Compliance Watch:
What are my rights as an hourly employee in Wisconsin?

March 11th 2024

Comprehending your employment rights in hourly employment goes beyond legal compliance; it helps you take control of your career development and build the confidence required to shape your professional path.

The income that you receive as you clock in and out from work every day profoundly shapes your professional standing in the work environment. While the nuances of employment regulation vary across states in the U.S., you might find yourself contemplating your specific employment rights applicable in your particular state and how to establish their proper adherence to the respective laws. 

Therefore, this article is particularly written to answer your queries pertaining to various aspects of employment. Its goal is to equip you with the necessary knowledge required to ensure that your legal employment rights are safeguarded throughout your career.

This Article Covers

Defining an Hourly Employee in Wisconsin
Wage and Hour Regulations in Wisconsin
Rest Laws in Wisconsin
Deductions, Benefits, and Protections in Wisconsin
Termination of Employment in Wisconsin

Defining an Hourly Employee in Wisconsin

What is Hourly Employment in Wisconsin?

In general, hourly employees are paid depending on the actual time they work in each pay period, leading to variable gross pay from paycheck to paycheck. This fluctuation is a consequence of being compensated based on the number of hours worked within a given pay period.

To verify accurate payment, employers typically rely on using time-tracking tools to track the compensable working hours of hourly employees. On the contrary, a salaried employee’s paycheck is based on the predetermined annual amount that they earn rather than the hours they have actually worked.

Additionally, hourly employees are eligible to earn overtime compensation. Consequently, due to the general work structure of hourly employment, these employees may have fewer work benefits, such as health insurance or retirement plans, in comparison to salaried employees.

What are the Key Differences Between Salaried and Hourly Employees in Wisconsin?

Aspect Hourly Employees Salaried Employees
Compensation Compensated on the basis of each hour worked. Compensated by a fixed salary payment that is distributed on a monthly basis or bimonthly basis. 
Overtime Pay Hourly employees acquire the legal right to earn the state’s mandated overtime pay requirement. Salaried employees may not acquire the legal right to earn the state’s mandated overtime pay requirement if they are categorized as exempt employees.
Minimum wage Hourly employees are legally entitled to receive the state’s mandated minimum hourly wage requirement. Salaried employees may not be legally entitled to receive the state’s mandated minimum hourly wage requirement if they are categorized as exempt employees.
Employment benefits Hourly employees may have fewer job benefits in their employment. Salaried employees may have more job benefits in their employment.
Rest and Meal Breaks Hourly employees are not entitled to mandatory rest and meal breaks as established by both state and federal regulations. Salaried employees are not entitled to mandatory rest and meal breaks as established by both state and federal regulations.
Compensation Stability An hourly employee’s supply of income is dependent on the actual number of hours they have worked. A salaried employee’s supply of income is consistent and is independent of the actual number of hours they have actually worked. 

To learn more about Wisconsin labor laws, you can access our informative guides on understanding your rights as a salaried employee in Wisconsin and discovering how to run payroll in Wisconsin.

Wage and Hour Regulations in Wisconsin

What are the Maximum Weekly Working Hours in Wisconsin?

In the state of Wisconsin, neither federal law nor state law sets any limits as to the number of required hours an employee must work. Hence, an unlimited number of hours can be worked by an adult employee in a day or week as both laws do not restrict an employee from doing so.

However, the overtime regulations established under both Wisconsin law and federal law require employers to compensate eligible employees one and a half times their regular hourly wage rate for working hours in excess of  40 hours in a given work week.

Furthermore, federal and state standards establish that certain employees working in specific occupations and earning a particular salary threshold may be legally exempt from earning the state’s mandated overtime compensation.

What is the Minimum Wage for Hourly Employees in Wisconsin?

In the state of Wisconsin, state laws have imposed that the current minimum wage be tied to the federal Minimum hourly wage rate of $7.25. While Wisconsin has its own statutory laws that enforce the minimum wage requirement in the state, employers are still required to comply with the federal laws and regulations pertaining to the minimum wage.

