SB495: Bill Text

LRB-2361/1

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1995 - 1996 LEGISLATURE

1995 Senate BILL 495

January 23, 1996 - Introduced by Senators Chvala, Andrea, Moen, Risser, Decker, Clausing and Burke, cosponsored by Representatives Coggs, Baldwin, Notestein, R. Young, Krug, Bock, Riley, Plombon, L. Young, Black, Plache, Bell, Turner, Baldus, Boyle, Williams, Ryba, Hasenohrl, Kreuser, Gronemus and Robson. Referred to Committee on Human Resources, Labor, Tourism, Veterans and Military Affairs.

SB495,1,7 An Act to renumber 104.08 (3); to renumber and amend 104.045, 104.08 (1) and 104.08 (2); to amend 104.01 (intro.), 104.01 (5), 104.01 (8), 104.02, 104.03, 104.04, 104.05, 104.06, 104.07 (1) and (2), 104.10, 104.11, 104.12, 800.09 (1) (b) and 800.095 (4) (b) 3.; and to create 103.027, 104.01 (7m), 104.035, 104.045 (2) and (3) and 104.08 (1) (b) of the statutes; relating to: a state minimum wage, overtime pay for executive, administrative and professional employes, granting rule-making authority and providing a penalty.

Analysis by the Legislative Reference Bureau

Currently, the state minimum wage laws require that employers pay a living wage to their employes. Under those laws, the department of industry, labor and hu man relations (DILHR) has established, by rule, minimum wages for various classes of employment as follows: - See PDF for table

Also under current law, DILHR has established, by rule, separate minimum wage rates for counselors at seasonal recreational or educational camps for minors, for employes who perform less than 15 hours a week of casual employment in and around an employer's home, for employes hired as personal companions for disabled individuals, for golf caddies and for individuals who because of a handicap are unable to earn the standard minimum wage.

Under this bill, DILHR will continue to establish, by rule, separate minimum wage rates for camp counselors, persons in casual employment, personal compan ions, golf caddies and those who are unable to earn the standard minimum wage. For other employes, however, including agricultural employes, employes under 18 years of age and employes who receive tips, the bill sets a new minimum wage by stat ute.

Under the bill, the minimum wage, beginning on May 1, 1996, or on the first day of the first month beginning after publication of the bill, whichever is later, for an employe, including an agricultural employe and an employe under 18 years of age, who is not a tipped employe (and who is neither a camp counselor, a casual employe, a personal companion, a caddy nor an employe unable to earn the standard minimum wage) is $4.75 per hour or the federal minimum hourly wage, whichever is greater. In 1997 the minimum wage is $5.25 per hour or the federal minimum hourly wage, whichever is greater. After December 31, 1997, the minimum wage is 50% of the na tional average hourly wage earned by nonsupervisory employes employed by pri vate, nonagricultural employers, as determined by the bureau of labor statistics of the federal department of labor for November of the previous year, rounded to the nearest multiple of 5 cents or the federal minimum hourly wage, whichever is great er.

Under the bill, the minimum wage, beginning on May 1, 1996, or on the first day of the first month beginning after publication of the bill, whichever is later, for a tipped employe, including a tipped employe under 18 years of age, is $2.40 per hour or the federal minimum hourly wage, if any, for a tipped employe, whichever is great er. In 1997 the minimum wage for a tipped employe is $2.65 per hour or the federal minimum hourly wage, if any, for a tipped employe, whichever is greater. After De cember 31, 1997, the minimum wage for a tipped employe is 50% of the minimum wage for a nontipped employe, as determined under the bill, or the federal minimum hourly wage, if any, for a tipped employe, whichever is greater. The bill provides, however, that an employer may pay the minimum wage for tipped employes only if the employer establishes by his or her payroll records that, when adding the tips re ceived by an employe to the minimum wage for tipped employes, the employe re ceives not less than the minimum wage for employes generally.

The bill authorizes DILHR to raise the minimum wages specified in this bill. Also, the bill requires DILHR to promulgate rules concerning the counting of tips to ward the minimum wage, the deduction from the minimum wage of meals and lodg ing provided by the employer and the determination of hours worked during which the employe is entitled to the minimum wage.

Finally, the bill authorizes DILHR to classify, by rule, certain employes as executive, administrative or professional employes and to exempt employers of those employes from the administrative rules that require overtime pay. The bill provides, however, that if DILHR does so classify and exempt those employes, it may not classi fy an employe as an executive or administrative employe unless that employe earns, on a salary basis, not less than $1,000 per month, beginning on May 1, 1996, or on the first day of the first month beginning after publication of the bill, whichever is later; and it may not classify an employe as a professional employe unless that em ploye earns, in salary or fees, not less than $1,075 per month, beginning on May 1, 1996, or on the first day of the first month beginning after publication of the bill, whichever is later. After December 31, 1996, an employe must earn not less than $1,125 per month to be classified as an executive or administrative employe and not less than $1,200 per month to be classified as a professional employe.

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:

SB495, s. 1 Section 1. 103.027 of the statutes is created to read:

SB495,3,6 103.027 Hours of labor; executive, administrative and professional em ployes. (1) Subject to sub. (2), the department may, by rule, classify employes as executive, administrative or professional employes and exempt employers of those employes from the rules promulgated under s. 103.02 that require certain periods of work to be paid for at the rate of at least 1.5 times the employe's regular rate of pay.

SB495,4,4 (2) If the department promulgates rules under sub. (1), the department may not classify an employe as an executive or administrative employe unless that em ploye is compensated for his or her services on a salary basis at a rate of not less than $1,000 per month, after the day before the effective date of this subsection .... [revisor inserts date], and before January 1, 1997, and not less than $1,125 per month after December 31, 1996. If the department promulgates rules under sub. (1), the depart ment may not classify an employe as a professional employe unless that employe is compensated for his or her services on a salary or fee basis at a rate of not less than $1,075 per month, after the day before the effective date of this subsection .... [revisor inserts date], and before January 1, 1997, and not less than $1,200 per month after December 31, 1996.

