SENATE BILL REPORT

SB 6529

BYSenators Fleming, Conner, Vognild, Smitherman, Talmadge, Rinehart, Niemi and Kreidler

Increasing the state minimum wage.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 1, 1988

Senate Staff:Bill Lynch (786-7427)

AS OF JANUARY 29, 1988

BACKGROUND:

The Washington State Minimum Wage Act provides that employees of at least 18 years of age must be paid at least $2.30 per hour.  Exceptions are made for agricultural workers, workers engaged in domestic service in a private home, outside salesmen, persons engaged in forest protection and fire prevention activities, and others.

The federal minimum wage laws establish the federal minimum wage 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.

The state minimum wage has remained at $2.30 per hour since 1977.

SUMMARY:

The state minimum wage is made applicable to all workers 16 years of age or older.  Employees under the age of 16 must be paid 75 percent of the state minimum wage for persons 16 or older.  The exemptions for agricultural workers and persons in domestic service are deleted.  Provisions which relate to the minimum wage of employees of state and local governments, nursing homes, hospitals, and restaurants are deleted.  An exemption is created for persons employed in casual labor in or about a private home, unless services are performed in the course of the employer's business.

On January 1, 1989, the new state minimum wage will be calculated based on the annual dollar figure for the overall weighted average poverty threshold for a family of three, as published in 1977 by the U.S. Bureau of Census, divided by 2,080 hours, and multiplied by 105 percent.

On January 1, 1990, the state minimum wage will be calculated in the same way except a multiplier of 110 percent and adjusted by the previous year's change in the consumer price index will be used.

On January 1, 1991, the state minimum wage will be calculated in the same way as for 1990, but it will be adjusted by the change in the consumer price index for the previous year.

On January 1, 1992 and thereafter, the state minimum wage will be calculated on January 1st of each year to make the adjustment for the change in the consumer price index for the period ending on September 30 of the previous calendar year.

Provisions are made for civil penalties.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 29, 1988

Effective Date:January 1, 1989