Illinois Minimum Wage Law

1. Illinois Minimum Wage Law 820 ILCS 105/1-16

2. Coverage Covers all Illinois employers with four or more employees Family members are not included in sole proprietorships but are covered in corporations

3. Minimum Wage July 1, 2010 increased to $8.25 in Illinois compared to federal minimum wage of $7.25 Credit of .50 given for employees under 18 years of age ($7.75)

4. New Minimum Wage Rates As of July 1, 2010, Illinois mw increased to $8.25 per hour The new rate makes IL the 3rd highest mw paid in the nation

5. Tipped Employees Servers, bartenders, bus help etc. not hostesses, management, dishwashers Employee must be paid 60% of wage $4.95 for 18 years of age and older $4.65 for under 18 years of age Reasonable allowances for meals and/or lodging

6. Overtime Time and one half or the employee�s regular rate must be paid for all hours worked in excess of 40 hours of actual work Per work week -defined as 168 consecutive hours fixed and permanently determined by the employer

7. Overtime continued Hours actually worked (not required for vacation, sick time, holidays) Cannot average two weeks (not over 80 hours in two weeks) Tipped employees 60 % of minimum wage of $8.25 is $4.95. Formula for Overtime for Tipped employees is half the minimum wage of $8.25 =$4.13 + 60 % of minimum wage ($4.95) = $9.08 OT due. Tips not included in the overtime rate.

8. What is the Regular Rate? Total remuneration divided by total hours worked Must include all wages (bonuses, shift differential, incentive pay) Each week stands alone in the calculation

9. Exemptions from both Minimum Wage & Overtime Drivers, driver�s helpers, loaders and mechanics subject to The Secretary of Transportation Outside salesmen Domestic workers Certain agricultural workers Members of religious corporations Certain college students under work study programs

10. Sub-minimum wage allowance Licensed by IDOL to employ handicapped workers Licensed by IDOL to employ learners

11. Overtime Exemptions Salesmen and mechanics selling and servicing automobiles, trucks or farm implements in retail establishments (example � car dealerships salesmen & mechanics exempt however office staff, parts personnel and secretaries are not) Salesmen primarily engaged in selling trailers, boats, or aircraft

12. Overtime Exemptions con�t. Agricultural Labor Executive, Administrative and Professional employees as defined in the Fair Labor Standards Act of 1938 and the rules adopted under that Act, as both existed on March 30, 2003 but compensated at a guaranteed salary rate of $455.00 per week or higher

13. Overtime Exemptions con�t. Certain commissioned employees employed in retail or service establishments as described in paragraph 7(I) of the FLSA Must have bona fined commission plan More than half of wages must come from commissions Average hourly rate must be more than 1 � times the Illinois minimum wage (Example) $8.25 + $4.13 + .01 = $12.39).

14. Overtime Exemptions con�t. Employee in the stead of another employee of the same employer pursuant to a work time exchange agreement between employees Certain employees of not-for-profit education or residential child care institutions

15. Record Keeping Three year retention required Name of employee Address of employee Birth date of employee under 18 years of age Social Security number Sex and occupation in which employed Type of payment (salary) and dates of pay for each pay period Hours worked each day and each work week (original time records) Time of day and day of week each workweek begins Basis for which wages are paid Additions and deductions from wages for each pay period with explanation

16. Contact: Illinois Department of Labor Fair Labor Standards Division 160 N. LaSalle St. Suite C-1300 Chicago, IL 60601 (312)793-2804 Website: www.state.il.us/agency/idol/