Salary Laws in Wisconsin (2026): Rules Every Worker Should Know

Most people think salary means you’re automatically set. No overtime worries, right? Wrong. Wisconsin salary laws have specific rules that affect when you get paid, how much you must earn, and whether you’re actually entitled to overtime. Let’s break down exactly what you need to know.

What Does “Salary” Actually Mean in Wisconsin?

Here’s the official definition. Salary is money paid regularly on a weekly or less frequent basis. It doesn’t change based on how much or how little work you do. Pretty straightforward.

But here’s the catch. Just because you’re salaried doesn’t mean you’re exempt from overtime. That’s where things get tricky.

Wisconsin follows federal rules for most salary situations. The state doesn’t have its own separate definition. This means the Fair Labor Standards Act guides most decisions about who qualifies as a salaried employee.

Minimum Wage vs Salary Requirements

Let’s start with the basics. Wisconsin’s minimum wage is $7.25 per hour. This matches the federal rate and hasn’t changed since 2009.

Cities and counties can’t set their own minimum wages. Well, except Milwaukee. They have their own rules.

Milwaukee employers with more than 50 workers must pay $12.00 per hour. Smaller employers pay $11.00 per hour. Those rates are higher than the state level.

For young workers under 20, there’s an “opportunity wage” of $5.90 per hour. Employers can pay this rate for the first 90 days only. After that, it jumps to $7.25.

Tipped workers get a different rate. The minimum is $2.33 per hour. But here’s the deal. Your tips plus wages must equal at least $7.25 per hour. If they don’t, your employer has to make up the difference.

Exempt vs Non-Exempt Employees

Okay, pause. This part is super important.

Being salaried doesn’t automatically make you exempt from overtime. You need to meet three specific tests to be truly exempt.

The Salary Basis Test

First, you must be paid on a salary basis. This means you get the same amount each week regardless of hours worked or quality of work. Your paycheck can’t go up and down based on daily performance.

The Salary Level Test

Second, you must earn a minimum amount. Right now, federal law requires $684 per week or $35,568 annually for most positions.

Wait, it gets better. There was supposed to be an increase to $58,656 annually starting January 1, 2025. But a federal court blocked it in November 2024. So for 2026, many employers are sticking with the lower threshold or using $43,888 annually as a middle ground.

Honestly, this is the part most people miss. Check your salary against these numbers.

The Duties Test

Third, your actual job duties must fit specific categories. You need to perform executive, administrative, or professional work. This isn’t about your job title. It’s about what you actually do every day.

Executive roles involve managing others. You need to regularly direct at least two employees. You should have authority to hire, fire, or make recommendations about employment status.

Administrative work requires independent judgment on significant business matters. Think policy decisions, not just following a manual.

Professional positions need advanced knowledge in a specialized field. This usually means prolonged education like a college degree.

Not sure what counts as exempt work? Many people get this wrong.

Wisconsin’s Specific Salary Rules

Wisconsin has a few unique twists on salary laws. The state requires employers to pay at least $700 monthly for someone to qualify as exempt. That’s roughly $8,400 annually.

But wait. Federal law requires more than that. So in practice, you need to meet the higher federal threshold.

Computer professionals have special rules. They can be exempt if paid at least $27.63 per hour. This applies to programmers, software engineers, and similar roles.

Teachers don’t need to meet the salary test at all. Doctors, lawyers, and dentists are also exempt from salary minimums. Their professional duties alone qualify them.

How Often Must You Be Paid?

Wisconsin law says employers must pay you at least monthly. The maximum time between paychecks is 31 days.

That’s the minimum. Most employers pay more frequently. Weekly or bi-weekly schedules are common.

Some exceptions exist. Farm workers and logging employees can be paid quarterly. Part-time firefighters might get paid annually if they agree to it.

Your employer must designate regular paydays. They need to tell you the schedule in advance. Missing a payday can lead to serious penalties.

What About Overtime for Salaried Workers?

Here’s where it gets interesting. If you’re salaried but non-exempt, you still get overtime. Many people don’t realize this.

Overtime kicks in after 40 hours in a week. The rate is 1.5 times your regular pay. But calculating “regular pay” for salaried employees is different.

Let me break it down. Say you earn $500 weekly and work 50 hours. Your regular rate is $500 divided by 50 hours, which equals $10 per hour. For the 10 overtime hours, you get half of that regular rate as extra pay. That’s $5 per hour times 10 hours, or $50 in overtime.

