DEPARTMENT OF WORKFORCE DEVELOPMENT...DEPARTMENT OF WORKFORCE DEVELOPMENT RAY ALLEN, Secretary...

DEPARTMENT OF WORKFORCE DEVELOPMENT

RAY ALLEN, Secretary

CHRISTOPHER E. HAGERUP, Deputy Secretary

2015-2016 TEXT of

WISCONSIN’S

UNEMPLOYMENT INSURANCE LAW

Published April 27, 2018

Wisconsin’s Unemployment Insurance Law, passed in January 1932, is now Chapter 108 of the statutes.

Contributions have been paid by covered employers since July 1934.

Unemployment benefits have been paid to eligible workers since August 1936.

2015−16 Wisconsin Statutes updated through 2017 Wis. Act 367, except Acts 364−366, and all Supreme Court and Controlled Substances Board Orders effective on or before April 27, 2018. Published and certified under s. 35.18. Changes

effective after April 27, 2018 are designated by NOTES. (Published 4−27−18)

Page iii............................................................................................................................................Table of Contents Page ix ..............................................................................Plain Language Summary of Recent Changes to UI Law Page 1 .................................................................................................................. Chapter 108, Wisconsin Statutes Page 69 ............................................................................................................................. Other Statutory Provisions Page 83 ..................................................................................................................... Wisconsin Administrative Code

UCB-3006-P (R. 05/2018)

WISCONSIN’S UI LAW TEXT, 2015-2016 Published April 27, 2018 i

WISCONSIN’S UNEMPLOYMENT INSURANCE

ADMINISTRATION Joe Handrick Administrator ............................................................ Unemployment Insurance Division Janell Knutson Director ....................................................................................... Bureau of Legal Affairs Thomas McHugh Director ........................................................................... Bureau of Tax and Accounting Amy Banicki Director ................................................................................ Benefit Operations Bureau Pamela James Director ............................................. Bureau of Management and Information Services

___________

UI ADVISORY COUNCIL MEMBERS AS OF MAY 2018:

Janell Knutson, Chair Labor: Management: Michael V. Crivello Michael Gotzler Sally Feistel Earl Gustafson Shane Griesbach Edward J. Lump Terry Hayden Scott M. Manley Mark Reihl John Mielke

___________

LABOR AND INDUSTRY REVIEW COMMISSION MEMBERS AS OF MAY 2018:

Georgia Maxwell Chairperson

Laurie McCallum Commissioner

David B. Falstad Commissioner

WISCONSIN’S UI LAW TEXT, 2015-2016 ii Published April 27, 2018

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WISCONSIN’S UI LAW TEXT, 2015-2016 Published April 27, 2018 iii

TABLE OF CONTENTS Page

Plain Language Summary of Recent Changes to UI Law .................................................................. ix

CHAPTER 108, WISCONSIN STATUTES 108.01 Public policy declaration .................................................................................................... 1 108.015 Construction ........................................................................................................................ 1 108.02 Definitions ............................................................................................................................ 1 (1) ADMINISTRATIVE ACCOUNT ................................................................................. 1 (2) AGRICULTURAL LABOR ......................................................................................... 1 (3) ALCOHOL BEVERAGES.......................................................................................... 2 (4) BASE PERIOD .......................................................................................................... 2 (4m) BASE PERIOD WAGES ........................................................................................... 2 (5) BENEFIT YEAR ........................................................................................................ 2 (6) BENEFITS ................................................................................................................. 2 (6m) CHILD ........................................................................................................................ 2 (7) COMMISSION ........................................................................................................... 2 (8) COMPUTATION DATE ............................................................................................. 2 (9) CONTROLLED SUBSTANCE .................................................................................. 2 (9m) CONTROLLED SUBSTANCE ANALOG .................................................................. 2 (10) DEPARTMENT ......................................................................................................... 2 (10e) DEPARTMENTAL ERROR ....................................................................................... 2 (10m) EDUCATIONAL SERVICE AGENCY ....................................................................... 2 (11) ELIGIBILITY .............................................................................................................. 2 (12) EMPLOYEE ............................................................................................................... 2 (13) EMPLOYER .............................................................................................................. 3 (14) EMPLOYER’S ACCOUNT ........................................................................................ 4 (14m) EMPLOYING UNIT ................................................................................................... 4 (15) EMPLOYMENT ......................................................................................................... 4 (15m) FAMILY CORPORATION ......................................................................................... 6 (15s) FULL-TIME WORK ................................................................................................... 7 (16) FUND......................................................................................................................... 7 (17) GOVERNMENT UNIT ............................................................................................... 7 (17m) INDIAN TRIBE .......................................................................................................... 7 (18) INSTITUTION OF HIGHER EDUCATION ................................................................ 7 (18m) LOGGER ................................................................................................................... 7 (19) NONPROFIT ORGANIZATIONS .............................................................................. 7 (20) PARTIAL UNEMPLOYMENT ................................................................................... 7 (20g) PART-TIME INTERMITTENT CARE ........................................................................ 7 (20m) PART-TIME WORK .................................................................................................. 7 (20r) PARTNERSHIP ......................................................................................................... 7 (21) PAYROLL .................................................................................................................. 7 (21c) PRIVATE-DUTY NURSING SERVICE ..................................................................... 7 (21e) PROFESSIONAL EMPLOYER ORGANIZATION .................................................... 7 (21m) QUARTER ................................................................................................................. 7 (21s) RELATED CORPORATIONS ................................................................................... 7 (22) RESERVE PERCENTAGE ....................................................................................... 8 (22m) SCHOOL YEAR EMPLOYEE ................................................................................... 8 (23) SEASONAL EMPLOYER .......................................................................................... 8 (23g) SKILLED NURSING SERVICE................................................................................. 8 (24) STANDARD RATE .................................................................................................... 8 (24m) TEMPORARY HELP COMPANY ............................................................................. 8 (25) TOTAL UNEMPLOYMENT ....................................................................................... 8 (25e) TRUCKER ................................................................................................................. 8

