75 Maiden Lane, Suite 601, New York, NY 10038 212-285-3025

National Employment Law Project Action Fund

A Project of The Advocacy Fund

September 2014

WisconsinsMinimumWageSystem:
TheGovernorIsChargedwithEnsuringThattheState
MinimumWageIsaLivingWageandMayOrderItRaised
IfItIsInadequate

Summary
UndertheWisconsinminimumwagesystem,theGovernor,throughthestatesDepartmentof
WorkforceDevelopment(DWD),hasadutytoensurethatthestateminimumwageisadequateto
allowlowpaidworkerstosupportthemselvesandmayissueanordertoraiseitifheorshe
determinesthatitisnotadequate.Inaddition,whenacomplaintisfiledchargingthatthecurrent
stateminimumwageisnotsufficient,DWDmustdeterminewithin20dayswhetherthereis
reasonablecausetobelievethatthewagepaidtoanyemployeeisnotalivingwage.IfDWD
determinesthatthereisreasonablecause,itmusteitherappointawagecounciltoinvestigateand
determineanew,higherminimumwageorsimplyissueanorderestablishingthehigherwage
directly.

Explanation
Wisconsinhasauniquestateminimumwagesystem,whichisalegacyofthestates
progressivetradition.Underthesystem,theminimumwageisdefinedasalivingwage.
1

TheGovernor,throughhisorherDepartmentofWorkforceDevelopment,isinstructedto
ensurethatthestateswageissufficienttoenabletheemployeereceivingthecompensation
tomaintainhimselforherselfunderconditionsconsistentwithhisorherwelfare.
2
IfDWD
determinesthatthecurrentwagelevelisnotsufficient,statelawrequiresDWDtoimpose
generalorspecialorders,determiningthe[new]livingwage...
3
Inotherwords,the
Governorsadministrationmayissueanorderraisingtheminimumwagetoamoreadequate
levelwithoutwaitingforthelegislaturetoact.

Statelawalsoestablishesacomplaintandinvestigationprocesswherebymembersofthe
publiccancomplainthatthecurrentlevelofthestatewagenotsufficienttoenablethe
2
employeetomaintainhimselforherselfunderconditionsconsistentwithhisorherwelfare.
4

Whensuchacomplaintisfiled,Thedepartmentshall,within20daysafterthefilingofa
verifiedcomplaintinvestigateanddeterminewhetherthereisreasonablecausetobelieve
thatthewagepaidtoanyemployeeisnotalivingwage.
5

IfDWDconcludesthatthereisreasonablecausetobelievethatthestatescurrentwageisnot
alivingwage,itmaytheneithersimplyissueanorderraisingitorelseappointawage
council,selectedsoasfairlytorepresentemployers,employees,andthepublic,toassistinits
investigationsanddeterminations.ThestatelawthenprovidesthatThelivingwageso
determined[bythewagecouncil]uponshallbethe[newstate]livingwage....
6
Note,
however,thatthenewhigherlivingwagedeterminedbyeitherDWDorderorbythewage
councilisthensubjecttoreviewbycommitteesofthestatelegislatureinthesamemanneras
areallotherDWDrules.

In1995,GovernorTommyThompsonwasorderedbyacourttobegintheprocessofraising
theminimumwage,whenthecurrentminimumwagewasdeterminednottobeadequate.
7

Subsequently,theRepublicanledlegislaturethenamendedthelawtoprovidethatIn
determiningthelivingwage,thedepartmentmayconsidertheeffectthatanincreaseinthe
livingwagemighthaveontheeconomyofthestate,includingtheeffectofalivingwage
increaseonjobcreation,retention,andexpansion,ontheavailabilityofentryleveljobs,and
onregionaleconomicconditionswithinthestate.
8

Nonetheless,theWisconsingovernorretainsthepower,throughDWD,toraisetheminimum
wageonhisorherownwithoutwaitingforthelegislaturetoact.Andthisauthorityhasbeen
usedrepeatedlybyWisconsingovernorsinthepast.Forexample,in2004,GovernorJim
Doyleusedthisauthoritytobegintheprocessofraisingthestateminimumwageactionthat
ultimatelyhelpedspurthelegislaturetoactandapproveanincrease.

***
Formoreinformation,pleasevisitwww.raisetheminimumwage.org,orcontactPaulSonnat(917)5660680or
paul@nelpaction.org.

1
WisconsinStatutes104.02.
2
WisconsinStatutes104.01(5).
3
WisconsinStatutes104.04.
4
WisconsinStatutes104.05.
5
WisconsinStatutes104.05.
6
WisconsinStatutes104.06.
7
ServiceEmployeesIntlUnionv.DeptofIndus.,Labor&Hum.Rel.,No.93CV3675,1995WL366052,(DaneCty.Cir.Ct.
Mar.27,1995).
8
WisconsinStatutes104.04.