Madison Unpaid Wages Demand Letter

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What is a Unpaid Wages Demand Letter?

An unpaid wages demand letter is a formal written notice sent to an employer demanding payment of earned but unpaid compensation, including regular wages, overtime, commissions, bonuses, or final paychecks. Wage theft costs workers billions annually, and this letter initiates the legal process for recovery.

Key Points:

  • Documents exact hours worked and amounts owed
  • References state and federal wage and hour laws
  • Sets deadline before filing with labor department
  • Many states allow double or triple damages for violations
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Use this unpaid wages guide to build a clear demand letter for Madison.

Madison Unpaid Wages Rights: Your Complete Wisconsin Guide

If you're a worker in Madison, Wisconsin who hasn't been paid for your labor, you have powerful legal rights and multiple avenues for recovery. Madison's diverse economy - anchored by the University of Wisconsin-Madison, state government, a growing tech sector, and robust healthcare industry - employs tens of thousands of workers who are protected by both federal and Wisconsin wage laws. Whether you're a UW employee, a state worker, a healthcare professional at UW Health, or work in any of the countless businesses across Dane County, the law requires your employer to pay you every penny you've earned.

Wisconsin's wage payment and collection laws are codified primarily in Wisconsin Statutes Chapter 109 and enforced by the Wisconsin Department of Workforce Development (DWD). These laws establish when wages must be paid, require employers to provide wage statements, protect against retaliation for wage complaints, and provide penalties when employers fail to pay. Combined with federal protections under the Fair Labor Standards Act (FLSA), Madison workers have substantial legal remedies available when employers engage in wage theft.

Wage theft takes many forms beyond simply not receiving a paycheck. Common violations in Madison include failure to pay overtime premiums, incorrect calculation of hours worked, illegal deductions from pay, misclassification of employees as independent contractors, denial of final paychecks, unpaid commissions and bonuses, and requiring off-the-clock work. The UW system, state agencies, restaurants, retail establishments, and professional services firms have all faced wage claims from workers denied their rightful compensation.

This comprehensive guide will walk you through Wisconsin's wage laws, explain how to document your unpaid wage claim, provide step-by-step instructions for demanding payment, identify critical deadlines, and help you understand your options when employers refuse to pay. Whether you're owed a few hundred dollars in unpaid overtime or thousands in withheld wages, understanding your rights is the first step toward recovery.

Step-by-Step Guide to Recovering Unpaid Wages in Madison

Successfully recovering unpaid wages from a Madison employer requires systematic documentation and action. Follow these steps to maximize your chances of getting paid:

**Step 1: Document Your Hours and Pay**
Before taking any action, compile all documentation of your work and pay:
- Keep copies of all pay stubs and earnings statements
- Record all hours worked, including start and end times, breaks, and any overtime
- Save any schedules, timesheets, or time clock records
- Document any off-the-clock work you were required or expected to perform
- Calculate the difference between hours worked and hours paid
- Note pay periods and dates when wages were due

If you don't have records, reconstruct them as best you can from memory, calendar entries, emails, or other evidence.

**Step 2: Review Your Employment Documents**
Gather and review:
- Your employment contract or offer letter
- Employee handbook or policy manual
- Any written agreements about pay rates, commissions, or bonuses
- Emails or messages discussing compensation
- Your classification (exempt vs. non-exempt, employee vs. contractor)

These documents establish what you should have been paid.

**Step 3: Calculate What You're Owed**
Create a detailed calculation:
- List each pay period where you were underpaid
- Calculate regular hours worked versus hours paid
- Calculate overtime hours at 1.5x regular rate
- Include any unpaid commissions, bonuses, or other compensation
- Add up the total unpaid amount

Be precise - you'll need these figures for your demand letter and any complaints.

**Step 4: Request Payment from Your Employer**
Start with a direct request:
- Put your request in writing (email is fine)
- Clearly state the amount owed and the time periods affected
- Reference specific pay periods and discrepancies
- Request payment within a specific timeframe (7-14 days)
- Keep a copy of your request and any response

Many wage issues are resolved at this stage, especially when employers realize the employee understands their rights.

