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Wisconsin Department of Children and Families Wisconsin Works (W-2) Manual |
A TEMP employer must pay a TEMP employee for the hours worked at either the wage paid to the employer’s entry level employees who perform similar duties or the state or federal minimum hourly wage, whichever is higher. A TEMP employer must provide a TEMP employee with benefits comparable to benefits 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 supplement the wages in excess of the negotiated wage subsidy. 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. The employee wage is higher than the subsidy and the employer supplement is: $8.50 - $4.50 = $4.00 per hour.
A TEMP employer must invoice the W-2 agency monthly for the wage subsidy payment. The invoice must itemize the following for each TEMP employee:
· Actual wages paid monthly;
· Number of hours worked in the month; and
· Month of employment.
A TEMP employer must agree to make a good faith effort to retain the participant as a permanent employee after the wage subsidy ends.
If a TEMP employer does not retain a participant as a permanent unsubsidized employee, the employer must:
1. Agree to serve as an employment reference for the participant; or
2. Provide to the W-2 agency a written performance evaluation of the participant, including recommendations for improvement.
Employers who routinely fail to offer unsubsidized jobs to participants who have succeeded in their TEMP job experience should not receive future contracts.
History: There are no previous versions of this policy.