labor lawAdivision of labor law center

The Wisconsin minimum wage is currently $7.25 per hour, the same as the federal minimum wage.

In 2006, both the federal and Wisconsin minimum wages were $5.15 per hour. At that point, the federal minimum wage had less purchasing power than the $1.60 per hour minimum in the 1960s. To address this issue, the Fair Minimum Wage Act or FMWA was enacted in 2007. The FMWA set forth a series of three increases to the federal minimum wage, beginning in 2007 and ending in 2009.

The third and last increase occurred on July 24, 2009 and bumped the federal minimum from $6.55 per hour to $7.25 per hour. This increase will have an effect on most employers in Wisconsin.

Wisconsin is one of 28 states that currently have a minimum wage equal to the federal minimum wage. Those states include Alaska, Delaware, Florida, Georgia, Indiana, New Hampshire, New York and Utah.

By contrast, there are 5 states with no minimum wage at all. Those states are Louisiana, Tennessee, Mississippi, South Carolina and Alabama. Kansas has the dubious distinction of being the state with the lowest minimum wage, at $2.65 per hour.

Employees in Wisconsin are entitled to the Wisconsin minimum wage unless they are covered under the Fair Labor Standards Act of 1938 (FLSA).

The FLSA is the relevant law for the federal minimum wage and applies to companies earning at least $500,000 per year, and to employers and individual employees engaged in interstate commerce.

Interstate commerce is defined as doing business with other states, such as manufacturing goods for sale out-of state, buying goods from out-of state, and answering phone calls from out-of-state vendors. In addition a company that uses the Internet or accepts credit card or debit card for payments is considered to be engaged in interstate commerce.

It is rare to find a business that does not engage in interstate commerce, therefore, most of the employers in all states need to pay their employees the federal minimum of $7.25 per hour.

In a business that does not engage in interstate commerce, it is possible (more…)

There are several changes in the Wisconsin labor laws that employers need to be aware of, including those regarding the Wisconsin family leave law, domestic partnerships, smoking ban, and discrimination .

On June 29, 2009 Governor Jim Doyle signed the Wisconsin domestic partnership law. The law, a portion of the state budget, permits registered domestic partners to enjoy the employment benefits currently offered to married couples. These include taking unpaid Wisconsin FMLA (called WFMLA) to care for a domestic partner with a serious health condition, and group health insurance coverage for partners.

The Wisconsin domestic partnership law goes into effect on August 3, 2009. Domestic partners will complete a declaration in their home counties, and can dissolve the partnership through a termination process at the county clerk’s office.  

So despite the fact that gay marriage is still illegal in Wisconsin, many gay couples will still benefit from the same privileges including being able to make end-of-life decisions for each other, and having hospital visitation rights.

The law also extends domestic partner benefits including health insurance to state employees.

Earlier in the year, (more…)

The Wisconsin minimum wage will increase 75 cents, from $6.50 to $7.25 per hour, on July 24, 2009.

Wisconsin employers must prominently display new federal and Wisconsin minimum wage posters or face stiff penalties.

The new Wisconsin minimum wage equals the federal minimum wage, which will increase by 70 cents to $7.25 on that date. By state statute, the Wisconsin minimum wage cannot be lower than the federal minimum wage.

The new Wisconsin minimum wage for minors is the same as for adults — $7.25 per hour. The change in the federal minimum wage effectively eliminates the state’s lower minimum wage for minors, which is $5.90 per hour prior to July 24, 2009.

However, the Wisconsin minimum wage contains a number of exceptions. First, the tipped minimum wage for Wisconsin employees remains at $2.33 per hour. Tipped employees who are not yet 20 years old and have been employed for 90 or fewer days may be paid $2.13 per hour. (more…)

The U.S. Department of Labor announced a series of grants in February, including a $250,000 grant for Minnesota.

The Minnesota grant is unique because it’s main purpose is to develop cooperative economic development strategies with Wisconsin, an adjoining state.

The project will focus on economic development in 17 counties in Wisconsin and Minnesota.

The grant will align economic development resources and establish structured economic strategies that create common goals for northeast Minnesota and northwest Wisconsin. Rather than competing for industry, as neighboring states often do, the two states will collaborate to bring more employers into the area.

“Forestry and mining industry declines have hit this region’s workforce hard over the last decade, so it is important that the area’s economic goals are set up to address this issue,” said Deputy Assistant Secretary for Employment and Training Douglas F. Small. “This $250,000 grant will support analysis of the region’s infrastructure and economic assets, and help develop viable strategies that create good employment opportunities for workers.”

The grant, awarded to the Minnesota Department of Employment and Economic Development’s Workforce Partnership Division, will allow northeast Minnesota and northwest Wisconsin to maximize the effectiveness of a newly established leadership group formulating economic goals and strategies focused on the needs of growing industries.

The project funded by the U.S. Department of Labor includes the Minnesota counties of Aitkin, Carlton, Cook, Itasca, Koochiching, Lake and St. Louis and the Wisconsin counties of Ashland, Bayfield, Burnett, Douglas, Iron, Price, Rusk, Sawyer, Taylor and Washburn.

