AB 264

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.

This bill repeals references to and provisions for a living wage and replaces

them with provisions requiring a minimum wage, described as follows. Under this

bill, DWD must 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, however, including tipped

employees, the bill sets the minimum wage as follows:

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See PDF for table

Beginning six years after the bill's effective date, 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. DWD,

however, is not required to revise the general 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.

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.