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. (FE)
SB1123 would substantially increase Wisconsin’s minimum wage and phase in a higher wage floor over several years. For large employers, the bill would raise the non-tipped minimum wage to $15 per hour immediately, then increase it annually until it reaches $20 per hour in 2030, after which it would be adjusted for inflation beginning in 2031. For tipped workers at large employers, the bill would raise the tipped minimum wage to $7.50 immediately and phase it up to $10 per hour by 2031, with later amounts tied to one-half of the standard minimum wage. Small employers, defined as those with 50 or fewer employees, would receive a slower phase-in schedule that reaches the standard minimum wage later, in 2034.
The bill also changes how Wisconsin’s minimum wage is administered. It directs the Department of Workforce Development to annually revise the wage based on changes in the consumer price index, publish the updated amount, and ensure the general minimum wage does not fall below $20 per hour once the inflation-adjustment system begins. It repeals several existing statutory provisions on tips, meal and lodging allowances, and specific wage rules for certain categories of workers, replacing some of those rules with DWD rulemaking authority. It also preserves or directs DWD to set minimum wage rules for groups such as agricultural employees, opportunity employees, camp counselors, golf caddies, certain students, and workers with disabilities covered by license.
A major policy change in the bill is that it would allow cities, villages, towns, and counties to enact and administer local minimum wage ordinances. Current law prohibits local minimum wage laws, so SB1123 would remove that statewide preemption and permit local governments to set their own wage floors in addition to the state standard.
The overall sentiment reflected in the bill’s sponsorship is strongly supportive of wage increases and local control, with a large number of cosponsors from both chambers. However, the bill did not advance and ultimately failed to pass pursuant to Senate Joint Resolution 1, indicating that it did not secure enough support for enactment. No committee transcript or recorded vote details were provided, so the available record shows support in introduction but no documented floor debate or committee compromise in the materials supplied.
The main points of contention are likely to be the size and speed of the wage increase, the different treatment of small versus large employers, the higher tipped wage, and the repeal of state restrictions on local minimum wage ordinances. Employers and business groups would likely be concerned about labor-cost increases and local wage patchwork, while labor advocates and supporters of wage policy reform would likely favor the higher wage floor, inflation indexing, and local authority.
SB1123 would repeal and recreate Wisconsin’s minimum wage statute, replacing the current $7.25 general minimum wage and $2.33 tipped wage with a phased-in higher wage structure and inflation indexing. It would amend state law to define “small employer,” authorize DWD to adjust the minimum wage annually using CPI data, and remove several existing statutory provisions governing tips, meals, lodging, and certain special categories of workers. It would also eliminate the current prohibition on local minimum wage ordinances, allowing municipalities and counties to adopt their own minimum wage rules.
The bill appears to have been introduced with strong pro-wage-increase support, as shown by the large number of bipartisan cosponsors. The policy direction is clearly favorable to higher wages and local flexibility. At the same time, the bill’s failure to pass suggests there was not sufficient legislative consensus to enact such a significant change, likely reflecting concerns about business impacts, implementation, and the role of local governments. No committee testimony or vote record was provided to show detailed debate.
The most likely areas of disagreement are the magnitude of the wage hike, the accelerated timeline for large employers, the slower but still substantial phase-in for small employers, and the treatment of tipped workers. Another major point of contention is the bill’s repeal of state preemption over local minimum wage ordinances, which would allow a patchwork of local wage standards across Wisconsin. Employers, especially small businesses and restaurant operators, would likely object to higher labor costs and administrative complexity, while labor advocates and local governments would likely support the wage increases and local authority.