Regional Innovation Grants are drawn from National Emergency Grant funds to assist state workforce agencies and local workforce investment boards, as well as their key partners, in the design and development of comprehensive and strategic regional plans focused on talent development that is aligned with the demands of the 21st century economy.

There have been a number of important grants in the past few months. When the O’Sullivan Industries closed its plant in Lamar, Missouri, displacing many, many workers, the U. S. Department of Labor awarded the state over 1 million dollars in a National Emergency Grant (NEG). In addition, the new SI WORKS program received $250,000 to help improve worker opportunities and to develop the economy in twenty southern Illinois counties.

NEGs are awarded by the U. S. Department of Labor at the discretion of the Secretary of Labor. The grants provide time-limited funds to give local and state service levels a temporary boost when affected by “significant dislocation events.” To clarify, when a company layoff or plant closure creates a greater need than the state’s resources can handle, the state may apply for an Emergency Grant. To qualify, though, the state must include among its resources and discretionary funds that are available to that state.

States are also encouraged to initiate the grant application process immediately after the need arises, in order to ensure funds will be available. State and local employment agencies have information and policies on grants and the application process.

Understand that different types of grants are awarded in different types of situations.

When a community is small or rural and is severely affected by layoffs of fewer than 50 workers, a Regular NEG may be awarded. Industry-wide layoffs within a region and layoffs of more than 50 workers would also be awarded a Regular NEG.

For communities struck by natural disasters, such as hurricanes, earthquakes, floods, blizzards, wildfires etc., a Disaster grant could be awarded.

Regional Innovation grants are often used to train laid-off worker for job in new industries. These grants are awarded to partnerships developed between business and government and non-profit agencies.

When the Department of Labor determines that an area is affected by federal trade policies, project layoffs of more than 50 workers would be awarded the Trade-WIA Dual Enrollment grant.

Thanks to new legislation, family members and the next of kin of Wisconsin active duty soldiers will be able to take off as much as 26 weeks of unpaid job protected leave from work under certain conditions

The recently signed bill appears to allow employees to take the time either to care for an injured soldier or to help care for a child if a member of the military is called to active duty.

The President signed the bill on January 28, 2008. It is the National Defense Authorization Act of 2008 (NDAA), or HR 4986. It essentially expands the Family and Medical Leave Act (FMLA) by providing up to 26 weeks of the FMLA leave for relatives and spouses of Reserve and National Guard members called to active duty, among other things.

The legislation allows a worker to take the leave for “any qualifying exigency” that occurs because a spouse, son, daughter, or parent or the worker is on active duty, or even has been notified that active duty is imminent. This is likely to mean taking time off to care for a child or children when a family member in the military is deployed. Details are contradictory at this time. The provision technically does not take effect until the U.S. Labor Secretary issues completed regulations that include a definition of “qualifying exigency” and just is included under that definition. At the same time, the U.S. Labor Department is “encouraging” employers to provide the leave immediately.

The law also allows a family member - whether, child, parent, spouse, or next of kin - to take the leave to care for an injured soldier, a member of the National Guard or Reserve who is getting medical treatment. The treatment could involve receiving mental therapy or physical therapy. It could also involve recuperating, outpatient treatments, or caring for a soldier who is on what is called the temporary disability retired list for an injury or illness considered serious.

The law took effect immediately. In the absence of more detail, employers’ “good faith” compliance with the regulations is urged.

The Family and Medical Leave Act of 1993 (FMLA) was a major change for Wisconsin workers. For the first time, the law required employers to provide an employee with leave when he or she suffered from serious health problems. FMLA leave is unpaid, but job protected, meaning the worker is guaranteed the same or a similar job when he or she returns.

The only expansion of the law since its original passage is the National Defense Authorization Act (NDAA) of 2008, which, among other things, increases leave time for relatives of military personnel on active duty. The U.S. Department of Labor is scrambling to complete regulations based on the NDAA, and few details are available yet.

The FMLA provides workers with a guaranteed 12 weeks of unpaid, job protected leave yearly. The time can be used if the employee is seriously ill. Workers can also use it to care for a member of the immediate family with an illness. By “immediate family” the law refers to spouses, children or parents, but not grandparents, in-laws, or siblings.

The law is meant to allow employees to care for a newborn child, a new foster child under 18 or a newly adopted child, thus its common designation as “maternity leave” or “paternity leave.”

The Act applies only to companies with 50 workers or more within a radius of 75 miles. Again, some states have expanded coverage to include smaller firms.

While no state or federal law says workers must be paid for FMLA leave, some companies will count paid time off, including sick time, toward the employee’s 12 weeks of leave. Employers must notify the worker in writing of this before the leave begins, however.

The National Defense Authorization Act of 2008 (the NDAA) is the first significant enlargement of the FMLA since it was passed in 1993. It covers relatives of soldiers, but the U.S. Labor Department has not yet developed regulations based on the legislation, so details are still sketchy.