Your total pay would be $550 that week. The $500 salary plus $50 overtime.

Sound complicated? It’s actually not. Just remember that non-exempt salaried workers still get overtime.

Wisconsin law allows this calculation method. Federal law might not. Check with the Department of Labor if you’re unsure.

When Can Your Salary Be Reduced?

This one’s tricky, honestly. Your employer can’t just dock your salary whenever they feel like it.

If you’re exempt, your salary must stay the same regardless of work quality or quantity. Deductions for partial days off are generally not allowed. Full day absences for personal reasons can be deducted, but only with your approval.

Sick leave deductions are okay if you have a legitimate sick pay policy. But only for full days. Your employer can’t dock you for leaving two hours early.

FMLA leave is different. Employers can deduct for partial days under the Family and Medical Leave Act.

Here’s a warning. If your employer keeps changing your salary up and down, they might lose your exempt status. The court could decide you’re really an hourly employee. Then you’d be owed overtime for all those extra hours.

Final Paycheck Rules

When you quit or get fired, you still need to be paid. Wisconsin has specific rules about timing.

If you quit, your employer must pay you by the next regular payday. Same goes if you’re terminated. There’s no special rush payment required.

The only exception is for commission-based sales agents. They have different rules.

Your final check should include all regular wages, plus any earned bonuses or commissions. If your company policy or contract promises vacation payout, that should be included too.

Wisconsin doesn’t require vacation payout by law. But if your employer promises it, they must deliver.

What happens if your employer refuses to pay? You can file a wage claim with the Department of Workforce Development. You have two years from the date wages were earned.

The employer could face penalties up to 100% of the unpaid wages. Courts can also award attorney fees.

Wage Deductions and What’s Allowed

Your employer can’t just take money from your paycheck randomly. Wisconsin law is strict about this.

Legal deductions include taxes, Social Security, and Medicare. Those are required by law.

Your employer can also deduct amounts you authorized in writing. But here’s the catch. The authorization must come after the problem occurs. Blanket authorizations signed when you’re hired don’t count.

For example, say you break company equipment. Your employer can only deduct the cost if you agree in writing after it happens. They can’t rely on a general form you signed months ago.

Third-party deductions that benefit your employer cannot reduce your wages below minimum wage. This includes uniforms, tools, or other work expenses.

If your employer makes an unauthorized deduction, they could owe you twice the amount taken. That’s serious.

Special Situations to Know About

Wisconsin has a “One Day of Rest in Seven” law. If you work in a factory or retail store, you must get at least 24 hours off every seven days.

This doesn’t mean you can’t work seven days in a row sometimes. The day off can come at any point during the week.

Some workers are exempt from this rule. Janitors, for example. Workers who give written consent can also waive the requirement.

Wondering if this applies to you? It depends on your industry.

Record-Keeping Requirements

Your employer must keep detailed records of your work. This includes your name, address, and date of birth. They need your start and end dates of employment.

Daily time records are required. Start and end times for each shift must be documented. If you take meal breaks and they’re deducted from pay, those times go in the records too.

Total hours worked per day and week must be tracked. Production records matter for piece-rate workers.

These records must be kept for at least three years. They protect both you and your employer in disputes.

What If There’s a Dispute?

Disputes happen. Your employer might refuse to pay overtime you believe you’re owed. Or they might misclassify you as exempt when you’re not.

You have options. File a wage claim with Wisconsin’s Department of Workforce Development within two years. The Equal Rights Division investigates these claims.

You can also sue in small claims or circuit court. Sometimes that’s faster than the administrative process.

Union members should contact their union representative first. The union can help navigate the process.

Don’t wait too long. The two-year deadline is firm. After that, you lose your right to collect unpaid wages.

Recent Changes and What’s Coming

The salary threshold for exempt employees has been controversial. Federal rules tried to increase it to $58,656 annually in January 2025. A court blocked that change.

Currently, many employers use $43,888 annually as the threshold. That went into effect in July 2024. But the situation remains fluid with ongoing litigation.

Wisconsin doesn’t have its own higher threshold. The state follows federal rules. This could change if new federal regulations pass.

Stay on top of these updates. They directly affect whether you qualify for overtime.

Milwaukee’s Unique Rules

Milwaukee has higher minimum wages than the rest of Wisconsin. Large employers with 50 or more workers must pay $12.00 per hour. Smaller employers pay $11.00 per hour.

This is significantly higher than the $7.25 state minimum. If you work in Milwaukee, make sure you’re getting the right rate.