**Step 5: Send a Formal Demand Letter**
If informal requests fail, send a formal demand letter via USPS Certified Mail with Return Receipt Requested:
- Include your name, address, and contact information
- Identify your employer and employment dates
- Detail the wages owed with calculations
- Cite Wisconsin Statutes Chapter 109 and relevant provisions
- Demand payment within 14-21 days
- State that you will file a DWD complaint and consider legal action if not paid
- Reference the 50% penalty for willful violations under Section 109.11

**Step 6: File a Complaint with Wisconsin DWD**
File a wage complaint with the Wisconsin Department of Workforce Development:
- Online: Complete the wage complaint form at dwd.wisconsin.gov
- By mail: DWD Equal Rights Division, 201 E. Washington Avenue, Madison, WI 53708
- By phone: (608) 266-6860

Provide:
- Your personal information and employer information
- Dates of employment and position
- Description of the wage violation
- Amount owed
- Copies of supporting documents

DWD will investigate the complaint and may attempt to recover your wages.

**Step 7: Consider Filing a Federal Complaint**
For FLSA violations (minimum wage, overtime), you can also file with the U.S. Department of Labor Wage and Hour Division:
- Milwaukee District Office: (414) 297-1515
- Website: dol.gov/agencies/whd
- DOL can investigate, assess penalties, and sue employers on your behalf

You can file with both state and federal agencies.

**Step 8: Evaluate Legal Action**
If administrative complaints don't resolve the issue, consider filing a lawsuit:
- Claims up to $10,000 can be filed in Wisconsin Small Claims Court
- Larger claims require filing in Circuit Court
- You can sue for unpaid wages plus the 50% penalty plus attorney's fees
- For FLSA claims, you can also seek liquidated damages (doubling of damages) plus attorney's fees

**Step 9: Consider Consulting an Attorney**
For substantial claims or complex situations:
- Many employment attorneys offer free consultations
- Wage cases are often taken on contingency (no fee unless you win)
- Attorneys can pursue damages and penalties you might not recover on your own
- Class action may be possible if other employees have similar claims

**Step 10: Protect Yourself from Retaliation**
Wisconsin Statutes Section 109.07 prohibits employer retaliation for filing wage complaints or exercising wage rights. If you experience retaliation:
- Document it thoroughly
- File a retaliation complaint with DWD
- You may have additional damages claims for retaliation

Essential Evidence for Madison Unpaid Wage Claims

Strong documentation is crucial for recovering unpaid wages in Madison. Wisconsin courts and the Department of Workforce Development evaluate claims based on the evidence presented. Here's what you need:

**1. Employment Documentation**

**2. Hours Worked Evidence**

If you don't have employer records, create your own reconstructed timeline with as much detail as possible.

**3. Pay Records**

**4. Compensation Agreements**

**5. Overtime Evidence**

**6. Communication Records**

**7. Calculation Documentation**

**8. Evidence of Employer Knowledge**

**9. Evidence Disputing Employer Claims**

**10. Retaliation Evidence**

**Organization Best Practices**

**When Records Don't Exist**

Under FLSA, if an employer fails to keep required records, the employee's reasonable reconstruction of hours is accepted unless the employer can prove it wrong.

Critical Deadlines for Wisconsin Unpaid Wage Claims

Meeting deadlines is crucial for recovering unpaid wages in Wisconsin. Missing key dates can bar your claims entirely. Here are the critical timelines:

**Statute of Limitations for Wage Claims**

**When Wages Are "Due" in Wisconsin**

**DWD Complaint Timeline**

**FLSA Complaint Timeline**

**Tolling and Extensions**

These extensions are case-specific and require legal analysis.

**Retaliation Claims**

**Court Filing Deadlines**

**Best Practices for Deadline Management**

**Practical Timeline for Action**

| Action | Recommended Timing |
|--------|--------------------|
| Request payment from employer | Within days of missing paycheck |
| Send formal demand letter | Within 2-4 weeks if informal request fails |
| File DWD complaint | Within 30 days if demand fails |
| Consult attorney | Within 6 months of violation for significant claims |
| File lawsuit if needed | Well before 2-year deadline |

1 Calculate your specific deadline based on when wages were due

Common Mistakes to Avoid in Madison Unpaid Wage Claims

Madison workers pursuing unpaid wages often make preventable mistakes that weaken their claims or result in lost compensation. Learning from these common errors can significantly improve your chances of recovery.

