Minimum wage laws establish the lowest hourly rate an employer must legally pay an employee. Understanding these state-specific rules is important for Wisconsin workers, as the established pay rates provide a baseline for earnings across various industries.
Wisconsin’s Current Minimum Wage Standards
Wisconsin’s standard minimum wage is $7.25 per hour, a rate that applies to most adult and minor employees.1Wisconsin Legislature. Chapter DWD 272 – Minimum Wages The state has specific provisions for different types of employees, creating a tiered system under the general minimum wage umbrella.
For employees who receive tips, employers can pay a lower direct cash wage of $2.33 per hour. The employer has the legal responsibility to ensure that the combination of this cash wage and tips equals at least the standard minimum wage for each pay period. If the total does not meet this threshold, the employer must make up the difference.
A distinct rate, known as the “opportunity wage,” applies to employees under the age of 20. These workers may be paid $5.90 per hour for the first 90 consecutive calendar days of their employment. After this period, or when the employee turns 20, their wage must increase to the standard $7.25 per hour.
The Role of Federal Minimum Wage in Wisconsin
The federal government sets its own minimum wage under the Fair Labor Standards Act (FLSA), which is also $7.25 per hour.2LII / Legal Information Institute. 29 U.S. Code § 206 – Minimum Wage This federal rate acts as a floor for wages nationwide. For employees covered by both state and federal laws, the employer must pay whichever rate is higher. Since Wisconsin’s rate is identical to the federal one, employers in the state must pay at least $7.25 per hour.
Workers Not Covered by Wisconsin Minimum Wage
Certain categories of workers are exempt from the state’s minimum wage requirements, as defined by Wisconsin law. These exemptions are specific and often relate to the nature of the work or the type of employer. Exempt workers include:
- Many agricultural employees
- Individuals employed as companions for the elderly or infirm in private homes
- Outside salespersons who primarily work away from the employer’s place of business
- Certain apprentices and student learners in vocational training programs
- Casual domestic workers, such as babysitters
Understanding Overtime Pay in Wisconsin
Wisconsin law mandates overtime pay for most employees who work more than 40 hours in a single workweek. Per Wis. Admin. Code DWD 274, these workers must be compensated at 1.5 times their regular rate of pay for all hours worked beyond the 40-hour threshold.3Wisconsin Legislature. Chapter DWD 274 – Hours of Work and Overtime The regular rate of pay used for this calculation cannot be less than the applicable minimum wage.
The workweek is defined as a recurring period of 168 hours, which consists of seven consecutive 24-hour periods. It is the employer’s responsibility to track hours on a weekly basis to determine when overtime is due, even if the pay period is bi-weekly. For instance, if an employee works 35 hours one week and 45 the next, they are entitled to 5 hours of overtime pay for that pay period.
Some employees who are exempt from minimum wage may also be exempt from overtime. This often includes executive, administrative, and professional employees who meet specific salary and duty tests. However, overtime exemptions are distinct, and some workers entitled to minimum wage may not be entitled to overtime, so it is necessary to check the specific rules for each classification.
Steps to Take if Your Employer Violates Minimum Wage Laws
If you suspect your employer is not paying you in accordance with Wisconsin’s wage laws, the first step is to gather documentation. Collect all relevant records, including pay stubs, personal time logs of hours worked, and any written employment agreements.
The next step is to complete a Labor Standards Complaint form with the Wisconsin Department of Workforce Development (DWD). You will need to provide your contact information, your employer’s details, employment dates, hours worked, wages paid, and the amount you believe you are owed. The form requires a detailed account of the alleged violation.
You can submit the completed complaint form online or by mail to the DWD’s Equal Rights Division. Under Wisconsin Statute 109.09, you have two years from the date the wages were due to file a claim.4Wisconsin Legislature. Wisconsin Legislature: 109.09 – Wage Claims, Collection After filing, the DWD may initiate an investigation to resolve the dispute and recover unpaid wages.