Overtime Laws in Wisconsin 2026: Pay Rates, Exemptions & Tax Deduction (2026)
⚠️Informational only — not legal or tax advice.
Guide for Wisconsin overtime laws 2026
Last verified: March 3, 2026
Next scheduled review: June 3, 2026
Table of Contents
- Wisconsin Overtime Laws at a Glance (2026)
- Does Wisconsin Have Its Own Overtime Law?
- How Overtime Pay Is Calculated in Wisconsin
- Who Is Exempt from Overtime in Wisconsin?
- Overtime Tax Deduction: “No Tax on Overtime” (2025–2028)
- Can an Employer Require Overtime in Wisconsin?
- Industry-Specific Overtime Rules in Wisconsin
- How to File an Overtime Wage Complaint in Wisconsin
- Penalties for Overtime Violations in Wisconsin
- Wisconsin Overtime Law Updates (2025–2026)
- Frequently Asked Questions
- Sources and Verification
Wisconsin Overtime Laws at a Glance (2026)
| Wisconsin Overtime Law Overview (2026) | |
|---|---|
| Item | Details |
| Overtime threshold | 40 hours per workweek |
| Overtime pay rate | 1.5× regular rate of pay |
| Double time | No |
| Daily overtime | No — weekly calculation only (except minors: see below) |
| State minimum wage (2026) | $7.25/hour |
| Exempt salary threshold (2026) | Federal: $684/week ($35,568/yr) — state uses monthly thresholds (see Section 4) |
| State enforcement agency | Wisconsin Department of Workforce Development — Equal Rights Division |
| Federal enforcement | U.S. DOL Wage and Hour Division |
| Overtime tax deduction (federal) | Up to $12,500/yr (2025–2028) — FLSA-covered workers |
| Statute of limitations | 2 years (state and FLSA); 3 years if willful (FLSA) |
Governing law: Wis. Stat. §§ 103.01–103.03; Wis. Admin. Code Ch. DWD 274; Fair Labor Standards Act, 29 U.S.C. § 207
Last verified: March 3, 2026
Does Wisconsin Have Its Own Overtime Law?
Wisconsin has its own overtime law under Wis. Stat. §§ 103.01–103.03 and Wis. Admin. Code Chapter DWD 274, administered by the Wisconsin Department of Workforce Development (DWD) Equal Rights Division. The state law applies to most Wisconsin employers, including state and local units of government.
When Wisconsin law and federal FLSA rules differ, the standard that is more favorable to the employee applies.
Key characteristics of Wisconsin overtime law:
- Wisconsin’s overtime law covers most of the same employers and workers as the FLSA, but applies specifically to factories, mercantile establishments, mechanical establishments, restaurants, hotels, motels, resorts, beauty parlors, retail and wholesale stores, laundries, express and transportation firms, telegraph offices, and telephone exchanges.
- Wisconsin explicitly prohibits employers and employees from entering into any agreement that waives state overtime requirements. Such agreements are not legally enforceable.
- The state law expressly includes state and local government employers.
- Most non-profit organizations are not covered by Wisconsin’s state overtime law, though non-profit employers operating certain covered establishments (such as restaurants or hotels) must comply.
- Wisconsin does not require daily overtime. Overtime is calculated on a weekly basis only — hours worked over 40 in a workweek, regardless of how many hours are worked in any single day.
Exception for minors (ages 16–17): Under Wisconsin’s Employment of Minors regulation (Wis. Admin. Code Ch. DWD 270), minors ages 16 and 17 must receive overtime pay at 1.5 times their regular rate for all hours worked in excess of 10 hours per day or 40 hours per workweek, whichever calculation results in more overtime due.
State statute: Wis. Stat. §§ 103.01–103.03 — https://docs.legis.wisconsin.gov/statutes/statutes/103/01
State administrative code: Wis. Admin. Code Ch. DWD 274 — https://docs.legis.wisconsin.gov/code/admin_code/dwd/270_279/274
Federal statute: Fair Labor Standards Act, 29 U.S.C. § 207 — https://www.dol.gov/agencies/whd/overtime
Wisconsin DWD Overtime Page: https://dwd.wisconsin.gov/er/laborstandards/overtime.htm
How Overtime Pay Is Calculated in Wisconsin
What Is a “Workweek”?
Under both Wisconsin law and the FLSA, a workweek is a fixed, regularly recurring period of 168 consecutive hours — seven consecutive 24-hour periods. A workweek does not have to begin on Monday or align with the calendar week; the employer designates the start day and time.
