LRB-2814/1
GMM:sac:jf
2013 - 2014 LEGISLATURE
January 9, 2014 - Introduced by Representatives Kleefisch, Stroebel, Craig,
Jacque, Sanfelippo, Bies, Murtha and Kaufert, cosponsored by Senator
Grothman. Referred to Committee on Labor.
AB611,1,4 1An Act to amend 20.923 (16), 62.13 (7n), 62.57, 97.42 (4) (f), 103.025 (2), 109.09
2(1), 111.322 (2m) (a) and 111.322 (2m) (b); and to create 103.025 (1) (title),
3103.025 (3) and 106.54 (10) of the statutes; relating to: the provision of
4compensatory time off in lieu of overtime compensation by private employers.
Analysis by the Legislative Reference Bureau
Current law, subject to certain exceptions, requires an employer to pay an
employee 1.5 times the employee's regular rate of pay for all hours worked in excess
of 40 hours per week (overtime compensation). Current law, however, permits the
state or a local governmental unit to provide an employee, in lieu of overtime
compensation, paid time off at a rate of not less than 1.5 hours for each hour of
employment for which overtime compensation is otherwise required (compensatory
time off), if such an arrangement is authorized by a collective bargaining agreement
or other agreement arrived at before the work is performed.
This bill permits an employer other than the state or a local governmental unit
(private employer) to provide compensatory time off in lieu of overtime
compensation, if such an arrangement is authorized by a collective bargaining
agreement or other agreement arrived at before the work is performed, is entered
into by the employee knowingly and voluntarily and not as a condition of
employment, and is affirmed by a written record maintained by the employer. The
bill permits an employee to accrue not more than 160 hours of compensatory time and
provides that if an employee who has accrued 160 hours of compensatory time works
additional hours during periods for which overtime compensation is payable, the

employer must provide the employee overtime compensation for those additional
hours worked. The bill requires an employer to permit an employee who requests
the use of compensatory time that the employee has accrued to use that
compensatory time within a reasonable period after the employee makes the request
if the use of that compensatory time does not unduly disrupt the employer's
operations.
In addition, the bill requires or permits an employer to pay monetary
compensation instead of provide compensatory time off as follows:
1. By January 31 of each year or by the 31st day after any other 12-month
period designated by the employer, the employer must provide monetary
compensation to an employee for any compensatory time accrued by the employee
and not used during the preceding year or other 12-month period.
2. An employer may at any time provide monetary compensation to an
employee for any unused compensatory time accrued by the employee in excess of 80
hours.
3. An employee may at any time request in writing that the employer provide
the employee with monetary compensation for any unused compensatory time
accrued by the employee.
4. On termination of employment, the employer must provide monetary
compensation to the employee for any unused compensatory time accrued by the
employee.
Finally, the bill permits an employer that has adopted a policy of offering
compensatory time to discontinue that policy upon giving its employees 30 days'
notice of the employer's intent to discontinue that policy, except as otherwise
provided in a collective bargaining agreement. The bill also permits an employee
who has entered into an agreement to take compensatory time off in lieu of overtime
compensation to withdraw from that agreement at any time.
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:
AB611,1 1Section 1. 20.923 (16) of the statutes, as affected by 2011 Wisconsin Act 32,
2is amended to read:
AB611,3,23 20.923 (16) Overtime and compensatory time exclusion. The salary paid to
4any person whose position is included under subs. (2), (4), (7), and (8) to (12) is
5deemed to compensate that person for all work hours. No overtime compensation
6may be paid, and no compensatory time under s. 103.025 (2) may be provided, to any

1such person for hours worked in any workweek in excess of the standard basis of
2employment as specified in s. 230.35 (5) (a).
AB611,2 3Section 2. 62.13 (7n) of the statutes is amended to read:
AB611,3,134 62.13 (7n) Hours of labor. Except when a labor agreement under subch. IV
5of ch. 111 that governs hours of employment exists, the council of every 2nd, 3rd, or
64th class city shall provide for a working day of not more than 8 hours in each 24
7except in cases of positive necessity by some sudden and serious emergency, which,
8in the judgment of the chief of police, the fire chief, or the chief of the combined
9protective services department, demands that such workday shall be extended
10beyond the 8-hour period at such time; and, when such emergency ceases to exist,
11all overtime given during such emergency shall be placed to the credit of such
12subordinate police officer, or each subordinate designated as primarily a police
13officer under sub. (2e) (b), and compensatory time under s. 103.025 (2) given therefor.
AB611,3 14Section 3. 62.57 of the statutes is amended to read:
AB611,4,2 1562.57 Uniform salaries in 1st class cities. The common council of a 1st class
16city may at any regular or special meeting adopt a uniform and comprehensive salary
17or wage ordinance, or both, based on a classification of officers, employments and
18positions in the city service, whether previously so classified or not, if provision has
19been made in the budget of the current year for the total sum of money required for
20the payment of the salaries and wages and a tax levied to fund the wages and
21salaries. Wages under this section may be fixed by resolution. The common council
22may, at any time, determine a cost-of-living increment or deduction, to be paid in
23addition to wages or salaries under this section, based on a proper finding of the
24United States bureau of labor statistics. The common council may provide for

