WeVote
Log In

Bill

Bill

AB 1158

Relating to: a state minimum wage, allowing the enactment of local minimum wage ordinances, and granting rule-making authority. (FE)

2025-2026 Regular Session Introduced by Clint Anderson and 37 co-sponsors

Wisconsin adopts a new statewide minimum wage with CPI-based annual adjustments for non-small employers, creates separate schedules for large vs small employers, and allows local g

Failed to pass pursuant to Senate Joint Resolution 1
0
WeVote Research Nonpartisan
Bill Summary · AB 1158

Executive summary

AB 1158 proposes a comprehensive overhaul of Wisconsin’s minimum wage framework. The bill repeals current state minimum wage provisions, creates a new scheduling structure differentiating between “large” and “small” employers, and introduces a state minimum wage with a built-in path to annual CPI-based adjustments. It also repeals prohibitions on local minimum wage ordinances, thereby allowing local governments to enact higher minimum wages if they choose. Additionally, the bill grants rule-making authority to the Department of Workforce Development (DWD) to set wages for several categories and to exempt certain employment arrangements from minimum wage requirements. The measure takes effect 3 months after publication.

Purpose and intent

  • Replace the existing state minimum wage framework with a new, staged structure that targets different wage levels for large vs. small employers.
  • Establish a statewide minimum wage that is periodically adjusted for inflation via CPI, starting in 2031, with a dedicated rule-making process for non-standard employee categories.
  • Remove a barrier that prevented local governments from enacting their own minimum wage ordinances, enabling local experimentation and higher local standards.
  • Consolidate and streamline rule-making authority with the DWD to set wage levels for several employment categories and to define exemptions.

Key provisions and changes

  • Definitions:
    • Small employer: 50 or fewer employees.
    • Consumer price index (CPI) defined (Bureau of Labor Statistics, U.S. city average, all items, not seasonally adjusted).
  • Minimum wage schedule (non-tipped employees):
    • Large employers:
    • Effective date: start at $15/hour.
    • Increases: +$1.25 on each Jan 1 until 2030, reaching $20/hour.
    • Small employers:
    • Effective date: start at $15/hour (for wages earned after the effective date and before 2027).
    • Increases: +$0.75 on each Jan 1 until 2034, reaching the standard minimum in effect that year (with annual CPI-based adjustments beginning 2031 for the standard formula).
  • Minimum wage schedule (tipped employees):
    • Large employers:
    • Effective date: $7.50/hour.
    • Increases: +$0.50 on each Jan 1 until 2031, reaching $10/hour; thereafter, tipped wage generally set at one-half of the standard minimum wage.
    • Small employers:
    • Effective date: $6.50/hour.
    • Increases: +$0.50 on each Jan 1 until 2034, reaching one-half of the standard minimum wage then in effect.
  • Department of Workforce Development (DWD) role:
    • By rule, DWD will establish minimum wages for specific categories (e.g., opportunity employees, agricultural employees, camp counselors, golf caddies, workers with certain disabilities, student learners, and students employed by independent colleges/universities for limited hours).
    • DWD will also promulgate exemptions from minimum wage requirements for other categories (e.g., casual home employment under 15 hours/week, live-in domestic companionship, certain student work, etc.).
    • Beginning 2031, DWD must revise the general wage amount (the standard minimum wage for non-small-employer employees) annually using CPI-based adjustments, with rounding to the nearest five cents; the revision is published in the Administrative Register and on DWD’s website. If CPI shows no increase, the wage is not revised.
    • If CPI-based revision would result in less than $20/hour, the department must ensure the minimum is at least $20/hour beginning 2031.
  • Local minimum wage ordinances:
    • Wisconsin law’s prohibition on local enactment of minimum wage ordinances is repealed, allowing municipalities to enact local wage requirements potentially higher than the state minimum.
  • Federal/state alignment and enforcement:
    • The bill includes a mechanism to adjust the minimum wage through the department’s rulemaking process and CPI indexing, plus a provision ensuring no gender-based wage discrimination remains (gender-specific minimum wages prohibited).
  • Effective date:
    • The act takes effect on the first day of the 3rd month after publication.

Who is affected

  • Employers:
    • Distinction between large and small employers affects wage obligations starting at enactment.
    • Large employers face higher wage floors earlier; small employers rise more gradually.
  • Employees:
    • Non-tipped and tipped workers experience higher wage floors over time, with different trajectories for large vs. small employers.
    • Certain worker categories (opportunity, agricultural, student learners, etc.) would have wages set by DWD rules, potentially creating specialized rates.
  • Local governments:
    • Municipalities would be empowered to adopt local minimum wage ordinances that could exceed the state minimum.
  • DWD and regulatory environment:
    • Expanded rule-making authority to establish and adjust wages for specific employee categories and to create exemptions.

Procedural and timeline notes

  • Effective date is the first day of the third month after publication.
  • From 2031 onward, annual CPI-based wage revisions occur for the standard minimum wage, subject to CPI increases and rounding rules; if CPI does not increase, no revision is required.
  • The bill repeals several existing minimum wage provisions (e.g., tip counting rules, specific meal/lodging allowances, and wages for certain employee groups) and replaces them with rule-based determinations by DWD.
  • Local wage initiatives become permissible immediately upon enactment, reversing prior restrictions.

Potential considerations

  • Economic impact: Substantial increases in both non-tipped and tipped wages, particularly for large employers, will affect labor costs and potentially prices and employment demand.
  • Local experimentation: Allowing local ordinances could lead to a patchwork of wage standards across municipalities.
  • Administrative complexity: Expanded DWD rulemaking and annual CPI adjustments require robust administrative capacity and effective communication to affected employers and workers.
  • Transitional provisions: The staged approach requires clear guidance on which employers are classified as large vs. small during the transition.

If you’d like, I can provide a side-by-side comparison with current Wisconsin minimum wage provisions or a timeline visualization.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.