AB 814

AB814,2,4

Currently, the state minimum wage law requires that employers pay the

applicable minimum wage set in statute to their employees. Under that law, the

current minimum wage for employees generally is $7.25 per hour. This bill raises

the minimum wage for employees generally as follows:

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See PDF for table

Beginning six years after the bill's effective date, the bill requires the

Department of Workforce Development 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.

The bill also repeals 1) provisions establishing a separate, lower minimum

wage for tipped employees; 2) a provision that requires DWD to promulgate rules

governing the counting of tips or similar gratuities toward payment of the minimum

wage; and 3) provisions setting specific meal and lodging allowances. In addition,

the bill repeals provisions establishing minimum wages for minor employees,

opportunity employees, agricultural employees, and others and instead requires

DWD to establish the minimum wage for those employees by rule.

Finally, current law prohibits a city, village, town, or county from enacting and

administering an ordinance establishing a minimum wage. This bill eliminates that

prohibition.