Wisconsin SB 1123: Relating to: a state minimum wage, allowing the enactment of local minimum wage ordinances, and granting rule-making authority. (FE)

Bill Text

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2025 SENATE BILL 1123
March 19, 2026 - Introduced by Senators ROYS, DRAKE, LARSON, SPREITZER and
CARPENTER, cosponsored by Representatives CRUZ, CLANCY, TENORIO,
ANDERSON, ARNEY, BARE, BROWN, DESANTO, DESMIDT, FITZGERALD,
GOODWIN, HAYWOOD, HONG, HYSELL, JOERS, JOHNSON, KIRSCH, MADISON,
MAYADEV, MCCARVILLE, MCGUIRE, MIRESSE, MOORE OMOKUNDE, PALMERI,
PHELPS, PRADO, RIVERA-WAGNER, ROE, SHEEHAN, SINICKI, SPAUDE, STUBBS,
SUBECK, TAYLOR, UDELL, VINING, SNODGRASS and STROUD. Referred to
Committee on Government Operations, Labor and Economic Development.
AN ACT to repeal 104.001, 104.01 (5g) and 104.045 (1); to amend 104.045
(title); to repeal and recreate 104.035; to create 104.01 (1g), 104.01 (6m)
and 227.01 (13) (Lw) of the statutes; relating to: a state minimum wage,
allowing the enactment of local minimum wage ordinances, and granting rule-
making authority.
Analysis by the Legislative Reference Bureau
Currently, the state minimum wage law requires that employers pay the
applicable minimum wage set in statute to their employees. Under that law, the
current minimum wage for non-tipped employees is $7.25 per hour and for tipped
employees is $2.33 per hour. This bill raises the minimum wage for non-tipped
employees and for tipped employees. However, the bill establishes a longer timeline
for small employers to be required to pay the same minimum wage as large
employers. Under the bill, a “small employer” is defined as one that employs 50 or
fewer employees.
The bill raises the minimum wage to $15 per hour for non-tipped employees of
large employers on the effective date of the bill and by $1.25 per hour on each
successive January 1 until 2030, when it is set at a standard minimum wage of $20
per hour. The bill raises the minimum wage to $7.50 per hour for tipped employees
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of large employers on the effective date of the bill and by 50 cents per hour on each
successive January 1 until 2031, when it is set at a minimum of $10 per hour.
Thereafter the tipped minimum wage generally is set at one-half the standard
minimum wage.
The bill raises the minimum wage to $15 per hour for non-tipped employees of
small employers on the effective date of the bill and by 75 cents per hour on each
successive January 1 until 2034, when it is set at the standard minimum wage then
in effect. The bill also raises the minimum wage to $6.50 per hour for tipped
employees of small employers on the effective date of the bill and by 50 cents per
hour on each successive January 1 until 2034, when it is set at one-half the
standard minimum wage then in effect.
The table below illustrates the progression of the minimum wage between the
current minimum wage and January 1, 2034.
Current
Upon
adoption
Jan. 1,
2027
Jan. 1,
2028
Jan. 1,
2029
Non-
tipped
Large $7.25 $15.00 $16.25 $17.50 $18.75
Small $7.25 $15.00 $15.75 $16.50 $17.25
Tipped Large $2.33 $7.50 $8.00 $8.50 $9.00
Small $2.33 $6.50 $7.00 $7.50 $8.00
Jan. 1,
2030
Jan. 1,
2031
Jan. 1,
2032
Jan. 1,
2033
Jan. 1,
2034
Non-
tipped
Large $20.00 $20.00
+ CPI
a
$20.00
+ CPI
b
$20.00
+ CPI
c
$20.00
+CPI
d
Small $18.00 $18.75 $19.50 $20.00 $20.00
+ CPI
d
Tipped Large $9.50 $10.00 Half non-
tipped
Half non-
tipped
Half non-
tipped
Small $8.50 $9.00 $9.50 $10.00 Half non-
tipped
Beginning on January 1, 2031, and annually thereafter, the bill requires the
Department of Workforce Development to annually revise the minimum wage for
most employees established under the bill by determining the percentage difference
between the consumer price index for the preceding year and the consumer price
index for the year before the preceding year, adjusting the minimum wage then in
effect by that percentage difference, and rounding that result to the nearest

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SECTION 1
multiple of five cents. If the consumer price index for the preceding year has not
increased over the consumer price index for the year before the preceding year,
DWD will not revise the minimum wage for most employees. DWD must publish
the revised minimum wage in the Wisconsin Administrative Register and on DWD’s
website. The bill also provides that if the minimum wage generally for employees,
as revised, is not at least $20 per hour, DWD must revise it to $20 per hour
beginning on January 1, 2031.
The bill also repeals 1) a provision that requires DWD to promulgate rules
governing the counting of tips or similar gratuities toward payment of the
minimum wage; 2) provisions setting specific meal and lodging allowances; and 3)
provisions establishing minimum wages for minor employees, opportunity
employees, agricultural employees, and others and instead requires DWD to
establish the minimum wage for those employees by rule.
Finally, current law prohibits a city, village, town, or county from enacting and
administering an ordinance establishing a minimum wage.