Success comes at the hands of hard work, but so does a hefty paycheck. Overtime pay, time and a half the normal rate of pay for every hour after 40, can bring in a sizable paycheck that makes it worth it to work those long weeks.
Knowing if you’re eligible to receive that pay boost can be confusing. Regardless of what job you have, at the end of the day, you need to make sure you’ve received every dollar you’ve earned. And taking the time to understand state and federal wage laws will help prepare you for when that paycheck comes.
Summary of Illinois Overtime Law
Below Is an Outline of Critical Illinois Overtime Law Components.
- “One Day Rest in Seven Act” Illinois Compiled Statutes
- Fair Labor Standards Act of 1938 (FLSA)
- Illinois Labor Code 820 § 105/4a(1) (Overtime Compensation)
|Methods For Overtime Calculation:|
- Hourly Employees: 1.5 x Normal pay rate for all hours above 40 in a single workweek.
- Hourly Employees with Plus Bonus and/or Commission: To determine the regular rate, take the total hours worked multiplied by the hourly rate, then add the workweek bonus/commission. Next, divide by the total hours in a single workweek. Finally, pay half of the adjusted rate for every hour of overtime.
- Salary Employees: To determine the regular rate, take the salary and divide by the number of hours the salary is supposed to cover.
- Add the regular rate for each hour up to 40 hours if the hours total less than 40. For all hours after 40, 1.5 x the regular rate.
- Pay 1.5 x the regular rate for each hour over if the total hours worked is above 40.
|Overtime Rules in Illinois|
- Employers who are paid over $100,000 could receive overtime
- 8 Hour+ workdays do not entitle individuals to overtime
- Collecting unpaid overtime has a 3-year statute of limitations
- State overtime laws cover all employers with one or more employees.
|Wage Complaint Filing Process|
- File a Complaint to the U.S. Dept. of Labor
- File a Wage Complaint Form with the Illinois Dept. of Labor
Note: New legislation, high court rulings (federal court decisions included), ballot initiatives, and other influences can change state laws. Please refer to a qualified attorney or complete your own research to verify the laws in your state to ensure accuracy.
What Are the Laws on Federal Overtime?
While Illinois has its own labor code to ensure employees are adequately treated by employers, the federal government is responsible for establishing the minimum standard across the country. The Fair Labor Standards Act of 1938 (FLSA) accomplishes this.
The FLSA lays out the framework for employee/employer relations regarding rights and benefits. It covers topics such as child labor standards, the national minimum wage, and overtime law. States can build on top of this framework, but they cannot take away employee benefits granted by the FLSA.
How to Calculate Overtime in Illinois
Employees who work more than 40 hours in a single workweek are entitled to compensation according to state law. The law dictates that the overtime rate be set to one and a half times the standard hourly rate of pay for the employee. Multiple weeks cannot be averaged out. Illinois calculates when employers must pay overtime rates:
- Employers are not required to pay overtime to employees who work more than 8 hours in a workday.
- Employers must pay overtime when employees work more than 40 hours in a single workweek.
Who Does NOT Qualify for Overtime?
Some employees are exempt from overtime pay under the FLSA. Administrators, executives, professional and outside sales employees fall under the exempt category. Additionally, the salary for an employee must be at least $455 in a single workweek to qualify for the exemption.
Individuals who make over $100,000 per year are not automatically exempt under Illinois law. This differs from many other states and the federal standard that has an exemption for those who receive high levels of compensation. The following jobs classify as exempt:
- Agricultural labor
- Certain radio/television employees (cities with populations under 100,000)
- Commissioned employees (defined by FLSA Section 7i)
- Employees of certain educational/residential childcare institutions
- Employees who exchange hours according to a workplace exchange agreement
- Administrative, executive, or professional employees as defined by the FLSA
- Salespeople and mechanics involved in servicing/selling cars, trucks, or farm implements at dealerships
The One Day Rest in Seven Act
Employees are required by law to have a minimum of 24 hours provided every calendar week under the One Day Rest in Seven Act. Calendar weeks are divided as periods of seven consecutive days that begin Sunday morning at 12:01 a.m. and end the following Saturday at midnight. Employers can request for an exemption to this requirement from the IDOL. They must also illustrate that any employees who have not taken a break during a calendar week are doing so on their own will.
Investigate Governing Laws
As state laws can change, you should always conduct independent research to verify local laws. Additionally, it is always in your best interest to seek out an experienced Illinois employment attorney.
Do You Think You Have a Case? Contact Lemberg Law for Counsel
If you feel that an employer has taken advantage of you or someone you care about, please get in touch with the Lemberg Law legal team. Complete our form for a FREE case evaluation, or call 475-277-2200 NOW. You may be entitled to compensation for damages, injuries, or lost wages for Federal and state wage law violations.