WISCONSIN’S UI LAW TEXT, 2015-2016 iv Published April 27, 2018

Page 108.02 (25m) VALID NEW CLAIM WEEK ...................................................................................... 8 (Cont'd) (25s) VOCATIONAL TRAINING ......................................................................................... 8 (26) WAGES ..................................................................................................................... 8 (26m) WAITING PERIOD .................................................................................................... 9 (27) WEEK ........................................................................................................................ 9 (28) WEEKLY BENEFIT RATE ........................................................................................ 9 (29) WORKING DAY ........................................................................................................ 9 108.025 Coverage of certain corporate officers and limited liability company members ......... 10 108.03 Payment of benefits ............................................................................................................. 10 108.04 Eligibility for benefits .......................................................................................................... 10 (1) GENERAL DISQUALIFICATIONS AND LIMITATIONS ........................................... 10 (2) GENERAL QUALIFYING REQUIREMENTS ........................................................... 11 (3) WAITING PERIOD .................................................................................................... 12 (4) QUALIFYING CONDITIONS ..................................................................................... 12 (5) DISCHARGE FOR MISCONDUCT .......................................................................... 12 (5g) DISCHARGE FOR SUBSTANTIAL FAULT ............................................................. 13 (6) DISCIPLINARY SUSPENSION ................................................................................ 13 (7) VOLUNTARY TERMINATION OF WORK ............................................................... 13 (7m) VOLUNTARY REDUCTION IN HOURS OF EMPLOYMENT .................................. 14 (8) SUITABLE WORK .................................................................................................... 14 (9) PROTECTION OF LABOR STANDARDS ............................................................... 15 (10) LABOR DISPUTE ..................................................................................................... 15 (11) FRAUDULENT CLAIMS ........................................................................................... 15 (12) PREVENTION OF DUPLICATE PAYMENTS .......................................................... 16 (13) NOTIFICATION AS TO INELIGIBILITY .................................................................... 17 (14) WAR-TIME APPLICATION OF SUBSECTION (7) OR (8) ...................................... 18 (15) DEPARTMENT POWERS TO ASSIST CLAIMANTS .............................................. 18 (16) APPROVED TRAINING ............................................................................................ 18 (17) EDUCATIONAL EMPLOYEES ................................................................................. 18 (18) ILLEGAL ALIENS ...................................................................................................... 19 (19) PROFESSIONAL ATHLETES .................................................................................. 20 108.05 Amount of benefits .............................................................................................................. 21 (1) WEEKLY BENEFIT RATE FOR TOTAL UNEMPLOYMENT .................................. 21 (1m) FINAL PAYMENTS IN CERTAIN CASES ................................................................ 21 (3) BENEFITS FOR PARTIAL UNEMPLOYMENT ........................................................ 21 (4) HOLIDAY OR VACATION PAY ................................................................................ 21 (5) TERMINATION PAY ................................................................................................. 21 (5m) SICK PAY .................................................................................................................. 22 (6) BACK PAY ................................................................................................................ 22 (7) PENSION PAYMENTS ............................................................................................. 22 (9) ROUNDING OF BENEFIT AMOUNTS ..................................................................... 22 (10) DEDUCTIONS FROM BENEFIT PAYMENTS ......................................................... 22 108.06 Benefit entitlement .............................................................................................................. 23 108.062 Work-share programs; benefit payments ......................................................................... 23 (1) DEFINITIONS............................................................................................................ 23 (2) ELEMENTS OF A PLAN ........................................................................................... 23 (3) APPROVAL OF PLANS ............................................................................................ 24 (3m) MODIFICATION OF PLANS ..................................................................................... 24 (4) EFFECTIVE PERIOD ............................................................................................... 24 (5) REVOCATION OF APPROVAL ................................................................................ 24 (6) BENEFIT AMOUNT .................................................................................................. 24 (8) BENEFIT YEAR ........................................................................................................ 24 (9) OTHER BENEFITS ................................................................................................... 24 (10) AVAILABILITY FOR WORK ..................................................................................... 24 (10m) REGISTRATION FOR WORK AND WORK SEARCH ............................................ 24

WISCONSIN’S UI LAW TEXT, 2015-2016 Published April 27, 2018 v Page 108.062 (11) OTHER EMPLOYMENT ........................................................................................... 24 (Cont'd) (12) RETIREMENT PLAN AND HEALTH INSURANCE COVERAGE ........................... 24 (14) TERMINATION BY EMPLOYER .............................................................................. 25 (15) INVOLUNTARY TERMINATION .............................................................................. 25 (16) SUCCESSORSHIP ................................................................................................... 25 (17) TERMINATION OF EMPLOYMENT ......................................................................... 25 (18) FEDERAL FINANCIAL PARTICIPATION ................................................................ 25 (19) SECRETARY MAY WAIVE COMPLIANCE ............................................................. 25 108.065 Determination of employer ................................................................................................. 25 108.066 Seasonal employers and seasons ..................................................................................... 25 108.067 Professional employer organizations and leasing agreements .................................... 26 108.068 Treatment of limited liability companies and members .................................................. 26 108.07 Liability of employers .......................................................................................................... 26 108.08 Notification ......................................................................................................................... 27 108.09 Settlement of benefit claims ............................................................................................... 27 (1) FILING ... ................................................................................................................... 27 (2) COMPUTATION AND DETERMINATION ............................................................... 27 (2r) HEARING REQUEST ............................................................................................... 28 (3) APPEAL TRIBUNALS ............................................................................................... 28 (4) APPEALS .................................................................................................................. 28 (4m) REPORTS BY EXPERTS ......................................................................................... 29 (4n) EMPLOYMENT DATA SYSTEM REPORTS ........................................................... 29 (4o) DEPARTMENT RECORDS RELATING TO BENEFIT CLAIMS ............................. 29 (4s) EMPLOYEE STATUS. .............................................................................................. 30 (5) PROCEDURE ........................................................................................................... 30 (6) COMMISSION REVIEW ........................................................................................... 30 (7) JUDICIAL REVIEW ................................................................................................... 30 (8) REPRESENTATION AND LIMITATION OF FEES .................................................. 31 (9) PAYMENT OF BENEFITS ........................................................................................ 31 108.095 False statements or representation to obtain benefits payable to other persons ...... 31 108.10 Settlement of issues other than benefit claims ............................................................... 32 108.101 Effect of finding, determination, decision or judgment .................................................. 32 108.105 Suspension of agents ......................................................................................................... 32 108.11 Agreement to contribute by employees void ................................................................... 33 108.12 Waiver of benefit void ......................................................................................................... 33 108.13 Deductions from benefit payments ................................................................................... 33 (1) ASSIGNMENT BEFORE PAYMENT ........................................................................ 33 (2) LIABILITY OF CLAIMANT ........................................................................................ 33 (3) DEATH OF CLAIMANT ............................................................................................. 33 (4) DEDUCTIONS FOR CHILD SUPPORT OBLIGATIONS ......................................... 33 (5) OTHER DEDUCTIONS ............................................................................................. 33 108.133 Testing for controlled substances .................................................................................... 33 (1) DEFINITIONS............................................................................................................ 33 (2) DRUG TESTING PROGRAM ................................................................................... 34 (3) DRUG TESTING; SUBSTANCE ABUSE TREATMENT ......................................... 34 (4) PREEMPLOYMENT DRUG TESTING ..................................................................... 35 (5) APPLICATION OF THIS SECTION .......................................................................... 35 108.135 Income tax withholding....................................................................................................... 35 108.14 Administration .................................................................................................................... 36 108.141 Extended benefits ................................................................................................................ 39 (1) DEFINITIONS............................................................................................................ 39 (1m) SUSPENSION OF EXTENDED BENEFITS............................................................. 40 (2) EFFECT OF OTHER PROVISIONS OF THIS CHAPTER ....................................... 41

