Understanding Wisconsin Overtime Laws: A Practical Guide for Employers

February 4, 2025

Wisconsin state labor laws regarding the payment of overtime are largely consistent with the federal overtime laws. Like the Federal Fair Labor Standards Act, Wisconsin overtime laws apply to most Wisconsin employers. Having a basic grasp of these laws can help keep you and your business in compliance. Unless an exception applies, overtime wages equaling time and one-half of the employee’s regular rate of pay should be paid for all hours worked in excess of 40 in the workweek.

The law applies widely to factories, restaurants, hotels, beauty parlors, retail stores, and many more types of businesses. If you have a question about whether your business is required to pay overtime, contact an attorney for clarification.

Calculating Overtime Compensation for Your Employees

If your business is subject to Wisconsin’s overtime regulations, you must pay to each covered employee time and one-half the employee’s regular rate of pay for all hours worked in excess of 40 hours per week. “Week” means a calendar week or a regular reoccurring period of 168 hours in the form of seven consecutive 24- hour periods. “Regular rate” includes all compensation paid to or on behalf of the employee such as commissions, nondiscretionary bonuses, and premium pay. For example, since the regular Wisconsin minimum wage is $7.25 per hour, this makes Wisconsin’s overtime minimum pay $10.88 per hour.

We use a bi-weekly pay period, can we pay overtime for hours worked over 80 hours instead of 40 hours per week?

The short answer is NO. When calculating overtime pay, the hours worked in each week of the pay period must be considered independently.

Can we create an employment contract to waive overtime?

Generally speaking, this can only be done in particular situations thus any questions on when it can be done should be analyzed by an attorney or trusted source for compliance. Since federal law may also require you to pay overtime pay, it should be considered that a modification or waiver of state laws would not exempt you from any federal requirements.

What if my employee works hours that I did not authorize?

Work time that is not requested by you but still worked or permitted is considered work time for calculating overtime pay. It is your duty and your management team’s duty to control the hours worked by employees.

When do I have to pay out on overtime pay?

Wisconsin law requires employers to pay wages at least once per month, with no more than 31 days between pay periods. Some employers may choose to pay more frequently, such as weekly or biweekly, but the calculation of hours is still based on the “weekly rate” discussed above.

Do pay stubs have to clarify what hours are overtime hours?

Generally, Wisconsin law requires an employer to provide pay stubs to employees showing:

  1. The hours the employee worked;
  2. The amount of wages earned/rate of pay; and
  3. The deductions made from the pay.

What Exemptions Exist to Overtime Pay in Wisconsin?

There are numerous exemptions to the Wisconsin overtime pay laws and determining if you or your employees are exempted from overtime pay requirements can be difficult. Some examples of jobs that can be exempt include agricultural employees; certain administrative, executive, and professional employees; certain outside sales and commissioned employees; salespersons, and employees of movie theaters; as well as a number of other types of employment. If you have any questions regarding whether you or your business might fall under an exemption, an attorney can help you understand if an exemption may apply.

Be Vigilant and Ward Off Retaliation

It is illegal for you or your management team to retaliate against an employee for asking for their overtime pay, contacting an attorney, or even filing a claim with state agencies. If you have any concerns about whether you or a team member could be considered retaliating against an employee, you should certainly consult with a trusted attorney to determine your next steps. Notably, the statute of limitations for filing a complaint regarding overtime (or other unpaid wages) is two years. For willful violations, the statute of limitations is three years. If your business finds itself having retaliated against an employee, that employee can seek protections under the state’s anti-retaliation provisions and may file a complaint with the Equal Rights Division of the Department of Workforce Development.

Bottom Line

In conclusion, understanding and adhering to Wisconsin’s overtime laws is essential for your business to remain compliant. These regulations, which align closely with federal standards, require careful attention to how hours are tracked, calculated, and compensated. By consulting with trusted legal advisors, you can clarify uncertainties and navigate exemptions.

This article, slightly modified to note recent updates, was featured online in the Wisconsin Employment Law Letter and published by BLR®—Business & Legal Resources. Reproduced here with the permission of BLR®—Business & Legal Resources.