Each workweek stands alone. An employer cannot average hours across two or more workweeks to avoid overtime. Under Wis. Admin. Code DWD 274 and federal law, if an employee works 50 hours one week and 30 hours the next in a bi-weekly pay period, overtime is owed for the first week regardless of the second.
Source: Wis. Admin. Code Ch. DWD 274; 29 C.F.R. § 778.104–778.105
Pay Rates
Under Wisconsin law (Wis. Admin. Code DWD 274.03) and the FLSA, nonexempt employees in Wisconsin earn:
Time-and-a-half (1.5× regular rate):
- All hours worked over 40 in a workweek
Wisconsin does not require double time (2×) under any standard circumstances. There is no daily overtime threshold for adult employees.
What Counts as the “Regular Rate of Pay”
Under Wisconsin law (consistent with 29 C.F.R. § 778.108), the regular rate includes all remuneration paid to or on behalf of the employee. This includes:
- Base hourly rate or salary equivalent
- Commissions
- Non-discretionary bonuses
- Piece-rate earnings
- Premium pay and shift differentials
The regular rate does not include:
- Discretionary bonuses (e.g., holiday gifts)
- Employer contributions to benefit plans
- Vacation, holiday, or sick pay when no work is performed
Important: Hours paid for time not worked — such as sick leave, vacation pay, or holiday pay — do not count as hours worked when computing overtime in Wisconsin. Only actual hours worked count toward the 40-hour threshold.
Source: Wis. Admin. Code Ch. DWD 274; https://dwd.wisconsin.gov/er/laborstandards/overtimefaq.htm; 29 C.F.R. § 778.108–778.122
Calculation Example
Example — Weekly overtime in Wisconsin:
An employee earns $7.25/hour (Wisconsin and federal minimum wage) and works 48 hours in one workweek:
- Regular pay: 40 hours × $7.25 = $290.00
- Overtime pay: 8 hours × ($7.25 × 1.5) = 8 × $10.88 = $87.04
- Total weekly gross pay: $377.04
Example — Salary plus commission:
An employee earns a weekly salary of $200 plus $45 in commissions, and works 44 hours:
- Total compensation: $200 + $45 = $245.00
- Regular hourly rate: $245.00 ÷ 44 hours = $5.57/hour
- Half-time premium: $5.57 ÷ 2 = $2.785/hour
- Overtime premium owed: 4 hours × $2.785 = $11.14
- Total wages: $256.14
This “half-time” or “fluctuating workweek” method applies when the salary is understood to compensate all hours worked and the additional premium is owed for overtime hours only.
Source: Wis. Admin. Code Ch. DWD 274.03; https://dwd.wisconsin.gov/er/laborstandards/overtimefaq.htm
For the current Wisconsin minimum wage used in these calculations, see the Wisconsin Minimum Wage page.
Who Is Exempt from Overtime in Wisconsin?
Not all employees in Wisconsin are entitled to overtime pay. Certain employees are classified as “exempt” under federal and/or state law.
Federal FLSA Exemption Requirements
To be exempt from overtime under the FLSA, an employee must meet all three criteria:
1. Salary basis test: Paid a predetermined, fixed salary each pay period (not hourly)
2. Salary level test: Earn at least $684 per week ($35,568 per year)
3. Duties test: Perform specific job duties in one of these categories:
| Wisconsin Overtime Exemptions (EAP Categories) | |
|---|---|
| Exemption | Key duty requirement |
| Executive | Manages enterprise or department; directs 2+ employees; authority to hire/fire |
| Administrative | Office/non-manual work related to management or business operations; exercises independent judgment |
| Professional | Work requiring advanced knowledge in science or learning (prolonged specialized study) |
| Computer employee | Systems analysis, programming, software engineering — $684/week salary OR $27.63/hour |
| Outside sales | Primary duty is making sales away from employer's place of business |
Source: 29 C.F.R. Part 541
What Happened to the 2024 DOL Salary Threshold Increase?
In April 2024, the U.S. Department of Labor issued a final rule that would have raised the exempt salary threshold to $1,128 per week ($58,656/year) effective January 1, 2025.
On November 15, 2024, the U.S. District Court for the Eastern District of Texas vacated that rule nationwide in Texas v. U.S. Department of Labor (No. 4:24-cv-00499).
The federal salary threshold remains $684/week ($35,568/year) as of 2026.