WISCONSIN’S UI LAW TEXT, 2015-2016 vi Published April 27, 2018 Page 108.141 (3) ELIGIBILITY REQUIREMENTS FOR EXTENDED BENEFITS ............................... 41 (Cont'd) (3g) ADDITIONAL REQUIREMENTS FOR EXTENDED BENEFITS ............................. 41 (3r) LIMITATION ON INTERSTATE EXTENDED BENEFITS ........................................ 41 (4) WEEKLY EXTENDED BENEFIT RATE ................................................................... 41 (5) TOTAL EXTENDED BENEFIT AMOUNT ................................................................ 41 (6) PUBLISH INDICATORS ........................................................................................... 41 (7) CHARGES OF BENEFITS ....................................................................................... 41 108.142 Wisconsin supplemental benefits ..................................................................................... 42 (1) DEFINITIONS............................................................................................................ 42 (1m) SUSPENSION OF WISCONSIN SUPPLEMENTAL BENEFITS ............................. 42 (2) EFFECT OF OTHER PROVISIONS OF THIS CHAPTER ....................................... 42 (3) WEEKLY WISCONSIN SUPPLEMENTAL BENEFIT RATE ................................... 42 (4) DURATION OF WISCONSIN SUPPLEMENTAL BENEFITS .................................. 42 (5) PUBLISH INDICATORS ........................................................................................... 42 (6) CHARGES OF BENEFITS ....................................................................................... 43 108.145 Disaster unemployment assistance .................................................................................. 43 108.15 Benefits for public employees ........................................................................................... 43 (1g) DEFINITION .............................................................................................................. 43 (1r) BENEFIT PAYMENTS .............................................................................................. 43 (2) REIMBURSEMENT FINANCING ............................................................................. 43 (3) ELECTION OF CONTRIBUTION FINANCING ........................................................ 43 (4) REIMBURSEMENT ACCOUNTS FOR GOVERNMENT UNITS ............................. 43 (5) REIMBURSEMENTS AND CONTRIBUTIONS ........................................................ 43 (6) DELINQUENT PAYMENTS ...................................................................................... 43 (7) STATE COMPLIANCE AND APPROPRIATIONS ................................................... 44 (8) NOTICE AND REPORTS ......................................................................................... 44 (9) GROUP REIMBURSEMENT ACCOUNTS .............................................................. 44 108.151 Financing benefits for employees of nonprofit organizations ....................................... 44 (1) EMPLOYER’S CONTRIBUTION RATE ................................................................... 44 (2) ELECTION OF REIMBURSEMENT FINANCING .................................................... 44 (3) TERMINATION OF ELECTION ................................................................................ 44 (4) ASSURANCE OF REIMBURSEMENT .................................................................... 44 (5) REIMBURSEMENT ACCOUNT ............................................................................... 45 (6) GROUP REIMBURSEMENT ACCOUNTS .............................................................. 45 (7) UNCOLLECTIBLE REIMBURSEMENTS ................................................................. 45 (8) REPORTS ................................................................................................................. 45 108.152 Financing benefits for employees of Indian tribes .......................................................... 45 (1) ELECTION OF REIMBURSEMENT FINANCING .................................................... 45 (2) TERMINATION OF ELECTION ................................................................................ 46 (4) REIMBURSEMENT ACCOUNT ............................................................................... 46 (5) GROUP REIMBURSEMENT ACCOUNT ................................................................. 46

(6) FAILURE TO MAKE REQUIRED PAYMENTS ........................................................ 46 (7) REPORTS ................................................................................................................. 46 108.155 Liability of reimbursable employers for identity theft ..................................................... 46 108.16 Unemployment reserve fund .............................................................................................. 47 108.161 Federal administrative financing account ........................................................................ 50 108.162 Employment security buildings and equipment .............................................................. 51 108.17 Payment of contributions ................................................................................................... 51 108.18 Contributions to the fund ................................................................................................... 53 (1) TOTAL RATE ............................................................................................................ 53 (2) INITIAL RATES ......................................................................................................... 53 (3) REQUIREMENTS FOR REDUCED RATE .............................................................. 53 (3m) APPLICATION OF SCHEDULES ............................................................................. 53 (4) EXPERIENCE RATES .............................................................................................. 53 (5) LIMITATION .............................................................................................................. 55

WISCONSIN’S UI LAW TEXT, 2015-2016 Published April 27, 2018 vii Page 108.18 (5m) LIMITATION, COMPUTATION ................................................................................. 55 (Cont'd) (6) COMPUTATION IN SPECIAL CASES ..................................................................... 55 (7) VOLUNTARY CONTRIBUTIONS ............................................................................. 55 (8) SOLVENCY CONTRIBUTIONS ............................................................................... 56 (9) SOLVENCY RATES ................................................................................................. 56 (9c) REDUCTION OF SOLVENCY RATE ....................................................................... 57 (9e) SEASONAL EMPLOYER SOLVENCY RATE .......................................................... 58 (9m) SOLVENCY CONTRIBUTION EXEMPTION ........................................................... 58 108.19 Contributions to the administrative account and unemployment interest payment and program integrity funds............................................................................... 58 108.20 Administrative account ....................................................................................................... 59 108.205 Quarterly wage reports ....................................................................................................... 59 108.21 Record and audit of payrolls .............................................................................................. 59 108.22 Timely reports, notices and payments .............................................................................. 60 108.221 Misclassification; administrative assessments ............................................................... 62 108.223 Financial record matching program .................................................................................. 62 (1) DEFINITIONS............................................................................................................ 62 (2) MATCHING PROGRAM AND AGREEMENTS ........................................................ 62 (3) FINANCIAL INSTITUTION MATCHING OPTION .................................................... 62 (4) STATE MATCHING OPTION ................................................................................... 63 (5) USE OF INFORMATION BY FINANCIAL INSTITUTION; PENALTY ...................... 63 (6) USE OF INFORMATION BY DEPARTMENT .......................................................... 63 (7) FINANCIAL INSTITUTION LIABILITY ...................................................................... 63 108.225 Levy for delinquent contributions or benefit overpayments .......................................... 63 (1) DEFINITIONS............................................................................................................ 63 (2) POWERS OF LEVY AND DISTRAINT ..................................................................... 63 (3) DUTIES TO SURRENDER ....................................................................................... 63 (4) FAILURE TO SURRENDER; ENFORCEMENT OF LEVY ...................................... 63 (5) ACTIONS AGAINST THIS STATE ........................................................................... 63 (6) DETERMINATION OF EXPENSES ......................................................................... 63 (7) USE OF PROCEEDS ............................................................................................... 63 (8) RELEASE OF LEVY ................................................................................................. 64 (9) WRONGFUL LEVY ................................................................................................... 64 (10) PRESERVATION OF REMEDIES ............................................................................ 64 (11) EVASION .................................................................................................................. 64 (12) NOTICE BEFORE LEVY .......................................................................................... 64 (13) SERVICE OF LEVY .................................................................................................. 64 (14) ANSWER BY 3RD PARTY ....................................................................................... 64 (15) DURATION OF LEVY ............................................................................................... 64 (16) WAGES EXEMPT FROM LEVY ............................................................................... 64 (17) EXEMPTIONS ........................................................................................................... 64 (18) RESTRICTION ON EMPLOYMENT PENALTIES BY REASON OF LEVY ............. 64 (19) APPEAL ................................................................................................................... 64 (20) COST OF LEVY ........................................................................................................ 64 108.227 License denial, nonrenewal, discontinuation, suspension and revocation based on delinquent unemployment insurance contributions ...................................... 65 (1) DEFINITIONS............................................................................................................ 65 (1m) GENERAL PROVISIONS ......................................................................................... 65 (2) DUTIES AND POWERS OF LICENSING DEPARTMENTS ................................... 65 (3) DUTIES AND POWERS OF DEPT OF WORKFORCE DEVELOPMENT .............. 66 (4) MEMORANDUM OF UNDERSTANDING ................................................................ 66 (5) HEARING .................................................................................................................. 66 (6) JUDICIAL REVIEW ................................................................................................... 67 108.23 Preference of required payments ...................................................................................... 67

WISCONSIN’S UI LAW TEXT, 2015-2016 viii Published April 27, 2018 Page 108.24 Penalties ............................................................................................................................... 67 108.245 Recovery of erroneous payments from fund ................................................................... 68 108.26 Saving clause .................................................................................................................. 68

