LRB-0452/1
MIM:cdc&kjf
2019 - 2020 LEGISLATURE
February 15, 2019 - Introduced by Senators Wirch, Carpenter, Hansen, Miller,
Ringhand, Risser, Smith and L. Taylor, cosponsored by Representatives
Ohnstad, Bowen, Anderson, Brostoff, Sargent and Subeck. Referred to
Committee on Labor and Regulatory Reform.
SB40,1,9 1An Act to renumber and amend 103.35, 109.09 (1) and 109.11 (1) (b); to amend
2103.34 (6) (d), 109.03 (5), 109.09 (2) (a), 109.09 (2) (b) 3., 109.09 (2) (c) 2., 109.11
3(title), 109.11 (1) (a), 109.11 (1) (c), 109.11 (2) (a), 109.11 (2) (b), 111.322 (2m) (a),
4111.322 (2m) (b), 893.44 (1) and 893.44 (2); and to create 20.445 (1) (gu), 103.35
5(1), 103.35 (3), 103.40, 109.01 (3m), 109.11 (4) and 814.75 (28) of the statutes;
6relating to: the provision by employers to employees of written disclosure
7statements of the terms of employment, various changes pertaining to wage
8claims, occupational or professional licensing of employers that owe wages
9under wage claim judgments, and making an appropriation.
Analysis by the Legislative Reference Bureau
This bill 1) makes various changes relating to claims that an employer has not
paid an employee wages that the employer owes to the employee (wage claims); 2)
requires employers to provide terms of employment statements to employees and
specifies penalties for employers that fail to provide or comply with the statement;
and 3) prohibits state agencies from issuing credentials or credential renewals to
employers with unpaid wage claims against them.

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.
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