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 bill, 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 bill sets
the minimum wages, effective on June 1, 2009, or on the day after publication of the
bill, whichever is later, as follows:
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The bill also increases the allowance against the minimum wage that an
employer who provides room and board for an employee may take, as follows:
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Beginning on June 1, 2010, the bill requires DWD annually to promulgate rules
revising the minimum wages and allowances for meals and lodging established
under the bill 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.
Finally, current law prohibits a city, village, town, or county from enacting and
administering an ordinance establishing a living wage. This bill eliminates that
prohibition.
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:
AB41, s. 1
1Section
1. 49.141 (1) (g) of the statutes is amended to read:
AB41,6,3
149.141
(1) (g) "Minimum wage" means the state minimum hourly wage under
2ch. 104 s. 104.035 (1) or the federal minimum hourly wage under
29 USC 206 (a) (1),
3whichever is applicable.
AB41, s. 2
4Section
2. 104.001 of the statutes is repealed.
AB41, s. 3
5Section
3. 104.01 (intro.) of the statutes is amended to read:
AB41,6,7
6104.01 Definitions. (intro.)
The following terms as used in In this chapter
7shall be construed as follows:
AB41, s. 4
8Section
4. 104.01 (1) of the statutes is renumbered 104.01 (1m).
AB41, s. 5
9Section
5. 104.01 (1d) of the statutes is created to read:
AB41,6,1110
104.01
(1d) "Agricultural employee" means an employee who is employed in
11farming, as defined in s. 102.04 (3).
AB41, s. 6
12Section
6. 104.01 (1g) of the statutes is created to read:
AB41,6,1513
104.01
(1g) "Consumer price index" means the average of the consumer price
14index over each 12-month period for all urban consumers, U.S. city average, as
15determined by the bureau of labor statistics of the U.S. department of labor.
AB41, s. 7
16Section
7. 104.01 (5g) of the statutes is created to read:
AB41,6,1817
104.01
(5g) "Minor employee" means a minor who is paid at the applicable
18minimum wage rate for minors.
AB41, s. 8
19Section
8. 104.01 (5m) of the statutes is created to read:
AB41,6,2120
104.01
(5m) "Opportunity employee" means a person under 20 years of age who
21is in the first 90 consecutive days of employment with his or her employer.
AB41, s. 9
22Section
9. 104.01 (7m) of the statutes is created to read:
AB41,6,2523
104.01
(7m) "Tipped employee" means an employee who in the course of
24employment customarily and regularly receives money or other gratuities from
25persons other than the employee's employer.
AB41, s. 10
1Section
10. 104.01 (8) of the statutes is amended to read:
AB41,7,32
104.01
(8) The term "wage" and the term "wages" shall each mean "Wage"
3means any compensation for labor measured by time, piece
, or otherwise.
AB41, s. 11
4Section
11. 104.035 of the statutes is created to read:
AB41,7,6
5104.035 Minimum wage. (1) Employees generally. (a)
Minimum rates. 6Except as provided in subs. (2) to (8), the minimum wage is as follows:
AB41,7,77
1. For wages earned before June 1, 2010, $7.60 per hour.
AB41,7,98
2. For wages earned beginning on June 1, 2010, the amount determined by the
9department by rule promulgated under sub. (9).
AB41,7,1310
(b)
Allowances for meals and lodging. Except as provided in subs. (2) (b) and
11(4) (b), if an employer furnishes an employee with meals or lodging in accordance
12with rules promulgated by the department under s. 104.045 (2), the employer may
13deduct the following amounts from the wages of the employee:
AB41,7,1514
1. For lodging furnished before June 1, 2010, $61 per week or $8.65 per day and
15for meals furnished before June 1, 2010, $95 per week or $4.35 per meal.
AB41,7,1716
2. For meals and lodging furnished beginning on June 1, 2010, the amounts
17determined by the department by rule promulgated under sub. (9).
AB41,7,20
18(2) Minor and opportunity employees. (a)
Minimum rates. Except as provided
19in subs. (3) to (8), the minimum wage for a minor employee or an opportunity
20employee is as follows:
AB41,7,2121
1. For wages earned before June 1, 2010, $6.90 per hour.
AB41,7,2322
2. For wages earned beginning on June 1, 2010, the amount determined by the
23department by rule promulgated under sub. (9).
AB41,8,224
(b)
Allowances for meals and lodging. Except as provided in sub. (4) (b), if an
25employer furnishes a minor employee or an opportunity employee with meals or
1lodging in accordance with rules promulgated by the department under s. 104.045
2(2), the employer may deduct the following amounts from the wages of the employee:
AB41,8,43
1. For lodging furnished before June 1, 2010, $55.20 per week or $7.90 per day
4and for meals furnished before June 1, 2010, $82.85 per week or $3.90 per meal.
