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SB460: Bill Text
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2025 - 2026 LEGISLATURE
LRB-4667/1
MIM:cdc
2025 SENATE BILL 460
October 2, 2025 - Introduced by Senators
Spreitzer
,
Habush Sinykin
,
Hesselbein
,
Larson
,
Ratcliff
,
Roys
and
Smith
, cosponsored by Representatives
Tenorio
,
Bare
,
Anderson
,
Andraca
,
Arney
,
Brown
,
Clancy
,
DeSmidt
,
Fitzgerald
,
Joers
,
Kirsch
,
Madison
,
McCarville
,
Miresse
,
Moore Omokunde
,
Palmeri
,
Phelps
,
Rivera-Wagner
,
Snodgrass
,
Stroud
,
Subeck
and
Udell
. Referred to Committee on Government Operations, Labor and Economic Development.
SB460,1,3
1
An Act
to amend
102.03 (2), 102.81 (5), 102.82 (1) and 814.04 (intro.);
to
2
create
102.80 (1) (dm), 102.81 (4g) and 103.08 of the statutes;
relating to:
3
prohibiting abusive work environments and creating a cause of action.
Analysis by the Legislative Reference Bureau
This bill prohibits abusive work environments and allows an individual who has been subjected to such an environment to bring a civil action.
Under current law, worker’s compensation is generally the exclusive remedy of an employee against his or her employer, a coemployee, or the employer’s worker’s compensation insurer for an injury sustained while performing services from and incidental to employment.
This bill provides an exception to that exclusive remedy provision. Under the bill, an employee who alleges that he or she has been injured by being subjected to an abusive work environment or by being subjected to retaliation or a threat of retaliation for opposing an abusive work environment or for initiating, or in any manner participating in, an investigation, action, or proceeding to enforce the right not to be subjected to an abusive work environment (“unlawful employment practice”) may bring an action in circuit court against the employer or employee who allegedly engaged in the unlawful employment practice for relief the court considers appropriate. The aggrieved employee must commence an action within one year after the last act constituting the unlawful employment practice occurred.
If the circuit court finds that an employer or employee has engaged in an unlawful employment practice, the court may enjoin the employer or employee from engaging in that practice and may grant other relief the court considers appropriate, including reinstatement of the aggrieved employee, removal of the person who engaged in the abusive conduct from the aggrieved employee’s work area, medical expenses, back pay, front pay, compensation for pain and suffering, compensation for emotional distress, punitive damages, and reasonable costs and attorney fees. If the circuit court orders payment of money because of an unlawful employment practice engaged in by an employee, the employer of the employee is liable for that payment. If an employer is found to have engaged in an unlawful employment practice that did not result in an adverse employment action against the aggrieved employee, the employer is not liable for compensation for emotional distress or punitive damages unless the abusive conduct was extreme and outrageous.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SB460,1
1
Section
1
.
102.03 (2) of the statutes is amended to read:
SB460,2,12
2
102.03
(2)
Where such
Except as provided in this subsection, when those
3
conditions exist the right to the recovery of compensation under this chapter shall
4
be the exclusive remedy against the employer, any other employee of the same
5
employer
,
and the worker’s compensation insurance carrier. This section does not
6
limit the right of an employee to bring action against any coemployee for an assault
7
intended to cause bodily harm,
or
against a coemployee for negligent operation of a
8
motor vehicle not owned or leased by the employer,
against the employer or a
9
coemployee for an unlawful employment practice under s. 103.08 (3),
or against a
10
coemployee of the same employer to the extent that there would be liability of a
11
governmental unit to pay judgments against employees under a collective
12
bargaining agreement or a local ordinance.
SB460,2
1
Section
2
.
102.80 (1) (dm) of the statutes is created to read:
SB460,3,2
2
102.80
(1)
(dm) Amounts received under s. 103.08 (6) (a) 1.
SB460,3
3
Section
3
.
102.81 (4g) of the statutes is created to read:
SB460,3,11
4
102.81
(4g)
If an injured employee who received one or more payments under
5
sub. (1) begins an action against the employee’s employer or a coemployee under s.
6
103.08 (3) for an unlawful employment practice arising out of the same underlying
7
behavior as the behavior giving rise to the injury that is compensable under sub. (1),
8
the injured employee shall provide to the department a copy of all papers filed by
9
any party to the action. If the injured employee is awarded medical expenses, back
10
pay, or front pay under s. 103.08 (5) (a), the employer shall reimburse the
11
department as provided in s. 103.08 (6) (a) 1.
