SB95: Bill Text

LRB-2024/1

GMM:mfd:jlb

1997 - 1998 LEGISLATURE

1997 Senate BILL 95

February 25, 1997 - Introduced by Senators Wineke, Decker and Clausing, cosponsored by Representatives Riley, Black, R. Young, Notestein, Baldwin, Vander Loop, Carpenter, Williams, L. Young, Boyle, Springer and Kreuser. Referred to Committee on Labor, Transportation and Financial Institutions.

SB95,1,9 An Act to renumber 104.08 (3); to renumber and amend 104.045, 104.08 (1) and 104.08 (2); to amend 49.141 (1) (g), 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, 234.94 (5), 234.94 (8), 800.09 (1) (b), 800.095 (4) (b) 3. and 895.035 (2m) (c); and to create 104.01 (5m), 104.01 (5p), 104.01 (7m), 104.035, 104.045 (2) and (3) and 104.08 (1) (b) of the statutes; relating to: a state minimum wage, providing an exemption from emergency rule procedures, providing an exemption from rule-making procedures, 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 provided, by rule, minimum wages for various classes of employment as follows: - See PDF for table

Also under current law, DILJD has provided, 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, for student learners and for individuals who because of a handicap are unable to earn the standard minimum wage.

Under this bill, DILJD will continue to provide, 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 provides the method by which DILJD must calculate the minimum wage.

Specifically, for employes generally, that is, employes who are not agricultural employes, who are not under 18 years of age, who are not tipped employes, who are not probationary employes or who are not employes for whom DILJD provides a separate minimum wage, the bill directs DILJD to calculate the minimum hourly wage by dividing the federal poverty line for a family of 3 persons (federal poverty line) (currently $12,980 per year), by 2,080 (52 weeks in a year times 40 hours per week), and rounding the quotient to the nearest multiple of 5 cents. Accordingly, at the current federal poverty line, this bill raises the minimum wage for employes generally to $6.25 per hour.

For other employes, the bill directs DILJD to calculate the minimum hourly wage by multiplying the result obtained under the previous paragraph as follows:

1. For probationary employes 18 years of age or over, by 92.9% and rounding the product to the nearest multiple of 5 cents, resulting in a minimum wage of $5.80 per hour when calculated based on the current federal poverty line.

2. For employes under 18 years of age who are not probationary employes, by 91.7% and rounding the product to the nearest multiple of 5 cents, resulting in a minimum wage of $5.75 per hour when calculated based on the current poverty line.

3. For employes under 18 years of age who are probationary employes, by 84.7% and rounding the product to the nearest multiple of 5 cents, resulting in a minimum wage of $5.30 per hour when calculated based on the current poverty line.

4. For tipped employes 18 years of age or over who are not probationary employes, by 54.8% and rounding the product to the nearest multiple of 5 cents, resulting in a minimum wage of $3.45 per hour when calculated based on the current poverty line.

5. For tipped employes 18 years of age or over who are probationary employes, by 51.7% and rounding the product to the nearest multiple of 5 cents, resulting in a minimum wage of $3.25 per hour when calculated based on the current poverty line.

6. For tipped employes under 18 years of age who are not probationary employes, by 50.1% and rounding the product to the nearest multiple of 5 cents, resulting in a minimum wage of $3.15 per hour when calculated based on the current poverty line.

7. For tipped employes under 18 years of age who are probationary employes, by 47.0% and rounding the product to the nearest multiple of 5 cents, resulting in a minimum wage of $2.95 per hour when calculated based on the current poverty line.

8. For agricultural employes 18 years of age or over, by 95.3% and rounding the product to the nearest multiple of 5 cents, resulting in a minimum wage of $5.95 per hour when calculated based on the current poverty line.

9. For agricultural employes under 18 years of age, by 87.0% and rounding the product to the nearest multiple of 5 cents, resulting in a minimum wage of $5.45 per hour when calculated based on the current poverty line.

The bill further requires DILJD to revise the minimum wages specified above annually within 30 days after the federal department of labor publishes its annual revision of the poverty line.

Finally, 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 this 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.

