Wisconsin Minimum Wage Laws: What Workers and Employers Should Know
Understand how Wisconsin's minimum wage rules impact different job types, employer responsibilities, and worker rights in practical terms.
Wisconsin’s minimum wage laws establish compensation standards for many workers and businesses across the state. While federal law sets a national floor, Wisconsin has specific rules that affect paychecks and employer obligations.
Rate and Coverage
Wisconsin sets its primary minimum wage at $7.25 per hour, aligning with the current federal rate under the Fair Labor Standards Act.1Wisconsin Department of Workforce Development. Minimum Wage This rate applies to most adult and minor employees working for private companies, non-profit organizations, and government bodies within the state, regardless of size or federal coverage status. The Wisconsin Department of Workforce Development (DWD) oversees these state wage laws, detailed in Wisconsin Statutes Chapter 104 and Administrative Code Chapter DWD 272.2Justia Law. Wisconsin Statutes § 104.035: Minimum Wage
Employers in Wisconsin may pay workers under 20 years old an “opportunity wage” of $5.90 per hour for their first 90 consecutive calendar days of employment.3Wisconsin Department of Workforce Development. Wisconsin Employment of Minors Guide On the 91st day, or when the employee turns 20, whichever comes first, the wage must increase to the standard $7.25 per hour. This state opportunity wage takes precedence over the lower federal rate ($4.25 per hour) because employers must follow the law more favorable to the employee.
Tipped Roles
For workers who regularly receive tips, Wisconsin permits employers to pay a lower direct cash wage, known as taking a “tip credit,” as long as tips make up the difference to reach the full minimum wage. The minimum cash wage for tipped employees in Wisconsin is $2.33 per hour.4U.S. Department of Labor. Minimum Wages for Tipped Employees by State (2023) This rate is higher than the federal minimum cash wage for tipped workers ($2.13 per hour), so the state rate applies.
Using this $2.33 cash wage allows employers a maximum tip credit of $4.92 per hour against the standard $7.25 minimum wage. However, employers must ensure that the employee’s combined cash wage and tips equal at least $7.25 per hour for all hours worked in a pay period. If the total falls short, the employer must pay the difference.
To legally use the tip credit, employers must maintain records, including tip declarations signed by the employee (electronic signatures are permitted), proving the employee earned at least $7.25 per hour with wages and tips combined.5Justia Law. Wisconsin Statutes § 104.045: Tips, Meals, Lodging, and Hours Worked Without these records, the employer cannot take the tip credit and must pay the full $7.25 minimum wage directly. State rules also address tip pooling arrangements, generally aligning with federal standards that restrict mandatory pools (when a tip credit is taken) to employees who customarily receive tips. Compulsory service charges are typically not considered tips unless fully distributed to employees.
Exempt Categories
While Wisconsin’s minimum wage law covers most workers, certain employment categories are excluded from the standard $7.25 per hour requirement. These state-specific exemptions sometimes differ from federal standards.
Notably, individuals employed in executive, administrative, or professional roles, as well as outside salespersons, are generally not exempt from Wisconsin’s minimum wage, even if they qualify for exemption from federal minimum wage and overtime rules. They must still receive at least $7.25 per hour for all hours worked, although they may be exempt from state overtime requirements under separate criteria (DWD Chapter 274).
Specific exemptions from Wisconsin’s minimum wage include individuals delivering newspapers house-to-house, certain real estate agents, elected officials and their personal staff, and those in casual employment in or around a private home (less than 15 hours weekly). Companionship workers residing in the employer’s home may also be exempt under certain conditions. Volunteers for non-profits are generally not covered.
Agricultural employees are covered by the $7.25 minimum wage, though specific rules allow deductions for board and lodging. Other categories may have special, potentially lower, minimum wage rates set by the DWD, including certain student learners, employees with disabilities working under special licenses, and students employed by colleges for limited hours. Golf caddies have unique rates ($10.50 for 18 holes, $5.90 for 9 holes) established by statute. These specific rates mean these workers are not subject to the standard $7.25 hourly minimum.
Filing Wage Claims
Employees in Wisconsin who believe they have not been paid the correct minimum wage can file a claim with the state. The Department of Workforce Development’s Equal Rights Division (ERD) investigates such claims under Wisconsin Statutes Chapter 109.6Wisconsin Department of Workforce Development. Wage Payment and Collection Before filing formally, employees should request the owed wages directly from their employer. If payment is not made within six days, the employee can proceed with a state claim.
To initiate a claim, an employee must submit a Labor Standards Complaint Form, available on the DWD website, either online or by mail to the ERD.7Wisconsin Department of Workforce Development. How to File a Wage Claim A two-year statute of limitations applies, meaning claims must generally be filed within two years from when the wages were due, as specified in Wisconsin Statutes Section 109.09(1).8Justia Law. Wisconsin Statutes § 109.09: Wage Claims, Collection
Upon receiving a complaint, the ERD notifies the employer and requests a response.9Wisconsin Department of Workforce Development. Labor Standards Complaint Process The investigation typically involves reviewing documents and written statements from both parties. The agency may attempt to facilitate a settlement. If no settlement is reached, the investigator issues a written decision on whether wages are owed. Employees also have the option to pursue unpaid wages directly in court, bypassing the DWD process, though the same two-year time limit generally applies.
Enforcement Actions
When the Equal Rights Division determines that an employer owes minimum wages and the employer fails to pay, the agency has authority to enforce the ruling. Under Wisconsin Statutes Section 109.09(1), the DWD is empowered to ensure compliance with state wage laws.
If an employer disputes the ERD’s initial finding, either party can request an internal administrative review within the division. This involves a re-examination of the evidence and leads to a final written determination.
Should the employer still refuse to pay after a final determination confirms wages are owed, the DWD can take further action. The agency is authorized by Section 109.09(1) to sue the employer in circuit court on behalf of the employee to recover the unpaid wages. Alternatively, the DWD may refer the case to the district attorney in the relevant county, who can then initiate legal action to collect the owed wages. These enforcement mechanisms provide pathways for the state to compel payment when employers do not comply with final wage determinations.
