As an employer in Illinois, you must follow both state and federal laws regarding overtime pay for your employees. Under the Illinois Minimum Wage Law, non-exempt employees who work more than 40 hours per week must be paid overtime at a rate of one and a half times their regular rate of pay for each hour worked over 40 hours.
In addition, under federal law, the Fair Labor Standards Act (FLSA) also requires the payment of overtime for non-exempt employees who work more than 40 hours per week. The FLSA sets the overtime rate at one and a half times the employee's regular rate of pay, which includes all remuneration paid to the employee, including bonuses, commissions, and other forms of compensation, but excludes certain fringe benefits.
While Illinois law provides additional protections for employees, it is important to note that employers must comply with whichever law provides the greater benefit to their employees. If an employee is eligible for overtime under both state and federal law, the employer must pay the higher of the two rates.
There are, however, exceptions to overtime pay. Certain types of employees, including some professionals, executives, and administrative personnel, are exempt from receiving overtime pay. Employers should consult with legal counsel to determine whether an employee falls under an exemption and is not entitled to overtime pay.
In order to ensure compliance with overtime pay laws, employers should maintain accurate records of all hours worked by their employees, including regular hours and overtime hours. Employers who fail to pay overtime to eligible employees may be subject to legal action, including fines, penalties, and lawsuits.
If you have any questions or concerns about your obligations as an employer regarding overtime pay, it is important to consult with an experienced attorney who can provide legal advice tailored to your specific situation.
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