Payroll Client AccessHow Do I Properly Classify an Employee in Wisconsin? Navigate Employee Classification Requirements with Expert HR Guidance
BenHR > Employee Classification Requirements
Wisconsin employers must classify their workforce in line with both federal and state employment laws. Before assigning exempt or non-exempt status, employers must first determine whether a worker qualifies as an employee or independent contractor under applicable guidelines.
Independent contractors must meet the conditions outlined in Wisconsin’s 9-point test (Statute 102.07(8)). Employees are classified based on Fair Labor Standards Act (FLSA) criteria, including job duties and salary thresholds. Misclassifying employees can lead to penalties, back pay and legal risk.
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Understanding Employee Classification Requirements
How do I Properly Classify Employees as Exempt or Non-Exempt in Wisconsin?
To classify an employee as exempt, the position must meet both a salary threshold and a specific set of duties under FLSA rules. The current minimum salary threshold is $684 per week ($35,568 annually), and the role must qualify under a defined exemption category.
Common FLSA exemption types in Wisconsin include:
- Executive: Oversees departments and supervises at least two employees
- Administrative: Performs non-manual tasks tied to business operations
- Professional: Relies on advanced knowledge in a specialized field
Are Salaried Employees Entitled to Overtime in Wisconsin?
Not all salaried employees are exempt. If a salaried worker doesn’t meet the exemption criteria, they must receive overtime pay for hours worked beyond 40 in a workweek. Salary alone does not exempt an employee from overtime rules.
What’s the Difference Between Classified and Unclassified Employment Status
Classified and unclassified designations apply mostly to public sector roles in Wisconsin. Classified roles fall under the state’s civil service system, offering structured pay scales and protections. Unclassified positions, such as elected officials and certain staff, follow different employment rules.
Private employers should focus on exempt/non-exempt classification under FLSA and Wisconsin wage law.
Need Help with Employee Classification?
BenHR helps employers apply the right classification for every role. Our experienced HR consultants offer support with FLSA compliance, salary structure evaluation and contractor assessments to help reduce legal risk and streamline your policies.