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:

SB95, s. 1 Section 1. 49.141 (1) (g) of the statutes is amended to read:

SB95,3,4 49.141 (1) (g) "Minimum wage" means the state minimum hourly wage under ch. 104 s. 104.035 (2) or the federal minimum hourly wage under 29 USC 206 (a) (1), whichever is applicable.

SB95, s. 2 Section 2. 104.01 (intro.) of the statutes is amended to read:

SB95,4,2 104.01 Definitions. (intro.) The following terms as used in ss. 104.01 to 104.12 shall be construed as follows In this chapter:

SB95, s. 3 Section 3. 104.01 (5) of the statutes is amended to read:

SB95,4,7 104.01 (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.

SB95, s. 4 Section 4. 104.01 (5m) of the statutes is created to read:

SB95,4,11 104.01 (5m) "Poverty line" means the nonfarm federal poverty line for the continental United States, as defined and revised annually by the federal department of labor under 42 USC 9902 (2).

SB95, s. 5 Section 5. 104.01 (5p) of the statutes is created to read:

SB95,4,14 104.01 (5p) "Probationary employe" means a person who has been employed for a cumulative total of 30 calendar days or less within the preceding 3-year period.

SB95, s. 6 Section 6. 104.01 (7m) of the statutes is created to read:

SB95,4,18 104.01 (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.

SB95, s. 7 Section 7. 104.01 (8) of the statutes is amended to read:

SB95,4,21 104.01 (8) The term "wage" and the term "wages" shall each mean "Wage" means any compensation for labor measured by time, piece or otherwise.

SB95, s. 8 Section 8. 104.02 of the statutes is amended to read:

SB95,4,25 104.02 (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.

SB95, s. 9 Section 9. 104.03 of the statutes is amended to read:

SB95,5,4 104.03 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.

SB95, s. 10 Section 10. 104.035 of the statutes is created to read:

SB95,5,18 104.035 Minimum wage. (1) Department to promulgate rules. The department shall promulgate rules providing minimum hourly wages for the employes specified in subs. (2) to (7). The department shall calculate those minimum hourly wages according to the methods specified in subs. (2) to (7). Annually, within 30 days after the federal department of labor publishes its annual revision of the poverty line, the department, using the procedure under s. 227.24 and the methods specified in subs. (2) to (7), shall promulgate rules revising the minimum hourly wages provided under subs. (2) to (7). Notwithstanding s. 227.24 (1) (a) and (2) (b), the department need not provide evidence of the necessity of preservation of the public peace, health, safety or welfare in promulgating rules revising the minimum wages provided under subs. (2) to (7). A revised minimum wage provided under subs. (2) to (7) shall first apply to wages earned beginning on the first day of the first month beginning after the date on which that minimum wage is revised.

SB95,5,22 (2) Employes generally. Subject to the minimum wages provided under subs. (3) to (7), the department shall calculate the minimum hourly wage for employes generally by dividing the poverty line for a family of 3 persons by 2,080 and rounding the quotient to the nearest multiple of 5 cents.

SB95,6,2 (3) Probationary employes over 18. Notwithstanding the minimum wage provided under sub. (2), but subject to the minimum wages provided under subs. (5) to (8), the department shall calculate the minimum wage for probationary employes 18 years of age or over by multiplying the result obtained under sub. (2) by 92.9% and rounding the product to the nearest multiple of 5 cents.

SB95,6,10 (4) Employes under 18. Notwithstanding the minimum wage provided under sub. (2), but subject to the minimum wages provided under subs. (5) to (8), the department shall calculate the minimum wage for persons under 18 years of age who are not probationary employes by multiplying the result obtained under sub. (2) by 91.7% and rounding the product to the nearest multiple of 5 cents and shall calculate the minimum wage for persons under 18 years of age who are probationary employes by multiplying the result obtained under sub. (2) by 84.7% and rounding the product to the nearest multiple of 5 cents.

SB95,6,13 (5) Tipped employes. (a) Notwithstanding the minimum wages provided under subs. (2) to (4), but subject to the minimum wages provided under subs. (6) to (8), the department shall calculate the minimum wage for tipped employes as follows: