Wisconsin — Wage & Hour

Wisconsin's general minimum wage is $7.25 per hour, matching the federal rate under the Fair Labor Standards Act. The rate is set by statute and does not automatically adjust for inflation; changes require legislative action. Statutory exceptions and lower minimum wages apply to certain categories of employees, including tipped workers, opportunity employees under age 20, and others.

Source: Wis. Stat. § 104.035(1)(a)

Wisconsin requires overtime pay at 1.5 times the regular rate for all hours worked over 40 in a workweek. The state does not impose daily overtime thresholds; working more than 8 hours in a single day does not trigger overtime unless total weekly hours exceed 40. The workweek is defined as a calendar week or any regular recurring period of 168 consecutive hours.

Source: Wis. Stat. § 103.02; Wis. Admin. Code § DWD 274.03

Wisconsin requires employers to pay all final wages to a separated employee by the earlier of two deadlines: the employee's next regularly scheduled payday under the employer's established payroll schedule, or the payment date required under the general wage-payment statute (within 31 days of the work performed). This rule applies uniformly to both voluntary quits and involuntary terminations, with no distinction based on the reason for separation.

Statutory formula and comparison points

Wis. Stat. § 109.03(2) states that any employee "who quits employment or who is discharged from employment shall be paid in full by no later than the date on which the employee regularly would have been paid under the employer's established payroll schedule or the date of payment required under sub. (1), whichever is earlier." Subsection (1) requires employers to pay wages at least monthly — "to a day not more than 31 days prior to the date of payment." The final-paycheck deadline thus floats with the employer's existing pay cycle and can never exceed one month from the last day worked.

In practice, most Wisconsin employers run biweekly or semimonthly payrolls, so the final paycheck is typically due on the next scheduled payday — often within 7 to 14 days of separation. The 31-day outer boundary matters primarily for employers with unusual pay schedules (e.g., monthly salaried employees whose separation date falls early in a long pay period) or when an employer attempts to delay beyond the regular schedule. Wisconsin law does not permit immediate-payment requirements at the moment of termination, nor does it impose next-business-day or 72-hour deadlines found in some other states.

Exception for commissioned sales agents

Wis. Stat. § 109.03(2) explicitly excludes "a sales agent employed on a commission basis, not having a written contract for a definite period." The Department of Workforce Development's official guidance confirms that employees who are separated "for any reason" must be paid "in accordance with the employer's regular pay schedule," and that disputes over late payment may be filed with the Equal Rights Division after six days have elapsed from the expected payment date.

Components and vacation payout

The final paycheck must include all earned wages through the last day of work. Wisconsin treats accrued, unused vacation as earned wages if the employer's policy or past practice provides for vacation accrual; state law does not mandate paid vacation, but once an employer establishes a benefit policy, it cannot forfeit earned vacation unless a written, clearly communicated forfeiture provision was in place before the employee accrued the time. Wage deductions for loss, theft, damage, or faulty workmanship are prohibited on the final paycheck unless the employee authorized the deduction in writing after the incident occurred or a representative of the employee has determined fault and the deduction amount. Employers may not unilaterally withhold final wages to offset claimed debts, equipment costs, or advance payments without meeting strict statutory conditions.

Enforcement and penalties

An employee who does not receive final wages on time may file a wage claim with the Wisconsin Department of Workforce Development or bring a private action under Wis. Stat. § 109.03(5) without first filing an administrative claim. Courts may award the unpaid wages plus reasonable attorney fees and expenses. Willful violations of the wage-payment statute can trigger additional penalties under Wis. Stat. § 109.11.

Source: Wis. Stat. § 109.03(2) Source: Wis. Stat. § 109.03(1) Source: Wisconsin DWD — Wage Payment and Collection Law

Wisconsin law does not require employers to provide meal periods or rest breaks to adult employees (age 18 or older). The Department of Workforce Development recommends—but does not mandate—that employers allow each adult employee at least 30 minutes for each meal period, scheduled reasonably close to the usual meal times (6:00 a.m., 12:00 noon, 6:00 p.m., or 12:00 midnight) or near the middle of a shift. The regulation further recommends that shifts of more than 6 consecutive hours without a meal period should be avoided, but this recommendation carries no enforcement consequence for adult employees.

