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 The alternative to proceeding with this rule is to do nothing, which would leave the unchanged provisions that are out of date in conflict with state statutes and federal regulations.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."
"103.005 Powers, duties and jurisdiction of department. (1) The department shall adopt reasonable and proper rules and regulations relative to the exercise of its powers and authorities and proper rules to govern its proceedings and to regulate the mode and manner of all investigations and hearings."
Estimate of amount of time that state employees will spend developing the rule, and other resources necessary to develop the rule
The total amount of staff time is estimated to be 100 hours.
List with description of all entities that may be affected by the proposed rule
The proposed rule would affect employers, employees, and organizations that operate sheltered workshops or other programs which receive licenses to pay wages at a subminimum rate.
Summary and preliminary comparison with any existing or proposed federal regulation that is intended to address the activities to be regulated by the proposed rule
The Wages and Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards effecting employees in the private sector and in Federal, State and local governments. There are no federal regulations related to direct deposit, payroll debit cards or access to employee paystubs electronically. The proposed rule will modify and update ch. DWD 272 to conform to standards specified by FLSA.
Anticipated economic impact of implementing the rule (note if the rule is likely to have an economic impact on small businesses)
It is anticipated that the proposed rule would make regulatory compliance easier for small businesses. The rule will not have a significant economic impact on a substantial number of small businesses.
Contact Person:
Jim Chiolino, DWD Equal Rights Division
P. O. Box 8928, Madison WI 53708
(608) 266-3345