SB495, s. 2 Section 2. 104.01 (intro.) of the statutes is amended to read:

SB495,4,7 104.01 Definitions. (intro.) The following terms as used in ss. 104.01 to 104.12 shall be construed as follows In this chapter:

SB495, s. 3 Section 3. 104.01 (5) of the statutes is amended to read:

SB495,4,12 104.01 (5) The term "living-wage" shall mean "Living wage" means compensa tion for labor paid, whether by time, piecework or otherwise, sufficient to enable the employe receiving it to maintain himself or herself under conditions consistent with his or her welfare.

SB495, s. 4 Section 4. 104.01 (7m) of the statutes is created to read:

SB495,4,16 104.01 (7m) "Tipped employe" means an employe who in the course of employ ment customarily and regularly receives money or other gratuities from persons oth er than the employe's employer.

SB495, s. 5 Section 5. 104.01 (8) of the statutes is amended to read:

SB495,4,19 104.01 (8) The term "wage" and the term "wages" shall each mean "Wage" means any compensation for labor measured by time, piece or otherwise.

SB495, s. 6 Section 6. 104.02 of the statutes is amended to read:

SB495,4,23 104.02 (title) Living-wage prescribed Living wage required. Every wage paid or agreed to be paid by any employer to any employe, except as otherwise pro vided in s. 104.07, shall be not less than a living-wage living wage.

SB495, s. 7 Section 7. 104.03 of the statutes is amended to read:

SB495,5,3 104.03 Unlawful wages. Any employer paying, offering to pay, or agreeing to pay any employe 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.

SB495, s. 8 Section 8. 104.035 of the statutes is created to read:

SB495,5,7 104.035 Minimum wage. (1) Employes generally. Except as provided in subs. (2) and (3) and s. 104.07, and subject to sub. (4), the minimum wage is whichev er of the following applies:

SB495,5,10 (a) For wages earned beginning on the effective date of this paragraph .... [revi sor inserts date], $4.75 per hour or the federal minimum hourly wage, whichever is greater.

SB495,5,12 (b) For wages earned in 1997, $5.25 per hour or the federal minimum hourly wage, whichever is greater.

SB495,5,17 (c) For wages earned after December 31, 1997, 50% of the national average hourly wage earned by nonsupervisory employes employed by private, nonagricul tural employers, as determined by the bureau of labor statistics in the federal depart ment of labor for November of the previous year, rounded to the nearest multiple of 5 cents or the federal minimum hourly wage, whichever is greater.

SB495,6,6 (2) Tipped employes. Except as provided in sub. (3) and s. 104.07, and subject to this subsection and sub. (4), for wages earned beginning on the effective date of this subsection .... [revisor inserts date], the minimum wage for a tipped employe is $2.40 per hour or the federal minimum hourly wage, if any, for a tipped employe, whichever is greater; for wages earned in 1997 the minimum wage for a tipped em ploye is $2.65 per hour or the federal minimum hourly wage, if any, for a tipped em ploye, whichever is greater; and for wages earned after December 31, 1997, the mini mum wage for a tipped employe is 50% of the minimum wage determined under sub. (1) (c) rounded to the nearest multiple of 5 cents or the federal minimum hourly wage, if any, for a tipped employe, whichever is greater. An employer may pay the mini mum wage specified in this subsection only if the employer establishes by his or her payroll records that, when adding the tips received by an employe to the wages under this subsection paid to that employe, the employe receives not less than the applica ble minimum wage specified in sub. (1).

SB495,6,8 (3) Minimum wage established by department. The department shall promul gate rules establishing the minimum wage for all of the following:

SB495,6,10 (a) A counselor employed at a seasonal recreational or educational camp, in cluding a day camp, for campers under the age of 18.

SB495,6,12 (b) 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.

SB495,6,15 (c) A person who lives with someone who has a physical or mental disability and who provides companionship, general household work and care, not including practi cal or professional nursing as defined in s. 441.11 (3) and (4), for that disabled person.

SB495,6,16 (d) A caddy on a golf course.

SB495,6,17 (e) An employe or handicapped worker covered under a license under s. 104.07.

SB495,6,19 (4) Department may revise. The department may promulgate rules to increase a minimum wage established under sub. (1) or (2).

SB495, s. 9 Section 9. 104.04 of the statutes is amended to read:

SB495,7,7 104.04 Classifications; department's authority. The department shall in vestigate, ascertain, determine and fix such reasonable classifications, and shall im pose general or special orders, determining the living-wage living wage, and shall carry out the purposes of ss. 104.01 to 104.12 this chapter. Such investigations, clas sifications and orders shall be made pursuant to the proceeding in ss. 101.01 to 101.25, which are hereby made a part hereof, so far as not inconsistent with ss. 104.01 to 104.12 this chapter; and every order of the department shall have the same force and effect as the orders issued pursuant to said ss. 101.01 to 101.25, and the penalties therein shall apply to and be imposed for any violation of ss. 104.01 to 104.12 this chapter. The department may not establish a different minimum wage for men and women. Said orders shall be subject to review in the manner provided in ch. 227.

SB495, s. 10 Section 10. 104.045 of the statutes is renumbered 104.045 (intro.) and amended to read:

SB495,7,12 104.045 (title) Tipped employes Tips, meals and lodging, and hours worked. (intro.) The department shall by rule determine what amount of promul gate rules governing all of the following:

SB495,7,14 (1) The counting of tips or similar gratuities may be counted toward fulfillment of the employer's obligation under this chapter.