Avoiding Common Employer Overtime Mistakes

 Posted on November 19, 2024 in Wage Law

Illinois employers are legally required to pay employees time and one-half the regular rate of pay for any hours worked over 40 hours per week. There are exemptions to who must be paid overtime, depending on the employee’s classification under the federal Fair Labor Standards Act (FLSA). Considering the complex legal framework governing overtime pay laws, an experienced Illinois employer-side employment attorney can advise employers on the common overtime mistakes employers make, and how to avoid them.

Failing to Comply with State Laws

Illinois has its own minimum wage and overtime laws. Employers should ensure that they comply with the most stringent legal requirements, whether that is Illinois or federal law. For example, Illinois minimum wage is higher than the federal minimum wage, and consequently employers will have to pay higher overtime to workers making minimum wage in Illinois.

Assuming that Salaried Employees Are Not Entitled to Overtime

Employers should not assume that salaried employees are not entitled to overtime. Salaried employees are entitled to overtime based on the hours they work. Unless a salaried employee fits into an exemption, an employer must pay them overtime.

Misclassifying Employees

Certain employee categories are exempt from the overtime pay requirement. The exact definition of who fits into these categories is specific and is legally set out in the statute. Exempt employees include the following:

• Executives

• Administrative staff

• Certain computer professionals

• Outside sales employees 

Misclassifying non-exempt employees as exempt is one of the most frequent employer overtime law mistakes. To avoid this, it is best to assume that an employee is entitled to overtime. Employers should only treat an employee as exempt after thoroughly reviewing overtime law and making sure they can prove an employee is exempt based on the provisions.

Failing to Keep Records

One of the easiest ways to fail to comply with employer overtime laws is not to keep accurate payroll records. These are essential to calculating overtime pay. They are also legally required: FLSA requires employers to retain at least two years of employee payroll records.

Assuming That Ignorance Is Bliss

Even if employers are unaware that they are violating minimum wage and overtime laws, they will be liable for the unpaid overtime. In the event of an audit, the government will not accept lack of knowledge about the laws or error as a defense to the violation. An employer caught in violation of these laws at a minimum would have to pay back overtime going back for a period of three years.

Not Insisting on Lunch

It is the employer’s responsibility to comply with wage and hour laws. Even if an employee insists that they do not wish to take their lunch break, the employer must require that they do so to ensure compliance with the law.

Contact a Schaumburg, IL Overtime Employment Law Attorney

Employers should ensure that they are complying with Illinois and federal employment overtime laws. At The Miller Law Firm, P.C., a knowledgeable Schaumburg, IL employment lawyer can advise employers on Illinois and federal overtime requirements and help employers comply with employment law overtime requirements. Contact attorney Richard J. Miller by calling 847-995-1205 for a consultation today.