA1,7,42 104.01 (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, as
4determined by the bureau of labor statistics of the U.S. department of labor.
SB1-SSA1, s. 7 5Section 7. 104.01 (5g) of the statutes is created to read:
SB1-SSA1,7,76 104.01 (5g) "Minor employee" means a minor who is paid at the applicable
7minimum wage rate for minors.
SB1-SSA1, s. 8 8Section 8. 104.01 (5m) of the statutes is created to read:
SB1-SSA1,7,109 104.01 (5m) "Opportunity employee" means a person under 20 years of age who
10is in the first 90 consecutive days of employment with his or her employer.
SB1-SSA1, s. 9 11Section 9. 104.01 (7m) of the statutes is created to read:
SB1-SSA1,7,1412 104.01 (7m) "Tipped employee" means an employee who in the course of
13employment customarily and regularly receives money or other gratuities from
14persons other than the employee's employer.
SB1-SSA1, s. 10 15Section 10. 104.01 (8) of the statutes is amended to read:
SB1-SSA1,7,1716 104.01 (8) The term "wage" and the term "wages" shall each mean "Wage"
17means
any compensation for labor measured by time, piece, or otherwise.
SB1-SSA1, s. 11 18Section 11. 104.035 of the statutes is created to read:
SB1-SSA1,7,20 19104.035 Minimum wage. (1) Employees generally. (a) Minimum rates.
20Except as provided in subs. (2) to (8), the minimum wage is as follows:
SB1-SSA1,7,2121 1. For wages earned before June 1, 2010, $7.60 per hour.
SB1-SSA1,7,2322 2. For wages earned beginning on June 1, 2010, the amount determined by the
23department by rule promulgated under sub. (9).
SB1-SSA1,8,224 (b) Allowances for meals and lodging. Except as provided in subs. (2) (b) and
25(4) (b), if an employer furnishes an employee with meals or lodging in accordance

1with rules promulgated by the department under s. 104.045 (2), the employer may
2deduct the following amounts from the wages of the employee:
SB1-SSA1,8,43 1. For lodging furnished before June 1, 2010, $61 per week or $8.65 per day and
4for meals furnished before June 1, 2010, $91 per week or $4.35 per meal.
SB1-SSA1,8,65 2. For meals and lodging furnished beginning on June 1, 2010, the amounts
6determined by the department by rule promulgated under sub. (9).
SB1-SSA1,8,8 7(2) Minor employees. (a) Minimum rates. Except as provided in subs. (2m)
8to (8), the minimum wage for a minor employee is as follows:
SB1-SSA1,8,99 1. For wages earned before June 1, 2010, $7.25 per hour.
SB1-SSA1,8,1110 2. For wages earned beginning on June 1, 2010, the amount determined by the
11department by rule promulgated under sub. (9).
SB1-SSA1,8,1512 (b) Allowances for meals and lodging. Except as provided in sub. (4) (b), if an
13employer furnishes a minor employee or an opportunity employee with meals or
14lodging in accordance with rules promulgated by the department under s. 104.045
15(2), the employer may deduct the following amounts from the wages of the employee:
SB1-SSA1,8,1716 1. For lodging furnished before June 1, 2010, $58 per week or $8.30 per day and
17for meals furnished before June 1, 2010, $87 per week or $4.15 per meal.
SB1-SSA1,8,1918 2. For meals and lodging furnished beginning on June 1, 2010, the amounts
19determined by the department by rule promulgated under sub. (9).
SB1-SSA1,8,21 20(2m) Opportunity employees. (a) Minimum rates. Except as provided in subs.
21(3) to (8), the minimum wage for an opportunity employee is as follows:
SB1-SSA1,8,2222 1. For wages earned before June 1, 2010, $6.90 per hour.
SB1-SSA1,8,2423 2. For wages earned beginning on June 1, 2010, the amount determined by the
24department by rule promulgated under sub. (9).
SB1-SSA1,9,4
1(b) Allowances for meals and lodging. Except as provided in sub. (4) (b), if an
2employer furnishes an opportunity employee with meals or lodging in accordance
3with rules promulgated by the department under s. 104.045 (2), the employer may
4deduct the following amounts from the wages of the employee:
SB1-SSA1,9,65 1. For lodging furnished before June 1, 2010, $55.20 per week or $7.90 per day
6and for meals furnished before June 1, 2010, $82.85 per week or $3.90 per meal.
SB1-SSA1,9,87 2. For meals and lodging furnished beginning on June 1, 2010, the amounts
8determined by the department by rule promulgated under sub. (9).
SB1-SSA1,9,14 9(3) Tipped employees. (a) Minimum rates. Except as provided in subs. (4) to
10(8), if an employer of a tipped employee establishes by the employer's payroll records
11that, when adding the tips received by the tipped employee in a week to the wages
12paid to the tipped employee in that week, the tipped employee receives not less than
13the applicable minimum wage specified in sub. (1) or (2), the minimum wage for the
14tipped employee is as follows:
SB1-SSA1,9,1615 1. For wages earned before June 1, 2010, by a tipped employee who is not an
16opportunity employee, $2.75 per hour.
SB1-SSA1,9,1817 2. For wages earned before June 1, 2010, by a tipped employee who is an
18opportunity employee, $2.50 per hour.
SB1-SSA1,9,2019 3. For wages earned beginning on June 1, 2010, the amounts determined by the
20department by rule promulgated under sub. (9).
SB1-SSA1,9,2421 (b) Allowances for meals and lodging. If an employer furnishes a tipped
22employee with meals or lodging in accordance with rules promulgated by the
23department under s. 104.045 (2), the employer may deduct the applicable amounts
24specified in sub. (1) (b) or (2) (b) from the wages of the tipped employee.
