FINAL BILL REPORT

INITIATIVE 518

                                   C 1 L 89

State minimum wage.

SYNOPSIS AS ENACTED

BACKGROUND:

The Washington State Minimum Wage Act provides that employees 18 years of age or older must be paid at least $2.30 per hour.  Exceptions are made for agriculture workers, workers engaged in domestic service in a private home, outside salesmen, persons engaged in forest protection and fire protection activities, and others.  The state minimum wage has not changed since 1977.

The federal minimum wage is established at $3.35 per hour.  Employees of enterprises engaged in interstate commerce are covered by the federal minimum wage.  When the federal and state minimum wage laws apply to the same employment, the employee must be paid whichever wage is highest.

In 1988 bills were introduced in both houses to raise the state minimum wage, but none passed the Legislature.

SUMMARY:

Effective January 1, 1989, the state minimum wage for workers 18 years of age or older is raised from $2.30 to $3.85 an hour.  Effective January 1, 1990, the state minimum wage is raised to $4.25 an hour.

The Director of the Department of Labor and Industries is required to establish the minimum wage for minors by regulation.

Beginning January 1, 1991, the Office of Financial Management is directed to review the state minimum wage each odd-numbered year and make recommendations to the Legislature and the Governor regarding its increase.  There are no automatic escalators contained in the measure.

The general exemption from the minimum wage for agriculture employees is removed and is replaced by a more limited exemption.

The general exemption for domestic service is removed and replaced with an exemption for individuals employed in casual labor in or about a private home, unless the work is performed in the course of the employer's business.

EFFECTIVE:January 1, 1989