SB460,4
12
Section
4
.
102.81 (5) of the statutes is amended to read:
SB460,3,14
13
102.81
(5)
The department of justice may bring an action to collect a payment
14
under sub. (4) (b) or (c)
or (4g)
.
SB460,5
15
Section
5
.
102.82 (1) of the statutes is amended to read:
SB460,4,2
16
102.82
(1)
Except as provided in sub. (2) (ar), an uninsured employer shall
17
reimburse the department for any payment made under s. 102.81 (1) to or on behalf
18
of an employee of the uninsured employer or to an employee’s dependents and for
19
any expenses paid by the department in administering the claim of the employee or
20
dependents, less amounts repaid by the
uninsured employer,
employee
,
or
21
dependents under s. 102.81 (4) (b) or (c)
or (4g)
. The reimbursement owed under
22
this subsection is due within 30 days after the date on which the department
1
notifies the uninsured employer that the reimbursement is owed. Interest shall
2
accrue on amounts not paid when due at the rate of 1 percent per month.
SB460,6
3
Section
6
.
103.08 of the statutes is created to read:
SB460,4,4
4
103.08 Abusive work environments. (1)
Definitions.
In this section:
SB460,4,13
5
(a) “Abusive conduct” means conduct, including acts or omissions, by an
6
employer or employee that a reasonable person would find to be abusive on the basis
7
of the severity, nature, and frequency of the conduct. “Abusive conduct” includes
8
repeated infliction of verbal abuse such as derogatory remarks, insults, and
9
epithets; verbal, nonverbal, or physical conduct that is threatening, intimidating, or
10
humiliating; sabotage or undermining of an employee’s work performance; or, as an
11
aggravating factor, exploitation of an employee’s known psychological or physical
12
illness or disability. “Abusive conduct” does not include a single act unless that act
13
is especially severe or egregious.
SB460,4,17
14
(b) “Abusive work environment” means a work environment in which an
15
employer or one or more of its employees, acting with intent to cause pain or
16
distress to an employee, subjects that employee to abusive conduct that causes
17
physical harm or psychological harm to that employee.
SB460,4,23
18
(c) “Adverse employment action” means an action taken by an employer with
19
respect to an employee that has the effect, in whole or in part, of a penalty,
20
including dismissal or suspension from employment, demotion, denial of a
21
promotion, unfavorable transfer or reassignment, reduction in compensation, or
22
denial of increased compensation. “Adverse employment action” also includes a
23
constructive discharge.
SB460,5,2
1
(d) “Aggrieved employee” means an employee who brings an action under sub.
2
(3) alleging that he or she has been injured by an unlawful employment practice.
SB460,5,7
3
(e) “Constructive discharge” means a situation in which an employee resigns
4
from employment because the employee reasonably believes that he or she was
5
subjected to an abusive work environment and, prior to the employee resigning, the
6
employer was aware of the abusive conduct that gave rise to the abusive work
7
environment and the employer failed to stop the abusive conduct.
SB460,5,9
8
(f) Notwithstanding s. 103.001 (5), “employee” means an individual employed
9
by an employer.
SB460,5,15
10
(g) Notwithstanding s. 103.001 (6), “employer” means a person engaging in
11
any activity, enterprise, or business in this state that employs one or more persons
12
on a permanent basis. “Employer” includes the state and any office, department,
13
independent agency, authority, institution, association, society, or other body in
14
state government created or authorized to be created by the constitution or any law,
15
including the legislature and the courts.
SB460,5,17
16
(h) “Physical harm” means the impairment of an individual’s physical health
17
or bodily integrity.
SB460,5,19
18
(i) “Psychological harm” means the impairment of an individual’s mental
19
health.
SB460,5,21
20
(j) “Retaliate” means to take an action that negatively affects the terms,
21
conditions, and privileges of an employee’s employment.
SB460,5,23
22
(k) “Unlawful employment practice” means an unlawful employment practice
23
prohibited under sub. (2) (a) or (b).
SB460,6,3
1
(2)
Abusive work environment prohibited.
(a) It is an unlawful
2
employment practice for an employer or employee to subject an employee to an
3
abusive work environment.
SB460,6,6
4
(b) It is an unlawful employment practice for an employer or employee to
5
retaliate or threaten to retaliate in any manner against an employee for any of the
6
following reasons:
SB460,6,7
7
1. The employee opposed an unlawful employment practice.
SB460,6,11
8
2. The employee initiated, testified in, assisted in, or in any other manner
9
participated in an investigation, action, or proceeding to enforce a right under this
10
section, including any internal investigation or proceeding, any mediation or
11
arbitration proceeding, or any court action.