**Mistake 1: Not Keeping Your Own Records**
Many workers rely entirely on employer records and don't keep their own documentation of hours worked. If the employer's records are wrong or if records disappear, you have nothing to prove your case. Keep a personal log of hours, save copies of timesheets before submission, and maintain your own pay stub records.

**Mistake 2: Waiting Too Long to Act**
Wisconsin has a 2-year statute of limitations for wage claims. Every pay period that passes is another pay period closer to being time-barred. Workers often wait, hoping the situation will resolve or because they don't want to create conflict. By the time they act, some claims may be barred. Act promptly.

**Mistake 3: Not Putting Complaints in Writing**
Verbal complaints to supervisors or HR are difficult to prove later. Employers may deny the conversations occurred. Always follow up verbal discussions with written confirmation via email. "Per our conversation today, I'm writing to document my concern about unpaid overtime for [dates]." Create a paper trail.

**Mistake 4: Accepting "Comp Time" Instead of Overtime Pay**
Private employers in Wisconsin generally cannot offer compensatory time off instead of overtime pay. If your employer offers time off instead of overtime premium pay, this likely violates the law. Government employers have different rules, but private employers must pay overtime in cash.

**Mistake 5: Not Understanding Exempt vs. Non-Exempt Classification**
Many workers accept their employer's classification without questioning it. Just because your employer calls you "salaried" or "exempt" doesn't make it legally accurate. The determination depends on your actual job duties and salary level, not your title or what the employer says. If you don't meet exemption criteria, you may be owed overtime.

**Mistake 6: Signing Releases Without Understanding Them**
Some employers ask terminated employees to sign releases waiving wage claims in exchange for severance or other benefits. These releases may not be enforceable for certain wage claims, and you may be giving up rights for less than you're owed. Consult an attorney before signing any release that affects wage claims.

**Mistake 7: Not Filing with DWD**
The Wisconsin Department of Workforce Development provides a free mechanism for recovering wages. Many workers skip this step and either do nothing or go straight to expensive litigation. DWD can investigate, order payment, and pressure employers at no cost to you. Use this resource.

**Mistake 8: Accepting Partial Payment as Full Resolution**
Employers sometimes offer partial payment to make the problem go away. Before accepting, make sure you're getting everything you're owed, including overtime premiums, potential penalties under Section 109.11, and interest. Get any settlement in writing specifying it resolves the specific claims.

**Mistake 9: Quitting Before Documenting the Violation**
Some workers quit in frustration over unpaid wages before documenting their claim. Once you leave, access to records and witnesses becomes more difficult. If possible, document everything while still employed, then pursue your claim after departure if needed.

**Mistake 10: Not Understanding Final Paycheck Rules**
Wisconsin requires final paychecks on the next regular payday, not immediately upon termination. Workers sometimes believe they should be paid on their last day and get confused about their rights. Know the actual deadline - the next regular payday - and pursue your claim if that deadline is missed.

**Mistake 11: Assuming Commission/Bonus Disputes Aren't Wage Claims**
Earned commissions and bonuses are wages under Wisconsin law. If your employer refuses to pay earned commissions, this is wage theft just like withholding hourly pay. Pursue these claims through the same channels.

**Mistake 12: Accepting Employer's Timecard Adjustments**
Some employers require workers to approve timecards that have been edited to remove overtime or reduce hours. If you're being pressured to approve inaccurate timecards, document the actual hours and the pressure. Never falsify your own records.

**Mistake 13: Not Considering Class or Collective Action**
If your employer's wage violations affect multiple workers (a common scenario with overtime or off-the-clock violations), a class action may be more effective than individual claims. Consult an attorney about collective action possibilities.

**Mistake 14: Fearing Retaliation**
Wisconsin law prohibits retaliation for filing wage complaints. While retaliation does occur, it's illegal and creates additional liability for the employer. Don't let fear prevent you from pursuing legitimate claims - the law protects you, and retaliation claims can result in additional damages.

Frequently Asked Questions About Unpaid Wages in Madison

Q How long does my employer have to pay my final paycheck after I leave a job in Wisconsin?
A

Under Wisconsin Statutes Section 109.03, your employer must pay all earned wages on the next regular payday after your employment ends. If the regular payday would fall more than 31 days after your last day of work, you must be paid within 31 days. Wisconsin does not require immediate payment upon termination like some states do, but the next regular payday is the legal deadline.

