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Wage claims
Current law
Filing and investigation; statute of limitations. Under current law, an
employee who has a claim that his or her employer has not paid the employee any
wages that are owed to the employee may either 1) file the wage claim with the
Department of Workforce Development, which may attempt to settle and
compromise the wage claim or commence an action in circuit court against the
employer on the employee's behalf to collect the wage claim; or 2) commence an action
in circuit court on his or her own behalf to collect the wage claim without first filing
a wage claim with DWD. An action in circuit court to collect a wage claim must be
commenced no later than two years after the wage claim is filed with DWD or, if the
wage claim is not first filed with DWD, no later than two years after the cause of
action accrues (statute of limitations). DWD may investigate a wage claim only if it
is filed no later than two years after the wages are due.
Increased wages. Under current law, if a wage claim action is commenced in
circuit court before DWD has completed its attempt to settle and compromise the
claim, the circuit court may order the employer to pay, in addition to the amount of
wages unpaid, increased wages of not more than 50 percent of the amount of wages
unpaid. If a wage claim action is commenced in circuit court after DWD has
completed its attempt to settle and compromise the claim, the circuit court may order
the employer to pay, in addition to the amount of wages unpaid, increased wages of
not more than 100 percent of the amount of wages unpaid.
The bill
Filing and investigation; statute of limitations. This bill allows an
employee to file a wage claim with DWD or to commence a wage claim action in circuit
court not only on his or her own behalf but also on behalf of other employees similarly
situated who consent in writing to being parties to the claim or action. The bill also
increases the statute of limitations for a wage claim action to four years after the
wage claim is filed with DWD or, if the wage claim is not first filed with DWD, to four
years after the cause of action accrues and permits DWD to investigate a wage claim
that is filed no later than four years after the wages are due.
Increased wages. The bill also allows a circuit court to order 1) an employer
against which a wage claim action is commenced in circuit court before DWD has
completed its attempt to settle and compromise the claim to pay, in addition to the
amount of wages unpaid, increased wages of not more than 100 percent of the
amount of wages unpaid; and 2) an employer against which a wage claim action is
commenced in circuit court after DWD has completed its attempt to settle and
compromise the claim to pay, in addition to the amount of wages unpaid, increased
wages of not more than 200 percent of the amount of wages unpaid.
Interest and surcharges. In addition, the bill allows DWD to require, and a
circuit court to order, an employer who fails to pay wages that are due and payable
to pay interest on the amount of wages due and unpaid at the rate of 2 percent per
month for each month that the wages were due and unpaid and to pay to DWD or the
circuit court a surcharge of $500 for a first violation, $750 for a second violation, and
$1,000 for a third or subsequent violation. Surcharges collected by DWD or a circuit

court must be deposited in the general fund, appropriated to DWD, and used for the
administration of the wage claim law.
Costs and attorney fees. With respect to wage claims, the bill allows a circuit
court to require an employer who fails to pay wages that are due and payable to pay
reasonable costs and attorney fees.
Occupational or professional licensing. Finally, the bill requires a state
office or agency in the executive branch, the legislature, or the courts (licensing
agency) to require an applicant for issuance or renewal of an occupational or
professional certificate, license, permit, or registration (license) to disclose whether
there are any wage claim judgments against the applicant that the applicant has not
paid. If there are any such judgments, the licensing agency must determine that the
applicant is ineligible for issuance or renewal of the license, unless the applicant
agrees, in writing, to pay the judgment within 30 days of filing the application.
Disclosure statements
Terms of employment; disclosure required
The bill requires an employer to provide an employee with a written statement
disclosing the terms of employment (disclosure statement) at the time the employee
is hired, on January 1 of each year in which the employee is employed by the
employer, and not less than seven days before the effective date of any change in the
terms of employment. The disclosure statement must be in English and, if the
employee has limited English proficiency, in the employee's native language. The
disclosure statement must include certain information specified in the bill related
to the employer and the terms and conditions of the employee's employment.
Remedies
An employer that fails to provide a disclosure statement to an employee as
required under the bill or that fails to comply with the terms of employment specified
in a disclosure statement provided to an employee is liable to the employee for 1) all
actual damages, including any wage claim or wage deficiency, sustained by the
employee as a result of the employer's failure to provide that statement or to comply
with those terms; 2) liquidated damages of not more than $50 for each working day
that the employer fails to provide that statement or to comply with those terms or,
if applicable, the increased wages payable under the bill, whichever is greater; and
3) reasonable costs and attorney fees.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB40,1 1Section 1. 20.445 (1) (gu) of the statutes is created to read:
SB40,4,2
120.445 (1) (gu) Wage claim surcharges. All moneys received from surcharges
2collected under s. 109.11 (4), for the administration of ch. 109.
SB40,2 3Section 2. 103.34 (6) (d) of the statutes is amended to read:
SB40,4,64 103.34 (6) (d) A traveling sales crew worker who is owed compensation may file
5a wage claim with the department under s. 109.09 (1) (a) or may bring an action
6under s. 109.03 (5) without first filing a wage claim with the department.
SB40,3 7Section 3. 103.35 of the statutes is renumbered 103.35 (2) and amended to
8read:
SB40,4,219 103.35 (2) No state office, department, board, examining board, affiliated
10credentialing board, commission, council or independent agency in the executive
11branch, the legislature or the courts may, as a condition for receiving an occupational
12or professional certificate, license, permit or registration, require the submission of
13information by the applicant which is not essential for the determination of
licensing
14agency may require an applicant for issuance or renewal of a license to submit any
15information that is not essential for the licensing agency to determine the applicant's

