The Illinois Minimum Wage and overtime pay law parallel the Federal Labor Standards Act (FLSA), including the requirement that overtime pay is 1.5 times the employee’s regular hourly pay rate. Although many salaried workers are entitled to overtime pay, some workers are exempt from this requirement under both FLSA and Illinois law.
Illinois employers and their HR management departments need to be familiar with the classification of exempt workers from receiving overtime pay. Failure to pay a nonexempt worker overtime is a violation of state and federal law and subjects the employer to hefty penalties. Overtime pay does not apply to a worker who works more than eight hours a day but is calculated on working more than 40 hours in a workweek. A workweek is defined explicitly by the FLSA and involves a seven-day period of time.
Salaried Employee Classifications that are Exempt from Overtime Pay Under Illinois Law
Under Illinois overtime laws, if salaried employees earn no less than $684 per workweek and is in one of the following categories of workers, the employee is not entitled to receive overtime pay:
Executive. An executive’s primary duties are the management “of the enterprise in which the employee is employed” or of a department of the enterprise where the employee manages or directs the work of at least two employees.
Administrative. The employee does not perform manual work but office work and carries out management policies or “general business operations.” The administrative employees exercise discretion and judgment in the performance of their duties.
Professional. A professional performs job duties requiring special knowledge or an advanced degree in their field. This includes, for example, skilled computer experts, artists, certified teachers, and other professionals.
The $684 per workweek threshold may change, so it is important for employers and HR professionals to stay up to date with the changes to the law.
Other Categories of Workers Exempt from Overtime Pay Under Illinois Law
Other categories of workers are exempt from receiving overtime pay no matter how much they earn in a workweek. These include:
- Computer experts who earn no less than $27.63 per hour when their work consists of applying certain skills defined in Illinois Public Act 094-0672.
- Any employee whose job involves outside sales of products or services.
- Salespersons and mechanics who are employed by dealerships that sell, service, or maintain automobiles, trucks, or farm implements.
- Workers involved in agricultural labor.
- Employees who are involved in radio or television in cities with populations under 100,000.
- Independent contractors or those who work a specific number of hours or pay in exchange for specifically articulated work as defined in a contract.
Employer Penalties for Non-compliance
A worker who did not receive overtime pay when entitled to it may file a complaint with the Labor Board for back wages. In addition to receiving the wages to which they are entitled, the worker may receive the same amount as liquidated damages which are designed to punish employers for their failure to achieve payroll compliance.
Additionally, if the employer’s failure to pay was willful, the employer may be fined up to $1,000 for every violation. An employer may also be criminally prosecuted for willfully violating the overtime pay requirement and be fined up to $10,000.
Contact ASAP Payroll for Assistance
At ASAP Payroll, we’re committed to helping you remain compliant with overtime pay rules. Our top-notch payroll and HR software simplify HR and payroll procedures to keep you in line with state and federal overtime pay standards. We are based in Indiana and cater to clients across the United States, especially in nearby states such as Illinois. To learn more about our services, you can visit our website or call us at (317) 887-2727.
