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2021 - 2022 LEGISLATURE
August 4, 2021 - Introduced by Representatives Pope, Bowen, Hebl, Hesselbein,
Subeck, Spreitzer, Stubbs, Anderson, Sinicki and Cabrera, cosponsored by
Senators Carpenter, Roys, Larson, Agard and Smith. Referred to Committee
on Labor and Integrated Employment.
AB499,1,3 1An Act to amend 102.03 (2), 102.81 (5), 102.82 (1) and 814.04 (intro.); and to
2create
102.80 (1) (dm), 102.81 (4g) and 103.08 of the statutes; relating to:
3prohibiting abusive work environments and creating a cause of action.
Analysis by the Legislative Reference Bureau
This bill prohibits abusive work environments and allows an individual who
has been subjected to such an environment to bring a civil action.
Under current law, worker's compensation is generally the exclusive remedy of
an employee against his or her employer, a coemployee, or the employer's worker's
compensation insurer for an injury sustained while performing services from and
incidental to employment.
This bill provides an exception to that exclusive remedy provision. Under the
bill, an employee who alleges that he or she has been injured by being subjected to
an abusive work environment or by being subjected to retaliation or a threat of
retaliation for opposing an abusive work environment or for initiating, or in any
manner participating in, an investigation, action, or proceeding to enforce the right
not to be subjected to an abusive work environment (“unlawful employment
practice") may bring an action in circuit court against the employer or employee who
allegedly engaged in the unlawful employment practice for relief the court considers
appropriate. The aggrieved employee must commence an action within one year
after the last act constituting the unlawful employment practice occurred.
If the circuit court finds that an employer or employee has engaged in an
unlawful employment practice, the court may enjoin the employer or employee from

engaging in that practice and may grant other relief the court considers appropriate,
including reinstatement of the aggrieved employee, removal of the person who
engaged in the abusive conduct from the aggrieved employee's work area, medical
expenses, back pay, front pay, compensation for pain and suffering, compensation for
emotional distress, punitive damages, and reasonable costs and attorney fees. If the
circuit court orders payment of money because of an unlawful employment practice
engaged in by an employee, the employer of the employee is liable for that payment.
If an employer is found to have engaged in an unlawful employment practice that did
not result in an adverse employment action against the aggrieved employee, the
employer is not liable for compensation for emotional distress or punitive damages
unless the abusive conduct was extreme and outrageous.
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:
AB499,1 1Section 1 . 102.03 (2) of the statutes is amended to read:
AB499,2,122 102.03 (2) Where such Except as provided in this subsection, when those
3conditions exist the right to the recovery of compensation under this chapter shall
4be the exclusive remedy against the employer, any other employee of the same
5employer, and the worker's compensation insurance carrier. This section does not
6limit the right of an employee to bring action against any coemployee for an assault
7intended to cause bodily harm, or against a coemployee for negligent operation of a
8motor vehicle not owned or leased by the employer, against the employer or a
9coemployee for an unlawful employment practice under s. 103.08 (3),
or against a
10coemployee of the same employer to the extent that there would be liability of a
11governmental unit to pay judgments against employees under a collective
12bargaining agreement or a local ordinance.
AB499,2 13Section 2 . 102.80 (1) (dm) of the statutes is created to read:
AB499,2,1414 102.80 (1) (dm) Amounts received under s. 103.08 (6) (a) 1.
AB499,3 15Section 3 . 102.81 (4g) of the statutes is created to read:
AB499,3,8
1102.81 (4g) If an injured employee who received one or more payments under
2sub. (1) begins an action against the employee's employer or a coemployee under s.
3103.08 (3) for an unlawful employment practice arising out of the same underlying
4behavior as the behavior giving rise to the injury that is compensable under sub. (1),
5the injured employee shall provide to the department a copy of all papers filed by any
6party to the action. If the injured employee is awarded medical expenses, back pay,
7or front pay under s. 103.08 (5) (a), the employer shall reimburse the department as
8provided in s. 103.08 (6) (a) 1.
AB499,4 9Section 4 . 102.81 (5) of the statutes is amended to read:
AB499,3,1110 102.81 (5) The department of justice may bring an action to collect the payment
11under sub. (4) or (4g).
AB499,5 12Section 5 . 102.82 (1) of the statutes is amended to read:
AB499,3,2113 102.82 (1) Except as provided in sub. (2) (ar), an uninsured employer shall
14reimburse the department for any payment made under s. 102.81 (1) to or on behalf
15of an employee of the uninsured employer or to an employee's dependents and for any
16expenses paid by the department in administering the claim of the employee or
17dependents, less amounts repaid by the uninsured employer, employee, or
18dependents under s. 102.81 (4) (b) or (4g). The reimbursement owed under this
19subsection is due within 30 days after the date on which the department notifies the
20uninsured employer that the reimbursement is owed. Interest shall accrue on
21amounts not paid when due at the rate of 1 percent per month.
AB499,6 22Section 6 . 103.08 of the statutes is created to read:
AB499,3,23 23103.08 Abusive work environments. (1) Definitions. In this section:
AB499,4,724 (a) “Abusive conduct" means conduct, including acts or omissions, by an
25employer or employee that a reasonable person would find to be abusive on the basis