Mandatory meal period for minors under age 18

In contrast, the meal-period requirements stated in Wis. Admin. Code § DWD 274.02(2) are mandatory for employees under 18 years of age. Minors must receive at least a 30-minute duty-free meal period for every 6 consecutive hours of work, scheduled reasonably close to the usual meal period time or near the middle of the shift. This requirement is enforceable under Wis. Admin. Code § DWD 274.07, which subjects employers who violate DWD 274.02 to the penalties provided in Wis. Stat. §§ 103.005 and 109.11; each day of violation constitutes a separate offense.

No rest-break mandate, but short breaks when given must be paid

Wisconsin regulations likewise impose no affirmative duty on employers to provide rest periods (coffee breaks, smoke breaks, or other short breaks) to employees of any age. However, when an employer chooses to authorize rest periods or breaks of less than 30 consecutive minutes per shift, those breaks must be counted as work time for which there shall be no deduction from wages. This payment rule appears in the minimum-wage chapter (Wis. Admin. Code § DWD 272.04(1)(d)), reflecting the principle that brief rest periods of short duration "promote the efficiency of the employee and are customarily paid for as working time" under the state's interpretation of hours worked (Wis. Admin. Code § DWD 272.12(2)(c)1). The 30-minute threshold is categorical: a break of 29 minutes must be paid; a bona fide meal period of 30 minutes or more need not be, provided the employee is completely relieved from duty.

On-duty meal periods must be paid as work time

Whenever an employer does not provide at least 30 consecutive minutes free from work during a meal period, that period is deemed an "on-duty" meal period and must be paid as work time. An on-duty meal period also includes any meal period during which the employee is not free to leave the employer's premises. This rule applies to all employees, regardless of age. The state does not permit employers to require that meals be accepted as part of wages, and deductions from wages for on-duty meal periods violate the hours-worked regulations.

Practical application and employer discretion

Because no statute or regulation requires meal or rest breaks for adults, Wisconsin employers retain full discretion to set—or decline to set—break policies for employees age 18 and over. The decision to offer breaks is determined directly between the employer and the employee (or, where applicable, through a collective bargaining agreement). Employers who choose not to offer any breaks to adult employees face no state-law penalty, though they remain subject to federal law under the Fair Labor Standards Act, which likewise does not mandate breaks but does require that short rest periods (typically 5 to 20 minutes) be compensated as hours worked when granted.

For employers of minors, the mandatory 30-minute meal period after 6 consecutive hours of work is the only break requirement. The employer may, but need not, provide additional shorter rest breaks; if it does, those breaks must be paid under the same less-than-30-minute rule that applies to adults. Wisconsin does not prescribe the form of the minor's meal period beyond the duty-free and duration requirements; the employer need not permit the minor to leave the premises, provided the minor is completely relieved from work duties for the full 30 minutes.

Source: Wis. Admin. Code § DWD 274.02 Source: Wis. Admin. Code § DWD 272.04(1)(d) Source: Wisconsin DWD — Breaks and Meals

Wisconsin employers must make and keep permanent payroll and wage records for at least three years, available for inspection and transcription by a duly authorized deputy of the Department of Workforce Development. This requirement applies to all employees except those paid on other than an hourly rate basis who are exempt from Wisconsin's overtime provisions under Wis. Admin. Code § DWD 274.04 (for example, bona fide executive, administrative, professional, or computer employees who meet both the duties test and the salary-basis test and are paid on a salaried rather than hourly basis).

Required records under Wis. Admin. Code § DWD 274.06

Wis. Admin. Code § DWD 274.06 requires employers to maintain records showing "the name and address of each employee, the hours of employment and wages of each and such other records as the department may require." The Department of Workforce Development's official recordkeeping guidance specifies the following data points that must be maintained for each non-exempt employee:

• Name and address of each employee.
• Total number of hours per day and per week — both daily and weekly totals are required.
• Rate of pay and wages paid each payroll period — the applicable hourly rate (or piece rate, salary, commission rate, or other basis of compensation) and the total wages paid for the period.
• Amount of and reason for each deduction from the wages earned — itemizing every withholding, garnishment, authorized deduction, or other reduction from gross pay, with a stated reason or description for each deduction.
• Output of employee, if paid on other than a time basis — for employees compensated by piece rate, commission, or other non-hourly method, the employer must record the units produced, sales completed, or other output metric that determines compensation.
• Time of beginning and ending of meal periods if employees' meal periods are required or such meal periods are to be deducted from work time — records of meal-break start and stop times are mandatory when meal periods are required by Wisconsin law (such as the 30-minute duty-free meal period for minors under age 18 under Wis. Admin. Code § DWD 274.02) or when the employer deducts the meal period from compensable work hours.