AB41,8,65
2. For meals and lodging furnished beginning on June 1, 2010, the amounts
6determined by the department by rule promulgated under sub. (9).
AB41,8,12
7(3) Tipped employees. (a)
Minimum rates. Except as provided in subs. (4) to
8(8), if an employer of a tipped employee establishes by the employer's payroll records
9that, when adding the tips received by the tipped employee in a week to the wages
10paid to the tipped employee in that week, the tipped employee receives not less than
11the applicable minimum wage specified in sub. (1) or (2), the minimum wage for the
12tipped employee is as follows:
AB41,8,1413
1. For wages earned before June 1, 2010, by a tipped employee who is not an
14opportunity employee, $2.75 per hour.
AB41,8,1615
2. For wages earned before June 1, 2010, by a tipped employee who is an
16opportunity employee, $2.50 per hour.
AB41,8,1817
3. For wages earned beginning on June 1, 2010, the amounts determined by the
18department by rule promulgated under sub. (9).
AB41,8,2219
(b)
Allowances for meals and lodging. If an employer furnishes a tipped
20employee with meals or lodging in accordance with rules promulgated by the
21department under s. 104.045 (2), the employer may deduct the applicable amounts
22specified in sub. (1) (b) or (2) (b) from the wages of the tipped employee.
AB41,8,24
23(4) Agricultural employees. (a)
Minimum rates. Except as provided in subs.
24(7) and (8), the minimum wage for an agricultural employee is as follows:
AB41,9,2
11. For wages earned before June 1, 2010, by an adult agricultural employee,
2$6.05 per hour.
AB41,9,43
2. For wages earned before June 1, 2010, by a minor agricultural employee,
4$4.95.
AB41,9,65
3. For wages earned beginning on June 1, 2010, the amounts determined by the
6department by rule promulgated under sub. (9).
AB41,9,107
(b)
Allowances for meals and lodging. If an employer furnishes an agricultural
8employee with meals or lodging in accordance with rules promulgated by the
9department under s. 104.045 (2), the employer may deduct the following amounts
10from the wages of the employee:
AB41,9,1311
1. For lodging furnished to an adult agricultural employee, before June 1, 2010,
12$48.20 per week or $6.90 per day and for meals furnished to an adult agricultural
13employee, before June 1, 2010, $72.30 per week or $3.45 per meal.
AB41,9,1614
2. For lodging furnished to a minor agricultural employee before June 1, 2010,
15$39.80 per week or $5.65 per day and for meals furnished to a minor agricultural
16employee before June 1, 2010, $59.65 per week or $2.80 per meal.
AB41,9,1817
3. For meals and lodging furnished beginning on June 1, 2010, the amounts
18determined by the department by rule promulgated under sub. (9).
AB41,9,21
19(5) Camp counselors. (a)
Minimum rates for adult counselors. The minimum
20wage for a counselor at a seasonal recreational or educational camp, including a day
21camp, who is an adult is as follows:
AB41,9,2422
1. For wages earned before June 1, 2010, $369 per week if meals and lodging
23are not furnished, $281 per week if only meals are furnished, and $221 per week if
24both meals and lodging are furnished.
AB41,10,2
12. For wages earned beginning on June 1, 2010, the amounts determined by the
2department by rule promulgated under sub. (9).
AB41,10,53
(b)
Minimum rates for minor counselors. The minimum wage for a counselor
4at a seasonal recreational or educational camp, including a day camp, who is a minor
5is as follows:
AB41,10,86
1. For wages earned before June 1, 2010, $322 per week if meals and lodging
7are not furnished, $245 per week if only meals are furnished, and $193 per week if
8both meals and lodging are furnished.
AB41,10,109
2. For wages earned beginning on June 1, 2010, the amounts determined by the
10department by rule promulgated under sub. (9).
AB41,10,11
11(6) Golf caddies. The minimum wage for a golf caddy is as follows:
AB41,10,1212
(a) For wages earned before June 1, 2010, $12.30 for caddying 18 holes.
AB41,10,1313
(b) For wages earned before June 1, 2010, $6.90 for caddying 9 holes.
AB41,10,1514
(c) For wages earned beginning on June 1, 2010, the amounts determined by
15the department by rule promulgated under sub. (9).
AB41,10,17
16(7) Minimum wage established by department. The department shall
17promulgate rules providing the minimum wage for all of the following:
AB41,10,1918
(a) An employee or worker with a disability covered under a license under s.
19104.07.
AB41,10,2020
(b) A student learner.
AB41,10,2221
(c) A student employed by an independent college or university for less than
2220 hours per week.
AB41,10,25
23(8) Employment exempted by department. The department shall promulgate
24rules exempting from the minimum wage requirements under subs. (1) to (7) all of
25the following:
AB41,11,2
1(a) A person engaged in casual employment in and around an employer's home
2on an irregular or intermittent basis for not more than 15 hours per week.
