Though the minimum wage has been raised more than 20 times over the decades, it has not kept pace with inflation and the cost of living in many places across the U. That means that although wages were generally higher, workers were able to afford less when paid at that rate. This is clear when you adjust the minimum wage each year to February dollars using the Consumer Price Index. When adjusted for inflation, the "best" the minimum wage has ever been was in Here's what the federal minimum was the year you were born and how much its true value actually was.
How much the US minimum wage was actually worth the year you were born. That's almost a dollar's difference from Commons of the University of Wisconsin had just completed a study of minimum wage experiences in England and Australia and the League used his report in its campaign.
Professor Commons drafted a minimum wage bill for introduction in the Wisconsin Legislature, but the bill did not pass. The distinction of being the first state to pass such a law was to go to another state: Massachusetts.
After a study authorized by its Legislature, a bill was prepared, and enacted June 4, Meanwhile, the movement for such legislation continued in several states, including Wisconsin. In , a year after the Massachusetts law was enacted; such legislation was approved by Wisconsin and seven other states: California, Colorado, Minnesota, Nebraska, Oregon, Utah, and Washington.
The following is a chronological history of the Wisconsin law including the creation of the Industrial Commission and its activities through the years to carry out the legislative mandate. The Industrial Commission was created in by the Legislature as successor to the Bureau of Labor Statistics created in , the State Board of Conciliation and Arbitration created in , and the Industrial Accident Board, created earlier in the session.
Two wage bills were introduced which proposed to cover men as well as women but neither bill was enacted. The first Wisconsin wage law was enacted in and specified that a "living wage" must be paid to women and minors.
In enacting this law, the Legislature specified that "every wage paid or agreed to be paid by any employer to any female or minor employee shall be not less than a living wage. There were several events which delayed the determination of a living wage and contributed to a 6-year lapse between the enactment of the law and issuance of the first wage orders in The Industrial Commission created a Women's Department and assigned it the responsibility for the administration of laws concerning women and employment of minors, including the Minimum Wage law.
As required by law, the action involved appointment of an Advisory Wage Board and consideration of their recommendations and findings, as well as those of the Commission in its cost of living study. After the required public hearings were held, the commission issued Wage Orders on June 27, , and named their effective date as August 1, Also included was this sentence: "It is understood that the Industrial Commission will, at the end of each year, determine whether there has been any change in the cost of living, and will revise the rates prescribed in this order in accordance with changes in the cost of living.
Below are the first Wisconsin Minimum Wage orders. It should be noted that these orders did not have a differential based on population but did include differentials based on age and experience. A new petition was presented to the Industrial Commission on November 18, , by the same groups that filed the May 1, petition. This petition requested reconsideration of the present wage orders to establish a minimum rate of pay for women and minors" more commensurate with a proper living standard.
Its findings and those of the Commission on a cost of living study were then presented at public hearings and resulted in the June 28, Order of the Commission. It named August 1, , as the effective date of the new Wage Orders, which introduced an additional wage differential, based on population:. The limit on the number of employees paid less than 25 or 22 cents was set at the same percentage as in From to , a differential was recognized dividing wage rates applicable to areas with a population of 5, or more and areas with smaller populations.
In , a third division based on population was added see Differentials based on age, experience and population existed through this entire period. The U. Supreme Court declared the Minimum Wage Law of the District of Columbia unconstitutional insofar as adult women were concerned.
Adkins v. Children's Hospital, U. It held the law interfered with the women's freedom of contract, and, in addition, it compelled employers to pay a living wage, thereby interfering with the employer's property rights.
Wisconsin Industrial Commission, F. The Wisconsin Legislature enacted a new Wage Law for adult women. It did so "… in the hope that the constitutionality of this new law would not be questioned or affected by the decision of the U. Supreme Court. During the depression years, more and more persons and groups in the United States became conscious of the need of some wage regulation.
As more states enacted laws, litigation and the number of test cases increased. Decisive action in by the U. Supreme Court enabled the Wisconsin Legislature to reconsider the state's wage laws. The Wisconsin Oppressive Wage Law was repealed and the Minimum Wage Law was effectively reenacted to reestablish the cost of living principle as the determining factor when establishing wage rates for adult women as well as for minors.
This legislative action followed the decision made earlier in by the U. Parrish, U. The wage rates applicable under the Oppressive Wage Law were reenacted into the new Minimum Wage legislation and were to remain in effect until such time as new rates would be determined by the Industrial Commission and its Advisory Wage Board.
Thus the rates established in were effective from through The effective date of these new Minimum Wage rates was February 10, ; they introduced three divisions based on population, as follows:.
Note: The new Orders eliminated wage differentials based on age and experience of women and minors. They did not cover adult men. Instead, the Commission authorized a study limited to these two items, i.
It was made, using the files of the Office of Price Administration, which supplied a wealth of material on rents as the O.
The Orders exempted, for the first time, certain "casual" employment of minors under 18 years of age in or about private homes. The Orders remained in effect until the spring of when the recommendations of the Advisory Wage Board and Commission became effective. These rates remained effective approximately four years until June 1, , when the recommendations of the Advisory Wage Board and Commission Orders were adopted.
In the summer of , the Commission decided that it was necessary to review the minimum wage rates. An Advisory Committee was appointed in October of that year.
Two major changes would: 1 reduce the population differential to two classes; and 2 introduced a differential in rates based on age. On August 18, , the Wisconsin Farm Bureau Federation petitioned the Commission to reduce the minimum wage for minors employed in agriculture to 50 cents per hour, but on May 25, , after public hearings, the commission denied the request.