1overtime pay and compensatory time under s. 103.025 (2) for employees who work
2in excess of 40 hours per week.
AB611,4 3Section 4. 97.42 (4) (f) of the statutes is amended to read:
AB611,4,154 97.42 (4) (f) Overtime agreements with the department whereby the operator
5of any establishment subject to a license under sub. (2), agrees to pay the cost for
6salaries, at overtime rates, and other expenses of department inspectors whenever
7slaughtering, carcass preparation, or the processing of meat or poultry products or
8meat food products is conducted beyond hours or days limited under par. (e), or on
9Saturdays, Sundays, or holidays for state employees under s. 230.35 (4), or before 6
10a.m. or after 6 p.m., or in excess of 40 hours in any week. Overtime charges for
11periodic inspections under sub. (3) (e) shall, insofar as possible, be limited to the
12minimum number of hours reasonably required for the conduct of such inspections.
13The department may assess overtime charges under this paragraph even though the
14department provides compensatory time in lieu of overtime compensation under s.
15103.025 (2).
AB611,5 16Section 5. 103.025 (1) (title) of the statutes is created to read:
AB611,4,1717 103.025 (1) (title) Definitions.
AB611,6 18Section 6. 103.025 (2) of the statutes is amended to read:
AB611,4,2119 103.025 (2) Public employers. An employer described in s. 103.01 (1) (b) 104.01
20(3) (b)
may provide an employee, in lieu of overtime compensation, compensatory
21time off as permitted under 29 USC 207 (o), as amended to April 15, 1986.
AB611,7 22Section 7. 103.025 (3) of the statutes is created to read:
AB611,4,2523 103.025 (3) Private employers. (a) Definition. In this subsection, "employer"
24has the meaning given in s. 104.01 (3) (a), but does not include an employer described
25in s. 104.01 (3) (b).
AB611,5,4
1(b) Compensatory time off permitted. Subject to pars. (c) and (d), an employer
2may provide an employee, in lieu of overtime compensation, compensatory time off
3at a rate of not less than 1.5 hours for each hour of employment for which overtime
4compensation is required to be paid.
AB611,5,75 (c) Agreement required. An employer may provide compensatory time off to an
6employee under par. (b) only if that time off is provided in accordance with any of the
7following:
AB611,5,108 1. The applicable provisions of a collective bargaining agreement between the
9employer and a labor organization that has been certified or recognized as the
10representative of the employee.
AB611,5,1511 2. In the case of an employee who is not represented by a labor organization
12described in subd. 1., an agreement between the employer and the employee arrived
13at before the performance of the work, entered into by the employee knowingly and
14voluntarily and not as a condition of employment, and affirmed by a written record
15maintained by the employer in accordance with s. 104.09.
AB611,5,2016 (d) Hour limit. An employee may accrue not more than 160 hours of
17compensatory time under par. (b). If an employee who has accrued 160 hours of
18compensatory time works additional hours during periods for which overtime
19compensation is payable, the employer shall provide the employee overtime
20compensation for those additional hours worked.
AB611,5,2521 (e) Use of compensatory time. An employer shall permit an employee who
22requests the use of compensatory time that the employee has accrued to use that
23compensatory time within a reasonable period after the employee makes the request
24if the use of that compensatory time does not unduly disrupt the employer's
25operations.
AB611,6,5
1(f) Monetary compensation. 1. By January 31 of each year or by the 31st day
2after the end of any other 12-month period designated by an employer, the employer
3shall provide monetary compensation to an employee for any compensatory time
4accrued by the employee and not used during the preceding year or other 12-month
5period at the rate prescribed in subd. 5.
AB611,6,106 2. Notwithstanding subd. 1., an employer may at any time provide monetary
7compensation to an employee for any unused compensatory time accrued by the
8employee in excess of 80 hours after first giving the employee 30 days' notice of the
9employer's intent to provide that compensation. The employer shall provide that
10compensation at the rate prescribed in subd. 5.
AB611,6,1511 3. An employee may at any time request in writing that his or her employer
12provide the employee with monetary compensation for any unused compensatory
13time accrued by the employee. Within 30 days after receiving such a request, the
14employer shall provide the employee with that monetary compensation at the rate
15prescribed in subd. 5.
AB611,6,1816 4. On termination of an employee's employment with an employer, the
17employer shall provide monetary compensation to the employee for any unused
18compensatory time accrued by the employee at the rate prescribed in subd. 5.
AB611,6,2519 5. An employer shall pay any monetary compensation provided under subd. 1.,
202., 3., or 4. at the regular rate of pay of the employee at the time the compensatory
21time was earned or at the final regular rate of pay of the employee, whichever is
22greater. In this subdivision, "final regular rate of pay" means the regular rate of pay
23of an employee at the end of the preceding year or other 12-month period specified
24in subd. 1., at the time of a notice under subd. 2., at the time of a request under subd.
253., or at the time of termination of the employee's employment under subd. 4.
AB611,7,2
16. Any payment owed to an employee under subd. 1., 2., 3., or 4. shall be
2considered unpaid overtime compensation.
AB611,7,63 (g) Discontinuance or withdrawal. 1. Except when a collective bargaining
4agreement provides otherwise, an employer that has adopted a policy of offering
5compensatory time to employees may discontinue that policy upon giving its
6employees 30 days' notice of the employer's intent to discontinue that policy.
AB611,7,87 2. An employee who has entered into an agreement under par. (c) 2. may
8withdraw from that agreement at any time.
AB611,7,99 (h) Actions prohibited. No employer may do any of the following:
AB611,7,1410 1. Interfere with, restrain, or deny an employee's right under this subsection
11to agree or not to agree to the provision of compensatory time in lieu of overtime
12compensation, to request or not to request compensatory time off in lieu of being paid
13overtime compensation, or to use or not to use compensatory time off in lieu of being
14paid overtime compensation.
AB611,7,1815 2. Discharge or otherwise discriminate against an employee for exercising a
16right specified in subd. 1., opposing a practice prohibited under subd. 1., filing a
17complaint or attempting to enforce any right under subd. 1., or testifying or assisting
18in any action or proceeding to enforce any right under subd. 1.
AB611,8,219 (i) Enforcement. 1. An employee who is discharged or otherwise discriminated
20against in violation of par. (h) 2. may file a complaint with the department, and the
21department shall process the complaint in the same manner as employment
22discrimination complaints are processed under s. 111.39. If the department finds
23that a violation of par. (h) 2. has been committed, the department may order the
24employer to take such action authorized under s. 111.39 as will remedy the violation.