Q Can I recover more than just my unpaid wages in Wisconsin?
A

Yes. Under Wisconsin Statutes Section 109.11(2), if an employer willfully fails to pay wages, you may recover the unpaid amount plus an additional 50% (so 1.5 times the original wages) as a penalty. You can also recover reasonable attorney's fees and costs. For federal FLSA claims, you may recover liquidated damages equal to your unpaid wages (doubling your recovery) plus attorney's fees.

Q My employer says I'm exempt from overtime. How do I know if that's correct?
A

Exemption from overtime depends on your actual job duties and salary level, not your job title or what your employer says. To be exempt, you typically must earn at least $684 per week on a salary basis AND perform executive, administrative, professional, or certain other specific duties. If you spend most of your time doing non-exempt work (like routine clerical tasks, manual labor, or following detailed instructions), you may be misclassified and owed overtime regardless of your title.

Q Where do I file a wage complaint in Madison?
A

You can file a complaint with the Wisconsin Department of Workforce Development (DWD) online at dwd.wisconsin.gov, by mail at DWD Equal Rights Division, 201 E. Washington Avenue, Madison, WI 53708, or by phone at (608) 266-6860. For federal FLSA violations, you can also file with the U.S. Department of Labor Wage and Hour Division, Milwaukee District Office at (414) 297-1515. DWD is headquartered in Madison, making it convenient for local workers.

Q What is the statute of limitations for unpaid wage claims in Wisconsin?
A

For Wisconsin wage claims under Chapter 109, you have 2 years from when the wages were due. For federal FLSA claims, you have 2 years from the violation, or 3 years if the violation was willful (the employer knew or should have known the conduct was unlawful). Each pay period is a separate claim with its own deadline, so older claims may expire while newer ones remain valid. Act promptly to preserve your full claim.

Q Can my employer deduct money from my paycheck for mistakes or shortages?
A

Wisconsin law limits deductions from wages. Employers generally cannot deduct for business losses, shortages, or breakage unless it results from the employee's negligence, dishonesty, or willful misconduct. Even then, deductions cannot reduce pay below minimum wage. Deductions for other purposes must be authorized in writing by the employee and be for the employee's benefit. If your employer is making unauthorized deductions, this may constitute a wage violation.

Q Can I be fired for filing a wage complaint?
A

No. Wisconsin Statutes Section 109.07 prohibits employer retaliation against employees who file wage complaints, testify in wage proceedings, or exercise any rights under the wage laws. If you experience retaliation (termination, demotion, reduced hours, harassment), you can file a retaliation complaint with DWD and may have additional claims for damages. Document any adverse actions that follow your wage complaint.

Q What if I was classified as an independent contractor but I think I was really an employee?
A

Wisconsin uses specific tests to determine whether a worker is an employee or independent contractor. If you were controlled by the employer, performed work central to the employer's business, and didn't operate your own independent business, you may have been misclassified. Misclassified workers can file wage claims to recover overtime, benefits, and other compensation they were denied. This is especially common in the gig economy and construction industries.

What to Expect When Settling Unpaid Wage Disputes in Madison

Understanding the resolution process helps Madison workers approach wage disputes with realistic expectations. Most wage claims can be resolved without going to court, but knowing all your options strengthens your position.

**Typical Resolution Paths**

Wage disputes typically resolve through one of several paths:

1. *Direct resolution:* After you send a demand letter, the employer pays the owed wages.

2. *DWD investigation:* The Wisconsin Department of Workforce Development investigates your complaint and orders payment.

3. *DOL investigation:* For federal claims, the Department of Labor investigates and pursues recovery.

4. *Negotiated settlement:* You and the employer agree to a settlement amount.

5. *Court judgment:* A judge orders payment after a hearing in small claims or circuit court.

**Employer Response Patterns**

After receiving a demand letter or agency complaint, employers typically:

*Pay the full amount:* Some employers pay immediately when they realize the worker is serious and understands the law. This is especially common when the violation is clear-cut.

*Dispute the claim:* Employers may argue you weren't owed the wages, the hours were different than you claim, or you're misclassifying the compensation. Be prepared with documentation.

*Offer partial payment:* Employers sometimes offer less than the full amount to resolve the dispute. Evaluate whether the offer is reasonable given the strength of your evidence.

