MADISON, WI – The Wisconsin Restaurant Association (WRA) today expressed strong disappointment following the failure of the Wisconsin State Senate to pass a bipartisan tax relief package that would have delivered meaningful financial support to restaurant workers and small businesses across the state.

The proposal, which was voted on May 13, would have provided targeted relief to Wisconsin’s hospitality workforce by allowing income deductions on the first $25,000 in tips and $12,500 in overtime wages, two critical sources of income for restaurant employees. The legislation also included property tax rebates for families and investments in education that would have supported communities statewide.

“Yesterday’s outcome is a missed opportunity for the people who power Wisconsin’s restaurant industry,” said Kristine Hillmer, President & CEO of the Wisconsin Restaurant Association. “Tipped workers are many times working part-time to bring in additional income to their families or put themselves through school. This bill would have allowed them to keep more of what they earn at a time when costs remain high for both employees and employers.”

Restaurant operators and workers across Wisconsin had mobilized in recent days, but those efforts were the culmination of months of sustained advocacy by the Wisconsin Restaurant Association. Throughout the process, the WRA worked closely with lawmakers, actively engaging in discussions, contacting legislators, and building support for provisions that would directly benefit restaurant workers.

Despite these extensive efforts and ongoing outreach, the measure ultimately failed to secure enough support in the Senate.

The WRA emphasized the broader economic impact of the lost proposal, noting that the plan would have returned $1.8 billion in surplus funds to Wisconsin residents and businesses, helping to stimulate local economies heading into the summer season.

“Restaurants are cornerstones of every Wisconsin community,” Kristine added. “When you put money back into the pockets of our workforce, it doesn’t sit idle. Instead, it gets spent in local businesses, supports families, and strengthens our economy. Unfortunately, that opportunity has been delayed.”

The Association also noted that without action, restaurant workers will continue to face full tax burdens on tip income and overtime earnings, compensation that often reflects long hours and peak-season demand.

The Wisconsin Restaurant Association (WRA) is the voice of Wisconsin’s essential restaurant and hospitality sector. We represent over 7,000 restaurant locations statewide, from seasonal drive-ins, supper clubs and neighborhood bars to fine-dining and large resorts. Most of our members hold alcohol licenses.

The Wisconsin Restaurant Association Education Foundation (WRAEF) advances the industry by supporting workforce development, education, and training initiatives that help build a strong, skilled hospitality workforce across the state.

Key Facts for Wisconsin’s Workforce & Economy:

  • Major Employer: Restaurants employ 9 percent of Wisconsin’s workforce, making our industry vital to the state’s economic health.
  • Independent Core: Over 75% of our members are independent restaurants and restaurant groups, underscoring our commitment to local small business owners. Twenty percent of our members are locally owned franchisees of major hospitality brands.
  • Community Cornerstones: Beyond jobs and hospitality, restaurants are the cornerstones of their neighborhoods. They actively support local schools, teams, charities, and churches through regular fundraising and donations, providing safe, vital meeting places for every community need.