The Chicago Employment Law Blog

7 Things to Know About Illinois' Minimum Wage/Overtime Law

There is a lot of confusion about Illinois' minimum wage and overtime laws.

If you talk to your friends, you may hear one thing. If you talk to the guy in the next cubicle, you may hear another.

To clear up the confusion, here are seven things you should know, as provided by the Illinois Department of Labor:

  1. What Is Minimum Wage in Illinois? The current minimum wage rate is $8.25 an hour if you are 18 years of age and older. If you are younger than 18, you may be paid $7.75 an hour. In addition, employees who do not receive a tip may be paid $7.75 for the first 90 days with the employer.

  2. What Is Minimum Wage for Tipped Employees? Contrary to popular belief, tipped employees must earn at least the minimum wage. However, an employer may take credit for the employees' tips in an amount not to exceed 40% of the wages.

  3. When Is Overtime Pay Due? Non-exempt employees must be paid at time and one half their regular rate of pay if they have worked over 40 hours in a week. There is no daily overtime in Illinois. So if you work more than eight hours in a particular day, but less than 40 hours for the week, you are not entitled to overtime pay.

  4. Am I Entitled to Overtime Pay for Working Sundays or Holidays? No. If you work 40 hours or less in a week, you are not entitled to overtime pay.

  5. If I am Paid a Salary, Am I Entitled to Overtime Pay? To be exempt from the overtime requirement, you must BOTH be paid on a salary basis as well as perform the duties of an exempt employee. So being paid a salary is not enough to avoid being paid overtime.

  6. Can I Be Required to Work Overtime? Yes, unless this will violate the One Day Rest in Seven Act.

  7. Is "Comp Time" Legal? No. Compensatory time off in lieu of overtime is not legal in the private sector.

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