STATEMENT OF SCOPE
Department of Workforce Development
Rule No.
Chapter DWD 272, Wis. Admin. Code
Relating to
Minimum Wage
Rule Type
Permanent
Detailed Description of the Objective of the Proposed Rule
The proposed rule will modify ch. DWD 272 relating to minimum wages to implement statutory updates from 2015 Wisconsin Act 55 (Act 55) and to ensure conformity with federal regulations. Description of Existing Policies Relevant to the Rule, New Policies Proposed to be Included in the Rule, and an Analysis of Policy Alternatives
Definitions under s. DWD 272.01 for "minor employee," "opportunity employee," and "tipped employee" are outdated. The proposed rule will update these definitions. Under s. DWD 272.09 the definitions "Institution," "IWRP," "sheltered workshop," "student learner," and "worker with a disability" are outdated. In addition, the language under this section references terms such as "mentally ill” and "retarded person." The proposed rule will update these definitions and modernize the language to remove archaic references. Currently, ch. DWD 272 references the term "living wage." Act 55 repealed the definition of "living wage" and references "minimum wage." The proposed rule will align ch. DWD 272 with state statute by modifying references to "living wage." The existing rule requires employers to keep time records for specified exempt employees. Federal law does not extend record-keeping requirements to exempt persons, while state law does. The proposed rule will remove the requirement that employers keep time records for the specified exempt employees.
Chapter DWD 272 does not contain any provisions about the use of direct deposit or payroll debit cards for an employees paycheck, or an employee having electronic access to their pay stub. The proposed rule will allow these payroll practices as long as the services are available to employees at no additional cost. The proposed rule will also modify ch. DWD 272 and make other minor revisions necessary to conform to federal regulations and state statute. The alternative to proceeding with this rule is to do nothing, which would leave the unchanged provisions that are out of date in conflict with state statutes and federal regulations.
Detailed explanation of statutory authority for the rule, including the statutory citation and language
"(7) Minimum wage established by department. The department shall promulgate rules providing the minimum wage for all of the following:
(a) An employee or worker with a disability covered under a license under s. 104.07. (b) A student learner.
(c) A student employed by an independent college or university for less than 20 hours per week.
(8) Employment exempted by department. The department shall promulgate rules exempting from the minimum wage requirements under subs. (1) to (7) all of the following:
(a) A person engaged in casual employment in and around an employer’s home on an irregular or intermittent basis for not more than 15 hours per week.
(b) A person who resides in the home of an employer who, due to advanced age or physical or mental disability, cannot care for his or her own needs, for the purpose of companionship and who spends not more than 15 hours per week on general household work for the employer.
(c) An elementary or secondary school student performing student work−like activities in the student’s school."
"104.045 Tips, meals, lodging, and hours worked. The department shall promulgate rules governing all of the following:
(1) The counting of tips or similar gratuities toward fulfillment of the employer’s obligation under this chapter.
(2) The deduction of meals or lodging provided by an employer to an employee from the employer’s obligation under this chapter.
(3) The determination of hours worked by an employee during which the employee is entitled to the minimum wage established under s. 104.035." Section 104.07, Stats., provides: "104.07 Rules; license to employ; student learners; sheltered workshops. (1) The department shall promulgate rules, and, except as provided under subs. (5), (6), and (7), grant a license to any employer who employs any employee for whom the minimum wage established under s. 104.035 is not commensurate with the employee’s ability. Each license so granted shall establish a wage for any such employees of the licensee. (2) The department shall promulgate rules, and, except as provided under subs. (5), (6), and (7), grant a license to a sheltered workshop, to permit the employment of workers with disabilities at a wage that is commensurate with their ability and productivity. A license granted to a sheltered workshop under this subsection may be issued for the entire workshop or a department of the workshop."