1Section 111.322 (2m) applies to a discharge or other discriminatory act arising in
2connection with any proceeding under this subdivision.
AB611,8,53 2. An employee who is owed monetary compensation under par. (f) 1., 2., 3., or
44. may file a wage claim with the department under s. 109.09 (1) or may bring an
5action under s. 109.03 (5) without first filing a wage claim with the department.
AB611,8 6Section 8. 106.54 (10) of the statutes is created to read:
AB611,8,97 106.54 (10) The division shall receive complaints under s. 103.025 (3) (i) 1. and
8shall process the complaints in the same manner as employment discrimination
9complaints are processed under s. 111.39.
AB611,9 10Section 9. 109.09 (1) of the statutes is amended to read:
AB611,9,611 109.09 (1) The department shall investigate and attempt equitably to adjust
12controversies between employers and employees as to alleged wage claims. The
13department may receive and investigate any wage claim which is filed with the
14department, or received by the department under s. 109.10 (4), no later than 2 years
15after the date the wages are due. The department may, after receiving a wage claim,
16investigate any wages due from the employer against whom the claim is filed to any
17employee during the period commencing 2 years before the date the claim is filed.
18The department shall enforce this chapter and ss. 66.0903, 103.02, 103.025, 103.49,
19103.82, 104.12, and 229.8275. In pursuance of this duty, the department may sue the
20employer on behalf of the employee to collect any wage claim or wage deficiency and
21ss. 109.03 (6) and 109.11 (2) and (3) shall apply to such actions. Except for actions
22under s. 109.10, the department may refer such an action to the district attorney of
23the county in which the violation occurs for prosecution and collection and the
24district attorney shall commence an action in the circuit court having appropriate
25jurisdiction. Any number of wage claims or wage deficiencies against the same

1employer may be joined in a single proceeding, but the court may order separate
2trials or hearings. In actions that are referred to a district attorney under this
3subsection, any taxable costs recovered by the district attorney shall be paid into the
4general fund of the county in which the violation occurs and used by that county to
5meet its financial responsibility under s. 978.13 (2) (b) for the operation of the office
6of the district attorney who prosecuted the action.
AB611,10 7Section 10. 111.322 (2m) (a) of the statutes is amended to read:
AB611,9,118 111.322 (2m) (a) The individual files a complaint or attempts to enforce any
9right under s. 103.02, 103.025, 103.10, 103.13, 103.28, 103.32, 103.34, 103.455,
10103.50, 104.12, 106.04, 109.03, 109.07, 109.075, or 146.997 or ss. 101.58 to 101.599
11or 103.64 to 103.82.
AB611,11 12Section 11. 111.322 (2m) (b) of the statutes is amended to read:
AB611,9,1613 111.322 (2m) (b) The individual testifies or assists in any action or proceeding
14held under or to enforce any right under s. 103.02, 103.025, 103.10, 103.13, 103.28,
15103.32, 103.34, 103.455, 103.50, 104.12, 106.04, 109.03, 109.07, 109.075, or 146.997
16or ss. 101.58 to 101.599 or 103.64 to 103.82.
AB611,12 17Section 12. Initial applicability.
AB611,9,2318 (1) Collective bargaining agreements. This act first applies to hours worked
19on the effective date of this subsection, except that in the case of an employee who
20on that date is covered by a collective bargaining agreement containing provisions
21that are inconsistent with this act, this act first applies to hours worked on the day
22on which the collective bargaining agreement expires, or is extended, modified, or
23renewed, which occurs first.
AB611,9,2424 (End)
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