1of the severity, nature, and frequency of the conduct. “Abusive conduct" includes
2repeated infliction of verbal abuse such as derogatory remarks, insults, and epithets;
3verbal, nonverbal, or physical conduct that is threatening, intimidating, or
4humiliating; sabotage or undermining of an employee's work performance; or, as an
5aggravating factor, exploitation of an employee's known psychological or physical
6illness or disability. “Abusive conduct" does not include a single act unless that act
7is especially severe or egregious.
AB499,4,118 (b) “Abusive work environment" means a work environment in which an
9employer or one or more of its employees, acting with intent to cause pain or distress
10to an employee, subjects that employee to abusive conduct that causes physical harm
11or psychological harm to that employee.
AB499,4,1712 (c) “Adverse employment action" means an action taken by an employer with
13respect to an employee that has the effect, in whole or in part, of a penalty, including
14dismissal or suspension from employment, demotion, denial of a promotion,
15unfavorable transfer or reassignment, reduction in compensation, or denial of
16increased compensation. “Adverse employment action" also includes a constructive
17discharge.
AB499,4,1918 (d) “Aggrieved employee" means an employee who brings an action under sub.
19(3) alleging that he or she has been injured by an unlawful employment practice.
AB499,4,2420 (e) “Constructive discharge" means a situation in which an employee resigns
21from employment because the employee reasonably believes that he or she was
22subjected to an abusive work environment and, prior to the employee resigning, the
23employer was aware of the abusive conduct that gave rise to the abusive work
24environment and the employer failed to stop the abusive conduct.
AB499,5,2
1(f) Notwithstanding s. 103.001 (5), “employee" means an individual employed
2by an employer.
AB499,5,83 (g) Notwithstanding s. 103.001 (6), “employer" means a person engaging in any
4activity, enterprise, or business in this state that employs one or more persons on a
5permanent basis. “Employer" includes the state and any office, department,
6independent agency, authority, institution, association, society, or other body in state
7government created or authorized to be created by the constitution or any law,
8including the legislature and the courts.
AB499,5,109 (h) “Physical harm" means the impairment of an individual's physical health
10or bodily integrity.
AB499,5,1211 (i) “Psychological harm" means the impairment of an individual's mental
12health.
AB499,5,1413 (j) “Retaliate" means to take an action that negatively affects the terms,
14conditions, and privileges of an employee's employment.
AB499,5,1615 (k) “Unlawful employment practice" means an unlawful employment practice
16prohibited under sub. (2) (a) or (b).
AB499,5,19 17(2) Abusive work environment prohibited. (a) It is an unlawful employment
18practice for an employer or employee to subject an employee to an abusive work
19environment.
AB499,5,2220 (b) It is an unlawful employment practice for an employer or employee to
21retaliate or threaten to retaliate in any manner against an employee for any of the
22following reasons:
AB499,5,2323 1. The employee opposed an unlawful employment practice.
AB499,6,224 2. The employee initiated, testified in, assisted in, or in any other manner
25participated in an investigation, action, or proceeding to enforce a right under this

