AB 904

This bill creates a Wage Council in the Department of Workforce Development

and 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 minimum wage

and making recommendations to DWD for any changes in the minimum wage that

may be necessary to ensure that the wages paid to any employee are sufficient to

enable the employee to maintain himself or herself under conditions consistent with

his or her welfare (living wage). The Wage Council, in conducting that study and

making those recommendations, and DWD, in revising the minimum wage, must

consider 1) any changes in the consumer price index; 2) the effect of those changes

on the real income of employees in this state; and 3) the effect that an increase in the

minimum wage might have on the economy of the state, including the effect of a

minimum wage increase on job creation, retention, and expansion; on the

availability of entry-level jobs; and on regional economic conditions within the state.

If DWD approves the findings and recommendations of the Wage Council, DWD may

promulgate rules to revise the minimum wage.

Finally, under the bill, the biennial minimum wage revision procedure specified

in the bill does not preclude DWD from convening the Wage Council at other times

during the regular session of the legislature 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 so convenes the Wage Council, the Wage Council so convened

must study the need for an increase in the minimum wage and report its

recommendations as provided in the bill.

Under current law, the minimum wage is established by statute at $7.25 per

hour for employees generally, minor employees, and agricultural employees; at $5.90

per hour for employees under 20 years of age who are in their first 90 consecutive

days of employment with their employer (opportunity employees); at $2.33 per hour

for tipped employees; and at $2.13 per hour for tipped opportunity employees.

Currently, DWD is authorized to establish a minimum wage by rule only for workers

with a disability, student learners, and students employed at an independent college

or university for less than 20 hours per week.