OTHER STATUTORY PROVISIONS 13.093 Reference of Bills to Joint Committee on Finance .................................................... 69 15.03 LIRC Attached to DOA for Limited Purposes ............................................................. 69 15.105(15) LIRC Created and Attached to DOA ............................................................................ 69 15.22 Department of Workforce Development Created ...................................................... 69 15.227(3) UI Advisory Council ...................................................................................................... 69 16.48 Unemployment Reserve Financial Statement ............................................................ 69 19.85(1)(ee) UI Advisory Council Meetings. .................................................................................... 70 20.427 Labor and Industry Review Commission ................................................................... 70 20.445 Workforce Development, Department of .................................................................... 70 103.06 Worker Classification Compliance .............................................................................. 71 106.09 Public Employment Offices .......................................................................................... 74 106.19 Trade Adjustment Assistance Overpayment Waiver ................................................ 75 165.066 Assistant Attorney General; UI Law Enforcement ..................................................... 75 230.43 Misdemeanors; How Punished .................................................................................... 75 806.13 Judgments Entered in Other Counties ....................................................................... 75 815.29 Notice of Sale of Personal Property, Manner, Adjournment. ................................... 76 990.01 Construction of Laws; Words and Phrases ............................................................... 76 42 USC § 503 State Laws ...................................................................................................................... 76

WISCONSIN ADMINISTRATIVE CODE ............................................................................................ 83 Chapter DWD 100 Definitions ........................................................................................................ 84 Chapter DWD 101 Wages for Contribution Purposes ................................................................ 87 Chapter DWD 102 Contribution Rates .......................................................................................... 88 Chapter DWD 103 Excluded Employments .................................................................................. 90 Chapter DWD 105 Relationship of Carriers and Contract Operators ....................................... 91 Chapter DWD 107 Employment Relationships in the Logging Industry .................................. 93 Chapter DWD 110 Coverage and Related Records and Reports .............................................. 95 Chapter DWD 111 Quarterly Wage Reporting Procedures ........................................................ 99 Chapter DWD 113 Settlement of Disputes and Compromise of Liabilities .............................. 100 Chapter DWD 114 License Revocation and Financial Record Matching Program ................. 103 Chapter DWD 115 Business Transfers ......................................................................................... 105 Chapter DWD 120 Notices as to Benefits ..................................................................................... 108 Chapter DWD 123 Benefit Reports Filed by Employers ............................................................. 109 Chapter DWD 126 Work Registration ........................................................................................... 110 Chapter DWD 127 Work Search and Reemployment Services .................................................. 111 Chapter DWD 128 Ability to Work and Availability for Work ...................................................... 114 Chapter DWD 129 Benefit Claiming Procedures ......................................................................... 116 Chapter DWD 130 Wages for Benefit Purposes .......................................................................... 118 Chapter DWD 131 Pre-Employment Drug Testing, Substance Abuse Treatment

Program and Job Skills Assessment ............................................................ 119 Chapter DWD 132 Determining Eligibility for Benefits ............................................................... 122 Chapter DWD 133 Temporary Help Employers ........................................................................... 124 Chapter DWD 135 Waiver of Recovery of TRA and other TAA Overpayments ........................ 126 Chapter DWD 136 Wages Exempt from Levy .............................................................................. 127 Chapter DWD 140 Unemployment Insurance Appeals ............................................................... 129 Chapter DWD 142 State Directory of New Hires .......................................................................... 135 Chapter DWD 147 Seasonal Agricultural Employers .................................................................. 137 Chapter DWD 149 Disclosure of Unemployment Insurance Records ...................................... 147 Chapter DWD 150 Miscellaneous .................................................................................................. 151 Chapter LIRC 1 General ............................................................................................................. 152 Chapter LIRC 2 Unemployment Compensation ...................................................................... 154

WISCONSIN’S UI LAW TEXT, 2015-2016 Published April 27, 2018 ix

Plain Language Summary of Changes to Wisconsin Unemployment Insurance Law

(2017-2018)

Prepared by: DWD Unemployment Insurance Division Bureau of Legal Affairs

Governor Walker signed three bills into law during the 2017-2018 biennium related to

unemployment insurance: 2017 Wis. Act 59, the 2015-2017 budget; 2017 Wis. Act 147, related

to increased criminal penalties for unemployment insurance fraud; and 2017 Wis. Act 157, the

agreed-upon bill of the Unemployment Insurance Advisory Council with various law changes.

The permanent administrative rules regarding pre-employment drug testing and drug treatment

became effective in 2017.

Benefit Changes

Concealment of Holiday, Vacation, Termination, or Sick Pay

A claimant who conceals wages or holiday, vacation, termination, or sick pay on their

unemployment claims must repay the overpaid benefits, is assessed a penalty in the amount of

40% of the overpayment, and is ineligible for an amount of future benefits.

A claimant who conceals work on an unemployment benefit claim is totally ineligible for

benefits for that week. But, under prior law, a claimant who conceals holiday, vacation,

termination, or sick pay on a weekly claim may still be eligible for partial benefits for that week.

2017 Act 157 amends the law to provide that concealment of holiday pay, vacation pay, sick

pay, or termination pay results in total ineligibility for the week for which the claimant concealed

the pay.

Effective Date: The changes to Wis. Stat. § 108.05(3)(d) apply to determinations

issued on or after April 1, 2018.

https://docs.legis.wisconsin.gov/2017/related/acts/59https://docs.legis.wisconsin.gov/2017/related/acts/147https://docs.legis.wisconsin.gov/2017/related/acts/157

WISCONSIN’S UI LAW TEXT, 2015-2016 x Published April 27, 2018

Increased Criminal Penalties for Unemployment Insurance Fraud

Prior law provided that the criminal penalty for unemployment fraud is a $100 to $500

fine or up to 90 days in jail, or both, for each false statement. Alternatively, a person may be

charged with the crime of theft by fraud for committing unemployment benefit fraud, which

could be a felony, depending on the amount of benefits fraudulently obtained. 2017 Act 147

increases the criminal penalties for unemployment benefit fraud based on the amount of the

benefits that the person fraudulently obtains as follows:

If the value of UI benefits fraudulently obtained is:

Claimant is guilty of: Maximum criminal penalty:

$2,500 or less Class A Misdemeanor

Up to $10,000 fine or imprisonment up to 9 months, or both

More than $2,500, up to $5,000 Class I Felony Up to $10,000 fine or imprisonment up to 3.5 years, or both

More than $5,000, up to $10,000 Class H Felony Up to $10,000 fine or imprisonment up to 6 years, or both

More than $10,000 Class G Felony Up to $25,000 fine or imprisonment up to 10 years, or both

Effective Date: The changes to Wis. Stat. § 108.24(1)(a) to (c) apply to violations

committed on or after April 1, 2018.

Ineligibility for Failure to Provide Information

The department may request information from unemployment claimants to ensure that

they are eligible for benefits. Under prior law, a claimant is ineligible for benefits for the week

in which the claimant fails to answer the department’s eligibility questions, and any subsequent

weeks, until the claimant responds to the department’s request. A claimant who later answers

the department’s eligibility questions is retroactively eligible for benefits beginning with the

week in which they failed to answer the questions, if otherwise eligible.

WISCONSIN’S UI LAW TEXT, 2015-2016 Published April 27, 2018 xi

2017 Act 157 amends the law to provide that claimants who fail to answer eligibility

questions are ineligible beginning with the week involving the eligibility issue, rather than the

week in which the claimant fails to answer the department’s questions. This clarifies that, if the

department questions a claimant’s eligibility, the department will hold the claimant’s benefits

until the claimant responds.

Effective Date: The changes to Wis. Stat. §§ 108.04(1)(hm) and (hr) apply to

determinations issued on or after April 1, 2018.

Amendments to Drug Testing Statutes

2017 Act 157 contains various changes to the drug testing statutes, such as:

• Limiting employers’ civil liability under state law for submission of pre-employment

drug testing information to the Department.

o Effective Date: The changes to Wis. Stat. § 108.133(4)(c) apply to reports

submitted by employers on or after April 1, 2018.

