Rural Development

This bill creates a new state program called WisEARNS designed to help workers in Wisconsin who do not have access to employer-sponsored retirement plans save for their future. The legislation establishes a WisEARNS board with members representing investors, small business owners, employees, employers, and financial experts to oversee the program's implementation. The program would automatically enroll eligible employees who work in Wisconsin and lack retirement savings options into a state-managed retirement savings account, with the board responsible for selecting a vendor to administer the plan. The bill also authorizes the state treasurer to make rules for the program and includes an appropriation to fund its initial operations.

This bill addresses the misclassification of employees by establishing penalties for employers who incorrectly label workers as independent contractors instead of employees. It repeals existing exemption provisions and creates two new penalty categories: a $500 fine for each negligent misclassification and a $25,000 fine for intentional misclassification or providing false information to evade requirements. The legislation also introduces a mechanism where employers with three or more negligent misclassification cases within five years may face escalated penalties for subsequent violations, and allows the department to publish a public list of penalized employers on its website.

This bill prohibits employers from including clauses in employment contracts that prevent former employees from recruiting other current or former employees after leaving their job. It applies to all workers, including assistants, servants, employees, and agents, and declares such nonsolicitation provisions illegal and unenforceable as unreasonable restraints on trade. Employers must post a notice in conspicuous locations and on their websites explaining that these post-employment recruitment restrictions are void. The law takes effect for any employment contract that is entered into, extended, modified, or renewed on the bill's effective date.

AB 462 requires construction contractors to register with the state and comply with worker classification laws, directly affecting employers in the construction industry. It creates a whistleblower program offering 15-30% of penalties collected (up to 10% for media-sourced tips) to employees who report misclassification or tax violations, while prohibiting retaliation against reporting workers. The bill also mandates multilingual outreach to educate employers and workers about misclassification rights and anonymous reporting options. These provisions aim to increase compliance with worker classification and tax laws in the construction sector.

Assembly Bill 186 requires the Department of Workforce Development to conduct a study on establishing a guaranteed employment grant program. This study will examine the requirements, costs, and eligibility for a program that would offer grants to public and nonprofit entities in the "care economy" to create jobs. These jobs would pay at least $20 per hour for 100 days, targeting specific groups such as young adults, individuals with disabilities, low-income heads of households, the long-term unemployed, and previously incarcerated individuals. The department must submit a report with its findings and recommendations to the governor and legislature within 18 months. The bill appropriates $250,000 to the Department of Workforce Development to conduct this study and create the report.