Wisconsin State Exemption Salary Thresholds
Wisconsin’s own exemption definitions in Wis. Admin. Code Ch. DWD 274.04 use monthly salary thresholds that differ from the federal weekly standard. Under the state rules:
| Wisconsin Salary Thresholds (Monthly vs Weekly Equivalent) | ||
|---|---|---|
| Exemption category | Wisconsin monthly threshold | Federal weekly equivalent |
| Executive | $700/month | ~$161.54/week |
| Administrative | $700/month | ~$161.54/week |
| Professional | $750/month | ~$173.08/week |
Critical note: Because these Wisconsin monthly thresholds are significantly lower than the federal $684/week threshold, the federal FLSA standard is more favorable to the employee and therefore governs for covered employers. In practice, employees of FLSA-covered employers must meet the federal $684/week salary threshold — not Wisconsin’s lower monthly amounts — to qualify as exempt.
Wisconsin’s state thresholds may apply to employees of employers covered by Wisconsin law but not covered by the FLSA (which is uncommon for most larger businesses).
Wisconsin does not have an exempt salary threshold higher than the federal level. The comparison table below shows states that do:
| State Exempt Salary Threshold Comparison (2026) | ||
|---|---|---|
| State | Weekly threshold (2026) | Annual equivalent |
| Washington | $1,541.70 | $80,168 |
| California | $1,352.00 | $70,304 |
| New York (NYC) | $1,199.10 | $62,353 |
| Colorado | $1,123.08 | $58,400 |
| Maine | ~$796.17 | ~$41,401 |
| Federal / Wisconsin | $684.00 | $35,568 |
Source: Wis. Admin. Code Ch. DWD 274.04 — https://docs.legis.wisconsin.gov/code/admin_code/dwd/270_279/274; 29 C.F.R. Part 541
Wisconsin-Specific Exemptions Under DWD 274.04
Wisconsin’s administrative code lists several additional categories exempt from state overtime, including:
- Agricultural employees — workers engaged in farming, tillage, livestock, harvesting, and related farm operations
- Domestic service workers — household employees in the private home of the employer (not covered if employed by a for-profit agency placing them in private homes)
- Motor vehicle dealer employees — salespersons, parts personnel, service managers, service writers, and mechanics employed by non-manufacturing establishments primarily engaged in selling automobiles, trucks, boats, motorcycles, snowmobiles, or aircraft
- Taxicab drivers
- Motor carrier employees — drivers, driver’s helpers, loaders, or mechanics covered under the Motor Carrier Act
- Amusement or recreational establishments — establishments that do not operate for more than 7 months in any calendar year, or where off-season receipts are no more than 33⅓% of peak-season receipts
- Motion picture theater employees
- Funeral establishment employees
- Forestry/lumbering operations — if the employer has no more than 8 employees in the operation
- Computer professionals — earning at least $27.63/hour (consistent with the federal computer employee exemption)
- Commission-based retail/service employees — if more than 50% of earnings come from commissions and the regular rate of pay exceeds 1.5× the state minimum wage
Source: Wis. Admin. Code Ch. DWD 274.04 — https://docs.legis.wisconsin.gov/code/admin_code/dwd/270_279/274
Overtime Tax Deduction: "No Tax on Overtime" (2025–2028)
The One Big Beautiful Bill Act (Public Law 119-21), signed on July 4, 2025, created a new federal income tax deduction for qualified overtime compensation under Internal Revenue Code § 225.
This deduction is available for tax years 2025 through 2028.
Who Is Eligible
- Nonexempt employees covered by the Fair Labor Standards Act (29 U.S.C. § 207)
- Must have a Social Security number valid for employment
- Cannot use the Married Filing Separately filing status
Who is NOT eligible:
- Exempt (salaried) employees who do not receive FLSA overtime
- Independent contractors (1099 workers) who are not FLSA-covered
- Employees receiving overtime only under state law, employer policy, or collective bargaining (if that overtime is not also required by the FLSA)
What Is Deductible
The deduction covers the premium portion of overtime pay — specifically the amount that exceeds the regular rate of pay.
| Overtime Tax Deduction — Example Calculation | ||
|---|---|---|
| Overtime type | What is deductible | Example ($20/hr regular rate) |
| Time-and-a-half (1.5×) | The "half" — 1/3 of total OT pay | $10/hr per OT hour ($30 − $20) |
| Double time (2×) | The "full extra" — 1/2 of total OT pay | $20/hr per OT hour ($40 − $20) |
IRS shortcut for 2025: If you only know your total overtime pay and were paid time-and-a-half, divide the total overtime amount by 3. (Source: IRS Notice 2025-69)
| Deduction Limits | ||
|---|---|---|
| Filing status | Maximum annual deduction | Phase-out begins |
| Single | $12,500 | $150,000 MAGI |
| Married filing jointly | $25,000 | $300,000 MAGI |
| W-2 Reporting Requirements for Qualified Overtime | |
|---|---|
| Tax year | Employer reporting requirement |
| 2025 | NOT required to separately report (transition year — IRS Notice 2025-62). May voluntarily report in W-2 Box 14 as "QUAL OT" or provide a separate statement. |
| 2026 and later | REQUIRED to separately report qualified overtime compensation. The IRS has published a draft W-2 form indicating Box 12, Code TT for this purpose (draft form, subject to final IRS guidance). |
If an employer did not separately report overtime for 2025, the IRS allows employees to use “any reasonable method” to calculate the deductible amount, including one-third of total overtime pay for time-and-a-half workers, payroll records, or employer-provided statements.