• Amending the privacy statute to ensure that all information related to drug testing and

prescription medication is confidential. The prior statute specifies that drug treatment

information is confidential. Existing administrative code provisions also provide general

confidentiality protections.

o Effective Date: The changes to Wis. Stat. § 108.133(3)(e) are effective on April

1, 2018.

• Federal law provides that states may only test “applicants” for unemployment insurance

for controlled substances. “Applicant” is defined in federal law as “an individual who

files an initial claim for unemployment compensation under State law. Applicant

excludes an individual already found initially eligible and filing a continued claim.”

WISCONSIN’S UI LAW TEXT, 2015-2016 xii Published April 27, 2018

Wisconsin’s occupational drug testing statute is amended to refer to “applicants” instead

of “claimants” to clearly conform state law to the federal definition.

o Effective Date: The changes to Wis. Stat. § 108.133(2)(a)1. are effective when

the department promulgates the administrative rules regarding occupational drug

testing.

• Confirming that the Department shall pay the reasonable cost of drug testing applicants

under the occupational drug testing program.

o Effective Date: The changes to Wis. Stat. § 108.133(2)(a)1. are effective when

the department promulgates the administrative rules regarding occupational drug

testing.

• The Legislature appropriates $250,000 annually to the Department “to conduct testing for

controlled substances, for the provision of substance abuse treatment, and for related

expenses under s. 108.133.” 2017 Act 157 amends the appropriation statute to confirm

that the Department may use this funding to screen unemployment benefit applicants

order to determine whether there is a reasonable suspicion that an applicant has engaged

in the unlawful use of controlled substances. This bill also amends the appropriation

statute so that any unencumbered funds from this appropriation will be transferred to the

unemployment program integrity fund at the end of the biennium. Wis. Stat. §

20.445(1)(aL).

Pre-employment Drug Testing Permanent Rules

Wis. Stat. §§ 108.04(8)(b) and 108.133 require the department, by administrative rule, to

create a voluntary program for employers to report the results of a failed or refused pre-

employment drug test to the department. The permanent administrative rule in Wis. Admin.

WISCONSIN’S UI LAW TEXT, 2015-2016 Published April 27, 2018 xiii

Code ch. DWD 131 became effective May 1, 2017. A claimant’s failed or refused pre-

employment drug test is presumed to be a failure to accept suitable work. A claimant may

overcome the presumption by proving certain facts to the department. An individual who fails or

refuses a pre-employment drug test is ineligible for benefits until the individual earns wages after

the week in which the failure occurs equal to at least 6 times the individual’s weekly benefit rate

under s. 108.05 (1), Stats., in employment or other work covered by the unemployment insurance

law of any state or the federal government. A claimant who fails a pre-employment drug test

without evidence of a valid prescription for the drug may remain eligible for unemployment

insurance benefits if the claimant enrolls in and complies with a drug treatment program and

completes a job skills assessment.

Tax / Collections Changes

Fiscal Agent Joint and Several Liability

Individuals who receive long-term support services in their homes through government-

funded care programs are “domestic employers” under the unemployment insurance law. Fiscal

agents directly receive and disperse government program funds on behalf of these domestic

employers. The fiscal agent is responsible for reporting filing tax reports and paying

unemployment taxes on behalf of the domestic employer.

Under federal law, fiscal agents are jointly and severally liable for the unemployment tax

liability of the employer. 2017 Act 157 provides that Wisconsin may determine private agencies

(but not government agencies) that serve as fiscal agents to be jointly and severally liable for the

state unemployment tax of the employers they serve.

Effective Date: The creation of Wis. Stat. § 108.22(10) is effective on April 1, 2018.

WISCONSIN’S UI LAW TEXT, 2015-2016 xiv Published April 27, 2018

Personal Liability for Tax – Repeal of the Ownership Requirement

2017 Act 157 amends the tax personal liability statute to remove the 20% owner

requirement for a finding of personal liability.

Effective Date: The changes to Wis. Stat. § 108.22(9) apply to determinations issued

on or after April 1, 2018.

State Tax Refund Intercept for Tax Recovery

2017 Act 157 permits the department to intercept state income tax refunds, lottery

payments, state vendor payments, and unclaimed property of taxpayers (employers and

personally liable individuals) who owe debts to the department. The department previously only

intercepted such amounts for claimants who owe overpayments and penalties.

Effective Date: The changes to Wis. Stat. § 108.22(1t) are effective on April 1, 2018.

Levy Non-compliance Penalty

2017 Act 157 modifies an existing penalty for third parties who refuse to comply with a

department levy. The new penalty will be 50% of the amount of the debt owed and the penalty

funds will be deposited into the program integrity fund.

Effective Date: The changes to Wis. Stat. § 108.225(4)(b) are effective on April 1, 2018.

Secured Liens for Benefit Overpayments

2017 Act 157 creates an unrecorded lien against any person who owes the department a

debt (under prior law, this provision only applied to employers). This amendment will ensure

that the department has a right to collect a debt without a warrant when property is liquidated and

will improve the department’s position with respect to the priority of creditors.

WISCONSIN’S UI LAW TEXT, 2015-2016 Published April 27, 2018 xv

Effective Date: The changes to Wis. Stat. § 108.22(1m) apply to amounts that are owed

on or after April 1, 2018.

Warrant Notice Changes

2017 Act 157 codifies existing department practice by requiring the department to give

15 days’ notice to a debtor before issuing a warrant.

Effective Date: Wis. Stat. § 108.22(2)(c) is effective on April 1, 2018.

Administrative Changes

Several minor and technical changes to unemployment statutes in 2017 Act 157,

effective April 1, 2018, are:

• Congress repealed the federal Workforce Investment Act of 1998 (“WIA”) and replaced

it with the federal Workforce Innovation and Opportunity Act (“WIOA”). The references

in Wisconsin unemployment law are updated from WIA to WIOA.

• Adding a reference to “Indian tribe” to correct a drafting error from a prior bill. Wis.

Stat. § 108.04(17)(e).

• Correcting a cross-reference from the previous UIAC agreed bill, 2015 Act 334, related

to suitable work. Wis. Stat. § 108.04(7)(e).

• Clarifying the steps that appeal tribunals (ALJs) should take when parties fail to appear at

administrative hearings. Wis. Stat. §§ 108.09(4)(d)2. and 108.09(4)(e)2.

• Revising various unemployment statutes to provide for optional electronic delivery of

certain department determinations and notices.

• Previously, the department paid all unemployment benefits by paper checks. Currently,

the department pays about 80% of benefits by direct deposit, about 20% by deposit to

WISCONSIN’S UI LAW TEXT, 2015-2016 xvi Published April 27, 2018

debit cards and less than 1% by paper check. The statutes are updated to replace

references to checks with issuance of payment. Statutes amended: Wis. Stat. §§

108.16(2)(e) and 108.16(2)(em).

• Creating Wis. Stat. § 108.16(6)(p) to confirm that under federal law, federal FUTA credit

reduction payments will be deposited into the Wisconsin unemployment insurance

balancing account. The department does not currently receive these federal funds, but

will deposit them into the balancing account if the funds are paid to Wisconsin in the

future.

• Various changes to the work share statutes to confirm the department’s interpretation of

current law:

o Vacation, holiday, termination, and sick pay will be treated as hours for the

purposes of calculating an employee’s work share benefit. This is similar to

current law for regular benefits. Statute amended: Wis. Stat. § 108.062(6)(a).

o The department shall disregard discrepancies of less than 15 minutes of work

reported, which is like the disregard of $2 of wages earned in a week for regular

benefits. Statute amended: Wis. Stat. § 108.062(6)(a).

o The department shall treat missed work available for work share employees and

claimants applying for regular benefits similarly, so that work share employees

are not paid greater benefits when missing work with a work share employer.