*Ignore the demand:* Some employers don't respond, requiring escalation to DWD, DOL, or court.

**Realistic Recovery Amounts**

*Base wages:* You should expect to recover 100% of proven unpaid wages. This is not negotiable - wages earned are wages owed.

*Overtime premium:* If overtime wasn't paid, you're owed 1.5 times your regular rate for those hours.

*Wisconsin 50% penalty:* For willful violations, Section 109.11 allows 50% increased wages. Many employers settle for 1.25x to 1.5x to avoid this risk.

*FLSA liquidated damages:* Federal law allows doubling of damages for FLSA violations, unless the employer can prove good faith. Strong claims often settle for 1.5x to 2x.

*Attorney's fees:* Both Wisconsin law and FLSA allow recovery of reasonable attorney's fees, which creates settlement pressure on employers.

**DWD Investigation Process**

When you file with DWD:

- DWD reviews your complaint and may request additional information
- DWD contacts the employer for their response
- An investigator evaluates the evidence
- If violations are found, DWD issues a determination and may order payment
- DWD can assess penalties and pursue collection
- Either party can appeal DWD determinations

DWD investigations typically take several months. The process is free to the worker.

**Small Claims Court Considerations**

For claims up to $10,000, small claims court offers:

- Relatively low filing fees ($94.50 to $164.50)
- Hearings scheduled within 30-60 days
- No attorney required (though you may have one)
- Simplified procedures designed for self-representation

If you win, you receive a judgment. Collection may require additional steps if the employer doesn't pay voluntarily.

**When to Involve an Attorney**

Consider attorney representation when:

- The amount owed is substantial (thousands of dollars)
- The case involves complex legal issues (misclassification, exempt status)
- Multiple employees are affected (potential class action)
- The employer is aggressive or has attorneys involved
- You face retaliation

Many employment attorneys work on contingency for wage cases, meaning no fee unless you recover.

Taking Action: Your Next Steps in Madison

If you're owed unpaid wages from a Madison employer, here are the prioritized steps you should take:

**1. Calculate What You're Owed**

Before taking any action, determine exactly what wages are unpaid. Review your pay stubs, compare to hours actually worked, calculate any unpaid overtime (at 1.5x regular rate for hours over 40 per week), and identify any unpaid commissions, bonuses, or final paycheck amounts. Create a detailed calculation spreadsheet.

**2. Gather Your Evidence**

Collect all documentation: pay stubs, timesheets, schedules, employment agreements, emails about compensation, and anything showing hours worked. Create your own records if employer records are unavailable or inaccurate. Organize everything chronologically.

**3. Send a Written Demand**

Put your demand in writing and send to your employer (or former employer) via email and certified mail. State the specific amounts owed, the pay periods affected, cite Wisconsin Statutes Chapter 109, demand payment within 14-21 days, and mention that you'll file with DWD and pursue legal action if necessary.

**4. File a DWD Complaint**

If the employer doesn't pay after your demand, file a complaint with the Wisconsin Department of Workforce Development:

  • Online: dwd.wisconsin.gov
  • Phone: (608) 266-6860
  • Mail: DWD Equal Rights Division, 201 E. Washington Avenue, Madison, WI 53708

Include your calculation and copies of supporting documents.

**5. Consider Federal DOL Complaint**

For minimum wage or overtime violations, also file with the U.S. Department of Labor Wage and Hour Division:

  • Milwaukee District Office: (414) 297-1515
  • Website: dol.gov/agencies/whd

You can file with both agencies.

**6. Evaluate Legal Consultation**

For substantial claims (especially over $5,000) or complex issues, consult an employment attorney. Many offer free consultations and work on contingency. The Wisconsin State Bar Lawyer Referral Service at (800) 362-9082 can connect you with attorneys.

**7. File in Small Claims Court if Necessary**

If administrative complaints don't resolve the issue and the amount is under $10,000, file in Dane County Small Claims Court. You can recover wages plus penalties plus costs.

