1. What is the current minimum wage for tipped workers in Wisconsin?

The current minimum wage for tipped workers in Wisconsin is $2.33 per hour. However, if the employee’s tips combined with their hourly wage do not equal the regular minimum wage of $7.25 per hour, the employer is required to make up the difference.

2. Is there a difference between the tipped minimum wage and regular minimum wage in Wisconsin?

Yes, there is a difference between the tipped minimum wage and regular minimum wage in Wisconsin.

Regular minimum wage: Currently, the regular minimum wage in Wisconsin is $7.25 per hour for most employees. This means that employers must pay their non-tipped employees at least $7.25 per hour for all hours worked.

Tipped minimum wage: The tipped minimum wage in Wisconsin is $2.33 per hour for employees who regularly receive more than $30 per month in tips. This means that employers can use up to $4.92 per hour in tip credits towards meeting the state’s minimum wage requirement, as long as the employee’s hourly rate (including tips) adds up to at least the regular minimum wage of $7.25 per hour.

In summary, the main difference between the two is that the tipped minimum wage allows employers to count a portion of an employee’s tips towards meeting the state’s minimum wage requirement, while the regular minimum wage does not include tips.

3. How does this compare to other states?
The tipped minimum wage and regular minimum wage vary by state and can change over time. Currently, 18 states have a tipped minimum wage that is equal to or higher than the federal tipped minimum wage of $2.13 per hour, while 32 states and D.C. have a higher regular minimum wage than the federal rate of $7.25 per hour.

In some states, like California and Washington, there is no separate tipped minimum wage and all workers are entitled to the same minimum hourly rate regardless of whether they receive tips or not.

Additionally, several states have passed legislation to gradually increase their regular and/or tipped min

3. How much do tipped workers make per hour in Wisconsin?

In Wisconsin, tipped workers make a minimum wage of $2.33 per hour, which is significantly lower than the state’s regular minimum wage of $7.25 per hour. However, if the employee does not make enough in tips to reach the regular minimum wage, the employer is required to make up the difference.

4. Has the minimum wage for tipped employees increased in Wisconsin recently?

Yes, the minimum wage for tipped employees in Wisconsin increased on June 1, 2020. The new minimum wage for tipped employees is $2.33 per hour, an increase of 10 cents from the previous rate of $2.33 per hour. This increase is part of a scheduled series of increases that will eventually raise the minimum wage for tipped employees to match the regular minimum wage by 2023.

5. Are there any pending changes to the tipped minimum wage in Wisconsin?

At this time, there are no pending changes to the tipped minimum wage in Wisconsin. The current law sets the tipped minimum wage at $2.33 per hour, which is tied to the federal tipped minimum wage rate. Any changes to the federal rate would also impact the state’s tipped minimum wage.

6. Can a tipped worker afford a living wage in Wisconsin?

It is unlikely that a tipped worker in Wisconsin can afford a living wage. According to the MIT Living Wage Calculator, the living wage for a single adult in Wisconsin is $11.63 per hour, while the state’s minimum wage for tipped workers is only $2.33 per hour. This means even with tips, a tipped worker would not be able to reach the living wage threshold. Additionally, tipped workers often face unpredictable income and may not receive enough tips to cover their basic expenses. As a result, many tipped workers rely on food stamps and other government assistance programs to make ends meet.

7. How does Wisconsin’s minimum wage for tipped employees compare to neighboring states?

According to data from the National Conference of State Legislatures, Wisconsin’s minimum wage for tipped employees is lower than neighboring states. As of January 2020, Wisconsin’s tipped minimum wage is $2.33 per hour, while Minnesota and Michigan have a tipped minimum wage of $8.15 per hour. Illinois’s tipped minimum wage is $5.55 per hour, and Iowa’s is $4.35 per hour.

8. Are employers required to make up the difference if a tipped worker’s wages fall below the standard minimum wage in Wisconsin?

Yes, employers are required to make up the difference if a tipped worker’s wages fall below the standard minimum wage in Wisconsin. This is known as the “tip credit” system, where employers can claim a portion of an employee’s tips towards meeting the minimum wage requirement. However, if the combination of tips and direct wages do not equal or exceed the standard minimum wage, then the employer must make up the difference.

9. Do cities within Wisconsin have their own separate tipped minimum wage rates or is it consistent throughout the state?

The tipped minimum wage rate in Wisconsin is consistent throughout the state. Individual cities do not have their own separate tipped minimum wage rates.

10. Has there been any discussion of increasing the minimum wage for tipped employees in Wisconsin?

Yes, there has been some discussion of increasing the minimum wage for tipped employees in Wisconsin. In 2021, Democratic lawmakers proposed a bill to raise the minimum wage for tipped workers to $15 per hour by 2023. However, the bill did not pass in the Republican-controlled legislature. Additionally, some cities in Wisconsin, such as Madison and Milwaukee, have implemented their own local minimum wage ordinances that include higher minimum wage rates for tipped employees.

11. Does Wisconsin have a different minimum wage for servers versus other types of tipped workers?

No, Wisconsin does not have a different minimum wage for servers or other tipped workers. The state’s minimum wage is the same for all employees, regardless of whether they receive tips. As of 2021, the minimum wage in Wisconsin is $7.25 per hour for non-tipped employees and $2.33 per hour for tipped employees.

