Understanding Wisconsin overtime laws is crucial: A practical guide for employers

Wisconsin state overtime laws are largely consistent with federal overtime laws. Like the federal Fair Labor Standards Act (FLSA), 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 pay rate 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 each covered employee time and one-half their regular pay rate for all hours worked in excess of 40 hours per week.

Under the law, “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.

FAQs from business owners

Business owners regularly ask questions about their overtime requirements. Here are some frequently asked questions (FAQs):