What This Deduction Does NOT Do
- Does NOT exempt overtime from Social Security (6.2%) or Medicare (1.45%) taxes
- Does NOT automatically apply to Wisconsin state income taxes (see below)
- Does NOT change how much overtime pay an employee receives — it reduces federal taxable income when filing
- Does NOT apply to overtime paid solely under state law or employer policy
Source: IRS FAQs on Qualified Overtime Compensation Deduction; IRS Notice 2025-69; IRS Notice 2025-62; IRC § 225; P.L. 119-21, § 70202
Official IRS page: https://www.irs.gov/newsroom/questions-and-answers-about-the-new-deduction-for-qualified-overtime-compensation
Wisconsin Income Tax and Overtime — Pending Legislation
The federal overtime deduction applies to federal income tax only. As of March 2026, Wisconsin has not yet enacted a parallel state income tax exemption for overtime pay. Overtime pay in Wisconsin therefore remains subject to Wisconsin state income tax at normal rates.
Pending Wisconsin legislation: AB 461 / SB 454
Wisconsin Assembly Bill 461 would create a Wisconsin state income tax subtraction for qualified overtime compensation, mirroring the federal deduction. Key details of the bill as passed by the Assembly on January 15, 2026:
- Applies to taxable years beginning after December 31, 2024 (retroactive to 2025 tax year)
- Maximum subtraction: $12,500/year for single filers; $25,000/year for joint filers
- Applies the same definition of “qualified overtime compensation” as federal IRC § 225
- Permanent — unlike the federal deduction which expires after 2028, the Wisconsin bill contains no sunset date
- Passed the Assembly 61–35 on January 15, 2026
- The Senate companion bill (SB 454) was referred to the Senate Committee on Agriculture and Revenue; a committee hearing was scheduled for February 13, 2026
Status as of March 2026: Awaiting Senate action. If enacted, AB 461 would reduce Wisconsin tax collections by an estimated $176 million in fiscal year 2026 and approximately $150 million annually thereafter.
Source: Wisconsin Legislature AB 461 bill text — https://docs.legis.wisconsin.gov/2025/proposals/reg/asm/bill/ab461; Wisconsin Legislature SB 454 — https://docs.legis.wisconsin.gov/2025/proposals/reg/sen/bill/sb454
For Wisconsin income tax details, see the Wisconsin Income Tax page.
Can an Employer Require Overtime in Wisconsin?
Under the FLSA, there is no federal limit on the number of hours an employer can require an adult employee (age 16 and older) to work in a workweek, as long as the employee is properly compensated at the overtime rate for all hours over 40.
Wisconsin law is consistent with this federal standard. Wisconsin’s DWD explicitly states that employers may schedule employees any way they wish, and overtime may be made mandatory. Employers may also change employees’ schedules during a given week to prevent overtime from accumulating, provided the schedule changes are made legitimately and not as a means of evading overtime compensation.
An at-will employee who refuses to work scheduled overtime may face disciplinary action, including termination, unless a collective bargaining agreement or employment contract provides otherwise.
Wisconsin’s “One Day of Rest in Seven” law: Under Wis. Stat. § 103.85, employees in factories and mercantile establishments must receive at least 24 consecutive hours of rest in each calendar week. This law does not prevent overtime or limit hours — it only guarantees one day of rest. Notably, the law does not require that the rest day fall in every 7-day block; an employer may legally schedule 12 consecutive workdays if the rest days fall on the first and last days of a two-week period.
Compensatory Time in Wisconsin
Private-sector employers in Wisconsin cannot offer compensatory time off in lieu of overtime pay. Under the FLSA (29 U.S.C. § 207) and Wisconsin law, employees who work more than 40 hours in a workweek must receive overtime wages in cash at 1.5 times their regular rate — not time off.
