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Wisconsin State Labor Laws for Business Owners

Wisconsin Labor Law Guide

Wisconsin is located in the Midwest region of the United States. In 2023, the state had a population of approximately 5.9 million and a gross domestic product (GDP) of $390 billion USD. Wisconsin’s economy is largely driven by manufacturing, agriculture, and healthcare, with key industries including dairy production, machinery manufacturing, and health services. The state provides a balanced environment for businesses, with competitive labor laws and support for small and medium enterprises.

 

Wisconsin

Minimum Wage

$7.25 per hour

Overtime Wage

1.5x regular rate for hours > 40 per week

Meal Breaks

None required, but 30-minute breaks are standard practice

Rest Breaks

None required, but 10-minute breaks are common practice

Minimum Wage Mandates

Wisconsin follows the federal minimum wage of $7.25 per hour as of 2024. The state does not have a separate minimum wage, and there are no counties or cities with a higher minimum wage than the federal standard.

Tipped employees must be paid a base wage of $2.33 per hour, with tips expected to bring the total wage to at least $7.25 per hour.

 

Overtime Rules

Wisconsin law requires non-exempt employees to be paid overtime for any hours worked over 40 in a workweek. The overtime rate is 1.5 times the employee’s regular hourly rate. There are no daily overtime requirements based on the number of hours worked in a single day.

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Alternate Workweek Agreements: Wisconsin does not have specific regulations allowing alternate workweek schedules, but such agreements may be made between employers and employees as long as they comply with federal and state laws.

Exemptions: Certain employees, including salaried executive, administrative, and professional workers, are exempt from overtime requirements. Other exemptions include agricultural workers and certain salespeople.

Meal and Rest Breaks

Meal Breaks: Wisconsin does not mandate meal breaks for adult employees. However, many employers voluntarily provide a 30-minute unpaid meal break for shifts longer than 6 hours.

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Rest Breaks: The state does not require employers to provide paid rest breaks. Nevertheless, employers often offer a 10-minute paid rest break for every 4 hours worked as a standard practice.

Rules for Young Employees: Minors under the age of 18 are required to receive a 30-minute meal break for every shift longer than 6 hours. Employers hiring minors must also comply with the federal Fair Labor Standards Act (FLSA), which imposes further restrictions on the working hours and conditions for young employees.

Paid Leaves and Time Off

Paid Sick Leave Laws: Wisconsin does not have a statewide paid sick leave law, meaning employers are not required to provide paid sick leave unless agreed upon in an employment contract or policy.

Accrual and Usage of Sick Leave: Since sick leave is not mandated, the accrual and usage policies are set by individual employers, though many voluntarily offer sick leave accrual.

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Paid Time Off Laws: Wisconsin does not have laws mandating paid vacation or personal time off (PTO). Employers who provide PTO may establish their own accrual and usage policies, including carryover rules.

Other Leave Laws:

  • Jury Duty Leave: Employers must provide time off for jury duty, though it is typically unpaid.

  • Parental Leave: Wisconsin complies with the federal Family and Medical Leave Act (FMLA), offering eligible employees up to 12 weeks of unpaid leave for birth, adoption, or care of a family member.

  • Bereavement Leave: Wisconsin does not mandate bereavement leave, but many employers voluntarily provide it.

  • Voting Leave: Employees are entitled to three consecutive hours off to vote if their working hours do not allow sufficient time to vote before or after work.

FMLA Eligibility: Employees who have worked at least 1,250 hours over the past 12 months for a covered employer are eligible for FMLA benefits.

Exempt vs. Non-Exempt Classification

Exempt Employees:

  • Salary Basis: Exempt employees must be paid a fixed salary.

  • Salary Level: As of 2024, the minimum salary for exempt employees is $684 per week under federal law.

  • Duties Test: Exempt employees must primarily perform executive, administrative, or professional duties. Wisconsin’s classification aligns with federal standards.

 

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Non-Exempt Employees:

  • Hourly Pay Rules: Non-exempt employees must be paid at least the federal minimum wage of $7.25 per hour.

  • Overtime Wage Rules: Non-exempt employees are entitled to overtime pay at 1.5 times their regular rate for all hours worked over 40 in a workweek.

Equal Pay Act

The federal Equal Pay Act mandates that men and women receive equal pay for equal work. Wisconsin has adopted this regulation, ensuring that employees cannot be discriminated against based on gender in terms of wages.

Employers must also comply with Title VII of the Civil Rights Act of 1964, which prohibits discrimination based on race, color, religion, sex, or national origin in employment decisions.

Rules for Hiring and Firing Employees in Wisconsin

At-Will Employment: Wisconsin is an at-will employment state, meaning that employers or employees can terminate employment at any time, with or without cause, as long as the reason is lawful.

Anti-Discrimination Laws: Wisconsin’s Fair Employment Act prohibits discrimination in hiring, firing, and employment conditions based on characteristics such as race, gender, religion, age, disability, and more.

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Equal Employment Opportunity (EEO) Act: Employers must comply with both state and federal EEO laws, ensuring that employment practices are free from discrimination.

Background Verification Rules: Wisconsin law allows employers to conduct background checks, though there are restrictions on the use of arrest and conviction records in employment decisions.

Work Eligibility Verification Rules: Employers must verify employees’ eligibility to work in the United States by completing and retaining Form I-9.

Final Paychecks: In Wisconsin, employers must issue the final paycheck no later than the next regular payday following an employee’s termination.

Unemployment Compensation Rules: Employees terminated without cause may be eligible for unemployment benefits, provided they meet the state’s eligibility criteria.

Compliance with WARN Act: Wisconsin employers must comply with the federal Worker Adjustment and Retraining Notification (WARN) Act, which requires 60 days’ notice for mass layoffs or plant closures.

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