Assembly Bill 477, introduced earlier this legislative session by Representative Lisa Subeck (D-Madison) and Senator Melissa Agard (D-Madison), would permit local minimum wage laws, and also includes a significant hike in the minimum wage.

Assembly Bill 477 would increase the state’s minimum wage first to $10.15 per hour, then to $15 per hour a year following enactment, with annual increases based on a formula involving the Consumer Price Index. Assembly Bill 477 repeals several key provisions of current law including the minimum wage differential for minors, opportunity, or agricultural employees.

The University of Wisconsin estimates the legislation would increase costs $44.5 million with 75 percent of the cost impact ($33.6 million) related to student workers. The University noted “increases of this magnitude will result in salary compression issues for staff currently above, but close to the $15 per hour rate which are not included in the estimate.”

Assembly Bill 477 was referred to the Assembly Committee on Labor and Integrated Employment for review. Companion legislation, Senate Bill 452 was referred to the Senate Committee on Labor and Regulatory Reform.  NFIB opposed passage of Assembly Bill 477 and Senate Bill 452.