AB 12

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, who 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 as

well as separate minimum wages for opportunity 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 wages because of a disability. For employees generally and for

tipped employees, however, the bill sets the minimum wages as follows:

-

See PDF for table

Beginning three years after the bill's effective date for employees generally and

one year after the bill's effective date for tipped employees, the bill requires DWD

annually to promulgate rules revising the minimum wages established under the bill

by determining the percentage difference between the consumer price index for the

preceding 12-month period (year) and the consumer price index for the year before

the preceding year, adjusting the minimum wages then in effect by that percentage

difference, and rounding that result to the nearest multiple of five cents. For tipped

employees, the bill requires DWD to increase the minimum wage by 95 cents each

year until the minimum wage for tipped employees equals 70 percent of the

minimum wage for employees generally and then in subsequent years to revise the

minimum wage for tipped employees so that the minimum wage for tipped employees

remains equal to 70 percent of the minimum wage for employees generally, rounded

to the nearest multiple of five cents. DWD, however, is not required to revise the

minimum wage if the consumer price index for the preceding year has not increased

over the consumer price index for the year before the preceding year.