SENATE BILL REPORT

SB 5682

As of February 6, 2003

Title: An act relating to minimum wages for new employees.

Brief Description: Authorizing a temporary reduction in the minimum wage for new employees.

Sponsors: Senators Honeyford and Mulliken.

Brief History:

Committee Activity: Commerce & Trade: 2/6/03.

SENATE COMMITTEE ON COMMERCE & TRADE

Staff: Jennifer Ziegler (786-7316)

Background: Current law requires employers to pay any employee who is 18 years or older the state's adjusted minimum wage rate. "Wage" includes compensation due to an employee by reason of employment, subject to deductions, charges or allowances permitted by the Department of Labor and Industries.

The department must calculate an adjusted minimum wage rate on September 30 of each year. The department must increase the current year's minimum wage rate by the rate of inflation.

The current state adjusted minimum wage rate for employees who are 16 years old or older is $7.01 per hour. The current state minimum wage rate for employees who are 14 or 15 years old is $5.96 per hour.

Summary of Bill: During the first 90 days of employment, an employer may pay an employee 75 percent of the state minimum wage rate, or the full federal minimum wage rate, whichever is greater.

Appropriation: None.

Fiscal Note: Not requested.

Effective Date: Ninety days after adjournment of session in which bill is passed.