SB203: Bill Text

LRB-2721/2

GMM:kmg&jlg:jf

1997 - 1998 LEGISLATURE

1997 Senate BILL 203

May 13, 1997 - Introduced by Senators Chvala, Wineke, Decker, Clausing, Moen and Risser, cosponsored by Representatives Coggs, Baldwin, Vander Loop, R. Young, Schneider, L. Young, Carpenter, Bock, Riley, Springer, Boyle, Black, Notestein, Travis and Gronemus. Referred to Committee on Labor, Transportation and Financial Institutions.

SB203,1,8 An Act to renumber and amend 104.045, 104.08 (1), 104.08 (2) and 104.08 (3); to amend 49.141 (1) (g), 104.01 (intro.), 104.01 (3) (a), 104.01 (5), 104.01 (8), 104.01 (9), 104.02, 104.03, 104.04, 104.05, 104.06, 104.07 (1) and (2), 104.10, 104.11, 104.12, 234.94 (5), 234.94 (8), 800.09 (1) (b), 800.095 (4) (b) 3. and 895.035 (2m) (c); 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 law requires that employers pay a living wage to their employes. Under that law, the department of industry, labor and job development (DILJD) has established, by rule, minimum hourly wages for various classes of employment as follows: - See PDF for table

(An opportunity wage is the minimum wage payable to an employe under 20 years of age for the first 90 days of any job).

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

Under this bill, DILJD will continue to establish, by rule, separate minimum wage rates for camp counselors, persons in casual employment, personal companions, golf caddies, student learners 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 statute.

Under the bill, the minimum wage, beginning on January 1, 1998, 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, a student learner nor an employe unable to earn the standard minimum wage) is $5.50 per hour or the federal minimum hourly wage, whichever is greater. In 1999, the minimum wage is $6 per hour or the federal minimum hourly wage, whichever is greater. After December 31, 1999, the minimum wage is 50% of the national average hourly wage earned by nonsupervisory employes employed by private, nonagricultural employers, as determined by the bureau of labor statistics in 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 greater.

Under the bill, the minimum wage, beginning on January 1, 1998, 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 $2.75 per hour or the federal minimum hourly wage, if any, for a tipped employe, whichever is greater. In 1999 the minimum wage for a tipped employe is $3 per hour or the federal minimum hourly wage, if any, for a tipped employe, whichever is greater. After December 31, 1999, 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 instead of the minimum wage for employes generally only if the employer establishes by his or her payroll records that, when adding the tips received by an employe to the minimum wage for tipped employes, the employe receives not less than the minimum wage for employes generally.

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

Current law requires DILJD, in determining the living wage, to consider the effect that an increase in the living wage might have on the economy of the state, including the effect of such an increase on job creation, retention and expansion, on the availability of entry level jobs and on regional economic conditions within this state. This bill eliminates that requirement.

Finally, under current law, DILJD has classified, by rule, certain employes as executive, administrative or professional employes and has exempted employers of those employes from the administrative rule that requires overtime pay. Under current rules, an employe may not be classified as an executive or administrative employe unless the employe earns, on a salary basis, not less than $700 per month and an employe may not be classified as a professional employe unless the employe earns, on a salary basis, not less than $750 per month. This bill provides that DILJD may not classify 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 January 1, 1998, 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 employe earns, in salary or fees, not less than $1,075 per month, beginning on January 1, 1998, or on the first day of the first month beginning after publication of the bill, whichever is later. After December 31, 1998, 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:

SB203, s. 1 Section 1. 49.141 (1) (g) of the statutes is amended to read:

SB203,3,4 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.

SB203, s. 2 Section 2. 103.027 of the statutes is created to read:

SB203,4,6 103.027 Hours of labor; executive, administrative and professional employes. (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.

SB203,4,17 (2) If the department promulgates rules under sub. (1), the department may not classify an employe as an executive or administrative employe unless that employe 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, 1999, and not less than $1,125 per month after December 31, 1998. If the department promulgates rules under sub. (1), the department 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, 1999, and not less than $1,200 per month after December 31, 1998.