**Key Resources:**

  • Wisconsin DWD: (608) 266-6860, dwd.wisconsin.gov
  • U.S. DOL Wage and Hour: (414) 297-1515
  • Worker's Rights Information: wisconsin.gov/Pages/Workers.aspx
  • Dane County Small Claims: (608) 266-4311

Madison Unpaid Wage Resources and Contacts

Madison workers have access to numerous resources for unpaid wage claims:

**Wisconsin Department of Workforce Development (DWD)**
The primary state agency for wage complaints. Headquartered in Madison.
- Phone: (608) 266-6860
- Address: 201 E. Washington Avenue, Madison, WI 53708
- Website: dwd.wisconsin.gov
- Services: Wage complaint investigation, enforcement, employer penalties

**U.S. Department of Labor - Wage and Hour Division**
Federal agency handling FLSA violations (minimum wage, overtime).
- Milwaukee District Office: (414) 297-1515
- Website: dol.gov/agencies/whd
- Services: Federal wage complaint investigation, enforcement

**Worker's Rights Center**
Non-profit organization assisting workers with employment issues.
- Phone: (608) 255-0376
- Address: 32 N. Bassett Street, Madison, WI 53703
- Website: workersrights.org
- Services: Know-your-rights education, referrals, advocacy

**Legal Aid Society of Dane County**
Provides free legal assistance to income-qualifying residents.
- Phone: (608) 233-0023
- Website: www.legalaction.org
- Services: Legal advice and representation for qualifying workers

**Dane County Small Claims Court**
Handles wage disputes up to $10,000.
- Location: Dane County Courthouse, 215 South Hamilton Street, Madison, WI 53703
- Phone: (608) 266-4311
- Filing fees: Approximately $94.50 to $164.50

**Wisconsin State Bar Lawyer Referral Service**
Connects workers with employment attorneys.
- Phone: (800) 362-9082
- Website: wisbar.org

**Equal Employment Opportunity Commission (EEOC)**
For wage claims involving discrimination.
- Milwaukee Area Office: (414) 297-1111
- Website: eeoc.gov

**National Labor Relations Board (NLRB)**
For wage issues connected to union activity or concerted activity.
- Region 18 (includes Wisconsin): (612) 348-1757
- Website: nlrb.gov

**Community Immigration Law Center**
Assists immigrant workers with wage claims and employment issues.
- Phone: (608) 286-9322
- Website: cilc.org

**Wisconsin Employment Relations Commission**
For public sector employment disputes.
- Phone: (608) 243-2424
- Website: werc.wi.gov

**Useful Online Resources:**
- Wisconsin Wage and Hour Laws: dwd.wisconsin.gov/dwd/publications/erd/pdf/erd_8298_p.pdf
- Federal Wage and Hour Information: dol.gov/agencies/whd
- Wisconsin Employment Law Handbook: Wisconsin State Bar publications

The Wage War Playbook

Know the Deadlines

Most states give employers a limited time to fix wage violations. Know your state's laws.

Document the Theft

Timesheets, emails, texts, promises… gather every shred of evidence.

Calculate *Everything*

Regular hours, overtime, breaks, commissions. Don't let them shortchange you a single cent.

Wage War FAQ

When should I send a demand letter?

The moment they miss a payment or short your check. Don't let it slide - delays can hurt your claim.

What if they retaliate?

Retaliation for wage complaints is illegal in most states. Document everything and consider filing with your state labor board.

Can I recover unpaid overtime?

Yes. If you worked over 40 hours/week and weren't paid time-and-a-half, you may recover the unpaid amount plus penalties.

What about my final paycheck?

Most states require final paychecks within days of termination. Late payment often triggers automatic penalties.

How far back can I claim unpaid wages?

Typically 2-3 years for federal claims, but state laws vary. Some states allow claims going back further.

Do I need to prove my hours?

Any evidence helps: timecards, emails with timestamps, text messages, witness statements, or reconstructed schedules.

Can I file anonymously?

Not typically, but there are strong anti-retaliation protections. Some claims through labor boards offer more privacy than lawsuits.

About FreeDemandLetter

FreeDemandLetter provides free, AI-powered demand letter generation with location-specific legal citations. Our content is reviewed by subject matter specialists and regularly updated to reflect current laws. We help thousands of people resolve disputes effectively—but we're not lawyers, and this isn't legal advice. For complex situations, consult a licensed attorney in your jurisdiction.

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Legal Information Verified: January 2026. Sources include official state statutes and government consumer protection agencies. Laws change—verify current requirements with official sources for your jurisdiction.