2007 - 2008 LEGISLATURE
April 23, 2007 - Introduced by Representatives Mason, Zepnick, Turner, Black,
Pocan, Young, Boyle, Sinicki, Sheridan, Sherman, Pope-Roberts, Kreuser,
Travis, Van Akkeren, Kessler, Berceau
and A. Williams, cosponsored by
Senators Decker, Hansen, Carpenter, Miller, Jauch, Lehman, Risser,
Sullivan, Erpenbach
and Breske. Referred to Committee on Jobs and The
Economy.
AB274,1,6 1An Act to renumber 104.01 (1); to renumber and amend 104.045; to amend
249.141 (1) (g), 104.01 (intro.), 104.01 (8), 104.05, 104.07 (1), 104.07 (2), 104.10,
3104.11, 234.94 (5), 234.94 (8), 800.09 (1) (b), 800.095 (4) (b) 3. and 895.035 (2m)
4(c); and to create 104.01 (1d), 104.01 (1g), 104.01 (5g), 104.01 (5m), 104.01 (7m),
5104.035 and 104.045 (2) and (3) of the statutes; relating to: a state minimum
6wage 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 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 September 1, 2007, or on the day after publication
of the bill, whichever is later, as follows: - See PDF for table PDF - See PDF for table PDF - See PDF for table PDF
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: - See PDF for table PDF
Beginning on September 1, 2008, 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 August 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.
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:
AB274, s. 1 1Section 1. 49.141 (1) (g) of the statutes is amended to read:
AB274,5,42 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.
AB274, s. 2 5Section 2. 104.01 (intro.) of the statutes is amended to read:
AB274,6,2
1104.01 Definitions. (intro.) The following terms as used in In this chapter
2shall be construed as follows:
AB274, s. 3 3Section 3. 104.01 (1) of the statutes is renumbered 104.01 (1m).
AB274, s. 4 4Section 4. 104.01 (1d) of the statutes is created to read:
AB274,6,65 104.01 (1d) "Agricultural employee" means an employee who is employed in
6farming, as defined in s. 102.04 (3).
AB274, s. 5 7Section 5. 104.01 (1g) of the statutes is created to read:
AB274,6,108 104.01 (1g) "Consumer price index" means the average of the consumer price
9index over each 12-month period for all urban consumers, U.S. city average, as
10determined by the bureau of labor statistics of the U.S. department of labor.
AB274, s. 6 11Section 6. 104.01 (5g) of the statutes is created to read:
AB274,6,1312 104.01 (5g) "Minor employee" means a minor who is paid at the applicable
13minimum wage rate for minors.
AB274, s. 7 14Section 7. 104.01 (5m) of the statutes is created to read:
AB274,6,1615 104.01 (5m) "Opportunity employee" means a person under 20 years of age who
16is in the first 90 consecutive days of employment with his or her employer.
AB274, s. 8 17Section 8. 104.01 (7m) of the statutes is created to read:
AB274,6,2018 104.01 (7m) "Tipped employee" means an employee who in the course of
19employment customarily and regularly receives money or other gratuities from
20persons other than the employee's employer.
AB274, s. 9 21Section 9. 104.01 (8) of the statutes is amended to read:
AB274,6,2322 104.01 (8) The term "wage" and the term "wages" shall each mean "Wage"
23means
any compensation for labor measured by time, piece, or otherwise.
AB274, s. 10 24Section 10. 104.035 of the statutes is created to read:
AB274,7,2
1104.035 Minimum wage. (1) Employees generally. (a) Minimum rates.
2Except as provided in subs. (2) to (8), the minimum wage is as follows:
AB274,7,33 1. For wages earned before September 1, 2008, $7.25 per hour.
AB274,7,54 2. For wages earned beginning on September 1, 2008, the amount determined
5by the department by rule promulgated under sub. (9).
AB274,7,96 (b) Allowances for meals and lodging. Except as provided in subs. (2) (b) and
7(4) (b), if an employer furnishes an employee with meals or lodging in accordance
8with rules promulgated by the department under s. 104.045 (2), the employer may
9deduct the following amounts from the wages of the employee:
AB274,7,1210 1. For lodging furnished before September 1, 2008, $58 per week or $8.25 per
11day and for meals furnished before September 1, 2008, $87 per week or $4.15 per
12meal.
AB274,7,1413 2. For meals and lodging furnished beginning on September 1, 2008, the
14amounts determined by the department by rule promulgated under sub. (9).
