Overtime Laws in Wisconsin

As of 2025, the state of Wisconsin continues to mirror the federal Fair Labor Standards Act (FLSA). But the landscape is shaped by many recent and significant federal updates and new state legislative proposals. The most prominent change is the new federal salary threshold for overtime exemptions. Moreover, the state of Wisconsin has also proposed a bill to eliminate state income tax on overtime earnings. 

The table below highlights key updates impacting overtime and wages in Wisconsin for 2025:

Overview of Wisconsin Overtime Laws 2026

Although the state follows the federal FLSA for most employees, it has set additional overtime provisions for specific industries, including public works and some manufacturing sectors. This is Wisconsin’s way of offering broader protection to its workforce.

• Overtime rate: 1.5X the employee’s regular hourly rate.
• Weekly overtime: Applies only after 40 hours in a workweek.
• Daily overtime: Triggers in specific cases, such as public works projects and certain state-regulated sectors. Employers may be required to pay overtime after 8 hours in a single day to ensure fair wages.
• Exemptions: Standard FLSA exemptions apply, including executive, administrative, and professional roles. However, project-specific labor contracts or state regulations can extend overtime eligibility beyond these pre-defined categories.
• Recordkeeping: Employers must maintain detailed and accurate records of hours worked, pay rates, and overtime calculations for all employees.

Eligibility for Overtime in Wisconsin

Wisconsin categorizes employees into two categories – exempt and non-exempt, which define whether or not they are eligible to receive overtime. 

• Non-exempt employees are usually those workers who work on an hourly basis or earn a salary that is less than the state/federal threshold. They are entitled to receive overtime pay for all hours worked beyond 40 per workweek. 
• Exempt employees are those usually defined as “white-collar” workers or who meet both the salary and duties test as per the federal FLSA. In Wisconsin, these include executives, administrators, and professional employees who earn at least $1,128 per week (as of January 1, 2025).

Federal vs. Wisconsin Overtime Rules

Wisconsin’s overtime regulations largely follow the federal standards, but the state has some specific exemptions, particularly for agricultural workers. The table below gives an overview of federal vs state overtime rules. 

Example

Lora works in the public sector in Wisconsin and earns $20/hour. One fine week, she works for 9 hours a day for 5 days (45 hours). According to federal law, she is eligible to receive overtime of 1.5X her regular pay for the additional 5 hours of work. However, under Wisconsin law, daily overtime applies after 8 hours. So, Lora earns extra pay each day beyond that limit. This shows how state law is different from federal law and provides stronger worker protection.

Exemptions in Wisconsin

Wisconsin uses the federal FLSA definitions for classifying employees in the exemption category. However, it has also included certain industries in this list.

• Executive Employees: Individuals who manage a department or enterprise, supervise at least two full-time employees, have hiring/firing authority, and earn at least $844 weekly ($43,888 annually) qualify as exempt under Wisconsin standards (note: Wisconsin maintained the July 2024 threshold pending further litigation).
• Administrative Employees: Workers performing office/non-manual work directly related to business operations or management policies who exercise independent judgment on matters of significance and meet the Wisconsin minimum salary threshold are classified as exempt.
• Professional Employees: Individuals whose work requires advanced knowledge in specialized fields (law, medicine, accounting, engineering), who possess relevant professional degrees or licenses, and who meet salary requirements are exempt from overtime; teachers, doctors, and lawyers are automatically exempt regardless of salary.
• Computer/IT Professionals: Employees performing systems analysis, programming, software engineering, or IT management who earn at least $844 weekly are exempt.
• Agricultural Workers: Employees engaged in farming, crop production, dairy operations, livestock raising, and related agricultural activities are exempt from Wisconsin overtime requirements.
• Outside Salespersons: Employees who primarily conduct sales away from an employer’s premises qualify for the outside sales exemption.
• Highly Compensated Employees: Workers earning sufficient amounts to satisfy federal highly compensated employee standards who perform any work related to management may qualify for exemption.
• Collective Bargaining Agreement Employees: Employees covered by specific collective bargaining agreements may have overtime treatment as negotiated in their union contracts.
• Wisconsin’s Unique Position: Following the November 2024 federal court ruling, Wisconsin maintained its $844 weekly threshold (from July 2024) instead of reverting to the $684 federal level, pending further litigation; non-exempt employees must receive overtime at 1.5 times regular pay for hours over 40 weekly or compensatory time at 1.5 hours per overtime hour worked.

Employer Obligations and Employee Rights

In Wisconsin, all employers must strictly follow the state and federal laws, ensuring fair compensation and employee rights.

• Timely Payment: Make timely wage payments to all employees on established or predefined dates. 
• Recordkeeping: Maintain accurate records of employee time and payroll, especially for all non-exempt workers.
• Anti-Retaliation: It is illegal for employers to retaliate against employees for requesting overtime pay or filing a wage complaint with the state.
• Penalties: Employers who fail to follow overtime laws can be held liable for unpaid wages, damages, and legal costs.