However, Wis. Admin. Code DWD 274 provides a limited option: if a private-sector employer does choose to pay the overtime premium through comp time, the employee is entitled to 1.5 hours of compensatory time for each overtime hour worked. Non-government employers must also ensure that employees are able to use their accrued compensatory time within 31 days of when it was earned. This does not affect the underlying obligation to compensate at 1.5×; it merely allows the form of payment to be time off at the 1.5× rate rather than wages.
Public-sector employers (state and local government) in Wisconsin may offer compensatory time instead of overtime pay under 29 U.S.C. § 207(o), provided a prior agreement exists and comp time accrues at 1.5 hours per overtime hour worked. The FLSA cap is 240 hours of accrued comp time (or 480 hours for public safety, emergency response, and seasonal employees).
Protections That Always Apply
Regardless of mandatory overtime policies, the following protections apply in Wisconsin:
- All overtime hours must be compensated at 1.5× the regular rate of pay
- Employers cannot retaliate against employees who file wage complaints — Wisconsin law (Wis. Stat. § 109.09) and the FLSA (29 U.S.C. § 215(a)(3)) both prohibit retaliation
- Disability accommodation requests under the ADA may limit overtime requirements for covered employees
- Minors under age 18 are subject to additional hour restrictions under Wisconsin’s Employment of Minors law (Wis. Admin. Code Ch. DWD 270)
Source: 29 U.S.C. § 207; Wis. Stat. § 103.85; Wis. Admin. Code Ch. DWD 274; https://dwd.wisconsin.gov/er/laborstandards/overtimefaq.htm
Industry-Specific Overtime Rules in Wisconsin
Agriculture
Agricultural employees in Wisconsin are exempt from the state overtime law under Wis. Admin. Code Ch. DWD 274.04(9). This exemption covers farming in all its branches, including cultivation, tillage, dairying, production, growing, and harvesting of agricultural or horticultural commodities, and the raising of livestock, poultry, or bees.
Under the FLSA, agricultural workers are similarly exempt from federal overtime requirements under 29 U.S.C. § 213(b)(12).
Wisconsin has not enacted legislation extending overtime protections to agricultural workers, unlike Washington (which requires agricultural overtime after 40 hours/week since 2024) or California.
Source: Wis. Admin. Code Ch. DWD 274.04(9); 29 U.S.C. § 213(b)(12)
Healthcare (8-and-80 System)
Wisconsin’s overtime exemptions in Wis. Admin. Code Ch. DWD 274.04(11) incorporate the federal 8-and-80 alternative for hospitals and residential care facilities.
Under 29 U.S.C. § 207(j), hospitals and institutions primarily engaged in the care of the sick, aged, mentally ill, or persons with developmental disabilities may use a 14-day work period in lieu of the standard 7-day workweek. Under this arrangement:
- Overtime is due for hours worked in excess of 8 hours per day OR 80 hours in the 14-day period, whichever results in more overtime
- A prior written agreement between the employer and employee must be in place before work begins under this system
This alternative is only available to qualifying healthcare institutions. Non-qualifying employers must use the standard 40-hour workweek calculation.
Source: Wis. Admin. Code Ch. DWD 274.04(11); 29 U.S.C. § 207(j)
Retail and Commission Employees
Higher-paid commission employees of retail and service establishments may qualify for a Wisconsin overtime exemption under Wis. Admin. Code Ch. DWD 274.04(3) if:
- More than 50% of the employee’s earnings come from commissions, and
- The employee receives compensation equivalent to at least 1.5 times the applicable minimum wage for all hours worked
This mirrors the federal retail and service establishment commission exemption under 29 U.S.C. § 207(i).
Source: Wis. Admin. Code Ch. DWD 274.04(3); 29 U.S.C. § 207(i)
Motor Carriers (Transportation)
Employees of motor carriers — including drivers, driver’s helpers, loaders, and mechanics — whose duties affect the safe operation of commercial motor vehicles in interstate commerce may be exempt from FLSA overtime under the Motor Carrier Act exemption (49 U.S.C. § 31502; 29 U.S.C. § 213(b)(1)).
Wisconsin’s state overtime law also exempts these workers under Wis. Admin. Code Ch. DWD 274.04(4), covering employees of common carriers by rail subject to the Interstate Commerce Act and air carrier employees subject to the Railway Labor Act.
Source: Wis. Admin. Code Ch. DWD 274.04(4); 29 U.S.C. § 213(b)(1)
Public Sector / Government Employees
Wisconsin’s state overtime law expressly covers state and local government employers. Public-sector employers in Wisconsin may offer compensatory time off instead of overtime pay under 29 U.S.C. § 207(o), subject to a prior agreement and the following caps:
- 240 hours of accrued comp time for most employees
- 480 hours for public safety, emergency response, and seasonal employees
Comp time accrues at 1.5 hours per overtime hour worked.