16eligibility for the issuance or renewal of the certificate, license, permit or
17registration. Information which
. A licensing agency may request information that
18is not essential for the licensing agency to determine an applicant's eligibility for
19issuance or renewal may be requested of a license, but the licensing agency shall
20notify the
applicant shall be notified in a prominent place on or accompanying the
21request that she or he is not required to provide such information.
SB40,4 22Section 4. 103.35 (1) of the statutes is created to read:
SB40,4,2323 103.35 (1) In this section:
SB40,4,2524 (a) “License" means an occupational or professional certificate, license, permit,
25or registration.
SB40,5,3
1(b) “Licensing agency" means a state office, department, board, examining
2board, affiliated credentialing board, commission, council, or independent agency in
3the executive branch, the legislature, or the courts.
SB40,5,54 (c) “Wisconsin Circuit Court Access Internet site” has the meaning given in s.
5758.20 (1).
SB40,5 6Section 5 . 103.35 (3) to (5) of the statutes are created to read:
SB40,5,107 103.35 (3) Each licensing agency shall require an applicant for issuance or
8renewal of a license to disclose to the licensing agency whether the applicant has a
9judgment issued under s. 109.03 (5) or 109.09 (1) against the applicant that the
10applicant has not paid.
SB40,5,12 11(4) Each licensing agency shall use the Wisconsin Circuit Court Access
12Internet site to verify an applicant's disclosure under sub. (3).
SB40,5,15 13(5) (a) Except as provided in par. (b), if there are any unpaid judgments under
14s. 109.03 (5) or 109.09 (1) against the applicant, the licensing agency may not issue
15or renew the license.
SB40,5,1716 (b) If the applicant agrees in writing to pay the judgment within 30 days of filing
17the application, the licensing agency may issue or renew the license.
SB40,6 18Section 6. 103.40 of the statutes is created to read:
SB40,6,2 19103.40 Terms of employment; disclosure statement. (1) Disclosure
20statement required.
An employer shall provide an employee with a written
21statement disclosing the terms of employment at the time the employee is hired, on
22January 1 of each year in which the employee is employed by the employer, and not
23less than 7 days before the effective date of any change in the terms of employment.
24The written disclosure statement shall be in English and, if the employee has limited

1English proficiency, in the employee's native language. The written disclosure
2statement shall include all of the following information:
SB40,6,33 (a) The full name, mailing address, and telephone number of the employer.
SB40,6,64 (b) The wages the employer will pay the employee, the frequency of payment,
5and, if the wages will be paid as an hourly wage, the hourly rate the employer will
6pay the employee.
SB40,6,87 (c) The periods of work for which the employer will pay the employee an hourly
8rate higher than the rate under par. (b), including all of the following:
SB40,6,99 1. After the employee has worked a specified number of hours in a day.
SB40,6,1010 2. After the employee has worked a specified number of hours in a week.
SB40,6,1111 3. After the employee has worked a specified number of hours in a month.
SB40,6,1212 4. Specified nights, weekends, and holidays.
SB40,6,1813 (d) A description of any other employment benefits that the employer will
14provide, including health insurance benefits and pension or other retirement
15benefits, and any cost of required employee contributions for those benefits, paid sick
16leave, vacation pay, holiday pay, personal protective equipment that is required for
17the performance of the employee's work, worker's compensation coverage, and
18unemployment insurance.
SB40,6,21 19(2) Waiver prohibited. Any agreement between an employer and an employee
20purporting to waive or modify the requirement for a written disclosure statement
21under sub. (1) or any term of employment specified in such a statement is void.
SB40,7,2 22(3) Noncompliance; enforcement. (a) Any employer that fails to provide a
23written disclosure statement to an employee as required under sub. (1) or that fails
24to comply with the terms of employment specified in a written disclosure statement