The regulation does not mandate a specific format (paper timesheets, electronic timekeeping systems, or other methods are all acceptable), but the records must be sufficient to permit the department to verify compliance with Wisconsin's minimum wage, overtime, wage-payment, and hours-of-work laws.

Three-year retention period

All required records must be kept for at least three years. The three-year floor is set by Wis. Admin. Code § DWD 274.06. Wisconsin's two-year statute of limitations for wage claims (Wis. Stat. § 109.03 allows employees to file wage claims within two years of the date wages were payable) is shorter than the record-retention period, meaning employers must retain wage-and-hour records for one year beyond the limitations period.

Exemption for salaried overtime-exempt employees

Wis. Admin. Code § DWD 274.06 expressly exempts from the recordkeeping requirement "those employees paid on other than an hourly rate basis who are exempt from Wisconsin's overtime provisions." This exemption applies to employees who satisfy both the salary-basis requirement and the duties test for the executive, administrative, professional, computer, or outside-sales exemptions under Wis. Admin. Code § DWD 274.04. For these employees, Wisconsin law does not require employers to track daily or weekly hours worked. Employers must still maintain basic employment records (name, address, salary or rate of pay, total wages paid each period, and deductions from wages), but they need not record daily or weekly hours or track clock-in and clock-out times.

The hours-tracking exemption does not extend to employees who are paid a salary but do not meet the full overtime-exemption criteria under § DWD 274.04. An employee who is salaried but fails the duties test (for example, a retail assistant manager who spends most hours performing non-exempt tasks) remains subject to the overtime law and the employer must track that employee's daily and weekly hours.

Penalties and enforcement

Any employer who violates Wis. Admin. Code § DWD 274.06 is subject to the penalties provided in Wis. Stat. §§ 103.005 and 109.11. Wis. Admin. Code § DWD 274.07 specifies that each day of violation constitutes a separate and distinct offense. Beyond statutory penalties, inadequate or missing records can weaken an employer's defense in wage-and-hour disputes; when an employer cannot produce contemporaneous time records to rebut an employee's claim of unpaid overtime or minimum-wage shortfall, the employee's account of hours worked may carry greater weight.

Federal FLSA recordkeeping overlay

Employers covered by both Wisconsin and federal law must comply with whichever standard is more stringent. The federal Fair Labor Standards Act requires covered employers to preserve payroll records, collective bargaining agreements, sales and purchase records for at least three years, and supplementary basic records (individual time cards, wage-rate tables, work and time schedules, records of additions to or deductions from wages) for at least two years (29 C.F.R. § 516.5 and § 516.6). Wisconsin's three-year retention rule for all wage-and-hour records is stricter than the federal two-year rule for supplementary records, so Wisconsin employers should retain all payroll and timekeeping documentation for three years to satisfy both state and federal obligations. Wisconsin's requirement for daily hour totals and meal-period start/stop times (when meal periods are deducted or required) may also exceed federal minimums in some circumstances, particularly for non-exempt employees whose schedules vary day to day.

Source: Wis. Admin. Code § DWD 274.06 Source: Wis. Admin. Code § DWD 274.07 Source: Wisconsin DWD — Record Keeping Requirements for Wisconsin Employers

Wisconsin allows employers to pay tipped employees a reduced direct cash wage of $2.33 per hour, provided the employee's tips combined with the cash wage equal at least the full state minimum wage of $7.25 per hour. This creates a maximum tip credit of $4.92 per hour ($7.25 minus $2.33). The tip-credit provision applies to any employee engaged in an occupation in which they "customarily and regularly receive tips or gratuities from patrons or others," as defined in Wis. Admin. Code § DWD 272.01(12).

