AB 542

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 as follows:

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See PDF for table

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See PDF for table

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See PDF for table

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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See PDF for table

Beginning on September 1, 2014, 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. This requirement

does not apply, however, if the consumer price index for the current year has not