This is similar to current law for regular benefits. Statute amended: Wis. Stat. §

108.062(10).

• Amending the appropriation language for the unemployment interest payment fund

(SAFI) and the unemployment program integrity fund to convert these funds from

“segregated-sum sufficient” to “segregated-continuing.” The purpose of these changes is

WISCONSIN’S UI LAW TEXT, 2015-2016 Published April 27, 2018 xvii

to make the accounting for these funds more efficient. Act 157 also adds 5.0 positions -

these are existing positions, to be compensated from the program integrity fund. These

staff will perform program integrity activities, investigate concealment, and investigate

worker misclassification. Wis. Stat. §§ 20.445(1)(u) and 20.445(1)(v).

Public Benefits and Chronic Absenteeism Study

2017 Act 59 § 9152(1) directs the departments of children and families, public

instruction, health services, and workforce development to collaborate to prepare a report on the

population overlap of families that receive public benefits and children who are absent from

school for 10 percent or more of the school year. The report is due December 30, 2018 to the

Governor and Legislature.

UNEMPLOYMENT INSURANCE 108.021 Updated 15−16 Wis. Stats.

Updated 2015−16 Wis. Stats. Published and certified under s. 35.18. April 27, 2018.

2015−16 Wisconsin Statutes updated through 2017 Wis. Act 367, except Acts 364−366, and all Supreme Court and ControlledSubstances Board Orders effective on or before April 27, 2018. Published and certified under s. 35.18. Changes effective afterApril 27, 2018 are designated by NOTES. (Published 4−27−18)

CHAPTER 108

UNEMPLOYMENT INSURANCE AND RESERVES

108.01 Public policy declaration.108.015 Construction.108.02 Definitions.108.025 Coverage of certain corporate officers and limited liability company mem-

bers.108.03 Payment of benefits.108.04 Eligibility for benefits.108.05 Amount of benefits.108.06 Benefit entitlement.108.062 Work−share programs; benefit payments.108.065 Determination of employer.108.066 Seasonal employers and seasons.108.067 Professional employer organizations and leasing agreements.108.068 Treatment of limited liability companies and members.108.07 Liability of employers.108.08 Notification.108.09 Settlement of benefit claims.108.095 False statements or representations to obtain benefits payable to other per-

sons.108.10 Settlement of issues other than benefit claims.108.101 Effect of finding, determination, decision or judgment.108.105 Suspension of agents.108.11 Agreement to contribute by employees void.108.12 Waiver of benefit void.108.13 Deductions from benefit payments.108.133 Testing for controlled substances.108.135 Income tax withholding.108.14 Administration.

108.141 Extended benefits.108.142 Wisconsin supplemental benefits.108.145 Disaster unemployment assistance.108.15 Benefits for public employees.108.151 Financing benefits for employees of nonprofit organizations.108.152 Financing benefits for employees of Indian tribes.108.155 Liability of reimbursable employers for identity theft.108.16 Unemployment reserve fund.108.161 Federal administrative financing account.108.162 Employment security buildings and equipment.108.17 Payment of contributions.108.18 Contributions to the fund.108.19 Contributions to the administrative account and unemployment interest

payment and program integrity funds.108.20 Administrative account.108.205 Quarterly wage reports.108.21 Record and audit of payrolls.108.22 Timely reports, notices and payments.108.221 Misclassification; administrative assessments.108.223 Financial record matching program.108.225 Levy for delinquent contributions or benefit overpayments.108.227 License denial, nonrenewal, discontinuation, suspension and revocation

based on delinquent unemployment insurance contributions.108.23 Preference of required payments.108.24 Penalties.108.245 Recovery of erroneous payments from fund.108.26 Saving clause.

Cross−reference: See definitions in s. 103.001.Cross−reference: See also ch. DWD 100 to ch. DWD 150, Wis. adm. code.

108.01 Public policy declaration. Without intending thatthis section shall supersede, alter or modify the specific provisionshereinafter contained in this chapter, the public policy of this stateis declared as follows:

(1) Unemployment in Wisconsin is recognized as an urgentpublic problem, gravely affecting the health, morals and welfareof the people of this state. The burdens resulting from irregularemployment and reduced annual earnings fall directly on theunemployed worker and his or her family. The decreased andirregular purchasing power of wage earners in turn vitally affectsthe livelihood of farmers, merchants and manufacturers, results ina decreased demand for their products, and thus tends partially toparalyze the economic life of the entire state. In good times andin bad times unemployment is a heavy social cost, directly affect-ing many thousands of wage earners. Each employing unit in Wis-consin should pay at least a part of this social cost, connected withits own irregular operations, by financing benefits for its ownunemployed workers. Each employer’s contribution rate shouldvary in accordance with its own unemployment costs, as shownby experience under this chapter. Whether or not a given employ-ing unit can provide steadier work and wages for its own employ-ees, it can reasonably be required to build up a limited reserve forunemployment, out of which benefits shall be paid to its eligibleunemployed workers, as a matter of right, based on their respec-tive wages and lengths of service.

(2) The economic burdens resulting from unemploymentshould not only be shared more fairly, but should also bedecreased and prevented as far as possible. A sound system ofunemployment reserves, contributions and benefits should induceand reward steady operations by each employer, since theemployer is in a better position than any other agency to share inand to reduce the social costs of its own irregular employment.Employers and employees throughout the state should cooperate,in advisory committees under government supervision, to pro-mote and encourage the steadiest possible employment. A moreadequate system of free public employment offices should be pro-

vided, at the expense of employers, to place workers more effi-ciently and to shorten the periods between jobs. Education andretraining of workers during their unemployment should beencouraged. Governmental construction providing emergencyrelief through work and wages should be stimulated.

(3) A gradual and constructive solution of the unemploymentproblem along these lines has become an imperative public need.

History: 1989 a. 77; 1997 a. 39.Wisconsin courts should not look to other jurisdictions, federal or state, in inter-

preting this chapter. National Labor Relations Board law does not constitute persua-sive authority within Wisconsin unemployment law. Bernhardt v. LIRC, 207 Wis. 2d292, 558 N.W.2d 874 (Ct. App. 1996), 95−3549.

Effects of unemployment compensation proceedings on related labor litigation.Mazurak, 64 MLR 133 (1980).

108.015 Construction. Unless the department otherwiseprovides by rule, s. 108.02 (26) shall be interpreted consistentlywith 26 USC 3306 (b).

History: 1991 a. 89.Cross−reference: See also ch. DWD 101, Wis. adm. code.

108.02 Definitions. As used in this chapter:

(1) ADMINISTRATIVE ACCOUNT. “Administrative account”means the account established in s. 108.20.

(2) AGRICULTURAL LABOR. “Agricultural labor” means serviceperformed:

(a) On a farm, in the employ of any person, in connection withcultivating the soil, or in connection with raising or harvesting anyagricultural or horticultural commodity, including the raising,shearing, feeding, caring for, training and management of live-stock, bees, poultry, and fur−bearing animals and wildlife.

(b) In the employ of the owner or tenant or other operator ofa farm, in connection with the operation, management, conserva-tion, improvement, or maintenance of such farm and its tools andequipment, or in salvaging timber or clearing land of brush andother debris left by a hurricane, if the major part of such serviceis performed on a farm.