1provided to an employee under sub. (1) is liable to the employee for all of the
2following:
SB40,7,53 1. All actual damages, including any wage claim or wage deficiency, sustained
4by the employee as a result of the employer's failure to provide that statement or to
5comply with those terms.
SB40,7,96 2. Liquidated damages of not more than $50 for each working day that the
7employer fails to provide that statement or to comply with those terms or, if
8applicable, the increased wages payable under s. 109.11 (2) (a) or (b), whichever is
9greater.
SB40,7,1010 3. Reasonable costs and attorney fees, notwithstanding s. 814.04.
SB40,7,1611 (b) In addition to the liability specified in par. (a) 1. to 3., the department or the
12circuit court may order an employer that fails to provide a written disclosure
13statement to an employee as required under sub. (1) or that fails to comply with the
14terms of employment specified in a written disclosure statement provided to an
15employee under sub. (1) to take such action as will effectuate the purpose of this
16section.
SB40,7,2117 (c) An employee who is affected by a violation of par. (a) may file a wage claim
18with the department under s. 109.09 (1) (a) or may bring an action under s. 109.03
19(5) without first filing a wage claim with the department under s. 109.09 (1) (a).
20Section 111.322 applies to any discharge or other discriminatory acts arising in
21connection with any proceeding under this section.
SB40,7 22Section 7. 109.01 (3m) of the statutes is created to read:
SB40,8,223 109.01 (3m) “Wage claim" includes a claim under s. 103.40 (3) (c) that an
24employer has failed to provide a written disclosure statement to an employee as
25required under s. 103.40 (1) or has failed to comply with the terms of employment

1specified in a written disclosure statement provided to an employee under s. 103.40
2(1).
SB40,8 3Section 8. 109.03 (5) of the statutes is amended to read:
SB40,8,164 109.03 (5) Enforcement. Except as provided in sub. (1), no employer may by
5special contract with employees or by any other means secure exemption from this
6section. Each employee shall have a right of action against any employer for the full
7amount of the employee's wages due on each regular pay day as provided in this
8section and for interest on that amount and increased wages as provided in s. 109.11
9(2), in any court of competent jurisdiction. An employee may bring an action under
10this subsection on his or her own behalf and on behalf of other employees similarly
11situated who consent in writing to being parties to the action. The employee who
12brings the action shall file such a written consent with the court.
An employee may
13bring an action against an employer under this subsection without first filing a wage
14claim with the department under s. 109.09 (1) (a). An employee who brings an action
15against an employer under this subsection shall have a lien upon all property of the
16employer, real or personal, located in this state as described in s. 109.09 (2).
SB40,9 17Section 9 . 109.09 (1) of the statutes is renumbered 109.09 (1) (a) and amended
18to read:
SB40,9,419 109.09 (1) (a) The department shall investigate and attempt equitably to adjust
20controversies between employers and employees as to alleged wage claims. An
21employee may file a wage claim under this paragraph on his or her own behalf and
22on behalf of other employees similarly situated who consent in writing to being
23parties to the claim. The employee who files the claim shall file any written consent
24form with the department.
The department may receive and investigate any wage
25claim that is filed with the department, or received by the department under s.

1109.10 (4), no later than 2 4 years after the date the wages are due. The department
2may, after
After receiving a wage claim, the department may investigate any wages
3due from the employer against whom the claim is filed to any employee during the
4period commencing 2 4 years before the date the claim is filed.
SB40,9,15 5(b) The department shall enforce this chapter and s. 66.0903, 2013 stats., s.
6103.49, 2013 stats., s. 229.8275, 2013 stats., and s. 16.856, 2015 stats., and ss. 103.02,
7103.40, 103.82, and 104.12. In pursuance of this duty, the department may sue the
8employer on behalf of the employee to collect any wage claim or wage deficiency, and
9ss. 109.03 (6) and 109.11 (2) and (3) shall apply to such actions. Except for actions
10under s. 109.10, the department may refer such an action to the district attorney of
11the county in which the violation occurs occurred for prosecution and collection and
12the district attorney shall commence an action in the circuit court having appropriate
13jurisdiction. Any number of Multiple wage claims or wage deficiencies against the
14same employer may be joined in a single proceeding, but the court may order
15separate trials or hearings.
SB40,9,20 16(c) In actions that are referred to a district attorney under this subsection par.
17(b),
any taxable costs recovered by the district attorney shall be paid into the general
18fund of the county in which the violation occurs occurred and shall be used by that
19county to meet its financial responsibility under s. 978.13 (2) (b) for the operation of
20the office of the district attorney who prosecuted the action.
SB40,10 21Section 10. 109.09 (2) (a) of the statutes is amended to read:
SB40,9,2422 109.09 (2) (a) The department of workforce development, under its authority
23under sub. (1) (b) to maintain actions for the benefit of employees, or an employee
24who brings an action under s. 109.03 (5) shall have a lien upon all property of the