On June 24, , representatives of the cherry growing industry petitioned the Commission to establish a minimum piece rate that would fulfill the minimum wage requirements. The Commission agreed with the establishing of this new "Minimum Piece Rate" principle and, after a survey and further study, set a rate of 20 cents per 9-pound pail or 2. On January 16, , the Order was extended to remain effective until further notice. Another request was received by the Commission, this time from representatives of the Department of Public Welfare, requesting that a lower minimum wage rate be set for unwed mothers placed in domestic service by the Department of Public Welfare or a licensed agency.
The Commission adopted rules on April 16, , authorizing the issuance of Subminimum Wage licenses to sheltered workshops. Such licenses would apply to more than one employee. The Order also defined terms used and outlined conditions for issuance of licenses. During the effective period of the above rates, the Commission received requests from agricultural employers, golf course operators, and nonprofit colleges for consideration of special rates and piece rates.
The Commissioners reviewed each request carefully and in some cases held public hearings after which the following special rates were adopted and became effective on the date indicated. The Commission called together an Advisory Committee on February 21, , to review the existing rates. Further meetings were held and the Board recommended an increase in two steps.
After public hearings, the Commission adopted the following rates:. The first step became effective November 1, , and established the following rates:. The second step increase recommended by the Advisory Board and adopted by the Commission became effective September 1, , with the following rates:. May 14, Nonprofit seasonal recreational camps were extending weekly domestic rates to apply to full-time employees of such camps.
A Minimum Wage Advisory Board was appointed by the Industrial Commission on March 17, , to study the existing minimum wage rates for women and minors to determine if the rates still constituted a living wage. The Board recommended that the rates be increased by 15 cents effective January 1, , and increased again by 15 cents one year later on January 1, The Board also recommended that the age differential be raised from 16 to 18 years of age, and the population factor be dropped so one rate would apply to the entire state.
Following the public hearings, the Commission approved the Board's recommendation for the first increase and set the effective date as February 1, , to coincide with the pending increase in the Federal law. The Board's recommendation for a second increase was not approved. A special class was established for women and minors 18 years of age and over employed in hotels, motels, and resorts. For the first time, weekly rates were set for full-time employees in these establishments as follows:.
Another new feature of the regulations was a provision that prohibits room and board deductions from the wages of seasonal non-resident agricultural workers, if those deductions would result in the employee receiving less than the prescribed minimum rate.
The rules also incorporated piece rates and special rates adjusted to reflect changes in the hourly rates. On May 17, , the Commission, after receiving a petition and holding public hearings, established a piece rate of 15 cents per dozen for harvesting green or table onions.
The Commissioners, in rejecting the Advisory Board's recommendation for a second rate increase, indicated further study of the "living wage" concept was desirable. On May 29, , the Commission asked the Wisconsin State University - La Crosse to determine what criteria should be used in setting a "living wage.
Cole, William J. Goldsborough, and Brian M. Their report was submitted on October 5, One of the conclusions reached was "that the Consumer Price Index prepared by the U. Department of Labor, in spite of its limitations, is the best index available for keeping budget figures reasonably up to date. On June 21, , following a public hearing, the Commission issued an emergency order declaring the processor as the employer of the cucumber pickers provided certain conditions existed.
Effective February 4, , the Legislature amended Chapter , Wis. Following receipt and review of the La Crosse study and public hearings, the Commission adopted new and increased minimum wage rates.
Below are some of the main features and rates of the orders, which became effective July 1, It shall be the policy of the Department, to review the Consumer Price Index in January of each even numbered year. It will then revise the rates for women and minors 18 years of age and over upward or downward by 5 cents for each 4. We will use the December release as a base for the computations. Any rate change adopted as a result of such review shall become effective the following July 1.
The rules applying to the issuance of Subminimum Wage Licenses to individuals and to sheltered workshops were expanded and clarified.
Certain migrant workers alleging the agricultural piece rates did not guarantee all workers the minimum established rate sued the Department. On September 20, , the Department, after public hearing, rescinded the agricultural piece rates established. Wisconsin Statute Section Following the passage of the new law, the Department appointed an Advisory Board and, after studying their recommendations and holding public hearings, adopted new rules and regulations governing the issuance of such licenses, which became effective November 1, The Department reviewed the National Consumer Price Index in accordance with the policy established in and adopted changes updating the minimum wage rates.
Comparable changes were made in the weekly rates and other special categories previously established. Additionally, the Department clarified the definition of casual employment to specify "baby-sitting" as an exemption.
On June 16, , following a request from representatives of the Madison Youth Opportunity Center, a day emergency rule was adopted exempting and year-old babysitters from the minimum wage requirements during their school vacation. Weekly rates for agriculture and domestic service were eliminated, allowing weekly rates for only one category namely nonprofit seasonal recreational camps. A lower minimum wage rate was recommended and adopted for employees employed in agricultural pursuits.
Code, rounded to the nearest cent. Board and lodging allowances were raised proportionately. The Department eliminated weekly rates for employees in seasonal recreational and educational camps, with the exception of counselors. In early , the Department adopted minimum wage rates which would become effective on July 1, , January 1, and January 1, Effective October 30, , legislative action during changed the wording in Section In early , the Department adopted minimum wage rates which would become effective on August 1, ; January 1, ; January 1, ; and January 1, Note: From May 15, , to September 11, , the Department adopted an Emergency Order, which rolled back the rates for camp counselors and caddies to the rates, which were in effect from January 1, to August 1, Effective March 1, , the minimum wage rates for camp counselors and caddies were revised to reduce the weekly rates which were established for January 1, and January 1,
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