Wisconsin catering companies struggle with labor costs and compliance. Constant changes in labor laws complicate every event. Mistakes lead to costly fines and hurt your reputation.
This guide simplifies Wisconsin’s key labor laws. It helps catering operators understand your obligations. Run your business confidently and legally.
Lavu understands these challenges. Our tools and insights help you manage compliance. Get proactive with payroll and scheduling today. https://lavu.com/demo
Minimum Wage
Current rate: $7.25 per hour (effective July 24, 2009)
Future changes: Wisconsin does not currently have scheduled state-level minimum wage increases beyond the federal rate.
- Wisconsin’s minimum wage aligns with the federal minimum wage.
- This rate applies to most employees, including those in the catering industry.
- Employers must ensure all non-exempt employees are paid at least this rate.
- Specific exemptions exist for certain occupations or employees, like student learners.
Tipped Employees
Tip credit allowed: Yes
Minimum cash wage: $2.33 per hour
Wisconsin follows federal tip pooling rules. Only employees who regularly receive tips can participate. This includes servers, bussers, and bartenders. Managers, supervisors, and owners cannot keep any part of employee tips.
- Employers must inform employees of the tip credit provision before taking it.
- The sum of the cash wage and tips must equal or exceed the standard minimum wage of $7.25 per hour.
- If an employee’s tips plus cash wage do not meet the minimum wage, the employer must make up the difference.
- The 80/20 rule applies: no more than 20% of a tipped employee’s time can be spent on non-tipped duties if the employer takes a tip credit for that time.
- Tips are the property of the employee, not the employer.
Compliance Checklist
Verify all employees, including temporary catering staff, are paid at least Wisconsin’s minimum wage of $7.25 per hour.
For tipped employees, ensure their cash wage ($2.33/hour) plus tips meets the $7.25 minimum wage requirement.
Accurately track all hours worked by employees, especially those exceeding 40 hours in a workweek, to ensure proper overtime payment.
Review child labor permits and adherence to hour restrictions for any minor employees working catering events.
Display all required state and federal labor law posters in a visible location at your catering facility.
Establish and communicate clear policies regarding meal and rest breaks, ensuring compliance with any paid break rules.
Provide reasonable, private break times and spaces for nursing mothers for one year after childbirth.
Ensure timely payment of all final wages to employees upon termination, by the next regular payday.
Maintain accurate and complete payroll, hours worked, and tip records for at least three years.
Regularly audit tip distribution practices to ensure compliance with federal and state tip pooling laws.
Train all managers and supervisors on current Wisconsin labor laws applicable to catering operations.
Review your worker classification (employee vs. independent contractor) for catering staff to avoid misclassification penalties.
Frequently Asked Questions
Does Wisconsin require paid meal breaks for catering staff?
No. Wisconsin state law does not mandate paid meal breaks for adult employees. Federal law also does not require them.
Can I use a tip credit for all my catering employees in Wisconsin?
No. You can only use a tip credit for employees who customarily and regularly receive tips. You must notify employees of this practice.
What happens if an employee’s tips plus cash wage do not meet the minimum wage in Wisconsin?
The employer must make up the difference. You must ensure the combined hourly rate reaches at least $7.25 per hour.
Are catering managers eligible to participate in a tip pool in Wisconsin?
No. Managers, supervisors, and owners cannot keep any portion of employee tips. This applies whether tips are direct or from a pool.
Do I need to pay for a catering employee’s travel time between multiple event locations?
Yes. Time spent traveling between multiple work sites during the workday, including between catering venues, is compensable work time.
What records must I keep for my catering company’s employees in Wisconsin?
You must keep accurate records of hours worked, wages paid, tips received, and employee contact information. Maintain these records for at least three years.
Can I deduct the cost of damaged catering equipment from an employee’s wages in Wisconsin?
No. Deductions for damaged property are usually illegal if they reduce an employee’s pay below minimum wage or cut into overtime.
Does Wisconsin have specific laws for ‘on-call’ time for catering events?
No, Wisconsin does not have specific state laws for ‘on-call’ time. Federal rules determine if on-call time is compensable based on employee restrictions.
Are ‘event setup’ and ‘teardown’ times considered compensable work for catering staff?
Yes. All time an employee spends performing work-related duties, including event setup and teardown, must be compensated.
Can I require catering employees to purchase specific uniforms?
Yes, but with caveats. The employer must cover uniform costs if they reduce an employee’s wages below minimum wage.
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