Source: 29 U.S.C. § 207(o); https://dwd.wisconsin.gov/er/laborstandards/overtimefaq.htm
Amusement and Recreational Establishments
Amusement or recreational establishments that operate on a seasonal basis are exempt from Wisconsin’s overtime law under Wis. Admin. Code Ch. DWD 274.04(8) if the establishment:
- Does not operate for more than 7 months in any calendar year, or
- Had average receipts for any 6 months of the preceding year that were no more than 33⅓% of its average receipts for the other 6 months
Source: Wis. Admin. Code Ch. DWD 274.04(8); 29 U.S.C. § 213(a)(3)
How to File an Overtime Wage Complaint in Wisconsin
Employees in Wisconsin who believe they have not received proper overtime pay have three options:
Option 1: Wisconsin DWD — Equal Rights Division
| How to File an Overtime Wage Complaint in Wisconsin | |
|---|---|
| Item | Details |
| Agency | Wisconsin Department of Workforce Development, Equal Rights Division |
| Online filing | https://dwd.wisconsin.gov/er/complaints/ |
| Phone | (608) 266-3131 |
| Mailing address | 201 E. Washington Ave., P.O. Box 7946, Madison, WI 53707 |
| Deadline | 2 years from the date the wages were earned and payable |
Claims for unpaid wages must be filed within 2 years of the date the wages were due. The DWD will not accept wage claims for wages payable more than two years before the complaint is received.
The DWD investigates complaints, attempts to settle disputes, and — when parties cannot reach agreement — issues a written determination. If wages are found due and the employer does not pay, the DWD may refer the claim for litigation. The district attorney may request the court to award an additional 100% of the wages due as a penalty for delayed payment. Willful wage withholding can result in criminal prosecution with fines up to $500 and up to 90 days in jail.
Source: https://dwd.wisconsin.gov/er/laborstandards/complaintprocess.htm; Wis. Stat. § 109.09
Option 2: U.S. Department of Labor — Wage and Hour Division
| Federal Wage and Hour Complaint — Wisconsin Offices | |
|---|---|
| Item | Details |
| Online | https://www.dol.gov/agencies/whd/contact/complaints |
| Phone | 1-866-487-9243 (toll-free) |
| Local WHD office |
Milwaukee, WI — (414) 297-1281 Madison — (608) 441-5221 |
| Deadline | 2 years from violation (3 years if willful) |
Option 3: Private Lawsuit
Employees may file a lawsuit against their employer in state or federal court under 29 U.S.C. § 216(b) or Wis. Stat. § 109.03. Remedies may include:
- Back wages owed
- Liquidated damages equal to the unpaid wages (under the FLSA)
- Reasonable attorney’s fees and court costs
Retaliation Protection
Wisconsin law (Wis. Stat. § 109.09) and the FLSA (29 U.S.C. § 215(a)(3)) prohibit employers from retaliating against employees for:
- Filing an overtime wage complaint
- Participating in a wage investigation
- Attempting to enforce rights under state labor standards laws
Employees who believe they are victims of unlawful retaliation may file a discrimination complaint with the DWD Equal Rights Division.
Source: https://dwd.wisconsin.gov/er/laborstandards/complaintprocess.htm; 29 U.S.C. § 216(b); 29 U.S.C. § 215(a)(3)
Penalties for Overtime Violations in Wisconsin
| Federal FLSA Penalties | |
|---|---|
| Penalty type | Amount |
| Back wages | Full amount of unpaid overtime owed |
| Liquidated damages | Equal to unpaid wages (effectively doubles recovery) |
| Civil monetary penalty | Up to $2,451 per violation for willful or repeated violations (adjusted annually) |
| Criminal prosecution | Willful: fines up to $10,000; second offense: up to 6 months imprisonment |
Source: 29 U.S.C. § 216
Wisconsin State Penalties
Under Wis. Stat. § 109.09 and the labor standards complaint process:
- The district attorney may petition the court to award an employee an additional 100% of the wages found due as compensation for the delayed payment
- Willful withholding of wages that an employer is able to pay may result in criminal prosecution: fines up to $500 and up to 90 days in jail
- Employees who prevail may also recover attorney’s fees in court actions
Source: https://dwd.wisconsin.gov/er/laborstandards/complaintprocess.htm; Wis. Stat. § 109.11
Wisconsin Overtime Law Updates (2025–2026)
Federal Changes Affecting Wisconsin
- July 4, 2025: One Big Beautiful Bill Act (P.L. 119-21) signed — created the federal overtime tax deduction (IRC § 225) for FLSA-covered workers for tax years 2025–2028. Up to $12,500/year for single filers; $25,000 for joint filers.
