Owning a small business in the state of Illinois is both exciting and rewarding. Companies in Illinois have many advantages working in their favor, such as a large and diverse marketplace and a robust, skilled workforce. With these benefits comes the responsibility of maintaining a well-functioning workplace for your employees. An employer can build and sustain a better business by adopting proper record keeping practices. Without adequate data recording, vital information frequently becomes lost, resulting in errors that can impact the quality of the work environment and even result in citations and other penalties.

Why Are Records Important?

Record keeping is one of your most important duties as small business owner, regardless of what type of business you own. There are various methods for keeping track of necessary documents, ranging from file folders in a filing cabinet to an electronic or online system. You must compare all of your options and choose the one best suited for your needs.

As an employer, it is your responsibility to provide a clean and hazard-free work environment for your employees. One method that has been proven effective in reducing workplace safety concerns is ensuring that workers are not overworked. Requiring employees to work an exorbitant amount of hours without ample rest increases stress, lowers morale, and creates an environment prone to mistakes and injuries. It is in the best interest of the employee, the client, and even yourself to abide by the Illinois One Day of Rest in Seven Act (ODRISA). Doing so can also help avoid any disputes related to overtime pay.

More Than Just a Rest Day

As the name of the act implies, within a seven-day workweek, there must be one full 24-hour rest day. The term “week” refers to seven consecutive 24-hour days beginning at 12:01 AM on Sunday morning and ending at midnight the following Saturday night. The rest day should coincide with the employee’s traditional day of chosen religious worship. The legislation also requires a mandatory unpaid 20-minute meal break for every seven and a half hour shift, which must be given within the first five hours of work. If your employee is a hotel room attendant in Cook County, they receive one 30-minute meal break for a seven-hour shift in addition to two 15-minute rest breaks.

Wage and hour disputes remain a continuous thorn in the side of many employers. According to the Fair Labor Standards Act (FLSA), there are two methods federally approved to determine a salaried employee’s “regular rate” of overtime pay. Aside from exempt salaried employees, employers must choose to pay either a fixed or fluctuating workweek salary, with additional caveats for any hours worked over 40 hours. Employers should select their option based on the needs of the company as well as the laws in their state.

What Is the Difference?

Under the traditional fixed salary workweek method, an employee works the same amount of hours and earns the same paycheck every pay period, as well as “time-and-a-half” -- 1.5 times the normal hourly rate -- for all hours worked over 40 in the workweek. Alternatively, under the fluctuating workweek (FWW) method, an employee earns the same rate of pay regardless of hours worked.

Independent contractors play an important role in many companies. Especially in smaller workplaces in an unstable economy, business owners often choose to hire an independent contractor rather than add another employee to the payroll. This decision is beneficial if appropriately implemented. However, employers should be aware of the common, costly mistakes that can occur in these situations.

Why Hire an Independent Contractor

As a business owner, think about how long it took you to put your team together. The hiring process alone takes an ample amount of time to narrow down the candidates, ensuring you have the right one for your position. Then, consider the days, weeks, or even months of onboard training needed to prepare that employee to be useful in their job. However, that employee may not remain with the company for the hoped duration. Perhaps there is conflict in the workplace, they find another job, or some personal family struggle requires them to step away from their position.

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.