As an employer in Illinois, you are legally obligated to pay your employees the minimum wage set by state and federal law. The current minimum wage in Illinois is $11.00 per hour for non-tipped employees and $6.60 per hour for tipped employees. This rate is set to increase to $12.00 per hour for non-tipped employees on January 1, 2022, and $9.00 per hour for tipped employees.
In terms of overtime pay, the Illinois Minimum Wage Law requires employers to pay employees who work more than 40 hours in a workweek at a rate of 1.5 times their regular rate of pay. This is referred to as "time and a half" pay. Overtime pay must be calculated based on the employee's regular rate of pay, which includes all compensation earned by the employee in a workweek, including commissions, bonuses, and other forms of compensation.
There are certain exceptions to these rules. For example, some employees may be exempt from overtime pay if they meet certain criteria, such as being a salaried employee and performing exempt duties. Additionally, small businesses with fewer than four employees are not required to pay the minimum wage or overtime pay.
If you have questions about your specific obligations as an employer in Illinois, it is recommended that you consult with a licensed attorney or the Illinois Department of Labor. In order to ensure compliance with state and federal wage and hour laws, employers should keep accurate records of hours worked and payments made to employees.
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