AB274,7,17 15(2) Minor and opportunity employees. (a) Minimum rates. Except as provided
16in subs. (3) to (8), the minimum wage for a minor employee or an opportunity
17employee is as follows:
AB274,7,1818 1. For wages earned before September 1, 2008, $6.60 per hour.
AB274,7,2019 2. For wages earned beginning on September 1, 2008, the amount determined
20by the department by rule promulgated under sub. (9).
AB274,7,2421 (b) Allowances for meals and lodging. Except as provided in sub. (4) (b), if an
22employer furnishes a minor employee or an opportunity employee with meals or
23lodging in accordance with rules promulgated by the department under s. 104.045
24(2), the employer may deduct the following amounts from the wages of the employee:
AB274,8,3
11. For lodging furnished before September 1, 2008, $52.65 per week or $7.55
2per day and for meals furnished before September 1, 2008, $78.95 per week or $3.75
3per meal.
AB274,8,54 2. For meals and lodging furnished beginning on September 1, 2008, the
5amounts determined by the department by rule promulgated under sub. (9).
AB274,8,11 6(3) Tipped employees. (a) Minimum rates. Except as provided in subs. (4) to
7(8), if an employer of a tipped employee establishes by the employer's payroll records
8that, when adding the tips received by the tipped employee in a week to the wages
9paid to the tipped employee in that week, the tipped employee receives not less than
10the applicable minimum wage specified in sub. (1) or (2), the minimum wage for the
11tipped employee is as follows:
AB274,8,1312 1. For wages earned before September 1, 2008, by a tipped employee who is not
13an opportunity employee, $2.60 per hour.
AB274,8,1514 2. For wages earned before September 1, 2008, by a tipped employee who is an
15opportunity employee, $2.40 per hour.
AB274,8,1716 3. For wages earned beginning on September 1, 2008, the amounts determined
17by the department by rule promulgated under sub. (9).
AB274,8,2118 (b) Allowances for meals and lodging. If an employer furnishes a tipped
19employee with meals or lodging in accordance with rules promulgated by the
20department under s. 104.045 (2), the employer may deduct the applicable amounts
21specified in subs. (1) (b) or (2) (b) from the wages of the tipped employee.
AB274,8,23 22(4) Agricultural employees. (a) Minimum rates. Except as provided in subs.
23(7) and (8), the minimum wage for an agricultural employee is as follows:
AB274,8,2524 1. For wages earned before September 1, 2008, by an adult agricultural
25employee, $5.75 per hour.
AB274,9,2
12. For wages earned before September 1, 2008, by a minor agricultural
2employee, $4.75.
AB274,9,43 3. For wages earned beginning on September 1, 2008, the amounts determined
4by the department by rule promulgated under sub. (9).
AB274,9,85 (b) Allowances for meals and lodging. If an employer furnishes an agricultural
6employee with meals or lodging in accordance with rules promulgated by the
7department under s. 104.045 (2), the employer may deduct the following amounts
8from the wages of the employee:
AB274,9,119 1. For lodging furnished to an adult agricultural employee, before September
101, 2008, $45.95 per week or $6.60 per day and for meals furnished to an adult
11agricultural employee, before September 1, 2008, $68.90 per week or $3.30 per meal.
AB274,9,1412 2. For lodging furnished to a minor agricultural employee before September 1,
132008, $37.90 per week or $5.40 per day and for meals furnished to a minor
14agricultural employee before September 1, 2008, $56.85 per week or $2.70 per meal.
AB274,9,1615 3. For meals and lodging furnished beginning on September 1, 2008, the
16amounts determined by the department by rule promulgated under sub. (9).
AB274,9,19 17(5) Camp counselors. (a) Minimum rates for adult counselors. The minimum
18wage for a counselor at a seasonal recreational or educational camp, including a day
19camp, who is an adult is as follows:
AB274,9,2220 1. For wages earned before September 1, 2008, $301 per week if meals and
21lodging are not furnished, $242 per week if only meals are furnished, and $191 per
22week if both meals and lodging are furnished.
AB274,9,2423 2. For wages earned beginning on September 1, 2008, the amounts determined
24by the department by rule promulgated under sub. (9).
AB274,10,3
1(b) Minimum rates for minor counselors. The minimum wage for a counselor
2at a seasonal recreational or educational camp, including a day camp, who is a minor
3is as follows:
AB274,10,64 1. For wages earned before September 1, 2008, $251 per week if meals and
5lodging are not furnished, $191 per week if only meals are furnished, and $151 per
6week if both meals and lodging are furnished.
AB274,10,87 2. For wages earned beginning on September 1, 2008, the amounts determined
8by the department by rule promulgated under sub. (9).