12. How does Wisconsin’s current tipped employee minimum wage compare to federal standards and neighboring states’ rates?

Wisconsin’s current tipped employee minimum wage is $2.33 per hour, which is the same as the federal minimum tipped wage. However, neighboring state Illinois has a higher tipped minimum wage at $6.40 per hour, while Minnesota and Iowa have a lower tipped minimum wage at $9.86 and $4.35 respectively. Michigan also has a higher tipped minimum wage of $3.52 per hour.

13. In Wisconsin, are employers allowed to use tips towards fulfilling their obligation to pay the standard minimum wage for employees?

No, employers in Wisconsin are not allowed to use tips to fulfill their obligation to pay the standard minimum wage for employees. All employees in Wisconsin must be paid at least the state minimum wage of $7.25 per hour, regardless of whether they receive tips. Tips should be considered additional income on top of the standard minimum wage and cannot be used to replace or reduce an employee’s hourly pay.

14. Is there a plan to increase the tip credit percentage in Wisconsin, which currently has one of the lowest rates nationwide?

There is currently no plan to increase the tip credit percentage in Wisconsin. The state’s minimum wage law allows for a tip credit of up to $3.23 per hour, which is among the lowest rates in the country. However, any changes to this rate would require legislative action and it is unclear if there are any current proposals to do so.

15. Are there exemptions from paying the state’s established tip credit rate for certain industries or professions in Wisconsin?

Yes, there are exemptions from paying the state’s established tip credit rate for certain industries or professions in Wisconsin. These exemptions include the following:

1. Tipped employees who work in a hotel or food establishment that has an annual gross income of less than $500,000 can be paid the full minimum wage without using the tip credit.

2. Employees who exclusively work as bartenders are not subject to the tip credit and must be paid at least the full minimum wage.

3. Buspersons, service bartenders, and anyone else who does not regularly receive tips directly from customers are also exempt from the tip credit and must be paid at least the full minimum wage.

4. Employees of nonprofit organizations, such as charitable organizations or religious institutions, are exempt from the tip credit and must be paid at least the full minimum wage.

5. Any employee who receives more than $30 per month in tips is not eligible for the tip credit and must be paid at least the full minimum wage.

6. Agricultural workers are exempt from the tip credit also and must be paid at least the full minimum wage.

7. Direct sellers or door-to-door salespeople who make more than 50% of their earnings from commission are exempt from the tip credit and must be paid at least the full minimum wage.

8. The federal Fair Labor Standards Act (FLSA) allows certain occupations to pay a lower cash wage if they meet specific criteria, such as waitstaff, bus staff, service bartenders, bellhops, and other tipped employees in businesses with annual gross receipts under a certain level ($500,000 under federal law and $295,000 in Wisconsin).

It is important for employers to review these exemptions carefully when determining how much to pay their tipped employees in order to comply with state and federal laws.

16. Can legislators override local laws regarding the establishment of a separate tipped worker minimum wage rate in [State?

This depends on the specific laws and regulations in [State]. In some states, the state legislature may have the authority to override local laws regarding minimum wage rates. However, in other states, local governments may have the power to establish separate minimum wage rates, and the state legislature may not be able to override these laws. It is important to research and understand the specific laws and regulations in [State] regarding minimum wage rates for tipped workers.

17. Has Wisconsin recently adjusted its tip pooling laws affecting server wages?

No, Wisconsin’s tip pooling laws have not been recently adjusted. The state’s minimum wage for tipped employees is $2.33 per hour, and employers are allowed to utilize a tip credit up to $5.42 per hour, as long as the employee’s hourly wage plus tips equal at least the full state minimum wage of $7.75 per hour. Additionally, there are no specific state laws regarding tip pooling or sharing among employees in Wisconsin, although federal regulations must still be followed.

18. How do Wisconsin’s current hourly wages for non-tipped workers compare with those applied specifically to restaurant personnel?

According to data from the U.S. Bureau of Labor Statistics, Wisconsin’s current hourly wage for non-tipped workers is $11.83, while the minimum wage for tipped workers (such as restaurant servers) is $2.33 per hour. This means that non-tipped workers in Wisconsin earn significantly more on an hourly basis than tipped workers in the restaurant industry. However, many restaurants have policies and practices in place to ensure that tipped workers earn at least the state’s minimum wage through tips and other forms of compensation.

19. In Wisconsin, are separate restaurants and other establishments categorized differently with regards to applying differing hourly rates for employees who receive tips?

There is no state-wide categorization for restaurants and other establishments in Wisconsin with regards to hourly rates for employees who receive tips. The minimum wage for tipped employees is the same across all industries and is currently $2.33 per hour. However, individual employers may choose to pay their tipped employees more than this minimum wage.

20 Where can I access (or has anyone correlated) information about how each of the US states and territories have approached minimum wage laws for tipped workers?

The National Employment Law Project (NELP) maintains a database that tracks minimum wage laws for tipped workers in each state and territory: https://www.nelp.org/publication/tipped-minimum-wage-state-by-state-chart/.

Additionally, the U.S. Department of Labor’s Wage and Hour Division has a webpage dedicated to minimum wages for tipped workers, which includes information on federal laws and state-specific requirements: https://www.dol.gov/agencies/whd/state/tipped.