Introduction to employment laws in Wisconsin
Wisconsin’s labor laws are formulated to protect both employers and employees, ensuring a healthy work environment for all. Understanding and complying with Wisconsin employment laws is essential for any business operating in the state.
In this guide, we’ll help you to stay compliant when while hiring and manage employees in Wisconsin.
Employing in Wisconsin: Key employment laws and practices
Standard work hours
In Wisconsin, full-time employment comprises 40 hours of work spread over five days. Typically, a full-time employee is expected to put in eight hours of work each day. As with most states, the law in Wisconsin does not expressly define this.
Contractual or part-time employees may have different work hours based on their contracts. For self-employed professionals or freelancers, there isn’t a standard work-hour guideline. Their work schedule largely depends on the agreement between them and their clients.
Minimum wage and overtime
The minimum wage law in Wisconsin stipulates an hourly wage of $7.25 for private sector employees. This rate aligns with the federal minimum wage.
For overtime, Wisconsin aligns with the Fair Labor Standards Act (FLSA). If a non-exempt employee works beyond 40 hours in a week, they are entitled to overtime pay at 1.5 times their regular pay rate. It is crucial for employers to understand who qualifies as exempt and non-exempt employees to ensure fair payment.
Insurance and benefits
Wisconsin law does not mandate employers to provide health, dental, or vision insurance. However, many employers offer these benefits voluntarily to attract and retain employees. It’s also common for employers in Wisconsin to provide retirement benefits, such as contributing to a 401k account.
Companies employing more than 50 full-time employees are required by federal law (the Affordable Care Act) to offer health insurance to their employees. This mandate ensures that even in states like Wisconsin, where it’s not a state requirement, large companies still provide health benefits.
Benefits | Employer requirement |
Health insurance | Voluntarily provided by many employers; federally required for companies employing more than 50 full-time employees |
Unemployment insurance | 0.0% – 12% |
Workers’ compensation insurance | For businesses regularly employing 3 or more full- or part-time employees, required to carry |
Dental and vision insurance | Typically offered as part of the benefits package |
Retirement benefits (401k) | Commonly offered by employers |
Multiplier makes it easy to manage benefits for Wisconsin employees.
Meals and rest periods
Employees under the age of 18 who work six or more consecutive hours in Wisconsin must be given a 30-minute break. Aside from this, state law there does not have a specific mandate requiring employers to provide meal or rest breaks for employees age 18 or older.
If an employer does offer breaks (typically lasting about five-20 minutes), federal law stipulates these should be paid. Longer breaks, typically for meals, lasting at least 30 minutes are generally unpaid. The employee must be completely relieved of duty during this time. Should the employee be relieved of all work-related duties while on a meal break, it need not be paid.
Anti-discrimination laws
Wisconsin has notably strong anti-discrimination laws in place that exceed federal guidelines. The state’s Fair Employment Law prohibits employment discrimination on several grounds, including age, race, creed, color, disability, marital status, sex, national origin, ancestry, sexual orientation, and arrest or conviction record.
These protections extend even to applicants and employees with less than 15 employees, a demographic otherwise not covered by federal laws.
Discrimination can include any adverse employment action such as failure to hire, termination, demotion or denial of promotion, compensation decisions, and other terms and conditions of employment. Employers are advised to engage in fair hiring practices and create policies that promote a diverse and inclusive workplace.
Leave policies
Wisconsin does not have a state-mandated sick leave policy or vacation leave policy. However, employers often offer these benefits at their discretion. If an employer chooses to provide these benefits, they must adhere to their own established policies.
Family and medical leave follows the guidelines established by the federal Family and Medical Leave Act (FMLA), which provides eligible employees up to 12 weeks of unpaid leave for specific family and medical reasons. These include maternity or paternity leave, serious illness, or care for a seriously ill family member.
In terms of other leave policies, Wisconsin law stipulates that employers must provide job-protected, unpaid leave for jury duty or court appearances. Moreover, the state provides protection against discrimination for members of U.S. armed forces, reserves, and the National Guard.
