847-995-1205
Recent Blog Posts
Illinois Business Requirements For Overtime Pay
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?
Wage Laws and Violations in Illinois
In Illinois, the minimum wage requirement is $8.25 per hour for all employees who are aged 18 years and older, and employees under the age of 18 can be paid $0.50 less than regular minimum wage. In most workplace situations, Illinois employees adhere to the minimum wage laws. However, there have been employers who have violated the minimum wage laws, and may have faced serious consequences. To effectively handle a business and its employees, there are many requirements that the employer must meet to avoid liabilities and lost money.
Wage Requirements
Depending on the employer, new employees and employees under 18 years old may be paid up to 50 cents less per hour. New employees have served their first 90 days of employment. Employees who work for tips may be paid 60 percent of the hourly minimum wage, which is $8.25 per hour in the State of Illinois. Overtime must also be paid at time and one half of the regular rate, after 40 hours of work during the week.
What to Consider When Planning to Fire an Employee
Everyone wants to know that they are valued in the workplace. Unfortunately, there are several situations when an employee is asked to leave permanently, whether that is for poor performance, missing too many days at work, restructuring in the company, or for other reasons. When making the decision to fire someone, there are many questions that the employer may want to consider. For example, the employer may need a burden of proof, showing that their actions did not violate the Fair Labor Standards Act.
What Type of Employment State is Illinois?
Illinois is considered an “employment at-will state.” This means that, at any time, an employer or employee may terminate employment with no known reason or cause. Even though the employer may freely terminate employment at any time, the reason cannot legally regarding race, religion, sex, nationality, or unfavorable military discharge.
Requirements for Starting a New Business in Illinois
It is always an exciting feeling to see your dream business come to life. After months or even years of planning and preparation, you may be ready to launch your new enterprise. But hold on! Your preparatory work is not yet finished. Many requirements must be met before your business can begin operating. Potential business owners must have an idea of how much cash flow they will receive, and they must provide insurance to employees who have been injured or terminated, among other requirements.
Creating a Business Plan
Before you can move forward with your potential business, you will need to create a business plan to outline your ideas on how you and your business will be successful. To write an effective business plan, you will need to outline the following:
- A summary and description of what type of business you are planning to operate;
What Every Business Owner Should Know About the New Federal Overtime Law
Employers are required to follow both local and federal employment laws, which means both should be considered when determining how to handle matters like employee benefits, pay, salary, or overtime. Specifically, there is a new federal law that employers should be aware of, particularly if they have lower salary employees. Learn more about this new law and how it could affect your business, and discover how an experienced employment law attorney can help get (or keep) your small business on track.
Low Salary Employees Now Paid Overtime
Known as the Fair Labor Standards Act, the new law is supposed to address the “eroding” 40-hour workweek and the millions of employees who are not compensated for their extra time. More specifically, the new law states that salaried employees who earn $47,500 or less are to be compensated for any overtime hours that they work. In addition, the threshold is expected to raise, yet again, by January 1, 2020 (to $51,000), and increase every three years thereafter.
Required Rest Periods for Illinois Employees
Every state has their own laws regarding rest periods and meal breaks for its workers; Illinois is no exception. Unfortunately, small and new business owners may not be aware of these requirements. Learn more about mandatory rest breaks for employees, including what potential actions you could face for noncompliance, with help from the following information.
Rest Break Requirements
Many states have mandated rest breaks for their employees, but Illinois is not one of them. Keep in mind that rest breaks are different from meal periods; rest periods generally last only 10 to 15 minutes (depending on state law and employer preference). Meal periods are longer, and they are required under Illinois state law.
Meal Period Requirements
Under Illinois state law, employers must provide any employee that works at least 7.5 hours in a shift with a meal break. It must last at least 20 minutes, and it must be provided to the employee before their fifth hour of work. Failure to provide this meal break could result in numerous consequences, including fines and lawsuits.
Is an Independent Contractor the Right Hiring Choice for Your Growing Business?
Watching your company go from a little-known business to booming can be exciting. It can also be a little anxiety-inducing. You need someone to help you fill orders, stock product, or make deliveries. Or maybe you need someone to set up a website or manage your social media page. Unfortunately, you may not be able to hire an employee just yet. Perhaps you cannot afford to pay someone for regular, part-time hours, or maybe you are not set up yet for income tax withholding. Whatever the situation, an independent contractor could be the answer. How can you tell? The following information may help.
What is an Independent Contractor?
In its simplest definition, an independent contractor is someone that works for themselves, not your company. You are not responsible for paying their taxes, you do not have to provide health insurance or carry workers’ compensation to cover them, and you are not liable for their actions while they are working (note that there may be exceptions here). You simply pay them for the work they have done and, if necessary and desired, continue to do so. Then, come tax time, you file the appropriate form to show that you paid a contractor for work.
Walking a Thin Line – Chain of Command versus Whistleblower Protections
Businesses often incorporate a “chain of command” to ensure everything remains in working order, but there is a thin line between this and the whistleblower protections under state law. How do you avoid crossing the line? What more do you need to know about whistleblower protections to ensure you do not violate the law? The following explains.
District 60, a Cautionary Tale
In July of 2017, District 60 sent a letter to its maintenance and custodial staff, advising them to follow the chain of command or face disciplinary action; this was not the issue with the letter. Instead, the concern was over some of the examples provided by the district. Some of the acts, such as purchasing luxury furniture (possible embezzlement of funds) are illegal, and Illinois state law protects employees who report or refuse to participate in illegal acts.
Anti-Discrimination and Anti-Harassment Policies for Small Businesses
State and federal laws require that most employers have anti-sexual harassment and anti-discrimination policies in place. Even when not required by law, it is a good idea to have these policies. They can create the sense of a safe work environment, and they can also help ensure compliance with state and federal harassment and discrimination laws. Learn how to develop an anti-discrimination policy for your small business, and where you can find assistance with help from the following information.
Anti-Discrimination Policies
An anti-discrimination policy is meant to communicate the employer’s obligations to the employee. These policies typically include verbiage that lets employees and potential employees know that decisions regarding employment offers, raises, and promotions are not made based on an employee’s gender, religion, marital status, national origin, or sexual orientation. Keep in mind that each state has its own requirements regarding anti-discrimination language. An experienced business law attorney can help you develop your anti-discrimination policy to ensure proper compliance with both state and federal laws.
Understanding the Penalties of Noncompliance with Illinois’ Minimum Wage Laws
Small businesses – especially the ones that are just starting out – must be mindful of their budget. Unfortunately, many are not quite prepared for the wide range of expenses and legal complexities. Workers’ compensation insurance. Taxes. The list goes on and on. Let one area slip, and the company could face penalties. One example is when companies fail to comply with Illinois’ minimum wage laws. Before you hire an employee, take the time to understand the law and what compliance looks like under it.
Minimum Wage Law Basics
A recently proposed bill may begin a transition to $15 an hour, but right now, employers are only required to meet the current minimum wage of $8.25 per hour. Paying employees any lower than this amount is considered a violation of the minimum wage law. Unfortunately, paying that amount does not necessarily keep your company out of trouble; there are other, more complex laws to account for as well.
Contact Us
Schaumburg, IL 60173
Phone: 847-995-1205
Map & Directions
