Hiring Laws in Wisconsin

Wisconsin employment laws strike a balance between worker protections and employer flexibility, featuring comprehensive anti-discrimination coverage combined with federal minimum wage standards. The state’s Wisconsin Department of Workforce Development (DWD), Equal Rights Division, and the Equal Employment Opportunity Commission (EEOC) oversee most employment standards, including wage and hour rules, anti-discrimination protections, new hire reporting, and workplace safety.

One of the most notable aspects of Wisconsin employment law is the Wisconsin Fair Employment Act (WFEA), which is recognized as one of the most comprehensive state anti-discrimination laws in the nation. Unlike federal law, the WFEA applies to all employers with one or more employees, providing protections to workers in even the smallest businesses. Additionally, Wisconsin allows local governments to set higher minimum wage rates, creating variation across municipalities.

These rules reflect Wisconsin’s commitment to comprehensive worker protections combined with flexible employer policies.

Wisconsin Hiring Laws

Anti-Discrimination and Equal Opportunity Laws

The Wisconsin Fair Employment Act (WFEA), codified in Wisconsin Statutes Chapter 111, Subchapter 2, prohibits discrimination in employment based on race, color, creed, religion, sex, national origin, ancestry, age (40 and older), disability, sexual orientation, marital status, arrest and conviction record, military status, use of lawful products off the employer’s premises during nonworking hours, genetic testing, and genetic information.

• Unique breadth of coverage: The WFEA applies to all employers in Wisconsin, regardless of size—even sole proprietors with one employee. This is significantly broader than federal Title VII and similar state laws, which apply only to employers with 15+ employees. The Wisconsin Fair Employment Act covers all employers in Wisconsin, including public and private employers.
• Historical significance: Wisconsin was among the first states to enact comprehensive civil rights protections. The state prohibited race discrimination in employment as early as 1945, long before federal Title VII was enacted in 1964.
• Additional protections: Wisconsin law also prohibits employers from requiring certain types of honesty testing or genetic testing as a condition of employment. Employees are also protected from retaliation for filing discrimination complaints, assisting with complaints, or opposing discrimination in the workplace.

Employers are required to provide reasonable accommodations for individuals with disabilities unless it causes significant difficulty or expense. Employers must also maintain written policies addressing non-discrimination and equal employment opportunity and display required anti-discrimination posters.

Pay Equity and Minimum Wage

Wisconsin’s minimum wage is $7.25 per hour, which matches the federal minimum wage. The state has maintained this rate since 2009, meaning Wisconsin has not increased its minimum wage for over 15 years. However, the state remains relatively frozen on this issue—there are currently no plans to raise the statewide minimum wage at the state level.

For more details, visit the Wisconsin Department of Workforce Development Minimum Wage Page.

Local minimum wage ordinances: Wisconsin uniquely permits local governments to set higher minimum wage rates above the state minimum. Several municipalities have established their own minimum wages:

• Milwaukee: $12.00 per hour for employers with more than 50 employees and $11.00 per hour for employers with 50 or fewer employees (effective January 1, 2024)
• Madison: $8.75 per hour
• Other municipalities: Various rates; employers should check local ordinances

Because of these local ordinances, employers must comply with the highest applicable wage where they operate.

• Tipped employees: The minimum cash wage for tipped employees is $2.33 per hour. Employers may take a tip credit of up to $4.92 per hour if tips, combined with the base wage, reach at least $7.25 per hour. Employers must ensure tipped workers always earn at least the state minimum wage.
• Opportunity wage (Youth under 20): Employers may pay $5.90 per hour to workers under 20 during their first 90 consecutive calendar days of employment. After 90 days or when an employee turns 20, the full state minimum wage of $7.25 applies. This represents a higher youth wage than the federal $4.25 training wage.
• Special minimum wages: Wisconsin maintains specific minimum wages for certain occupations:
  • Golf caddies: $5.90 per 9 holes, $10.50 per 18 holes
  • Camp counselors: $210-$350 per week depending on lodging provisions
  • Agricultural workers: Full state minimum wage of $7.25 per hour

Wisconsin follows federal equal pay requirements. Employers should retain records demonstrating the basis for any wage differences between employees of different sexes performing substantially equal work.

Background Checks and Criminal History Rules

Wisconsin does not have a statewide ban-the-box law for private employers. Employers may inquire about an applicant’s criminal history at any point during the hiring process. However, expunged or sealed records require special handling—if an applicant’s criminal record has been expunged or sealed, the applicant may truthfully state that the conviction did not occur.