SB203, s. 3 Section 3. 104.01 (intro.) of the statutes is amended to read:

SB203,4,20 104.01 Definitions. (intro.) The following terms as used in ss. 104.01 to 104.12 shall be construed as follows In this chapter:

SB203, s. 4 Section 4. 104.01 (3) (a) of the statutes is amended to read:

SB203,4,25 104.01 (3) (a) The term "employer" shall mean and include "Employer" means every person, firm or corporation, agent, manager, representative, contractor, subcontractor or principal, or other person having control or direction of any person employed at any labor or responsible directly or indirectly for the wages of another.

SB203, s. 5 Section 5. 104.01 (5) of the statutes is amended to read:

SB203,5,5 104.01 (5) The term "living-wage" shall mean "Living wage" means compensation for labor paid, whether by time, piecework or otherwise, sufficient to enable the employe receiving it to maintain himself or herself under conditions consistent with his or her welfare.

SB203, s. 6 Section 6. 104.01 (7m) of the statutes is created to read:

SB203,5,9 104.01 (7m) "Tipped employe" means an employe who in the course of employment customarily and regularly receives money or other gratuities from persons other than the employe's employer.

SB203, s. 7 Section 7. 104.01 (8) of the statutes is amended to read:

SB203,5,12 104.01 (8) The term "wage" and the term "wages" shall each mean "Wage" means any compensation for labor measured by time, piece or otherwise.

SB203, s. 8 Section 8. 104.01 (9) of the statutes is amended to read:

SB203,5,15 104.01 (9) The term "welfare" shall mean and include "Welfare" means reasonable comfort, reasonable physical well-being, decency, and moral well-being.

SB203, s. 9 Section 9. 104.02 of the statutes is amended to read:

SB203,5,19 104.02 (title) Living-wage prescribed Living wage required. Every wage paid or agreed to be paid by any employer to any employe, except as otherwise provided in s. 104.07, shall be not less than a living-wage living wage.

SB203, s. 10 Section 10. 104.03 of the statutes is amended to read:

SB203,5,23 104.03 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.

SB203, s. 11 Section 11. 104.035 of the statutes is created to read:

SB203,6,3 104.035 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 whichever of the following applies:

SB203,6,6 (a) For wages earned beginning on the effective date of this paragraph .... [revisor inserts date], $5.50 per hour or the federal minimum hourly wage, whichever is greater.

SB203,6,8 (b) For wages earned in 1999, $6 per hour or the federal minimum hourly wage, whichever is greater.

SB203,6,14 (c) For wages earned after December 31, 1999, 50% of the national average hourly wage earned by nonsupervisory employes employed by private, nonagricultural employers, as determined by the bureau of labor statistics in 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 greater.

SB203,6,24 (2) Tipped employes. (a) Except as provided in sub. (3) and s. 104.07, and subject to par. (b) and sub. (4), for wages earned beginning on the effective date of this paragraph .... [revisor inserts date], the minimum wage for a tipped employe is $2.75 per hour or the federal minimum hourly wage, if any, for a tipped employe, whichever is greater; for wages earned in 1999 the minimum wage for a tipped employe is $3 per hour or the federal minimum hourly wage, if any, for a tipped employe, whichever is greater; and for wages earned after December 31, 1999, the minimum 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.

SB203,7,5 (b) An employer may pay the minimum wage specified in par. (a) instead of the minimum wage specified in sub. (1) only if the employer establishes by his or her payroll records that, when adding the tips received by an employe to the wages under par. (a) paid to that employe, the employe receives not less than the applicable minimum wage specified in sub. (1).

SB203,7,7 (3) Minimum wage established by department. The department shall promulgate rules establishing the minimum wage for all of the following:

SB203,7,9 (a) A counselor employed at a seasonal recreational or educational camp, including a day camp, for campers under the age of 18.

SB203,7,11 (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.