Creation of a wage council to study and make recommendations concerning increases in the living wage, providing an exemption from emergency rule procedures, and granting rule-making authority

The bill requires the wage council, early in each regular session of the legislature, to convene for the purpose of studying the need for an increase in the living wage and making recommendations to DWD for any changes in the living wage that may be necessary to ensure that the wages paid to any employee are a living wage. The wage council, in conducting that study and making those recommendations, and DWD, in revising the living wage, must consider any changes in the consumer price index and the effect of those changes on the real income of employees in this state. The wage council and DWD may also consider the effect that an increase in the living wage might have on the economy of the state, including the effect of a living wage increase on job creation, retention, and expansion; on the availability of entry-level jobs; and on regional economic conditions within the state.

Under the bill, the wage council must submit a report of its findings and recommendations, together with an explanation for those findings and recommendations, to the secretary, the governor, the speaker of the assembly, the senate majority leader, and the minority leaders of each house of the legislature and to the standing committee of each house of the legislature that is concerned with labor issues. DWD must consider the findings and recommendations of the wage council and, if DWD approves those findings and recommendations, DWD, using emergency rule-making procedures, may promulgate rules to revise the living wage without providing evidence that the emergency rule is necessary to preserve the public peace, health, safety, or welfare and without a finding of emergency.

Finally, under the bill, the biennial living wage revision procedure specified in the bill does not preclude DWD from promulgating rules to increase the living wage at other times if, upon investigation, DWD finds that there is reasonable cause to believe that the wages paid to any employee are not a living wage. If DWD makes that finding, DWD must convene the wage council, which must study the need for an increase in the living wage and report its recommendations as provided in the bill.