When using third-party background screening services, the Fair Credit Reporting Act (FCRA) applies. Employers must obtain written consent before running a background check and provide adverse action notices if denying employment.

I-9 and Employment Eligibility Requirements

Like all U.S. states, Wisconsin employers are required to verify the identity and employment eligibility of new hires using Form I-9. Employers must complete Form I-9 within three business days of a new hire’s start date and retain forms for three years after hire or one year after termination, whichever is later.

State-Specific Hiring Rules

Wisconsin enforces additional hiring-related requirements that employers should be aware of:

Penalties for Non-Compliance in Wisconsin

Wisconsin takes non-compliance seriously. Employers who fail to follow state and federal hiring laws can face significant financial and legal consequences.

• Wage and Hour Violations: Employers who violate minimum wage, overtime, and wage payment laws are subject to civil penalties enforced by the U.S. Department of Labor and state authorities. Violations can result in back wages, liquidated damages (double the unpaid wages), and attorney fees.
• Discrimination Violations: If the Equal Rights Division or EEOC finds that an employer violated anti-discrimination laws under the WFEA, it may order remedies including reinstatement with back pay, compensatory damages, front pay, and attorney fees. Importantly, Wisconsin law does not cap compensatory damages for discrimination claims, creating substantial employer exposure.
• Filing timeline: Employees must file discrimination complaints with the Wisconsin Department of Workforce Development’s Equal Rights Division within 300 days of the alleged discriminatory act.
• Employee Lawsuits: Employees can file complaints with the Equal Rights Division of the Wisconsin Department of Workforce Development or pursue civil lawsuits for discrimination or retaliation.
• General labor standards violations: Violators of Wisconsin’s labor standards laws may be assessed between $10 and $100 per day for each day of each violation.
• FCRA Violations: Improper background check procedures can result in fines of $1,000+ per applicant, with significantly higher exposure in class-action lawsuits.
• Form I-9 Violations: USCIS fines can range from $281 to $2,789 per form for paperwork errors, and $678 to $27,894 per violation for knowingly hiring unauthorized workers (as of 2025).
• New Hire Reporting Non-Compliance: Employers who fail to report newly hired employees may face civil penalties of up to $25 per employee for each violation. If it is determined that the failure to report or the submission of a false report is the result of a conspiracy between the employer and employee, the penalty can be up to $500 per newly hired employee.

Notice and Documentation HR Professionals Need to Know

HR professionals must maintain the following key documents to stay compliant:

• Completed Form I-9s for All New Hires- Federal law requires all employers to verify an employee’s identity and eligibility to work in the U.S. via Form I-9. These forms must be completed within three business days of hire and stored securely for the required retention period: either three years after the hire date or one year after termination, whichever is later. For additional guidance on I-9 compliance, consult the USCIS I-9 Handbook.
• New Hire Reporting to Wisconsin DWD- All new hires and rehires must be reported to the Wisconsin New Hire Reporting Center within 20 days of their hire date. Employers may report online (recommended), or submit using Form WT-4 or Form W-4 (if it includes date of birth and date of hire). Reports should include the employee’s name, address, Social Security number, date of birth, and the employer’s FEIN.
• Background Check Documentation- Employers must retain written consent forms, background check reports, and copies of any adverse action notices provided to applicants. These records should be kept for at least one year and demonstrate compliance with FCRA requirements.
• Written Policies on Non-Discrimination and Equal Opportunity- Employers are required to display clear, written policies outlining their commitment to equal employment opportunity and non-discrimination. These policies should be included in employee handbooks and posted in visible areas of the workplace to ensure accessibility for all staff, as required by the Wisconsin Fair Employment Act.
• Required Workplace Posters- The Wisconsin Fair Employment Law requires employers to display a specific poster in a conspicuous place upon their premises. Additional posters covering minimum wage, workers’ compensation, unemployment insurance, and employee rights must also be displayed.
• Retention of Job Applications and Interview Notes- Wisconsin employers are advised to retain job applications, interview notes, and hiring records for a minimum of two years. This documentation can be critical if hiring decisions are later questioned or challenged in discrimination complaints.
• Wage and Hour Records- Employers must maintain accurate records of hours worked, wages paid, and deductions for each employee. Records should be kept for at least three years and made available during audits or investigations by the Wisconsin Department of Workforce Development.