AB274,10,9 9(6) Golf caddies. The minimum wage for a golf caddy is as follows:
AB274,10,1010 (a) For wages earned before September 1, 2008, $11.70 for caddying 18 holes.
AB274,10,1111 (b) For wages earned before September 1, 2008, $6.60 for caddying 9 holes.
AB274,10,1312 (c) For wages earned beginning on September 1, 2008, the amounts determined
13by the department by rule promulgated under sub. (9).
AB274,10,15 14(7) Minimum wage established by department. The department shall
15promulgate rules providing the minimum wage for all of the following:
AB274,10,1716 (a) An employee or worker with a disability covered under a license under s.
17104.07.
AB274,10,1818 (b) A student learner.
AB274,10,2019 (c) A student employed by an independent college or university for less than
2020 hours per week.
AB274,10,23 21(8) Employment exempted by department. The department shall promulgate
22rules exempting from the minimum wage requirements under subs. (1) to (7) all of
23the following:
AB274,10,2524 (a) A person engaged in casual employment in and around an employer's home
25on an irregular or intermittent basis for not more than 15 hours per week.
AB274,11,4
1(b) A person who resides in the home of an employer who, due to advanced age
2or physical or mental disability, cannot care for his or her own needs, for the purpose
3of companionship and who spends not more than 15 hours per week of general
4household work for the employer.
AB274,11,65 (c) An elementary or secondary school student performing student work-like
6activities in the student's school.
AB274,11,24 7(9) Department to revise. (a) Subject to par. (b), by September 1 of each year,
8the department, using the procedures under s. 227.24, shall promulgate rules to
9revise the minimum wages and allowances for meals and lodging established under
10subs. (1) to (7). The department shall determine those revised minimum wages and
11allowances by calculating the percentage difference between the consumer price
12index for the 12-month period ending on May 31 of the preceding year and the
13consumer price index for the 12-month period ending on May 31 of the current year,
14adjusting the minimum wages and allowances in effect on August 31 of the current
15year by that percentage difference, and rounding that result to the nearest multiple
16of 5 cents, except that for a minimum wage under sub. (5), the department shall
17round the result to the nearest dollar. Notwithstanding s. 227.24 (1) (a), (2) (b), and
18(3), the department may promulgate an emergency rule under s. 227.24 revising the
19minimum wages and allowances established under subs. (1) to (7) without providing
20evidence that the emergency rule is necessary to preserve the public peace, health,
21safety, or welfare and without a finding of emergency. A revised minimum wage or
22allowance determined under this paragraph shall first apply to wages earned or
23meals or lodging furnished on September 1 of the year in which the wage or allowance
24is revised.
AB274,12,2
1(b) Paragraph (a) does not preclude the department from promulgating rules
2to increase a minimum wage provided under subs. (1) to (7).
AB274, s. 11 3Section 11. 104.045 of the statutes is renumbered 104.045 (intro.) and
4amended to read:
AB274,12,7 5104.045 Tipped employees Tips, meals, lodging, and hours worked.
6(intro.) The department shall by rule determine what amount of promulgate rules
7governing all of the following:
AB274,12,9 8(1) The counting of tips or similar gratuities may be counted toward fulfillment
9of the employer's obligation under this chapter.
AB274, s. 12 10Section 12. 104.045 (2) and (3) of the statutes are created to read:
AB274,12,1211 104.045 (2) The deduction of meals or lodging provided by an employer to an
12employee from the employer's obligation under this chapter.
AB274,12,14 13(3) The determination of hours worked by an employee during which the
14employee is entitled to a living wage under this chapter.
AB274, s. 13 15Section 13. 104.05 of the statutes is amended to read:
AB274,12,21 16104.05 Complaints; investigation. The department shall, within Within 20
17days after the filing of a verified complaint of any person setting forth alleging that
18the wages paid to any employee in any occupation are not sufficient to enable the
19employee to maintain himself or herself under conditions consistent with his or her
20welfare, the department shall investigate and determine whether there is
21reasonable cause to believe that the wage paid to any employee is not a living wage.
AB274, s. 14 22Section 14. 104.07 (1) of the statutes is amended to read:
AB274,13,323 104.07 (1) The department shall make promulgate rules, and, except as
24provided under subs. (5) and (6), grant licenses to any employer who employs any
25employee who is unable to earn the living wage determined by the department,

1permitting the employee to work for a wage that is commensurate with the
2employee's ability. Each license so granted shall establish a wage for the licensee
3employees of the licensee who are unable to earn a living wage.
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