- November 15, 2024: DOL salary threshold rule vacated by the U.S. District Court for the Eastern District of Texas (Texas v. U.S. Department of Labor, No. 4:24-cv-00499). The exempt salary threshold remains $684/week ($35,568/year).
Wisconsin Changes
- Minimum wage: Wisconsin’s minimum wage has remained at $7.25/hour since 2009 (2015 Wisconsin Act 55). There are no scheduled state minimum wage increases; any change requires legislative action.
Pending Legislation
- AB 461 / SB 454 — State Overtime Income Tax Subtraction: Would create a permanent Wisconsin state income tax subtraction for qualified overtime compensation. Single filers: up to $12,500/year; joint filers: up to $25,000/year. Uses the federal IRC § 225 definition. Applies retroactively to tax years beginning after December 31, 2024. Passed the Assembly 61–35 on January 15, 2026; Senate companion bill (SB 454) referred to Senate Committee on Agriculture and Revenue (hearing February 13, 2026). Status: Awaiting Senate vote as of March 2026.
Last reviewed: March 3, 2026
Next scheduled review: June 3, 2026
Frequently Asked Questions About Overtime in Wisconsin
Does Wisconsin have overtime laws?
Yes. Wisconsin has its own overtime law under Wis. Stat. §§ 103.01–103.03 and Wis. Admin. Code Chapter DWD 274. Under Wisconsin law, nonexempt employees must receive overtime pay at 1.5 times their regular rate of pay for all hours worked over 40 in a workweek. The state law applies to most Wisconsin employers including state and local governments.
What is the overtime rate in Wisconsin in 2026?
The overtime rate in Wisconsin is 1.5 times the employee’s regular rate of pay. Based on Wisconsin’s minimum wage of $7.25/hour, the minimum overtime rate is $10.88/hour. Wisconsin does not require double time (2×) under any standard circumstances.
Does Wisconsin require daily overtime?
No. Overtime in Wisconsin is calculated on a weekly basis only. Working more than 8 hours in a single day does not trigger overtime for adult employees unless total weekly hours exceed 40. The exception is for minors ages 16–17, who must receive overtime for hours over 10 in a single workday.
Is mandatory overtime legal in Wisconsin?
Under both federal law and Wisconsin law, employers can generally require adult employees to work overtime. Wisconsin does not have additional state restrictions limiting mandatory overtime for most industries. Employees required to work overtime must be paid at 1.5 times their regular rate for all hours over 40 in the workweek.
Am I exempt from overtime in Wisconsin?
Exemption depends on both salary level and job duties. Under the FLSA (which governs most Wisconsin employers), employees must earn at least $684/week on a salary basis AND perform executive, administrative, or professional duties. Wisconsin’s own exemption thresholds are lower than the federal standard, so the FLSA threshold of $684/week effectively governs for most workers.
Can salaried employees get overtime in Wisconsin?
Yes. Being paid a salary does not automatically make an employee exempt from overtime. Salaried employees who earn less than $684/week, or who do not meet the applicable duties tests, are entitled to overtime pay under the FLSA and Wisconsin law.
Can my employer and I agree to waive overtime in Wisconsin?
No. Under Wis. Admin. Code Ch. DWD 274 and the FLSA, neither an employer nor an employee may waive or contract away the right to overtime pay. Any such agreement is unenforceable.
Is overtime taxed in Wisconsin?
Overtime pay is subject to federal and Wisconsin state income taxes. However, under the One Big Beautiful Bill Act (P.L. 119-21), FLSA-covered nonexempt employees may deduct up to $12,500 ($25,000 for joint filers) of the overtime premium portion from federal taxable income for tax years 2025–2028. This deduction does not currently apply to Wisconsin state income tax. A pending bill (AB 461 / SB 454) would create a parallel Wisconsin state tax subtraction; it passed the Assembly in January 2026 and awaits Senate action.
How do I calculate the federal overtime tax deduction?
For time-and-a-half pay, the deductible amount is one-third of total overtime pay. For example, if you earned $9,000 in total overtime at time-and-a-half rates, the deductible “qualified overtime compensation” is $3,000. The IRS confirms this method in Notice 2025-69. The deduction is claimed on Schedule 1-A (Form 1040).
How do I file an overtime complaint in Wisconsin?
File a wage claim with the Wisconsin DWD Equal Rights Division online at https://dwd.wisconsin.gov/er/complaints/ or by calling (608) 266-3131. Complaints must be filed within 2 years of the date wages were due. Alternatively, file with the U.S. DOL Wage and Hour Division at 1-866-487-9243.