Hence, in a 40-hour workweek, an hourly employee in the state of Wisconsin may typically earn a minimum weekly pay of $290 in accordance with the state’s mandated minimum wage requirement.

Do all Employees Earn the Minimum Wage in Wisconsin?

The list below comprises certain employees who are classed as legally exempt from earning both Wisconsin’s minimum wage and overtime pay requirements under both state and federal regulations.

  • Tipped Employees.
  • Full-time students.
  • Employees below 20 years old.
  • Outside salespeople.
  • Newspaper delivery men.
  • Casual babysitters.
  • Agricultural employees.
  • Seamen employed on foreign vessels.
  • Administrative, executive, or professional employees.
  • Employees who are computer professionals.

How Many Hours Qualify As Overtime and What is the Associated Pay in Wisconsin?

Both the federal Fair Labor Standards Act (FLSA) and Wisconsin law qualify overtime hours as any hours worked exceeding the standard 40-hour work week and legally entitle non-exempt employees to receive overtime payment established at a rate of one and a half times their regular hourly pay. Hence, an hourly employee in Wisconsin typically earns an overtime wage rate of $10.88 for every overtime hour worked.

In addition to the previously mentioned employees who are legally exempt from receiving both the state’s minimum wage and overtime pay requirement under federal and state regulations, there are also specific categories of employees exempt from earning the state’s mandated overtime pay:

  • Drivers, driver’s helpers, loaders, or mechanics of a motor carrier or a private or contract carrier are covered under the provisions of Section 204 of the Motor Carrier Act 1935 as amended.
  • Employees of an employer engaged in the operation of a common carrier by rail and subject to the provision of Part I of the Interstate Commerce Act as amended and any employee of a carrier by air subject to the provision of the Railway Labor Act as amended.
  • Employees working in funeral establishments.
  • Motion picture theater employees.
  • Employees employed by amusement and recreational establishments that operate on a seasonal basis.
  • Taxi drivers.

Rest Laws in Wisconsin

What are the Offered Meal and Rest Breaks for Hourly Employees in Wisconsin?

In the state of Wisconsin, neither federal nor state laws require employers to provide work breaks for employees aged 18 years or older. However, it is highly encouraged for employers to do so. If breaks are offered at the employer’s discretion, they should be at least 30 minutes in length, during which the employee is completely disengaged from work duties. If a break is less than 30 minutes, it is considered work time and must be compensated, while breaks that are 30 minutes or longer remain uncompensated.

It is worth highlighting that employees below the age of 18 in the state of Wisconsin are an exception in receiving complimentary work breaks. Minor employees must be given a 30-minute duty-free meal break if they are to work longer than six consecutive hours.

While state laws remain silent as to the enforceability of breastfeeding breaks for nursing mothers, the federal Fair Labor Standards Act (FLSA) requires employers to provide lactating mothers with reasonable break times to express milk in a private non-bathroom area for up to one year after their child’s birth.

What Laws Govern Time Off and Leaves for Hourly Employees in Wisconsin?

  • Voting leave: Under state law, an employer is required to provide 3 hours of time off for an employee to vote if the employee requests for voting leave before the day of election. An employer can decide whether the leave will be paid or unpaid and determine when the employee shall take such leave.
  • Witness leave: According to Wisconsin law, an employee who is a crime victim or who is associated with a crime victim, which requires their involvement in legal proceedings, must be given paid time off by their employer to attend to such related matters.
  • Military leave: Wisconsin laws require that permanent employees called to serve in the military for 90 days or more be granted up to 5 years of job-protected military leave. In addition, the employee must be reinstated to their original employment position after being discharged from the military if they still meet the qualifications.
  • Jury duty leaves: An employer must provide an employee with time off leave to serve their jury duty without penalizing or terminating their employment.
  • Emergency responder leave: Wisconsin employers must provide their employees, who are emergency responders, with leave to respond to an emergency. The employer may decide whether such leave is paid or unpaid.
  • Family and medical leave: Under the Wisconsin Family and Medical Leave Act, an employee is provided with leave that may be paid or unpaid for reasons related to their own serious health condition, the serious health condition of their immediate family member, or for the birth or adoption of a child. However, an employee is only eligible for this leave if: 
    • The employer has maintained a minimum of 50 permanent employees for at least 6 of the last 12 months.
    • The employee has worked for the employer for at least 52 consecutive weeks before taking their leave.
    • The employee has worked for the employer for a minimum of 1000 hours in the preceding 52-week duration before taking their leave.

