May, 2005

New Wisconsin Minimum Wages

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By Donald J. Cairns, Esq.

On May 11, 2005, Wisconsin's Secretary of the Department of Workforce Development issued an emergency rule increasing the state's minimum wage rates effective Wednesday, June 1, 2005. While the state legislature could intervene to block implementation of the emergency rule, no such legislative action is anticipated at this time.

The new rule mandates the following increases:

• General minimum wage rate increases to $5.70/hour (currently $5.15/hour)
• Minor minimum wage rate increases to $5.30/hour (currently the same rate as the adult rate of $5.15/hour)
• Opportunity minimum wage rate increases to $5.30/hour (currently $4.25/hour)
• Agricultural minimum wage rate for workers age 18 and over increases to $5.15/hour (currently $4.05/hour)
• Agricultural minimum wage rate for workers age 17 and under increases to $4.25/hour (currently $3.70/hour)

The six minimum wage rates for camp counselors (which vary based upon age and room and board supplements) also increase under the new rules, as does the minimum rate for golf caddies.

The Secretary predicts that the effect of the wage increase on business will be $175 million in increased payroll costs, with the largest number of affected workers being in the leisure and hospitality industry, particularly those working in the northern, rural regions of the state where minimum wage jobs make up a greater percentage of the workforce.

We understand that the new, official workplace poster replacing the current form ERD-9247-P (Wisconsin Minimum Wage Rates), will be mailed by the Department to Wisconsin employers by the end of June 2005. A copy of the new poster is affixed to this message.

If you have any questions about the issues raised by this e-alert, please feel free to contact Donald Cairns at (414) 273-3910 or by e-mail at dcairns@lindner-marsack.com

Lindner & Marsack, S.C. represents management exclusively in labor, employment, and employee benefits law, including the administration of employee health and retirement programs. Established in 1908, Lindner & Marsack, S.C. is consistently rated among the top labor and employment law firms in the nation. We are located at 411 East Wisconsin Avenue, Suite 1800, Milwaukee, Wisconsin, 53202. Call us at (414) 273-3910 or visit our website, www.lindner-marsack.com, to learn more about our firm and its talented and innovative legal professionals.

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This update is intended for general informational purposes and is not a substitute for legal advice.