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Wisconsin Department of Children and Families Wisconsin Works (W-2) Manual |
A TEMP employer must:
· Pay TEMP employees the same hourly wage paid to the employer’s entry-level employees who perform similar duties or the state or federal minimum hourly wage, whichever is higher; and
· Provide TEMP participant employees with benefits comparable to those provided to regular employees in similar positions.
When an employer pays a wage (“Employee Wage”) that is higher than the negotiated wage subsidy (“Wage Subsidy”), the employer must pay the difference.
The portion of the employee’s wage that the employer is responsible for (“Employer Supplement”) is calculated using the following formula:
Employee Wage - Wage Subsidy = Employer Supplement
EXAMPLE: A TEMP employer pays a TEMP employee $8.50 per hour. The W-2 agency and employer negotiate a wage subsidy of $4.50 per hour. Because the employee wage is higher than the subsidy, the employer supplement is $4.00 per hour ($8.50 - $4.50 = $4.00).
A TEMP employer must invoice the W-2 agency monthly for the wage subsidy payment. The invoice must include the following for each TEMP employee:
· Month of employment;
· Actual wages paid monthly; and
· Number of hours worked in the month.
A TEMP employer must agree to make a good faith effort to retain the participant as a permanent unsubsidized employee after the wage subsidy ends.
If a TEMP employer does not retain a participant as a permanent unsubsidized employee, the employer must do either or both of the following:
1. Serve as an employment reference for the participant; or
2. Provide a written performance evaluation of the participant, including recommendations for improvement.
Employers who routinely fail to offer unsubsidized jobs to successful TEMP participants should not receive future contracts.
History: Release 25-04.