Hiring New Employees in Wisconsin: A Legal Guide

Develop a clear job description that outlines the position's responsibilities, required qualifications, and essential functions. Ensure the description complies with Wisconsin employment laws and does not contain discriminatory language. This will help attract qualified candidates and serve as documentation for the position requirements.

Advertise the position through appropriate channels (job boards, company website, social media, etc.). Ensure job postings comply with Wisconsin anti-discrimination laws and do not express preference based on protected characteristics (race, gender, age, disability, etc.).

Create or update your employment application form to collect necessary information from candidates. Ensure the form complies with Wisconsin laws, including 'ban-the-box' provisions that restrict asking about criminal history on initial applications in some localities. Include an equal employment opportunity statement and avoid questions about protected characteristics.

Screen applications based on job-related criteria and conduct interviews with qualified candidates. Ensure interview questions are job-related and non-discriminatory. Document the selection process to demonstrate fair hiring practices.

Obtain written authorization before conducting background checks. In Wisconsin, employers must comply with the Wisconsin Fair Employment Act and federal Fair Credit Reporting Act when conducting background checks. Provide candidates with required notices and opportunity to respond to negative information.

Create a form that clearly discloses your intent to conduct a background check and obtains the candidate's authorization. The form must comply with the Fair Credit Reporting Act (FCRA) and Wisconsin law requirements.

Draft an offer letter that includes position title, start date, compensation, benefits, employment status (full-time/part-time), and any contingencies (e.g., background check, drug test). In Wisconsin, clearly state if employment is at-will, meaning either party can terminate the relationship at any time with or without cause.

If offering a contract rather than at-will employment, draft a comprehensive employment contract. Include terms of employment, compensation, benefits, duties, termination conditions, and any restrictive covenants. Wisconsin courts generally enforce reasonable employment contracts, but restrictive covenants must be narrowly tailored to protect legitimate business interests.

Draft a non-disclosure agreement to protect confidential business information. In Wisconsin, NDAs must be reasonable in scope and duration to be enforceable. Clearly define what constitutes confidential information and the employee's obligations regarding such information.

If necessary for your business, draft a non-compete agreement. In Wisconsin, non-compete agreements must be reasonable in geographic scope, duration, and protected interest to be enforceable. Courts will only enforce agreements that protect legitimate business interests and are not overly restrictive on the employee's ability to earn a living.

Create or update your employee handbook to include company policies, procedures, and expectations. Include policies on anti-discrimination, anti-harassment, leave policies, benefits, workplace safety, and other important information. Ensure all policies comply with Wisconsin employment laws, including Wisconsin Family and Medical Leave Act requirements, which may differ from federal FMLA.

Federal law requires all employers to verify employment eligibility using Form I-9 within 3 business days of hire. Examine original documents that establish identity and employment authorization. Complete and retain Form I-9 for the required period (3 years after hire date or 1 year after termination, whichever is later).

Have the employee complete Form W-4 to determine federal income tax withholding. Employers must begin withholding based on the information provided on this form.

Have the employee complete Wisconsin Form WT-4 (Employee's Wisconsin Withholding Exemption Certificate) to determine state income tax withholding. Wisconsin has specific state withholding requirements that differ from federal requirements.

If offering direct deposit, have the employee complete a direct deposit authorization form. In Wisconsin, employers cannot require direct deposit unless certain conditions are met, so make this optional unless your situation qualifies for mandatory direct deposit.

Have the employee provide emergency contact information. This is important for workplace safety and emergency response.

If offering benefits, provide information and enrollment forms for health insurance, retirement plans, and other benefits. Explain waiting periods, eligibility requirements, and enrollment deadlines. Ensure compliance with applicable benefit laws, including the Affordable Care Act for health insurance.

Wisconsin law requires employers to report all newly hired employees to the Wisconsin New Hire Reporting Center within 20 days of hire. This can be done online, by mail, or by fax. Required information includes employee's name, address, SSN, and hire date, as well as employer's name, address, and Federal Employer Identification Number (FEIN).

If not already registered, register with the Wisconsin Department of Workforce Development for unemployment insurance. Most Wisconsin employers are required to pay unemployment insurance taxes if they pay $1,500 or more in wages in a calendar quarter or have at least one employee working some portion of a day in 20 different weeks in a calendar year.

Wisconsin law requires employers with three or more employees to carry workers' compensation insurance. Some employers with fewer employees may also be required to have coverage. Obtain coverage from an authorized insurance carrier or apply for self-insurance if qualified.

Wisconsin employers must display certain posters in the workplace, including those related to minimum wage, fair employment, family and medical leave, and unemployment insurance. Federal posters are also required. Ensure all required posters are displayed in a conspicuous location accessible to all employees.

Provide orientation for the new employee, covering company policies, procedures, workplace safety, and job-specific training. Review the employee handbook and have the employee acknowledge receipt. Document all training provided to demonstrate compliance with applicable laws.

Create a personnel file for the new employee, including all employment documents, tax forms, and other records. In Wisconsin, employees have the right to view certain personnel records with reasonable notice. Maintain confidentiality of personnel files and store medical information separately as required by the Americans with Disabilities Act.

Establish a schedule for performance reviews. Regular performance evaluations help document employee performance and provide feedback. This documentation can be important if disciplinary action or termination becomes necessary in the future.