Wisconsin Labor Standards Laws and Farm Related Businesses

 

What is a farm related business?

 

Many farmers choose to contract with businesses to provide services that farmers traditionally have performed as part of an agricultural business.  These services may include land preparation for planting (plowing, disking, or fertilizer and insecticide application), custom harvesting of crops or the hauling/dispersal of manure.

 

Federal versus State Regulation of farm related buisnesses

 

All businesses located in Wisconsin or businesses with employees who are working in Wisconsin are covered by Wisconsin's labor standards laws and regulations.  Federal labor standards laws apply to businesses that gross more than $500,000 a year in sales, engage in interstate trade or agricultural businesses that utilize more than "500 man days of labor in any given quarter of the year.  Employers covered under both state and federal labor standards laws must comply with both sets of laws.

 

The principal difference between state and federal labor standards laws is that federal law treats many farm related businesses as "secondary agriculture".  That means under the federal law these farm related businesses are treated just like a farm.  Under state labor standards laws nearly all farm related businesses are treated like non-agricultural businesses.  The principal impact upon farm related businesses is that state labor standards laws require the employer to pay overtime premium pay to employees who work more than 40 hours a week.

 

Do different state labor standards apply to part-time or seasonal workers than to full-time permanent employees?

 

Wisconsin's business closing/mass lay-off notification law doesn't apply to employees who are employed less than 20 hours a week or who work fewer than six months a year.  Other than this one exception all other Wisconsin labor standards laws apply equally to all employees.

 

What are the primary Wisconsin labor standards that affect employees?

 

·        Employers must keep time and payroll records for all employees to include the following:

 

  1. Name, address and date of birth of each employee.
  2. Dates of employment and termination for each employee.
  3. Start and Stop times of work each work day.
  4. Start and Stop times of any unpaid meal break each work day.
  5. Total hours worked per day, week and pay period.
  6. Total wages paid each pay period, net wages paid and a listing of all payroll deductions.
  7. Rate of pay each pay period.

 

The employer must keep these records for a minimum of three years.

 

·        Employees must be paid all wages at least within 31 days of when the wages were earned.  Employees terminating their employment must be paid the balance of their wages (including fringe benefits) on their next regular pay day.

 

·        Employees must be paid at least the minimum wage ($5.15 per hour) for all hours worked.  Employees paid at a higher agreed upon rate between the employer and employee must be paid the agreed upon rate for all hours worked.

 

·        Employees must receive a pay slip accompanying their wages detailing the gross wages paid, net wages paid, deductions made from the gross wages, total hours worked, rate of pay and, if paid on other than a time basis, a detailed explanation of the calculation of the wages paid.

 

·        When an employer wishes to make a deduction from an employee's wages for loss, theft, faulty workmanship or damage to property, the employer must first do one of the following:

 

  1. Obtain a written authorization from the employee after the incident that acknowledges the employee's admission of responsibility for the incident and permits a specific amount of money to be deducted from his/her pay.

 

  1. Obtain a written authorization from the Labor Standards Bureau after the incident that acknowledges the employee's admission of responsibility for the incident and permits a specific amount of money to be deducted from his/her pay.

 

  1. Obtain a court order authorizing the deduction from the employee's wages.

 

·        Employees must be paid time and one half their regular rate of pay for all hours worked in excess of 40 hours per week.

 

·        Employees and former employees have a right to view and/or to copy their personnel records.

 

For further information on Wisconsin labor standards laws and regulations you may call the Madison office at (608) 266-6860 or view the agencies web site at http://www.dwd.state.wi.us/er/labor_standards_bureau/default.htm