Do you believe your employer owes you overtime? Understanding Illinois’s clear overtime laws helps ensure you get fair compensation for your extra work hours. Therefore, knowing these laws helps you protect your rights and take action if your employer owes you overtime pay.
Consequently, in Illinois, the overtime legislation dictates that overtime be at 1.5 times the regular hourly wage for anyone who works more than 40 hours per week. Moreover, the minimum wage as of 2024 is set at $14 per hour, making the overtime minimum wage $21 per hour.
Illinois Overtime Rate and Calculation
Below, we will outline how to determine your overtime rate using proper calculations. For example:
Example Calculation: If your regular hourly rate is $20 and you work 50 hours in a week, calculate as follows:
Regular pay for 40 hours: 40 x $20 = $800
Overtime pay for 10 hours: 10 x ($20 x 1.5) = 10 x $30 = $300
Total pay for the week: $800 + $300 = $1,100
Who Is Entitled to Overtime Pay?
Most employees in Illinois are entitled to overtime pay. Specifically, key factors determining eligibility include:
Hourly Employees: All hourly employees qualify for overtime pay for hours worked over 40 in a week.
Non-Exempt Salaried Employees: Additionally, salaried employees may be eligible if they do not meet exemption criteria. In other words, they earn below a certain salary threshold and perform non-exempt job duties.
Exemptions and Exceptions
In Illinois, some employees have an exemption from overtime pay under federal and state labor laws. The Fair Labor Standards Act (FLSA) entitles non-exempt employees to overtime compensation, while exempt employees do not receive this benefit.
General Criteria for Exemption:
Salary Threshold: For example, earning a monthly salary of at least twice the Illinois minimum wage for full-time employment.
Nature of Work: The job involves duties in creative, intellectual, or managerial fields.
Discretion and Judgment: The role requires the use of discretion and independent judgment.
Specific Exempt Professions:
Commissioned Employees: Earn most of their income from commissions.
Administrative Employees: Involved in administrative tasks related to management policies or general business operations.
Executives: Manage at least two other employees and have authority over hiring and firing decisions.
Computer Professionals: Work in programming, systems analysis, or software engineering.
Teachers: Educators in private schools.
Outside Salespeople: Regularly work away from the employer’s business selling products or services.
Union Employees: Typically do not qualify for standard overtime provisions. Their unions negotiate different overtime rates.
Important Considerations
Employers must classify employees correctly as exempt or non-exempt. If in doubt, the default classification should fall under non-exempt to ensure compliance with overtime laws. Therefore, Illinois uses specific tests to determine the possible exemption of a salaried employee:
Salary Basis Test: The employee is paid a fixed salary that does not fluctuate based on the number of hours worked.
Salary Level Test: Therefore, an employee’s salary must be at least twice the state minimum wage for full-time employment.
Duties Test: The employee’s primary duties must involve executive, administrative, or professional tasks as defined by the law.
Steps to Take if You Believe You Are Owed Back Overtime Pay
Always act promptly when owed overtime—time is crucial. Here are the steps you should take:
Document Your Hours: Keep detailed records of your work hours and any communications with your employer regarding overtime.
Review Your Job Classification: Ensure your job classification (exempt vs. non-exempt) is correct.
Contact Your Employer: Discuss your concerns with your employer or HR department.
File a Complaint: If your employer does not address the issue, file a complaint with the Illinois Department of Labor.
Consult an Attorney: For legal advice, consult an employment attorney specializing in wage and hour laws.
Overtime Pay for Tipped Employees in Illinois
That is to say, tipped employees in Illinois qualify for overtime pay when they work more than a set number of hours per week. Additionally, employers calculate overtime pay at one and a half times the employee’s regular hourly rate.
For tipped employees, the calculation of overtime wages uses the full minimum wage rather than the lower cash wage paid by the employer. Although employers can claim a tip credit under federal law, they cannot use a larger tip credit for overtime hours than for regular hours.
Overtime Exceptions and Exemptions in Illinois
Federal overtime requirements exempt certain White Collar employees in Illinois from minimum wage rules. Therefore, employees do not need to receive 1.5 times their hourly pay rate for working beyond 40 hours if they earn at least $684 per week.
The four categories of exempt White Collar employees are:
Administrative employees
Executives
Professionals
Outside sales representatives
One Day Rest in Seven Day Act (ODRISA) in Illinois
The One Day Rest in Seven Day Act mandates that Illinois employers give employees at least 24 consecutive hours of rest every seven days. Therefore, when employees voluntarily work more than 40 hours in a week, they receive overtime compensation for those extra hours.
Likewise, employees get a meal break of at least 20 minutes for every 7.5-hour shift. This break must take place before the 5-hour mark. For shifts lasting 12 hours or more, employees are entitled to a second 20-minute break. If employees work through their meal break, employers must compensate them for that time. This act only applies to non-exempt employees.
Statute of Limitations for Unpaid Overtime Claims in Illinois
Employees in Illinois can sue their employer in court for unpaid overtime compensation. The statute of limitations depends on the specific circumstances:
For claims under state law for minimum and overtime pay, the statute of limitations is three years.
For claims under federal law, the statute of limitations is two years, or three years if the employer intentionally violated the law.
Think You Have a Case? Contact Lemberg Law for Assistance
If you believe your employer violated overtime laws and owes you back pay, contact Lemberg Law for assistance. Our experienced legal team will evaluate your case for free. Call us at 475-277-2200 or complete our online form to get started.
About the Author:
Sergei Lemberg is an attorney focusing on consumer law, class actions related to automotive issues, and personal injury litigation. With nearly two decades of experience, his areas of practice include Lemon Law (vehicle defects), Debt Collection Harassment, TCPA (illegal robocalls and texts), Fair Credit Reporting Act, Overtime claims, Personal Injury cases, and Class Actions. He has consistently been recognized as the nation's "most active consumer attorney." In 2020, Mr. Lemberg represented Noah Duguid before the United States Supreme Court in the landmark case Duguid v. Facebook. He is also the author of "Defanging Debt Collectors," a guide that empowers consumers to fight back against debt collectors and prevail, as well as "Lemon Law 101: The Laws That Lemon Dealers Don't Want You to Know."