SB460,6,13
12
3. The employer believes that the employee engaged in conduct described in
13
subd. 1. or 2.
SB460,6,15
14
(c) The prohibitions under pars. (a) and (b) may be enforced only by a civil
15
cause of action brought under sub. (3).
SB460,6,22
16
(3)
Civil action.
In addition to any other remedy provided by law, an
17
employee who alleges that he or she has been injured by an unlawful employment
18
practice may bring an action in circuit court against the employer and, if applicable,
19
the employee who allegedly engaged in the unlawful employment practice for any
20
relief under sub. (5) the court considers appropriate. An employee must commence
21
an action under this subsection within one year after the last act constituting the
22
unlawful employment practice occurred or be barred from commencing an action.
SB460,7,2
23
(4)
Affirmative defenses.
(a) If the alleged unlawful employment practice
1
did not result in an adverse employment action against the aggrieved employee, the
2
employer may plead as an affirmative defense that all of the following are true:
SB460,7,4
3
1. The employer exercised reasonable care to prevent and promptly correct the
4
abusive conduct that is the basis for the aggrieved employee’s cause of action.
SB460,7,7
5
2. The aggrieved employee unreasonably failed to take advantage of
6
appropriate preventive or corrective opportunities the employer provided to prevent
7
or correct the abusive conduct described under subd. 1.
SB460,7,11
8
(b) If the alleged unlawful employment practice resulted in an adverse
9
employment action against the aggrieved employee, the employer may plead as an
10
affirmative defense that the aggrieved employee’s complaint is based on any of the
11
following:
SB460,7,14
12
1. An adverse employment action that was reasonably taken for poor
13
performance or misconduct by the aggrieved employee or for the employer’s
14
economic necessity.
SB460,7,16
15
2. An adverse employment action that was taken in response to a reasonable
16
performance evaluation of the aggrieved employee.
SB460,7,18
17
3. A reasonable investigation of a potentially illegal or unethical activity by
18
the aggrieved employee.
SB460,7,22
19
(c) An employee who is alleged to have engaged in an unlawful employment
20
practice may plead as an affirmative defense that the employee engaged in that
21
practice at the direction of the employer under an actual or implied threat of an
22
adverse employment action against the employee for not engaging in that practice.
SB460,8,11
23
(5)
Relief.
(a) Subject to par. (b) and sub. (6) (a) 1., if the circuit court finds
1
that an employer or employee has engaged in an unlawful employment practice, the
2
court may enjoin the employer or employee from engaging in that practice and may
3
grant other relief the court considers appropriate, including reinstatement of the
4
aggrieved employee, removal of the person who engaged in the abusive conduct
5
giving rise to the unlawful employment practice from the aggrieved employee’s
6
work area, medical expenses, back pay, front pay, compensation for pain and
7
suffering, compensation for emotional distress, punitive damages under s. 895.043,
8
and, notwithstanding s. 814.04, reasonable costs and attorney fees. If the circuit
9
court orders any payment under this paragraph because of an unlawful
10
employment practice engaged in by an employee, the employer of the employee who
11
engaged in an unlawful employment practice is liable for that payment.
SB460,8,15
12
(b) If an employer is found to have engaged in an unlawful employment
13
practice that did not result in an adverse employment action against the aggrieved
14
employee, the employer is not liable for compensation for emotional distress or
15
punitive damages unless the abusive conduct was extreme and outrageous.
SB460,8,17
16
(6)
Effect on other laws.
(a) This section does not relieve any person from
17
any duty, liability, or penalty provided by any other law except as follows:
SB460,9,6
18
1. If the worker’s compensation insurer of an employer that is ordered to pay
19
medical expenses under sub. (5) (a) or the department, if the employer is uninsured,
20
has paid or is obligated to pay medical expenses under ch. 102 for an injury arising
21
out of the same underlying behavior as the behavior giving rise to the unlawful
22
employment practice for which the employer is liable, or if the worker’s
23
compensation insurer of an employer that is ordered to pay back pay or front pay
1
under sub. (5) (a) or the department, if the employer is uninsured, has paid or is
2
obligated to pay disability benefits under ch. 102 for such an injury for the same
3
period as back or front pay is awarded under sub. (5) (a), the court shall order the
4
employer to reimburse the insurer or department for the amount of those expenses
5
or benefits paid or payable and to pay to the aggrieved employee any balance of the
6
amount awarded under sub. (5) (a) remaining after that reimbursement.
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