When Can Illinois Employers Face Violations Related to Overtime Pay?

 Posted on April 04, 2023 in Wage Law

If you are an employer in Illinois, then you are responsible for following the overtime pay regulations set by the Fair Labor Standards Act (FLSA). According to the FLSA, employees must receive overtime pay for all of the hours they work beyond the standard 40-hour workweek. Overtime is usually calculated at a rate of 1.5 times the employee's regular pay. If you fail to comply with overtime regulations, you may face expensive fines and legal action. By understanding the situations that may lead to overtime violations, you can take steps to avoid these issues and protect against potential consequences. Some common issues that can lead to overtime violations include:

Failure to Pay Overtime

One of the most common violations related to overtime pay in Illinois occurs when employers do not pay employees their rightful overtime wages. Under the FLSA, employees are entitled to receive overtime pay of 1.5 times their regular hourly wages for any hours worked beyond 40 hours in a workweek. Employers who fail to pay overtime may face legal charges and can be required to pay back wages, damages, and legal fees.

Misclassified Exempt Employees

Employers may make the mistake of classifying hourly employees as exempt employees. Exempt employees are paid on a salary basis and generally are not entitled to overtime pay. However, employers can only classify employees as exempt if they meet specific criteria set by the FLSA. Exempt employees may include executives, administrative employees, professionals with advanced knowledge in science or intellectual pursuits, computer workers such as programmers or systems analysts, or outside sales professionals. For all categories except outside sales, employees must earn a minimum salary of $684 per week to be classified as exempt. Failure to appropriately classify employees may result in underpaid overtime and legal action.

Working Off the Clock

Employers must pay employees for any work-related activity they perform, no matter the location or the time of day. When an employee answers work-related emails, texts, or phone calls, they must be paid for the time spent performing these tasks. If an employee is required to work extra time after their shift or clock in early before starting work, that time must be counted, and overtime must be paid for any hours worked beyond the standard 40-hour workweek. Employers who fail to pay their employees for all work-related activity may be in violation of the FLSA.

Independent Contractors

When workers are classified as independent contractors, employers are not required to pay minimum wage or overtime. These workers may be paid based on work performed, or they may receive compensation based on the number of hours worked or other metrics. However, employers cannot classify workers as independent contractors in order to circumvent overtime laws, and they may face penalties if they misclassify employees. In general, if an employer maintains control over the work a person performs, a person's work is part of the employer's normal course of business, and the person does not have an independently established trade or business, they will be considered an employee.

Contact Our Schaumburg Overtime Violation Defense Lawyer

Employers in Illinois must ensure that they are in compliance with state and federal regulations when it comes to overtime pay. Failure to do so can result in legal consequences, including fines and penalties. At The Miller Law Firm, P.C., our Illinois employment law attorney can provide representation for employers who have been accused of overtime violations, and we can help ensure that all issues related to employment are addressed correctly. To arrange a free consultation and learn how we can assist with FLSA compliance and other related issues contact our office at 847-995-1205.

Sources:

https://labor.illinois.gov/faqs/minimum-wage-overtime-faq.html

https://labor.illinois.gov/laws-rules/fls/overtime-exemption.html

https://labor.illinois.gov/employees/employer-misclassification-of-workers.html