H-2148.1  _______________________________________________

                          HOUSE BILL 2200

          _______________________________________________

State of Washington      55th Legislature     1997 Regular Session

By Representatives Gombosky, Dunshee, Wood, Blalock, Cody, Ogden, Keiser, Dickerson, Butler, Sullivan, Scott, Regala, Costa, Murray and Wolfe

Read first time 02/26/97.  Referred to Committee on Commerce & Labor.

Increasing the state minimum wage and establishing a minimum wage for employers who provide health benefits.

    AN ACT Relating to the state minimum wage; and amending RCW 49.46.020.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

    Sec. 1.  RCW 49.46.020 and 1993 c 309 s 1 are each amended to read as follows:

    (1) Except as otherwise provided in this section, every employer shall pay to each of his or her employees who has reached the age of eighteen years wages at a rate of not less than four dollars and ninety cents per hour.

    (2)(a) Except as provided in (b) of this subsection:

(i) Beginning January 1, 1998, the applicable minimum wage rate under subsection (1) of this section shall be five dollars and fifty cents per hour.

(ii) Beginning January 1, 1999, the applicable minimum wage rate under subsection (1) of this section shall be six dollars per hour.

(iii) Beginning January 1, 2000, the applicable minimum wage rate under subsection (1) of this section shall be six dollars and fifty cents per hour.

(iv) Beginning on January 1, 2001, the applicable minimum wage rate under subsection (1) of this section shall be determined under this subsection (2)(a)(iv).  On September 30, 2000, and on each September 30th thereafter, the department of labor and industries shall calculate an adjusted minimum wage rate to maintain employees' purchasing power by increasing the minimum wage to respond to inflation.  The department shall calculate the adjusted minimum wage rate to the nearest cent using the implicit price deflator for the previous calendar year as calculated by the United States department of commerce, or a successor agency, and adopted by the economic and revenue forecast council.  The adjusted minimum wage rate calculated under this subsection (2)(a)(iv) takes effect each year on January 1st following calculation.

(b) Beginning January 1, 2000, the applicable minimum wage rate for an employer that maintains qualified health benefits is fifty cents less than the applicable minimum wage rate established under (a) of this subsection.  The employer must provide proof of maintaining qualified health benefits to the administrator of the Washington state health care authority.  The administrator shall by December 31, 1999, and each December 31st thereafter, report to the department the employers maintaining qualified health benefits.  As used in this subsection:

(i) "Maintaining qualified health benefits" means that the employer pays the cost of providing health care benefits for its employees that are equal to, or greater than, the benefits available under the Washington basic health plan, chapter 70.47 RCW.

(ii) "Paying the cost" means that the employer pays one hundred percent of the cost of the health care benefits, except for employee copayments to the extent that the copayments do not exceed copayments required under chapter 70.47 RCW.

    (3) The director shall by regulation establish the minimum wage for employees under the age of eighteen years.

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