Opportunity employees under age 20

Opportunity employees—those under age 20 during their first 90 consecutive calendar days of employment—may be paid an even lower tipped minimum wage of $2.13 per hour under Wis. Admin. Code § DWD 272.03(2)(am). When combined with tips, the total must still reach the applicable minimum wage for opportunity employees ($5.90 per hour for the first 90 days, or $7.25 per hour after 90 days or upon turning 20, whichever comes first).

Make-up pay obligation

Wis. Admin. Code § DWD 272.03(2)(g) establishes that employers may presume tipped employees are receiving at least the maximum tip credit in actual tips. However, the regulation explicitly requires: "If the employee is receiving less than the amount credited, the employer is required to pay the balance so that the employee receives at least the minimum wage with the defined combination of wages and tips." This make-up obligation is measured over the pay period. If a tipped employee's actual tips plus the $2.33 cash wage do not average at least $7.25 per hour for all hours worked during the pay period, the employer must pay the difference.

Tip credit recordkeeping and declaration requirements

To claim the tip credit, employers must satisfy two mandatory recordkeeping conditions under Wis. Admin. Code § DWD 272.03(2)(b):

1. Signed tip declaration each pay period. The employer must obtain a tip declaration signed by the tipped employee for each pay period. The declaration must document the total tips received during that pay period.

1. Payroll records showing tax withholding and compliance. The employer must maintain payroll records that show (a) all required social security and income taxes withheld each pay period, and (b) that when adding the tips received to the wages paid by the employer, the employee received no less than the minimum wage.

Wis. Admin. Code § DWD 272.03(2)(b)1 states the consequence in absolute terms: "When the employer's time and payroll records do not contain these requirements, no tip credit shall be allowed." An employer that fails to maintain signed tip declarations or adequate payroll records forfeits the tip credit entirely and must pay the full $7.25 minimum wage as direct cash wages for the period in question.

The regulation also provides that the Department of Workforce Development may refuse to investigate or collect minimum-wage deficiencies on behalf of a tipped employee who has refused or failed to file an accurate signed tip declaration for the employer each pay period (Wis. Admin. Code § DWD 272.03(2)(b)2). This provision operates as an employee-side compliance mechanism, creating a mutual documentation obligation.

Definition of tips and treatment of service charges

Wis. Admin. Code § DWD 272.03(2)(c)1 defines a tip as "a sum presented by a customer as a gift or gratuity in recognition of some service performed for them," distinguishing it from a charge for service. The customer determines whether to give a tip, its amount, and who receives it. Tips become the property of the employee who receives them.

Compulsory service charges—such as a mandatory 15% gratuity added to a bill—are not tips unless the employer distributes them to employees. Wis. Admin. Code § DWD 272.03(2)(e)1 clarifies that if the employer keeps the service charge, it cannot be counted toward the tip credit. Amounts negotiated for banquets or events that are designated for distribution to employees must be paid to the employees by the end of the pay period in which the amounts are earned.

Tip pooling

Wisconsin permits tip pooling. Under Wis. Admin. Code § DWD 272.03(2)(d), where employees practice tip splitting—for example, when servers share tips with bussers—both the amounts retained by the servers and the amounts given to bussers are considered tips of the individuals who ultimately retain them. Each employee's share counts toward their own minimum-wage calculation.

Tips forfeited to the employer

When an employment agreement requires tips to be turned over or credited to the employer and treated as part of the employer's gross receipts, the employer must pay the employee the full minimum hourly wage; the tip credit is unavailable because the employee is not, in practical terms, receiving tip income (Wis. Admin. Code § DWD 272.03(2)(g)3).

Overtime pay for tipped employees

When a tipped employee works overtime and is subject to Wisconsin's overtime requirements under Wis. Admin. Code ch. DWD 274, their regular rate of pay for overtime purposes is calculated by dividing their total remuneration for the workweek (including the tip credit taken by the employer and the cash wages paid) by the total hours worked. The regular rate includes the amount of the tip credit taken by the employer and all cash wages, commissions, and certain bonuses. Tips received in excess of the tip credit need not be included in the regular rate for overtime calculation (Wis. Admin. Code § DWD 272.03(2)(h)).

