Occasionally, companies need their associates to work more hours than usual. For example, during holidays and other peak shopping seasons, retailers experience a boost in sales volume, and the demand for more employees on the sales floor increases. Rather than hire a new “seasonal” employee to work less than 10 hours per week on a temporary basis, many employers offer these additional hours to their current employees. Employees happily accept the longer work days, because it puts more money in their pocket, and the employee is often eligible for the added bonus of overtime pay. However, when paychecks arrive on payday, many employees find that their paycheck was smaller than expected, and this is not necessarily the fault of the employer.
What Are the Overtime Pay Requirements?
In Illinois, if an employee’s workweek exceeds 40 hours, employers must pay a higher rate of pay for any hours worked over this threshold. Time and a half is the required payment for only those additional hours, not the full 40 hours. Some employers choose to offer an even higher rate of pay, and this rate is usually agreed upon at the time of hire or as a general policy. If an employer extends such an offer, such as double pay, the agreement becomes legally binding. There is no state requirement for additional pay for employees working on holidays or Sundays, unless working on those days puts the total number of hours an employee worked that week into the overtime range.
There Are Exceptions To Every Rule
As with many laws, there are exemptions to who must receive overtime pay after 40 hours. The following employees are currently exempt in the state of Illinois from overtime pay:
- Salesmen and mechanics who sell or service vehicles at car dealerships.
- Agricultural laborers.
- Executive, administrative, or professional employees (as defined by the Fair Labor Standards Act).
- Some employees who are involved in radio or television (in cities with a population under 100,000).
- Commissioned employees.
- Employees who exchange hours as part of a workplace exchange agreement.
- Employees of some educational or residential child care institutions.
Do You Have Further Questions?
Many employees become frustrated when they find that their paychecks are a little lighter than they anticipated. If approached by an employee with questions regarding this issue, employers should first check to be sure that there is not a misunderstanding due to higher tax withholding rates for overtime pay. Tax withholdings are set at a Federal level, not by employers. If an employee still believes they are owed additional wages, employers should contact an experienced and proven Illinois employment attorney immediately. Protect yourself and your business by calling the Miller Law Firm, P.C. today at 847-995-1205.