Lake Poygan, Winnebago County
I disagree that that this is jug fishing. Jug fishing inherently implies leaving an unattended line. If you can see your tip up and respond to the flag in a meaningful amount of time (subject to warden) than you are legal.
No law states you need to be holding the fishing line, just that it has to be attended. Otherwise any bank rod, or trolling rod out of hand is illegal too.