Deductions, Benefits, and Protections in Wisconsin

What are the Laws Regarding Pay Deductions for Hourly Employees in Wisconsin?

In Wisconsin, a deduction in an employee’s wage by the employer for loss, theft, damage, or faulty workmanship is only permitted if:

  • The employee has given written authorization prior to the deductions being made.
  • The employee’s representative has established that the employee was at fault for their own negligence, carelessness, or willful and intentional conduct.
  • The employee has been found guilty or held liable in a court of law because of their own negligence, carelessness, or willful and intentional conduct.

Furthermore, an employer that makes deductions not authorized in the manner stipulated above is liable to pay twice the deduction amount.

What are the Provided Hourly Employees Entitlements Under Wisconsin State Law?

  • Minimum wage: In Wisconsin, hourly employees are legally entitled to earn the state’s minimum hourly wage of $7.25, in accordance with the federal Fair Labor Standards Act (FLSA).
  • Overtime: Both state and federal laws entitle hourly employees in Wisconsin with the legal right to receive overtime compensation for hours worked beyond the 40-hour work week at a fixed hourly pay rate of one and a half times their regular hourly pay.
  • Worker’s compensation insurance: Under the Wisconsin Workers’ Compensation Act, employees in Wisconsin are legally entitled to receive worker’s compensation benefits if they sustain any work-related injuries during the course of their employment. However, this Act applies to employers with three or more employees and specifically requires employees to promptly report their injuries within 30 days of their occurrence or within 30 days after becoming aware of their disability in relation to their employment.
  • Unemployment insurance benefits: The unemployment insurance benefits provide eligible employees who have lost their jobs through no fault of their own with a temporary supply of weekly income benefits. This insurance benefit aims to partially offset lost wages while the unemployed employee seeks to find other employment opportunities or awaits recall by their employer. In this regard, an employee’s paycheck remains unaffected, as their respective employer pays for the coverage of these benefits by mandatory contributions to the Unemployment Reserve Fund.
  • Temporary partial disability benefits: According to Wisconsin’s statutory laws, an employee who has sustained injuries that have temporarily disabled their ability to work, causing a loss in wage (by reducing their number of work hours or hourly wages), is entitled to receive temporary partial disability benefits. These benefits aim to offset lost wages, which they would have otherwise earned if they were not disabled, by compensating them based on the percentage of their regular earnings that they have lost because of their injury.

What are the Provided Hourly Employee Protections Under Wisconsin State Law?

  • Labor union rights protection: Under the National Labor Relations Act (NLRA), employees in Wisconsin are protected from having their employment status adversely affected in retaliation by their employers for choosing whether to join labor unions or participate in their activities.
  • Workplace safety protection: The Occupational Safety and Health Administration (OSHA) protects employees in terms of safety within the workplace. This federal agency oversees the health and safety conditions of workplaces, enforces health and safety standards, and ensures employees are provided with safety training that concerns their employment. Additionally, this agency permits employees to file a complaint with them if there have been concerns about the safety of their working conditions.
  • Child labor protection: Wisconsin has enforced its own laws which regulate the employment of minors. These laws aim to protect minors in the scope of employment by limiting the type of jobs they can work in and their working hours in accordance with their specific age. Furthermore, state statutory laws require a minor below the age of sixteen to obtain a work permit before commencing their employment.
  • Protection from workplace discrimination: The Wisconsin Fair Employment Act protects Wisconsin employees from having discriminatory personnel actions taken against them by their employers for reasons based on their protected characteristics, which comprise factors such as their: 
    • Age
    • Arrest and/or Conviction Record
    • Ancestry, Color, National Origin or Race
    • Creed
    • Disability
    • Genetic Testing
    • Honesty Testing
    • Marital Status
    • Military Service
    • Pregnancy or Childbirth
    • Sex
    • Sexual Orientation
    • Use or nonuse of lawful products off the employer’s premises during non-working hours

