SB1038,,112023 SENATE BILL 1038
February 19, 2024 - Introduced by Senators Agard, Wirch, Roys, Larson and Spreitzer, cosponsored by Representatives Subeck, Sinicki, Neubauer, Ratcliff, Joers, Clancy, Baldeh, Jacobson, C. Anderson, Emerson, Conley, Moore Omokunde, Hong, J. Anderson, Bare, Ohnstad and Vining. Referred to Committee on Labor, Regulatory Reform, Veterans and Military Affairs.
SB1038,,22An Act to repeal 104.001, 104.01 (5g), 104.01 (7m) and 104.045 (1); to amend 104.045 (title); to repeal and recreate 104.035; and to create 104.01 (1g) and 227.01 (13) (Lw) of the statutes; relating to: a state minimum wage, allowing the enactment of local minimum wage ordinances, and granting rule-making authority.
SB1038,,33Analysis by the Legislative Reference Bureau
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 most employees is $7.25 per hour. This bill raises the minimum wage for most employees to $10.85 per hour on the effective date of the bill and $15 per hour one year after the effective date of the bill.
Beginning two years after the bill’s effective date, the bill requires the Department of Workforce Development to annually revise the minimum wage established under the bill by determining the percentage difference between the consumer price index for the preceding year and the consumer price index for the year before the preceding year, adjusting the minimum wage 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. DWD is required to publish the revised minimum wage in the Wisconsin Administrative Register and on DWD’s website.
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; 3) provisions setting specific meal and lodging allowances; and 4) 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. The bill eliminates that prohibition.
For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.