1section, including any internal investigation or proceeding, any mediation or
2arbitration proceeding, or any court action.
AB499,6,43 3. The employer believes that the employee engaged in conduct described in
4subd. 1. or 2.
AB499,6,65 (c) The prohibitions under pars. (a) and (b) may be enforced only by a civil cause
6of action brought under sub. (3).
AB499,6,13 7(3) Civil action. In addition to any other remedy provided by law, an employee
8who alleges that he or she has been injured by an unlawful employment practice may
9bring an action in circuit court against the employer and, if applicable, the employee
10who allegedly engaged in the unlawful employment practice for any relief under sub.
11(5) the court considers appropriate. An employee must commence an action under
12this subsection within one year after the last act constituting the unlawful
13employment practice occurred or be barred from commencing an action.
AB499,6,16 14(4) Affirmative defenses. (a) If the alleged unlawful employment practice did
15not result in an adverse employment action against the aggrieved employee, the
16employer may plead as an affirmative defense that all of the following are true:
AB499,6,1817 1. The employer exercised reasonable care to prevent and promptly correct the
18abusive conduct that is the basis for the aggrieved employee's cause of action.
AB499,6,2119 2. The aggrieved employee unreasonably failed to take advantage of
20appropriate preventive or corrective opportunities the employer provided to prevent
21or correct the abusive conduct described under subd. 1.
AB499,6,2522 (b) If the alleged unlawful employment practice resulted in an adverse
23employment action against the aggrieved employee, the employer may plead as an
24affirmative defense that the aggrieved employee's complaint is based on any of the
25following:
AB499,7,3
11. An adverse employment action that was reasonably taken for poor
2performance or misconduct by the aggrieved employee or for the employer's economic
3necessity.
AB499,7,54 2. An adverse employment action that was taken in response to a reasonable
5performance evaluation of the aggrieved employee.
AB499,7,76 3. A reasonable investigation of a potentially illegal or unethical activity by the
7aggrieved employee.
AB499,7,118 (c) An employee who is alleged to have engaged in an unlawful employment
9practice may plead as an affirmative defense that the employee engaged in that
10practice at the direction of the employer under an actual or implied threat of an
11adverse employment action against the employee for not engaging in that practice.
AB499,7,23 12(5) Relief. (a) Subject to par. (b) and sub. (6) (a) 1., if the circuit court finds
13that an employer or employee has engaged in an unlawful employment practice, the
14court may enjoin the employer or employee from engaging in that practice and may
15grant other relief the court considers appropriate, including reinstatement of the
16aggrieved employee, removal of the person who engaged in the abusive conduct
17giving rise to the unlawful employment practice from the aggrieved employee's work
18area, medical expenses, back pay, front pay, compensation for pain and suffering,
19compensation for emotional distress, punitive damages under s. 895.043, and,
20notwithstanding s. 814.04, reasonable costs and attorney fees. If the circuit court
21orders any payment under this paragraph because of an unlawful employment
22practice engaged in by an employee, the employer of the employee who engaged in
23an unlawful employment practice is liable for that payment.
AB499,8,224 (b) If an employer is found to have engaged in an unlawful employment practice
25that did not result in an adverse employment action against the aggrieved employee,

1the employer is not liable for compensation for emotional distress or punitive
2damages unless the abusive conduct was extreme and outrageous.
AB499,8,4 3(6) Effect on other laws. (a) This section does not relieve any person from
4any duty, liability, or penalty provided by any other law except as follows:
AB499,8,165 1. If the worker's compensation insurer of an employer that is ordered to pay
6medical expenses under sub. (5) (a) or the department, if the employer is uninsured,
7has paid or is obligated to pay medical expenses under ch. 102 for an injury arising
8out of the same underlying behavior as the behavior giving rise to the unlawful
9employment practice for which the employer is liable, or if the worker's
10compensation insurer of an employer that is ordered to pay back pay or front pay
11under sub. (5) (a) or the department, if the employer is uninsured, has paid or is
12obligated to pay disability benefits under ch. 102 for such an injury for the same
13period as back or front pay is awarded under sub. (5) (a), the court shall order the
14employer to reimburse the insurer or department for the amount of those expenses
15or benefits paid or payable and to pay to the aggrieved employee any balance of the
16amount awarded under sub. (5) (a) remaining after that reimbursement.
AB499,9,217 2. If a self-insured employer has paid or is obligated to pay medical expenses
18under ch. 102 for an injury arising out of the same underlying behavior as the
19behavior giving rise to the unlawful employment practice for which the employer is
20liable, or a self-insured employer has paid or is obligated to pay disability benefits
21under ch. 102 for such an injury for the same period as back or front pay is awarded
22under sub. (5) (a), the court shall reduce the amount awarded under sub. (5) (a) for
23medical expenses, back pay, or front pay by the amount of those medical expenses or
24disability benefits that the employer has paid or is obligated to pay under ch. 102 and

1order the employer to pay to the aggrieved employee any balance of the amount
2awarded under sub. (5) (a) remaining after that reduction.
AB499,9,103 (b) An aggrieved employee who has claimed worker's compensation or
4payments under s. 102.81 (1) for an injury arising out of the same underlying
5behavior as the behavior giving rise to the unlawful employment practice for which
6the aggrieved employee brings an action under sub. (3) shall provide notice of the
7action and copies of all papers filed by a party to the action to the employer's worker's
8compensation insurer or, if the employer is uninsured, to the department and shall
9provide notice of the worker's compensation proceeding and copies of all papers filed
10by a party to the proceeding to the court and to all parties to the action.
AB499,7 11Section 7 . 814.04 (intro.) of the statutes is amended to read:
AB499,9,16 12814.04 Items of costs. (intro.) Except as provided in ss. 93.20, 100.195 (5m)
13(b), 100.30 (5m), 103.08 (5) (a), 106.50 (6) (i) and (6m) (a), 115.80 (9), 767.553 (4) (d),
14769.313, 802.05, 814.245, 895.035 (4), 895.044, 895.443 (3), 895.444 (2), 895.445 (3),
15895.446 (3), 895.506, 943.212 (2) (b), 943.245 (2) (d), 943.51 (2) (b), and 995.10 (3),
16when allowed costs shall be as follows:
AB499,8 17Section 8 . Initial applicability.
AB499,9,2018 (1) Abusive work environment. This act first applies to an unlawful
19employment practice, as defined in s. 103.08 (1) (k), committed on the effective date
20of this subsection.
AB499,9,2121 (End)
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