Can my employer fire me for refusing overtime in Wisconsin?
In most cases, yes. Wisconsin is an at-will employment state. An employer may discipline or terminate an employee who refuses to work scheduled overtime, unless a law, employment contract, or collective bargaining agreement provides otherwise. Employers cannot, however, retaliate against employees for filing overtime complaints.
Can my employer give me comp time instead of overtime pay?
For private-sector employees, no. Under Wisconsin law and the FLSA, private-sector employers cannot substitute compensatory time off for overtime wages. However, if a private employer does provide comp time, it must be at the 1.5× rate and the employee must be permitted to use it within 31 days. Public-sector employers may offer comp time under 29 U.S.C. § 207(o), accrued at 1.5 hours per overtime hour, up to 240 hours (480 for public safety workers).
Does working weekends or holidays count as overtime in Wisconsin?
No. Under Wisconsin law and the FLSA, working on weekends or holidays does not automatically constitute overtime. Overtime depends only on total hours worked in the workweek, regardless of which days those hours fall on. There is no premium pay requirement for weekend or holiday work under Wisconsin or federal law.
What happens if my employer doesn’t pay overtime?
Employees may file a complaint with the Wisconsin DWD Equal Rights Division or the U.S. DOL Wage and Hour Division. Under the FLSA, employees may recover unpaid wages, liquidated damages equal to the unpaid amount, and attorney’s fees (29 U.S.C. § 216(b)). Under Wisconsin law, a court may award an additional 100% of wages due as a penalty. The FLSA statute of limitations is 2 years (3 years if willful).
What is the statute of limitations for overtime claims in Wisconsin?
Under Wisconsin law: 2 years from the date wages were earned and payable. Under the FLSA: 2 years (3 years if the violation is willful). Both deadlines run from the date wages were due, not from when the employee discovered the underpayment.
Does Wisconsin’s overtime law cover non-profit organizations?
Generally, no. Wisconsin’s state overtime law does not apply to most non-profit organizations. However, non-profit employers that operate covered establishments — such as restaurants or hotels — must comply with the state overtime rules for employees working in those establishments. Non-profit employers may still be subject to the FLSA depending on their annual gross revenue and other criteria.
Do I have to count vacation or sick time toward the 40-hour overtime threshold?
No. Under Wisconsin law and the FLSA, hours paid for time not actually worked — including sick leave, vacation pay, or holiday pay — do not count as hours worked for purposes of calculating overtime. Only actual hours worked count toward the 40-hour weekly threshold.
Sources and Verification
Primary Sources
- Wis. Stat. §§ 103.01–103.03 (Hours of Work and Overtime) — https://docs.legis.wisconsin.gov/statutes/statutes/103/01
- Wis. Admin. Code Ch. DWD 274 (Overtime Exemptions and Requirements) — https://docs.legis.wisconsin.gov/code/admin_code/dwd/270_279/274
- Wisconsin DWD — Hours of Work and Overtime — https://dwd.wisconsin.gov/er/laborstandards/overtime.htm
- Wisconsin DWD — Hours of Work and Overtime FAQ — https://dwd.wisconsin.gov/er/laborstandards/overtimefaq.htm
- Wisconsin DWD — Labor Standards Complaint Process — https://dwd.wisconsin.gov/er/laborstandards/complaintprocess.htm
- Wisconsin DWD — Wage Payment and Collection — https://dwd.wisconsin.gov/er/laborstandards/wages.htm
- Wisconsin DWD — File a Complaint — https://dwd.wisconsin.gov/er/complaints/
- Wisconsin Legislature — AB 461 (Overtime Tax Subtraction) — https://docs.legis.wisconsin.gov/2025/proposals/reg/asm/bill/ab461
- Wisconsin Legislature — SB 454 — https://docs.legis.wisconsin.gov/2025/proposals/reg/sen/bill/sb454
- U.S. Department of Labor, Wage and Hour Division — https://www.dol.gov/agencies/whd/overtime
- Fair Labor Standards Act — 29 U.S.C. §§ 201–219
- 29 C.F.R. Part 541 (Overtime Exemptions)
- Internal Revenue Service — Overtime Tax Deduction FAQs — https://www.irs.gov/newsroom/questions-and-answers-about-the-new-deduction-for-qualified-overtime-compensation
- IRS Notice 2025-69 (Individual Calculation Guidance)
- IRS Notice 2025-62 (Employer Reporting Transition Relief for 2025)
- Schedule 1-A, Form 1040 (Claiming the Overtime Deduction)