AB41,11,63
(b) A person who resides in the home of an employer who, due to advanced age
4or physical or mental disability, cannot care for his or her own needs, for the purpose
5of companionship and who spends not more than 15 hours per week on general
6household work for the employer.
AB41,11,87
(c) An elementary or secondary school student performing student work-like
8activities in the student's school.
AB41,12,2
9(9) Department to revise. (a) Subject to par. (b), by June 1 of each year, the
10department, using the procedures under s. 227.24, shall promulgate rules to revise
11the minimum wages and allowances for meals and lodging established under subs.
12(1) to (7). The department shall determine those revised minimum wages and
13allowances by calculating the percentage difference between the consumer price
14index for the 12-month period ending on February 28 of the preceding year and the
15consumer price index for the 12-month period ending on February 28 of the current
16year, adjusting the minimum wages and allowances in effect on May 31 of the current
17year by that percentage difference, and rounding that result to the nearest multiple
18of 5 cents, except that for a minimum wage under sub. (5), the department shall
19round the result to the nearest dollar. Notwithstanding s. 227.24 (1) (a), (2) (b), and
20(3), the department may promulgate an emergency rule under s. 227.24 revising the
21minimum wages and allowances established under subs. (1) to (7) without providing
22evidence that the emergency rule is necessary to preserve the public peace, health,
23safety, or welfare and without a finding of emergency. A revised minimum wage or
24allowance determined under this paragraph shall first apply to wages earned or
1meals or lodging furnished on June 1 of the year in which the wage or allowance is
2revised.
AB41,12,43
(b) Paragraph (a) does not preclude the department from promulgating rules
4to increase a minimum wage provided under subs. (1) to (7).
AB41, s. 12
5Section
12. 104.045 of the statutes is renumbered 104.045 (intro.) and
6amended to read:
AB41,12,9
7104.045 Tipped employees Tips, meals, lodging, and hours worked. 8(intro.) The department shall
by rule determine what amount of promulgate rules
9governing all of the following:
AB41,12,11
10(1) The counting of tips or similar gratuities
may be counted toward fulfillment
11of the employer's obligation under this chapter.
AB41, s. 13
12Section
13. 104.045 (2) and (3) of the statutes are created to read:
AB41,12,1413
104.045
(2) The deduction of meals or lodging provided by an employer to an
14employee from the employer's obligation under this chapter.
AB41,12,16
15(3) The determination of hours worked by an employee during which the
16employee is entitled to a living wage under this chapter.
AB41, s. 14
17Section
14. 104.05 of the statutes is amended to read:
AB41,12,23
18104.05 Complaints; investigation.
The department shall, within Within 20
19days after the filing of a verified complaint of any person
setting forth alleging that
20the wages paid to any employee in any occupation are not sufficient to enable the
21employee to maintain himself or herself under conditions consistent with his or her
22welfare,
the department shall investigate and determine whether there is
23reasonable cause to believe that the wage paid to any employee is not a living wage.
AB41, s. 15
24Section
15. 104.07 (1) of the statutes is amended to read:
AB41,13,6
1104.07
(1) The department shall
make promulgate rules, and, except as
2provided under subs. (5) and (6), grant licenses to any employer who employs any
3employee who is unable to earn the living wage determined by the department,
4permitting the employee to work for a wage that is commensurate with the
5employee's ability. Each license so granted shall establish a wage for the
licensee 6employees of the licensee who are unable to earn a living wage.
AB41, s. 16
7Section
16. 104.07 (2) of the statutes is amended to read:
AB41,13,138
104.07
(2) The department shall
make
promulgate rules, and, except as
9provided under subs. (5) and (6), grant licenses to sheltered workshops, to permit the
10employment of workers with disabilities who are unable to earn the living wage at
11a wage that is commensurate with their ability and productivity. A license granted
12to a sheltered workshop under this subsection may be issued for the entire workshop
13or a department of the workshop.
AB41, s. 17
14Section
17. 104.10 of the statutes is amended to read:
AB41,13,21
15104.10 Penalty for intimidating witness. Any employer who discharges or
16threatens to discharge, or
who in any way discriminates
, or threatens to discriminate
17against
, any employee because the employee has testified or is about to testify, or
18because the employer believes that the employee may testify, in any investigation or
19proceeding relative to the enforcement of this chapter,
is guilty of a misdemeanor,
20and upon conviction thereof shall be punished by a fine of may be fined $25 for each
21offense.
AB41, s. 18
22Section
18. 104.11 of the statutes is amended to read:
AB41,14,2
23104.11 Definition of violation. Each day during which any employer
shall
24employ employs a person for whom a living wage has been fixed at a wage
that is less
1than the living wage fixed shall constitute a separate and distinct violation of this
2chapter.