SB1-SSA1,9,25
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:
SB1-SSA1,10,33 1. For wages earned before June 1, 2010, $7.25 per hour.
SB1-SSA1,10,54 2. For wages earned beginning on June 1, 2010, the amounts determined by the
5department by rule promulgated under sub. (9).
SB1-SSA1,10,96 (b) Allowances for meals and lodging. If an employer furnishes an agricultural
7employee with meals or lodging in accordance with rules promulgated by the
8department under s. 104.045 (2), the employer may deduct the following amounts
9from the wages of the employee:
SB1-SSA1,10,1110 1. For lodging furnished before June 1, 2010, $58 per week or $8.30 per day and
11for meals furnished before June 1, 2010, $87 per week or $4.15 per meal.
SB1-SSA1,10,1312 2. For meals and lodging furnished beginning on June 1, 2010, the amounts
13determined by the department by rule promulgated under sub. (9).
SB1-SSA1,10,15 14(5) Camp counselors. The minimum wage for a counselor at a seasonal
15recreational or educational camp, including a day camp, is as follows:
SB1-SSA1,10,1816 (a) For wages earned before June 1, 2010, $350 per week if meals and lodging
17are not furnished, $265 per week if only meals are furnished, and $210 per week if
18both meals and lodging are furnished.
SB1-SSA1,10,2019 (b) For wages earned beginning on June 1, 2010, the amounts determined by
20the department by rule promulgated under sub. (9).
SB1-SSA1,10,21 21(6) Golf caddies. The minimum wage for a golf caddy is as follows:
SB1-SSA1,10,2222 (a) For wages earned before June 1, 2010, $12.30 for caddying 18 holes.
SB1-SSA1,10,2323 (b) For wages earned before June 1, 2010, $6.90 for caddying 9 holes.
SB1-SSA1,10,2524 (c) For wages earned beginning on June 1, 2010, the amounts determined by
25the department by rule promulgated under sub. (9).
SB1-SSA1,11,2
1(7) Minimum wage established by department. The department shall
2promulgate rules providing the minimum wage for all of the following:
SB1-SSA1,11,43 (a) An employee or worker with a disability covered under a license under s.
4104.07.
SB1-SSA1,11,55 (b) A student learner.
SB1-SSA1,11,76 (c) A student employed by an independent college or university for less than
720 hours per week.
SB1-SSA1,11,10 8(8) Employment exempted by department. The department shall promulgate
9rules exempting from the minimum wage requirements under subs. (1) to (7) all of
10the following:
SB1-SSA1,11,1211 (a) A person engaged in casual employment in and around an employer's home
12on an irregular or intermittent basis for not more than 15 hours per week.
SB1-SSA1,11,1613 (b) A person who resides in the home of an employer who, due to advanced age
14or physical or mental disability, cannot care for his or her own needs, for the purpose
15of companionship and who spends not more than 15 hours per week on general
16household work for the employer.
SB1-SSA1,11,1817 (c) An elementary or secondary school student performing student work-like
18activities in the student's school.
SB1-SSA1,12,11 19(9) Department to revise. (a) Subject to pars. (b) and (c), by June 1 of each year,
20the department, using the procedures under s. 227.24, shall promulgate rules to
21revise the minimum wages and allowances for meals and lodging established under
22subs. (1) to (7). The department shall determine those revised minimum wages and
23allowances by calculating the percentage difference between the consumer price
24index for the 12-month period ending on the last day of February of the preceding
25year and the consumer price index for the 12-month period ending on the last day

1of February of the current year, adjusting the minimum wages and allowances in
2effect on May 31 of the current year by that percentage difference, and rounding that
3result to the nearest multiple of 5 cents, except that for a minimum wage under sub.
4(5), the department shall round the result to the nearest dollar. Notwithstanding s.
5227.24 (1) (a), (2) (b), and (3), the department may promulgate an emergency rule
6under s. 227.24 revising the minimum wages and allowances established under subs.
7(1) to (7) without providing evidence that the emergency rule is necessary to preserve
8the public peace, health, safety, or welfare and without a finding of emergency. A
9revised minimum wage or allowance determined under this paragraph shall first
10apply to wages earned or meals or lodging furnished on June 1 of the year in which
11the wage or allowance is revised.
SB1-SSA1,12,1512 (b) Paragraph (a) does not apply if the consumer price index for the 12-month
13period ending on the last day of February of the current year has not increased over
14the consumer price index for the 12-month period ending on the last day of February
15of the preceding year.
SB1-SSA1,12,1716 (c) Paragraph (a) does not preclude the department from promulgating rules
17to increase a minimum wage provided under subs. (1) to (7).
SB1-SSA1, s. 12 18Section 12. 104.045 of the statutes is renumbered 104.045 (intro.) and
19amended to read:
SB1-SSA1,12,22 20104.045 Tipped employees Tips, meals, lodging, and hours worked.
21(intro.) The department shall by rule determine what amount of promulgate rules
22governing all of the following:
SB1-SSA1,12,24 23(1) The counting of tips or similar gratuities may be counted toward fulfillment
24of the employer's obligation under this chapter.
SB1-SSA1, s. 13 25Section 13. 104.045 (2) and (3) of the statutes are created to read:
SB1-SSA1,13,2
1104.045 (2) The deduction of meals or lodging provided by an employer to an
2employee from the employer's obligation under this chapter.
SB1-SSA1,13,4 3(3) The determination of hours worked by an employee during which the
4employee is entitled to a living wage under this chapter.
SB1-SSA1, s. 14 5Section 14. 104.05 of the statutes is amended to read:
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