Termination of Employment in Wisconsin

What are the Termination Laws for Hourly Employees in Wisconsin?

Like other U.S. states, the state of Wisconsin has chosen to adopt the employment-at-will doctrine to generally define its employment relationship between an employer and an employee by default. Put simply, both the employer and employee are free to terminate the employment relationship at any given time and without having to provide any justifications for doing so, provided that they do not have a contract stating otherwise or other legal exceptions governing the relationship. However, several exceptions apply to the general at-will employment principle which limits an employer’s ability to terminate the worker’s employment in specific circumstances. These exceptions include:

  • Breach of contract: The existence of an employment contract may dictate the nature of the employment relationship by categorizing that a worker is not an ‘at-will’ employee or by specifying the specific reasons that justify the termination of a worker’s employment. In such cases, employers must strictly adhere to these contractual stipulations that govern the employment relationship between their employees. 
  • Retaliation: Federal and state laws in Wisconsin prohibit employers from retaliating against their employees who have asserted their legal rights, filed discrimination complaints, or fulfilled their public interest duties required by law (such as serving their jury duties or taking leave to serve the military). Such retaliatory acts may include termination of employment, demoting employees, or excluding them from promotional opportunities.
  • Public policy: In Wisconsin, employees cannot be terminated if the grounds for termination contravene public policy rules such as terminating an employee for refusing to participate in illegal activities or choosing to collect their worker’s compensation benefits that they are rightly entitled to by law. 
  • Workplace discrimination: In this aspect, the Wisconsin Fair Employment Law prohibits employers from discriminating against their employees by wrongfully terminating them based on their protected characteristics, which comprise their: 
    • Age
    • Arrest and/or Conviction Record
    • Ancestry, Color, National Origin or Race
    • Creed
    • Disability
    • Genetic Testing
    • Honesty Testing
    • Marital Status
    • Military Service
    • Pregnancy or Childbirth
    • Sex
    • Sexual Orientation
    • Use or nonuse of lawful products off the employer’s premises during non-working hours

Furthermore, the statutory provisions under state law mandate that an employer must issue a final paycheck to the employee no later than the next regularly scheduled pay date once the employee has voluntarily resigned from their employment or has been terminated.

Should Severance Pay Be Provided to Hourly Employees in Wisconsin?

Should Severance Pay Be Provided to Hourly Employees in Wisconsin?

Since the federal Fair Labor Standards Act (FLSA) remains silent as to the requirement of offering severance pay, Wisconsin employers are therefore not obligated by law to offer severance pay to employees who have been terminated from their employment. However, if the terms of the employment contract require severance pay to be given, the employer must strictly comply with those respective contractual terms.

Severance pay is typically calculated based on the employee’s length of service in their employment and is usually paid on a lump sum basis or distributed in installments.

Final Thoughts

In conclusion, acquiring a deep understanding of your legal rights in the employment sphere can help ensure that your employment entitlements are honored and that your general wellness is maintained throughout your employment.

Given the fluid character of employment regulations, staying up to date with recent developments in employment laws applicable in your state is fundamental for making well-thought-out choices in relation to your employment throughout your career path.

Important Cautionary Note

When making this guide we have tried to make it accurate but we do not give any guarantee that the information provided is correct or up-to-date. We therefore strongly advise you to seek advice from qualified professionals before acting on any information provided in this guide. We do not accept any liability for any damages or risks incurred for the use of this guide.