2006 Legislation
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HOUSE BILL NO. 843 – Minimum wage, increased

HOUSE BILL NO. 843

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Bill Status



H0843.....................................................by WAYS AND MEANS
MINIMUM WAGE - Amends existing law to increase the minimum wage; to provide
for an annual calculation to adjust the minimum wage based on the consumer
price index for a specified previous period of time; to provide an
alternative wage for persons who have not attained eighteen years of age;
and to provide for an annual calculation to adjust such alternative wage
based on the consumer price index for a specified previous period of time.
                                                                        
03/22    House intro - 1st rdg - to printing
    Rpt prt - to St Aff

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 843
                                                                        
                                BY WAYS AND MEANS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO MINIMUM  WAGE  LAW;  AMENDING  SECTION  44-1502,  IDAHO  CODE,  TO
  3        INCREASE  THE MINIMUM WAGE, TO PROVIDE FOR AN ANNUAL CALCULATION TO ADJUST
  4        THE MINIMUM WAGE BASED ON THE CONSUMER PRICE INDEX FOR A SPECIFIED  PREVI-
  5        OUS PERIOD OF TIME, TO DELETE OBSOLETE LANGUAGE, TO PROVIDE AN ALTERNATIVE
  6        WAGE  FOR  PERSONS WHO HAVE NOT ATTAINED EIGHTEEN YEARS OF AGE AND TO PRO-
  7        VIDE FOR AN ANNUAL CALCULATION TO ADJUST SUCH ALTERNATIVE  WAGE  BASED  ON
  8        THE CONSUMER PRICE INDEX FOR A SPECIFIED PREVIOUS PERIOD OF TIME.
                                                                        
  9    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 10        SECTION  1.  That  Section 44-1502, Idaho Code, be, and the same is hereby
 11    amended to read as follows:
                                                                        
 12        44-1502.  MINIMUM WAGES. (1) Except as hereinafter otherwise provided,  no
 13    employer  shall  pay  to  any of his employees any wages computed at a rate of
 14    less than four dollars and seventy-five  cents  ($4.75)  commencing  April  1,
 15    1997, and five dollars and fifteen cents ($5.15) six dollars and fifteen cents
 16    ($6.15)  commencing  September  July    1, 1997 2006, per hour for employment.
 17    Beginning September 30, 2006, and on each succeeding September 30, the  direc-
 18    tor  of the department of commerce and labor shall calculate an adjusted mini-
 19    mum wage rate in direct proportion to an increase or decrease  in  the  United
 20    States  department  of labor's consumer price index for urban wage earners and
 21    clerical workers (CPI-W), or a successor index, for the period July 1  of  the
 22    previous  calendar year to June 30 of the current calendar year. Such adjusted
 23    minimum wage shall take effect on January 1 of the following year.
 24        (2)  In determining the wage of a tipped employee, the  amount  paid  such
 25    employee  by  an  employer  shall be deemed to be increased on account of tips
 26    actually received by the employee but not by an  amount  in  excess  of  thir-
 27    ty-three  percent  (33%)  of  the  applicable minimum wage, beginning April 1,
 28    1997, and until August 31, 1997, and thirty-five percent (35%)  on  and  after
 29    September  1,  1997  July 1, 2006, as set forth in subsection (1) of this sec-
 30    tion. In the event a dispute arises between the employee and the employer with
 31    respect to the amount of tips actually received by the employee, it  shall  be
 32    the  employer's  burden to demonstrate the amount of tips actually received by
 33    the employee. Any portion of tips paid to an employee, which  is  shared  with
 34    other  employees  under  a  tip  pooling  or similar arrangement, shall not be
 35    deemed, for the purpose of this section, to be tips actually received  by  the
 36    employee.
 37        (3)  In  lieu of the rate prescribed by subsection (1) of this section, an
 38    employer may pay an employee who has not attained twenty eighteen (2018) years
 39    of age a wage which is not less than four dollars and twenty-five  cents  five
 40    dollars  and  eight cents ($4.25.08) an hour during the first ninety (90) con-
 41    secutive calendar days after such employee is  initially  employed.  Beginning
 42    September  30,  2006, and on each succeeding September 30, the director of the
 43    department of commerce and labor shall calculate  an  adjusted  wage  rate  in
                                                                        
                                           2
                                                                        
  1    direct  proportion  to an increase or decrease in the United States department
  2    of labor's consumer price index for urban wage earners  and  clerical  workers
  3    (CPI-W),  or a successor index, for the period July 1 of the previous calendar
  4    year to June 30 of the current calendar year. Such adjusted wage applicable to
  5    this subsection (3) rate shall take effect on January 1 of the following year.
  6    No employer may take any  action  to  displace  employees  (including  partial
  7    displacements  such  as  reduction in hours, wages or employment benefits) for
  8    purposes of hiring individuals at the wage authorized in this subsection.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 15600

This legislation would raise the minimum wage to $6.15 per hour
beginning July 1, 2006.  It allows employees who have not
attained the age of 18 years to be paid $5.08 per hour during the
first 90 days of employment.  For each successive year, the
legislation would also index the state minimum wage to the
consumer price index and the resulting minimum wage rate would
take effect on January 1.



                           FISCAL NOTE

Under the state's pay schedule, the minimum rate of pay in the
lowest pay grade is $6.06 per hour.  According to the Division of
Human Resources, as of November 2005, the average hourly rate of
the three state employees in this pay grade was $6.96.  While it
is possible that a few state employees could receive a salary
increase as a result of passage of this legislation, the fiscal
impact to the General Fund would be insignificant.




Contact
Name: Rep. Shirley Ringo 
      Rep. Anne Pasley-Stuart
Phone: (208) 332-1000


STATEMENT OF PURPOSE/FISCAL NOTE                            H 843