These rates apply to hourly workers. Salaried workers still need to meet federal exemption tests.

Rights and Protections

Wisconsin law protects you from retaliation. Your employer can’t fire you or punish you for filing a wage claim. They can’t reduce your pay or change your schedule in revenge.

If you complain about not receiving minimum wage or overtime, that’s protected activity. Reporting violations to the Department of Workforce Development is also protected.

Retaliation is serious. Employers who violate anti-retaliation laws face separate penalties beyond the original wage violation.

You’re not alone, this confuses a lot of people. The laws are complex and employers sometimes make mistakes, intentionally or not.

Tips for Protecting Yourself

Keep your own records. Track the hours you work each day. Note when you arrive, when you leave, and any breaks you take.

Save your pay stubs. Compare them against your time records. Look for discrepancies.

Know your job classification. Are you really exempt? Do your actual duties match the legal requirements? Your title doesn’t matter, only what you actually do.

If something seems wrong, speak up. Ask your HR department or payroll office for clarification. Get the explanation in writing if possible.

Most employers want to follow the law. Sometimes they just need the issue brought to their attention.

Common Mistakes Employers Make

Many employers misclassify workers as exempt. They assume a job title like “manager” or “administrator” automatically means no overtime. That’s not how it works.

The duties test is strict. You must spend the majority of your time on exempt duties. If you spend most of your day doing non-exempt work, you’re probably not exempt.

Some employers think paying a salary automatically removes overtime obligations. Wrong. Non-exempt salaried workers still get overtime.

Another common mistake is making improper deductions from exempt employees’ salaries. This can destroy the exemption and trigger massive overtime liability.

Resources and Where to Get Help

The Wisconsin Department of Workforce Development handles most wage disputes. Their Equal Rights Division investigates claims and can order payment.

Contact them at (608) 266-3131. Their office is in Madison at 201 E Washington Ave.

You can also reach out to the federal Department of Labor’s Wage and Hour Division. Their Milwaukee office number is (608) 441-5221.

Legal aid organizations can help if you can’t afford an attorney. Many offer free consultations for wage issues.

Frequently Asked Questions

Can my employer change my salary at any time?

Yes, but the change only applies to future work. They can’t reduce your salary for hours already worked. They also need to notify you before you perform the work at the new rate.

Do salaried employees get breaks in Wisconsin?

Wisconsin doesn’t require breaks for adults. If your employer provides breaks under 30 minutes, those must be paid. Longer meal breaks can be unpaid if you’re completely relieved of duties.

What if I’m paid salary but work over 40 hours?

If you’re non-exempt, you must receive overtime regardless of being salaried. Calculate your regular rate by dividing your salary by total hours worked. Then you get half that rate for each overtime hour.

Can I sue my employer for unpaid wages?

Yes. You can file in small claims court or circuit court. You have two years from when the wages were earned. Courts can award double the unpaid amount plus attorney fees.

Does Wisconsin have predictive scheduling laws?

No. Wisconsin doesn’t require advance notice of schedules. Local governments are prohibited from creating their own scheduling laws. Employers can change your schedule whenever they want.

Final Thoughts

Wisconsin salary laws protect workers while giving employers flexibility. The key is understanding whether you’re truly exempt or if you should be getting overtime.

Don’t assume your job title tells the whole story. Look at what you actually do every day. Check your salary against the legal thresholds.

Keep good records of your hours and pay. Know your rights and don’t be afraid to ask questions.

If you think something’s wrong, investigate. File a claim if necessary. The laws exist to protect you, but only if you use them.

Now you know the basics. Stay informed, track your hours, and when in doubt, reach out to Wisconsin’s Department of Workforce Development or consult with an employment attorney.

References

1. Wisconsin Department of Workforce Development – Salary Payment Information: https://dwd.wisconsin.gov/er/laborstandards/salaryfaq.htm
2. Wisconsin Statutes Chapter 109 – Wage Payment and Collection: https://docs.legis.wisconsin.gov/statutes/statutes/109
3. U.S. Department of Labor – Fair Labor Standards Act: https://www.dol.gov/agencies/whd/flsa
4. Wisconsin Administrative Code Chapter DWD 274 – Overtime Regulations: https://docs.legis.wisconsin.gov/code/admin_code/dwd/270_289/274
5. Wisconsin Department of Workforce Development – Wage Claims: https://dwd.wisconsin.gov/er/laborstandards/wages.htm