Wisconsin uses a six-part “Economic Realities” test to classify gig workers, presuming employee status unless specific independent contractor criteria are met. Gig workers like rideshare and delivery drivers remain classified as employees following Governor Evers’ August 2025 veto of AB269, which sought to reclassify them as contractors. Misclassification carries steep penalties, including $500–$1,000 fines per worker and potential stop-work orders from the Department of Workforce Development.​
Classification Test
The test evaluates control, opportunity for profit/loss, required skills, permanence, integral business role, and public perception of the relationship. For unemployment insurance, nonprofits, trucking, and logging face added scrutiny; worker’s compensation requires meeting all nine strict conditions for contractor status. Courts and regulators prioritize economic reality over labels like 1099 forms or flexible schedules.​
Gig-Specific Rules
Rideshare (Uber, Lyft) and delivery (DoorDash) workers default to employee protections, including minimum wage, unemployment eligibility, and worker’s comp, absent legislative change. A 2025 bill to grant contractor status with portable benefits passed the legislature but was vetoed, leaving federal DOL influences secondary to state tests. Real estate agents count as statutory employees, while some farm and domestic roles qualify as exceptions.​
Penalties and Compliance
Intentional misclassification triggers penalties up to $25,000 for repeat offenders under Wis. Stat. §108.221, plus audits and back taxes. Construction faces $1,000 criminal fines per violation. Employers should document tests rigorously to avoid DWD investigations in high-risk gig sectors like delivery and transport.​
