Text: HF00154 Text: HF00156 Text: HF00100 - HF00199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. FINDINGS – STATEMENT OF PURPOSE.
1 2 1. The general assembly finds that:
1 3 a. Using the federal minimum wage of $5.15 as a guide, the
1 4 buying power of $5.15 is 19 percent below the 1979 level of
1 5 inflation in adjusted terms.
1 6 b. A minimum wage of $5.15 does not lift a family of three
1 7 out of poverty as set by the United States department of labor
1 8 in its 2000 poverty guidelines for the 48 contiguous states
1 9 and the District of Columbia at $14,150.
1 10 c. The intent of the minimum wage is to maintain a minimum
1 11 standard of living for workers in order to assure their
1 12 health, efficiency, and general well-being.
1 13 2. It is the purpose of this Act to raise the minimum wage
1 14 to reflect the lost purchasing power of the current minimum
1 15 wage due to inflation, and to thereafter raise the minimum
1 16 wage to reflect future lost purchasing power.
1 17 Sec. 2. Section 91D.1, Code 2001, is amended by striking
1 18 the section and inserting in lieu thereof the following:
1 19 91D.1 STATE MINIMUM WAGE.
1 20 1. On January 1, 2002, every employer, as defined in the
1 21 federal Fair Labor Standards Act, shall pay to each of the
1 22 employer's employees, as defined in the federal Fair Labor
1 23 Standards Act, wages at an hourly rate equal to the greatest
1 24 of the following:
1 25 a. Six dollars and fifty cents.
1 26 b. An hourly wage, if annualized based on two thousand
1 27 eighty hours of work per year, equivalent to no less than one
1 28 hundred fifty percent of the federal poverty level for a
1 29 family of one, as defined by the most recently revised poverty
1 30 income guidelines as published in the federal register by the
1 31 United States department of health and human services.
1 32 c. The current federal minimum wage pursuant to 29 U.S.C.
1 33 } 206.
1 34 2. On January 1, 2004, every employer, as defined in the
1 35 federal Fair Labor Standards Act, shall pay to each of the
2 1 employer's employees, as defined in the federal Fair Labor
2 2 Standards Act, wages at an hourly rate equal to the greater of
2 3 the following:
2 4 a. The amount calculated pursuant to subsection 3.
2 5 b. The current federal minimum wage pursuant to 29 U.S.C.
2 6 } 206.
2 7 3. Beginning September 30, 2003, and on each September 30
2 8 thereafter, the department of workforce development shall
2 9 calculate an adjusted minimum wage rate to maintain employee
2 10 purchasing power by increasing the current year's minimum wage
2 11 rate by the rate of inflation. The adjusted minimum wage rate
2 12 shall be calculated to the nearest cent using the consumer
2 13 price index for urban wage earners and clerical workers, or a
2 14 successor index, for the twelve months prior to each September
2 15 1 as calculated by the United States department of labor.
2 16 Each adjusted minimum wage rate calculated under this
2 17 subsection takes effect on the following January 1, except as
2 18 otherwise provided in subsection 2.
2 19 4. The labor commissioner shall adopt rules to implement
2 20 and administer this section.
2 21 5. This section shall be enforced pursuant to chapter 91A.
2 22 EXPLANATION
2 23 This bill establishes findings and a purpose for increasing
2 24 the state minimum wage, and sets the state minimum wage for
2 25 the period beginning January 1, 2002, at the greatest of
2 26 $6.50, the federal minimum wage, or an hourly wage level based
2 27 on 150 percent of the federal poverty level. For the calendar
2 28 year beginning January 1, 2004, and each January thereafter,
2 29 the bill sets the state minimum wage at the greater of the
2 30 federal minimum wage or an adjusted rate calculated by the
2 31 department of workforce development to the nearest cent using
2 32 the consumer price index for urban wage earners and clerical
2 33 workers.
2 34 The bill strikes wage provisions currently in Code that are
2 35 obsolete, that set forth a formula for determining whether an
3 1 employee of a restaurant, hotel, motel, inn, or cabin, who
3 2 customarily and regularly receives more than $30 a month in
3 3 tips is receiving the minimum state or federal hourly wage
3 4 rate and which permits such an employee to file a written
3 5 appeal with the labor commissioner, a provision specifying a
3 6 training wage for employees with less than 90 calendar days of
3 7 employment with an employer, and a provision which adopted by
3 8 reference a United States Code provision that was repealed in
3 9 1989.
3 10 LSB 1568HH 79
3 11 kh/pj/5
Text: HF00154 Text: HF00156 Text: HF00100 - HF00199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
© 2001 Cornell College and League of Women Voters of Iowa
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