1employer, real or personal, located in this state for the full amount of any wage claim
2or wage deficiency.
SB40,11 3Section 11. 109.09 (2) (b) 3. of the statutes is amended to read:
SB40,10,84 109.09 (2) (b) 3. The department of workforce development or employee must
5file the notice under subd. 1. or 2. within 2 4 years after the date on which the wages
6were due. The notice shall specify the nature of the claim and the amount claimed,
7describe the property upon which the claim is made, and state that the person filing
8the notice claims a lien on that property.
SB40,12 9Section 12. 109.09 (2) (c) 2. of the statutes is amended to read:
SB40,10,1910 109.09 (2) (c) 2. Except as provided in this subdivision, a lien under par. (a) does
11not take precedence over a lien of a commercial lending institution against the
12employer that originates before the lien under par. (a) takes effect. Subject to subd.
133., a lien under par. (a) takes precedence over a lien of a commercial lending
14institution against the employer that originates before the lien under par. (a) takes
15effect only as to the first $3,000 of unpaid wages covered under the lien that are
16earned by an employee within the 6 months preceding the date on which the
17employee files the wage claim under sub. (1) (a) or brings the action under s. 109.03
18(5) or the date on which the department receives the wage claim under s. 109.10 (4)
19(a), whichever is applicable.
SB40,13 20Section 13. 109.11 (title) of the statutes is amended to read:
SB40,10,21 21109.11 (title) Penalties and surcharge.
SB40,14 22Section 14. 109.11 (1) (a) of the statutes is amended to read:
SB40,11,423 109.11 (1) (a) In adjusting a controversy between an employer and an employee
24as to regarding an alleged wage claim filed with the department under s. 109.09 (1)
25(a), the department may compromise and settle that wage claim for such sum as may

1be agreed upon between the department, the employee, and the employer. The
2department shall add to the sum owed both interest at the rate of 2 percent per month
3for each month that the wages were due and unpaid and the surcharge specified in
4sub. (4).
SB40,15 5Section 15. 109.11 (1) (b) of the statutes is renumbered 109.11 (1) (b) 1. and
6amended to read:
SB40,11,167 109.11 (1) (b) 1. If the department finds that a wage claim is valid, the
8department may instruct the employer against whom the wage claim is filed to audit
9his or her payroll records to determine whether the employer may be liable for any
10other wage claims that are of the same type as the wage claim that prompted the
11audit instruction. If after the requested completion date of the audit the department
12receives a wage claim against the employer that is of the same type as the wage claim
13that prompted the audit instruction and if the department determines that the
14subsequent wage claim is valid, the department may audit the employer's payroll
15records to determine whether the employer may be liable for any other wage claims
16that are of the same type as the wage claim that prompted the audit instruction.
SB40,12,5 172. For any valid wage claim that is filed against an employer after the
18department has instructed the employer to audit his or her payroll records under this
19paragraph
subd. 1. and that is of the same type as the wage claim that prompted the
20audit instruction and for any valid wage claim that is discovered as a result of the
21department's audit under this paragraph subd. 1. and that is of the same type as the
22wage claim that prompted the audit instruction, the department shall require the
23employer to pay, in addition to the amount of wages due and unpaid, increased wages
24of not more than 50 percent of the amount of wages due and unpaid , interest on the
25amount of wages due and unpaid at the rate of 2 percent per month for each month

