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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
]]]] 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
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