(c) In connection with the production or harvesting of any com-modity defined as an agricultural commodity in s. 15 (g) of the fed-eral agricultural marketing act, as amended (46 Stat. 1550, s. 3; 12

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Updated 15−16 Wis. Stats. 2 108.02 UNEMPLOYMENT INSURANCE



USC 1141j) or in connection with the ginning of cotton, or in con-nection with the operation or maintenance of ditches, canals, reser-voirs, or waterways, not owned or operated for profit, used exclu-sively for supplying and storing water for farming purposes.

(d) In the employ of the operator of a farm in handling, plant-ing, drying, packing, packaging, processing, freezing, grading,storing, or delivering to storage or to market or to a carrier fortransportation to market, in its unmanufactured state, any agricul-tural or horticultural commodity; but only if such operator pro-duced more than one−half of the commodity with respect to whichsuch service is performed.

(dm) In the employ of a group of operators of farms, or a coop-erative organization or unincorporated cooperative association ofwhich operators of farms are members, in the performance of ser-vice described in par. (d), but only if such operators producedmore than one−half of the commodity with respect to which suchservice is performed.

(dn) The provisions of pars. (d) and (dm) shall not be deemedto be applicable with respect to service performed in connectionwith commercial canning or commercial freezing or in connectionwith any agricultural or horticultural commodity after its deliveryto a terminal market for distribution for consumption.

(e) As used in this subsection, the term “farm” includes stock,dairy, poultry, fruit, fur−bearing animal, and truck farms, planta-tions, ranches, nurseries, ranges, greenhouses or other similarstructures used primarily for the raising of agricultural or horticul-tural commodities, and orchards.

(3) ALCOHOL BEVERAGES. “Alcohol beverages” has the mean-ing given in s. 125.02 (1).

(4) BASE PERIOD. “Base period” means the period that is usedto compute an employee’s benefit rights under s. 108.06 consist-ing of:

(a) The first 4 of the 5 most recently completed quarters pre-ceding the employee’s benefit year; or

(b) If an employee does not qualify to receive any benefitsusing the period described in par. (a), the period consisting of the4 most recently completed quarters preceding the employee’sbenefit year.

(4m) BASE PERIOD WAGES. “Base period wages” means all ofthe following:

(a) All earnings for wage−earning service that are paid to anemployee during his or her base period as a result of employmentfor an employer except any payment made to or on behalf of anemployee or his or her beneficiary under a cafeteria plan withinthe meaning of 26 USC 125, if the payment would not be treatedas wages without regard to that plan and if 26 USC 125 would nottreat the payment as constructively received.

(b) All sick pay that is paid directly by an employer to anemployee at the employee’s usual rate of pay during his or her baseperiod as a result of employment for an employer.

(c) All holiday, vacation, and termination pay that is paid to anemployee during his or her base period as a result of employmentfor an employer.

(d) For an employee who, as a result of employment for anemployer, receives temporary total disability or temporary partialdisability payments under ch. 102 or under any federal law whichprovides for payments on account of a work−related injury or ill-ness analogous to those provided under ch. 102, all payments thatthe employee would have been paid during his or her base periodas a result of employment for an employer, but not exceeding theamount that, when combined with other wages, the employeewould have earned but for the injury or illness.

(e) Back pay that an employee would have been paid duringhis or her base period as a result of employment for an employer,if the payment of the back pay is made no later than the end of the104−week period beginning with the earliest week to which theback pay applies.

(f) All wages that an employer was legally obligated to pay inan employee’s base period but failed to pay, or was prohibitedfrom paying as a result of an insolvency proceeding under ch. 128or as a result of a bankruptcy proceeding under 11 USC 101 et seq.

(5) BENEFIT YEAR. “Benefit year” means the 52−week periodbeginning with a valid new claim week for which an employee’sbenefit rights are computed under s. 108.06, except that the “ben-efit year” of an employee who files consecutive claims shall beextended to 53 weeks whenever necessary to avoid utilizing thesame quarter as a part of the base period for 2 successive benefityears.

(6) BENEFITS. “Benefits” means the money allowance payableto an employee as compensation for the employee’s wage lossesdue to unemployment as provided in this chapter.

(6m) CHILD. “Child” means a natural child, adopted child, orstepchild.

(7) COMMISSION. “Commission” means the labor and industryreview commission.

(8) COMPUTATION DATE. “Computation date” means that dateas of the close of which the department computes reserve percent-ages and determines contribution rates for the next calendar year.The computation date shall be June 30, starting in 1963.

(9) CONTROLLED SUBSTANCE. “Controlled substance” has themeaning given in s. 961.01 (4).

(9m) CONTROLLED SUBSTANCE ANALOG. “Controlled sub-stance analog” has the meaning given in s. 961.01 (4m).

(10) DEPARTMENT. “Department” means the department ofworkforce development.

(10e) DEPARTMENTAL ERROR. (am) “Departmental error”means an error made by the department in computing or payingbenefits which results exclusively from:

1. A mathematical mistake, miscalculation, misapplication ormisinterpretation of the law or mistake of evidentiary fact,whether by commission or omission; or

2. Misinformation provided to a claimant by the department,on which the claimant relied.

(bm) “Departmental error” does not include an error made bythe department in computing, paying, or crediting benefits to anyindividual, whether or not a claimant, or in crediting contributionsor reimbursements to one or more employers that results from anyof the following:

1. A computer malfunction or programming error.

2. An error in transmitting data to or from a financial institu-tion.

3. A typographical or keying error.

4. A bookkeeping or other payment processing error.

5. An action by the department resulting from a false state-ment or representation by an individual, including a statement orrepresentation relating to the individual’s identity.

6. An action by the department resulting from an unautho-rized manipulation of an electronic system from within or outsidethe department.

(10m) EDUCATIONAL SERVICE AGENCY. “Educational serviceagency” means a governmental entity or Indian tribal unit whichis established and operated exclusively for the purpose of provid-ing services to one or more educational institutions.

(11) ELIGIBILITY. An employee shall be deemed “eligible” forbenefits for any given week of the employee’s unemploymentunless the employee is disqualified by a specific provision of thischapter from receiving benefits for such week of unemployment,and shall be deemed “ineligible” for any week to which such a dis-qualification applies.

(12) EMPLOYEE. (a) “Employee” means any individual whois or has been performing services for pay for an employing unit,whether or not the individual is paid directly by the employingunit, except as provided in par. (bm), (c), (d), (dm) or (dn).

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UNEMPLOYMENT INSURANCE 108.023 Updated 15−16 Wis. Stats.



(bm) Paragraph (a) does not apply to an individual performingservices for an employing unit other than a government unit ornonprofit organization in a capacity other than as a logger ortrucker, if the employing unit satisfies the department that the indi-vidual meets the conditions specified in subds. 1. and 2., by con-tract and in fact:

1. The services of the individual are performed free from con-trol or direction by the employing unit over the performance of hisor her services. In determining whether services of an individualare performed free from control or direction, the department mayconsider the following nonexclusive factors:

a. Whether the individual is required to comply with instruc-tions concerning how to perform the services.

b. Whether the individual receives training from the employ-ing unit with respect to the services performed.

c. Whether the individual is required to personally performthe services.

d. Whether the services of the individual are required to beperformed at times or in a particular order or sequence establishedby the employing unit.

e. Whether the individual is required to make oral or writtenreports to the employing unit on a regular basis.