1that the wages were due and unpaid, and the surcharge specified in sub. (4)
, unless
2the employer shows the department that payment of the increased wages , interest,
3or surcharge
would cause extreme hardship. The department shall require an
4employer to make that payment without regard to whether the employer's failure to
5pay the wages due and unpaid was intentional or unintentional.
SB40,16 6Section 16. 109.11 (1) (c) of the statutes is amended to read:
SB40,12,137 109.11 (1) (c) If an employer does not agree to compromise and settle a wage
8claim under this subsection, the department may refer the wage claim to a district
9attorney under s. 109.09 (1) (b) or to the department of justice under s. 109.10 (3) for
10commencement of an action in circuit court to collect the amount of wages due and
11unpaid plus interest on that amount at the rate of 2 percent per month for each month
12that the wages were due and unpaid,
increased wages as specified in sub. (2) (b), and
13the surcharge specified in sub. (4)
.
SB40,17 14Section 17. 109.11 (2) (a) of the statutes is amended to read:
SB40,13,215 109.11 (2) (a) In a wage claim action that is commenced by an employee before
16the department has completed its investigation under s. 109.09 (1) (a) and its
17attempts to compromise and settle the wage claim under sub. (1), a circuit court may
18order the employer to pay to the employee, in addition to the amount of wages due
19and unpaid and in addition to or in lieu of the criminal penalties specified in sub. (3),
20increased wages of not more than 50 100 percent of the amount of wages due and
21unpaid, interest on the amount of wages due and unpaid at the rate of 2 percent per
22month for each month that the wages were due and unpaid, the surcharge specified
23in sub. (4), and, notwithstanding s. 814.04, reasonable costs and attorney fees. A
24circuit court may order an employer to make that payment without regard to

1whether the employer's failure to pay the wages due and unpaid was intentional or
2unintentional
.
SB40,18 3Section 18. 109.11 (2) (b) of the statutes is amended to read:
SB40,13,154 109.11 (2) (b) In a wage claim action that is commenced after the department
5has completed its investigation under s. 109.09 (1) (a) and its attempts to settle and
6compromise the wage claim under sub. (1), a circuit court may order the employer
7to pay to the employee, in addition to the amount of wages due and unpaid to an
8employee and in addition to or in lieu of the criminal penalties specified in sub. (3),
9increased wages of not more than 100 200 percent of the amount of those wages due
10and unpaid, interest on the amount of wages due and unpaid at the rate of 2 percent
11per month for each month that the wages were due and unpaid, the surcharge
12specified in sub. (4), and, notwithstanding s. 814.04, reasonable costs and attorney
13fees. A circuit court may order an employer to make that payment without regard
14to whether the employer's failure to pay the wages due and unpaid was intentional
15or unintentional
.
SB40,19 16Section 19. 109.11 (4) of the statutes is created to read:
SB40,14,417 109.11 (4) Surcharge. In addition to the amounts payable under sub. (1) (a)
18or (b) or (2) (a) or (b), the department shall require, or a circuit court shall order, an
19employer who fails to pay wages that are due and payable to an employee to pay to
20the department or circuit court a surcharge of $500 for a first violation, $750 for a
212nd violation, and $1,000 for a 3rd or subsequent violation. If the surcharge is
22required by the department, the department shall collect the surcharge, deposit the
23surcharge in the general fund, and credit the surcharge to the appropriation account
24under s. 20.445 (1) (gu). If the surcharge is ordered by the circuit court, the clerk of
25circuit court shall collect the surcharge and transmit the surcharge to the county

1treasurer under s. 59.40 (2) (m), the county treasurer shall pay the surcharge to the
2secretary of administration under s. 59.25 (3) (f) 2., and the secretary of
3administration shall deposit the surcharge in the general fund and credit the
4surcharge to the appropriation account under s. 20.445 (1) (gu).
SB40,20 5Section 20. 111.322 (2m) (a) of the statutes is amended to read:
SB40,14,96 111.322 (2m) (a) The individual files a complaint or attempts to enforce any
7right under s. 103.02, 103.10, 103.11, 103.13, 103.28, 103.32, 103.34, 103.40,
8103.455, 104.12, 109.03, 109.07, 109.075, 109.09, 146.997, or 995.55, or ss. 101.58 to
9101.599 or 103.64 to 103.82.
SB40,21 10Section 21. 111.322 (2m) (b) of the statutes is amended to read:
SB40,14,1411 111.322 (2m) (b) The individual testifies or assists in any action or proceeding
12held under or to enforce any right under s. 103.02, 103.10, 103.11, 103.13, 103.28,
13103.32, 103.34, 103.40, 103.455, 104.12, 109.03, 109.07, 109.075, 109.09, 146.997, or
14995.55, or ss. 101.58 to 101.599 or 103.64 to 103.82.
SB40,22 15Section 22. 814.75 (28) of the statutes is created to read:
SB40,14,1616 814.75 (28) The wage claim surcharge under s. 109.11 (4).
SB40,23 17Section 23. 893.44 (1) of the statutes is amended to read:
SB40,14,2118 893.44 (1) Any action to recover unpaid salary, wages or other compensation
19for personal services, except actions to recover fees for professional services and
20except as provided in sub. (2), shall be commenced within 2 4 years after the cause
21of action accrues or be barred.
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