Federal FLSA overlay

The federal Fair Labor Standards Act allows a maximum tip credit of $5.12 per hour (bringing the federal tipped minimum cash wage to $2.13 per hour as of the effective date of the most recent federal increase). Because Wisconsin's required cash wage for most tipped employees is $2.33—higher than the federal $2.13—and Wisconsin's general minimum wage matches the federal floor at $7.25, Wisconsin employers must comply with Wisconsin's $2.33 cash-wage requirement for tipped employees (other than opportunity employees). Wisconsin's recordkeeping requirements—specifically the signed tip declaration each pay period—are more prescriptive than the federal standard and must be followed.

Source: Wis. Admin. Code § DWD 272.03(2) Source: Wis. Admin. Code § DWD 272.01(12) Source: Wisconsin DWD — Minimum Wage

Wisconsin exempts from its overtime requirements employees whose primary duty consists of administrative, executive, or professional work, as well as certain outside sales and computer employees. The exemptions are defined in Wis. Admin. Code § DWD 274.04, which directs that "these exemptions shall be interpreted in such a manner as to be consistent with the Federal Fair Labor Standards Act and the Code of Federal Regulations as amended, relating to the application of that act to all issues of overtime." Each white-collar exemption requires the employee to satisfy both a duties test and a salary-basis (or fee-basis) test. An employee who meets the duties criteria but is paid hourly remains subject to Wisconsin overtime.

Executive exemption

An employee qualifies for the executive exemption under Wis. Admin. Code § DWD 274.04(1)(a) if all of the following Wisconsin criteria are met:

1. Primary duty: The employee's primary duty consists of the management of the enterprise or of a customarily recognized department or subdivision.

1. Supervision of two or more employees: The employee customarily and regularly directs the work of two or more other employees.

1. Hire/fire authority or influential recommendations: The employee has the authority to hire or fire other employees, or the employee's suggestions and recommendations as to hiring, firing, advancement, promotion, or any other change of status of other employees are given particular weight.

1. Discretionary powers: The employee customarily and regularly exercises discretionary powers.

1. Nonexempt-work limitation: The employee does not devote more than 20% of hours worked in the workweek to activities that are not directly and closely related to the performance of the executive work described above. For employees of retail or service establishments, the threshold is 40% rather than 20%. This limitation does not apply if the employee is in sole charge of an independent establishment or a physically separated branch, or if the employee owns at least a 20% interest in the enterprise.

1. Salary basis and minimum: The employee is compensated on a salary basis at a rate of not less than $700 per month.

Administrative exemption

An employee qualifies for the administrative exemption under Wis. Admin. Code § DWD 274.04(1)(b) if all of the following Wisconsin criteria are met:

1. Primary duty: The employee's primary duty consists of one of the following types of work:

• a. Regularly and directly assisting a proprietor or an employee employed in a bona fide executive or administrative capacity; or
• b. Performing under only general supervision work along specialized or technical lines requiring special training, experience, or knowledge; or
• c. Executing under only general supervision special assignments and tasks.

1. Discretion and independent judgment: The employee customarily and regularly exercises discretion and independent judgment.

1. Nonexempt-work limitation: The employee does not devote more than 20% (or, for retail or service establishments, 40%) of hours worked in the workweek to activities that are not directly and closely related to the performance of the administrative work described in criterion 1.

1. Salary or fee basis and minimum: The employee is compensated on a salary or fee basis at a rate of not less than $700 per month.

Professional exemption

An employee qualifies for the professional exemption under Wis. Admin. Code § DWD 274.04(1)(c) if all of the following Wisconsin criteria are met:

1. Primary duty: The employee's primary duty consists of one of the following:

• a. Learned professional work: Work requiring knowledge of an advanced type in a field of science or learning customarily acquired by a prolonged course of specialized intellectual instruction and study, as distinguished from a general academic education, from an apprenticeship, and from training in the performance of routine mental, manual, or physical processes; or
• b. Creative professional work: Work that is original and creative in character in a recognized field of artistic endeavor (as opposed to work that can be produced by a person endowed with general manual or intellectual ability and training), and the result of which depends primarily on the invention, imagination, or talent of the employee; or
• c. Teaching: Teaching, tutoring, instructing, or lecturing in the activity of imparting knowledge, performed as a teacher in an educational establishment.

1. Consistent exercise of discretion and judgment: The employee's work requires the consistent exercise of discretion and judgment in its performance.

