Illinois Overtime laws & HR compliance analysis

Illinois Overtime: What you need to know

Under Illinois law, employees must be paid 1 1/2 times their regular rate of pay for all hours worked in excess of 40 in a workweek (IL Comp. Stat. Ch. 820 Sec. 105/4a). Because this requirement is identical to that prescribed by the federal Fair Labor Standards Act (FLSA), the net effect of the state law is to extend overtime protections to employees not covered by federal law. Illinois does not require that overtime be paid for hours worked in excess of 8 per day or on weekends or holidays.
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Because the federal FLSA applies to virtually all enterprises involved in interstate commerce, most Illinois employers are covered by the federal law. Employers that are covered by both state and federal law must comply with the law that sets the higher standard of protection for employees.
Illinois exempts anyone employed in a bona fide executive, administrative, or professional capacity from the overtime pay requirements. Illinois law adopts the old long test and short test from the federal regulations and the $455 salary threshold of the revised federal regulations that took effect August 23, 2004. Because the salary level requirement for the short test is less than the $455 per week minimum salary requirement, the old federal short duties test will apply in every instance under Illinois law (IL Comp. Stat. Ch. 820 Sec. 105/4a).
Illinois law provides for numerous additional exemptions from the state overtime requirements (IL Comp. Stat. Ch. 820 Sec. 105/4a).
• Those employed by an employer of three or fewer employees
• Members of religious organizations working for those organizations
• Salespeople and mechanics in retail firms primarily selling or servicing automobiles, trucks, or farm ...

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