2. The individual meets 6 or more of the following conditions:

a. The individual advertises or otherwise affirmatively holdshimself or herself out as being in business.

b. The individual maintains his or her own office or performsmost of the services in a facility or location chosen by the individ-ual and uses his or her own equipment or materials in performingthe services.

c. The individual operates under multiple contracts with oneor more employing units to perform specific services.

d. The individual incurs the main expenses related to the ser-vices that he or she performs under contract.

e. The individual is obligated to redo unsatisfactory work forno additional compensation or is subject to a monetary penalty forunsatisfactory work.

f. The services performed by the individual do not directlyrelate to the employing unit retaining the services.

g. The individual may realize a profit or suffer a loss undercontracts to perform such services.

h. The individual has recurring business liabilities or obliga-tions.

i. The individual is not economically dependent upon a partic-ular employing unit with respect to the services being performed.

(c) Paragraph (a) does not apply to an individual performingservices for a government unit or nonprofit organization, or forany other employing unit in a capacity as a logger or trucker if theemploying unit satisfies the department:

1. That such individual has been and will continue to be freefrom the employing unit’s control or direction over the perfor-mance of his or her services both under his or her contract and infact; and

2. That such services have been performed in an indepen-dently established trade, business or profession in which the indi-vidual is customarily engaged.

(d) Paragraph (a) does not apply to a contractor who, in fulfill-ment of a contract with an employing unit, employs any individualin employment for which the contractor is subject to the contribu-tion or reimbursement provisions of this chapter.

(dm) Paragraph (a) does not apply to an individual who ownsa business that operates as a sole proprietorship with respect to ser-vices the individual performs for that business.

(dn) Paragraph (a) does not apply to a partner in a business thatoperates as a partnership with respect to services the partner per-forms for that business.

(e) This subsection shall be used in determining an employingunit’s liability under the contribution provisions of this chapter,

and shall likewise be used in determining the status of claimantsunder the benefit provisions of this chapter.

(f) The department may promulgate rules to ensure the consis-tent application of this subsection.

Cross−reference: See also chs. DWD 105 and 107, Wis. adm. code.

(13) EMPLOYER. (a) “Employer” means every governmentunit and Indian tribe, and any person, association, corporation,whether domestic or foreign, or legal representative, debtor inpossession or trustee in bankruptcy or receiver or trustee of a per-son, partnership, association, or corporation, or guardian of theestate of a person, or legal representative of a deceased person, anypartnership or partnerships consisting of the same partners, exceptas provided in par. (L), any limited liability company, and any fra-ternal benefit society as defined in s. 614.01 (1) (a), which is sub-ject to this chapter under the statutes of 1975, or which has hademployment in this state and becomes subject to this chapterunder this subsection and, notwithstanding any other provisionsof this section, any service insurance corporation organized oroperating under ch. 613, except as provided in s. 108.152 (6) (a)3.

(b) Any employing unit which is a nonprofit organization shallbecome an employer as of the beginning of any calendar year ifit employed as many as 4 individuals in employment for some por-tion of a day on at least 20 days, each day being in a different calen-dar week, whether or not such weeks were consecutive, in eitherthat year or the preceding calendar year.

(c) 1. Any employing unit which employs an individual inagricultural labor shall become an employer as of the beginningof any calendar year if the employing unit paid or incurred a liabil-ity to pay cash wages for agricultural labor which totaled $20,000or more during any quarter in either that year or the preceding cal-endar year, or if the employing unit employed as many as 10 indi-viduals in some agricultural labor for some portion of a day on atleast 20 days, each day being in a different calendar week, whetheror not such weeks were consecutive, in either that year or the pre-ceding calendar year.

2. For the purpose of this paragraph any individual who is amember of a crew furnished by a crew leader to perform servicein agricultural labor for any other person shall be an employee ofsuch crew leader if:

a. Such crew leader holds a valid certificate of registrationunder the federal farm labor contractor registration act of 1963; orsubstantially all the members of such crew operate or maintaintractors, mechanized harvesting or cropdusting equipment, or anyother mechanized equipment which is provided by such crewleader; and

b. If such crew leader is not an employee of such other personunder sub. (12).

3. For the purposes of this paragraph, if any individual whois furnished by a crew leader to perform service in agriculturallabor is not an employee of the crew leader under subd. 2., suchother person, and not the crew leader, is the employer of that indi-vidual and the other person shall be considered to have paid orincurred liability to pay cash remuneration to the individual in anamount equal to the amount of cash remuneration paid or payableto the individual by the crew leader, either on behalf of the crewleader or such other person, for the service in agricultural laborperformed for such other person.

4. For the purpose of this paragraph, “crew leader” means anindividual who furnishes individuals to perform service in agri-cultural labor for any other person, pays on behalf of himself orherself or on behalf of such other person the individuals so fur-nished to perform such labor, and has not entered into a writtenagreement with such other person under which he or she is desig-nated as an employee of such other person.

(d) Any employing unit of an individual or individuals indomestic service shall become an employer as of the beginning ofany calendar year if the employer paid or incurred liability to pay

https://docs.legis.wisconsin.gov/document/statutes/108.02(12)(a)https://docs.legis.wisconsin.gov/document/statutes/108.02(12)(bm)1.https://docs.legis.wisconsin.gov/document/statutes/108.02(12)(bm)2.https://docs.legis.wisconsin.gov/document/statutes/108.02(12)(a)https://docs.legis.wisconsin.gov/document/statutes/108.02(12)(a)https://docs.legis.wisconsin.gov/document/statutes/108.02(12)(a)https://docs.legis.wisconsin.gov/document/statutes/108.02(12)(a)https://docs.legis.wisconsin.gov/document/administrativecode/ch.%20DWD%20105https://docs.legis.wisconsin.gov/document/administrativecode/ch.%20DWD%20107https://docs.legis.wisconsin.gov/document/statutes/108.02(13)(L)https://docs.legis.wisconsin.gov/document/statutes/614.01(1)(a)https://docs.legis.wisconsin.gov/document/statutes/ch.%20613https://docs.legis.wisconsin.gov/document/statutes/108.152(6)(a)3.https://docs.legis.wisconsin.gov/document/statutes/108.152(6)(a)3.https://docs.legis.wisconsin.gov/document/statutes/108.02(12)https://docs.legis.wisconsin.gov/document/statutes/108.02(13)(c)2.

Updated 15−16 Wis. Stats. 4 108.02 UNEMPLOYMENT INSURANCE



cash wages of $1,000 or more during any quarter in either that yearor the preceding calendar year for such domestic service.

(e) Any other employing unit, except a government unit, shallbecome an employer as of the beginning of any calendar year ifthe employing unit:

1. Paid or incurred liability to pay wages for employmentwhich totaled $1,500 or more during any quarter in either that yearor the preceding calendar year; or

2. Employed at least one individual in some employment ineach of 20 or more calendar weeks in either that year or the preced-ing calendar year, whether or not the same individual was inemployment in each such week and whether or not such weekswere consecutive; except that

3. Wages and employment for agricultural labor which meetsthe conditions of par. (c) shall be counted under this paragraph, butwages and employment for domestic service shall not be socounted except as par. (i) applies.

(f) Any employing unit which is subject to the federal unem-ployment tax act for any calendar year, or which, as a conditionfor approval of this chapter for full tax credit against the taximposed by the federal unemployment tax act, is required, pur-suant to such act, the social security act, or any other federal law,to be an employer, shall become an employer as of the beginningof such calendar year.

(g) Any employing unit which succeeds to the business of anyemployer shall become an employer as provided in s. 108.16 (8).

(h) Any employing unit which files with the department a writ-ten election to become an “employer” for not less than 2 calendaryears may become an “employer” if the department approves theelection in writing, as of the date and under th

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