1. Intellectual and varied character: The employee's work is predominantly intellectual and varied in character (as opposed to routine mental, manual, mechanical, or physical work) and is of such a character that the output produced or the result accomplished cannot be standardized in relation to a given period of time.

1. Nonexempt-work limitation: The employee does not devote more than 20% of hours worked in the workweek to activities that are not an essential part of and necessarily incidental to the professional work described in criteria 1 through 3.

1. Salary or fee basis and minimum: The employee is compensated on a salary or fee basis at a rate of not less than $750 per month. (The professional-exemption salary floor is $750 per month, $50 higher than the $700-per-month floor for executive and administrative exemptions.)

Outside sales exemption

Wisconsin's outside sales exemption under Wis. Admin. Code § DWD 274.04(2) cross-references federal FLSA definitions. An employee qualifies if both of the following conditions are met:

1. Primary duty: The employee's primary duty, as determined under 29 C.F.R. § 541.500(b), is either (a) making sales, as defined under 29 U.S.C. § 203(k), or (b) obtaining orders or contracts for services or for the use of facilities for which a consideration will be paid by the client or customer.

1. Customarily and regularly engaged away from the employer's place of business: The employee is customarily and regularly engaged away from the employer's place of business, as described under 29 C.F.R. § 541.502, in performing the primary duty.

Wisconsin does not impose a salary or fee minimum for outside sales employees.

Computer employee exemption

Wis. Admin. Code § DWD 274.04(2) was recreated by 2017 Wisconsin Act 340, effective May 1, 2018. The current regulation provides an exemption for computer employees by cross-referencing the federal FLSA framework. Although the Wisconsin regulation does not reproduce the detailed federal duties test, employers applying the computer-employee exemption in Wisconsin must satisfy the federal requirements under 29 C.F.R. § 541.400, as Wisconsin interprets its exemptions "consistent with" federal law. The federal standard requires that the employee be employed as a computer systems analyst, computer programmer, software engineer, or other similarly skilled worker in the computer field, and that the employee's primary duty consist of one or more of the following: (a) application of systems-analysis techniques and procedures, (b) design, development, documentation, analysis, creation, testing, or modification of computer systems or programs, or (c) a combination of these duties. Employers should consult the federal regulation at 29 C.F.R. § 541.400 for the complete duties test that Wisconsin incorporates by its consistency directive.

Relationship between Wisconsin and federal FLSA overtime exemptions

An employee covered by both Wisconsin and federal law must satisfy the exemption requirements under both sets of rules to be exempt from overtime. Wisconsin's monthly salary minimums ($700 for executive and administrative, $750 for professional) were set decades ago and remain substantially lower than the current federal weekly minimum of $684 per week (equivalent to approximately $2,962 per month). As a practical matter, an employee who satisfies the federal FLSA salary-level test will also satisfy Wisconsin's lower salary threshold.

The Wisconsin duties tests, however, are distinct from the current federal duties tests in certain respects. Wisconsin's language for the executive, administrative, and professional exemptions retains elements of the older federal "long test," including the 20%-nonexempt-work limitation (40% for retail or service establishments) that no longer appears in the federal standard for most employees. The federal FLSA's current duties tests under 29 C.F.R. Part 541 do not include a fixed percentage cap on nonexempt work for most exempt categories; instead, the federal test focuses on whether the employee's "primary duty" is exempt work. An employee must independently meet both the Wisconsin criteria enumerated in Wis. Admin. Code § DWD 274.04(1)(a), (b), or (c) and the federal duties test under 29 C.F.R. Part 541 if the employee is covered by both laws. Where the two standards diverge, the more protective rule for the employee governs. Wisconsin employers should therefore evaluate exempt status under both the Wisconsin regulatory criteria and the federal FLSA framework.

Other overtime exemptions

Wis. Admin. Code § DWD 274.04 contains numerous additional exemptions beyond the white-collar categories, including agricultural employees (subsection (9)), employees of motion picture theaters (subsection (10)), certain commissioned employees of retail and service establishments (subsection (3)), drivers and mechanics covered by the Motor Carrier Act (subsection (4)), and employees of hospitals and residential care institutions who work under an alternative 14-day overtime period (subsection (11)).

Source: Wis. Admin. Code § DWD 274.04