Leave type | Duration | Paid/Unpaid | Notes |
Sick leave | At the employer’s discretion | At the employer’s discretion | No state mandate |
Vacation leave | At the employer’s discretion | At the employer’s discretion | No state mandate |
FMLA leave | Up to 12 weeks per year | Unpaid | For specific family and medical reasons |
Jury duty/Court appearance leave | As required by court | Unpaid | Job-protected leave |
Military service leave | As necessary (per USERRA) | Unpaid | Protection against discrimination |
Easily onboard employees in Wisconsin?
Termination laws
Wisconsin operates under “at-will” employment , which means that either party—employer or employee—can terminate the employment relationship at any time for any reason not prohibited by law. This includes termination without notice unless otherwise specified in an employment contract or company policy.
In cases of mass dismissals, federal laws under the Worker Adjustment and Retraining Notification Act (WARN) require employers to provide a 60-day notice to impacted employees and local government officials.
Furthermore, if severance payments are part of an employee’s contract or an employer’s policy, they must adhere to the agreed-upon provisions.
Safety and health
Employers in Wisconsin are required to follow federal Occupational Safety and Health Administration (OSHA) guidelines to maintain workplace safety standards. These regulations include providing a work environment free from recognized hazards that could cause death or serious physical harm. Specific requirements can vary based on the industry and the nature of the work performed.
In addition to these federal regulations, Wisconsin has workers’ compensation laws which require employers to provide certain benefits for workers who become injured or ill as a result of their job.
Taxes in Wisconsin
Understanding tax laws is vital to maintaining HR compliance in Wisconsin. Both employers and employees have tax obligations that include contributions at the federal and state levels.
Wisconsin state income tax rates for single filers range from 3.50% to 7.65%, depending on income levels. Federal income tax rates range from 10% to 37%. In addition, both employers and employees contribute to FICA Social Security and Medicare taxes at rates of 6.20% and 1.45% respectively.
| Tax | Rate | Notes |
| State income tax – single | 3.50% – 7.65% | Depending on income |
| Unemployment insurance tax | 0.0% – 12% | Employer-contributed |
| Federal income tax | Varies | Depending on income |
| FICA Social Security (employer and employee) | 6.20% | On salary up to $168,000 annually |
| FICA Medicare (employer and employee) | 1.45% | Additional tax on earnings over $200,000 |
Managing Wisconsin employees with an Employer of Record (EOR)
Navigating the myriad of Wisconsin employment laws can be overwhelming. With Multiplier’s Employer of Record (EOR) solution, we can help you legally and compliantly employ full-time workers in Wisconsin without setting up local entities.
Our Global Payroll Platform, meanwhile, ensures your employees get paid in a timely manner, handling local taxes, contributions, and withholdings. And our global benefits administration ensures your employees access fully compliant, competitive benefits, such as insurance coverage, pension plans, and more.
Book a demo now and streamline your HR procedures and compliance operations.
FAQs
According to the federal Fair Labor Standards Act, non-exempt employees in Wisconsin are entitled to overtime pay at 1.5x their regular pay rate for any hours worked beyond 40 in a week. It is important to note that employees are generally exempted from overtime if they earn more than the specified state or federal exemption threshold or perform roles that fall under certain categories like executive or managerial.
The minimum wage for private-sector employees in Wisconsin is currently $7.25 per hour, which is the same as the federal minimum wage.
In Wisconsin, employer payroll contributions range from 0.00% to 12.00% for Unemployment Insurance on salary up to 14,000 USD annually, and 2.90% to 3.25% for New Employer Unemployment. FICA Social Security and Medicare stand at 6.20% and 1.45% respectively. The Federal Unemployment Tax Act (FUTA) ranges from 0.60% to 6.00%
Wisconsin law does not mandate employers to provide paid sick leave or maternity leave. However, most employers follow the Family and Medical Leave Act (FMLA), which grants eligible employees up to 12 weeks of unpaid, job-protected leave annually for specific family and medical reasons.
In Wisconsin, most employees are employed at will, meaning either party can terminate the employment relationship without notice. However, a two weeks’ notice is generally preferred. In cases of mass dismissal, the Employer is required to adhere to the Worker Adjustment and Retraining Notification Act (WARN Act) and provide a 60 days’ notice.
