Minimum wage in Wisconsin

September 6th, 2006 Posted by Justine

The minimum wage in Wisconsin is $6.50 per hour for all adult employees. For tipped employees the minimum cash wage rate remains unchanged at $2.33 per hour. However, the maximum tip credit has been increased from $2.82 per hour to $3.37 per hour. The training/youth minimum wage rate is increased from $5.30 per hour to $5.90 per hour.

Wisconsin law also defines several groups of tipped employees as either “non-opportunity” or “opportunity” employees. “Opportunity employee” means an employee who is not yet twenty years old and who has been in employment status with a particular employer for ninety or fewer consecutive calendar days from the date of initial employment.

As a result the minimum cash wage “non-opportunity” employees is unchanged at $2.33 per hour but the maximum tip credit was increased from $2.82 per hour to $2.97 per hour. For tipped “opportunity” employees, the minimum cash wage is unchanged at $2.13 per hour, but the maximum tip credit was increased from $2.12 per hour to $3.17 per hour.

With this increase in the state’s minimum wage rate, the beneficiaries are many low income workers in Wisconsin. According to the State Wisconsin Department of Workforce Development, the current unemployment rate in Wisconsin is 4.9%. The state’s economy continues to move forward by adding new jobs and creating new opportunities. Wisconsin has seen the same type of economic growth as other states that have raised its minimum wage rate. Unemployment is down, state revenues are up and government assisted programs decrease. Businesses have found that with an increase in the minimum wage productivity is higher, morale is higher, better quality employees are retained and less job turnover is realized. Wisconsin has joined other states in raising its minimum wage because they have decided not to wait for Congress to come to an agreement on raising the federal minimum wage rate.

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