1. Illinois Department of Labor
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Illinois Department of Labor
Minimum Wage & Overtime
One Day of Rest in Seven
Illinois Wage Payment and Collection Act
Executive, Administrative & Professional Exemptions
Illinois Child Labor Law
LaJune Davis

2. Illinois Minimum Wage Law 820 ILCS 105/1-16
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3. Illinois Minimum Wage Law 820 ILCS 105/1-16
Coverage
Covers all Illinois employers with four or more employees
Family members are not included in sole proprietorships but are covered in corporations
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4. Illinois Minimum Wage Law 820 ILCS 105/1-16
July 1, 2010 increased to $8.25 in Illinois compared to federal minimum wage of $7.75
Credit of .50 given for employees under 18 years of age ($7.75)
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5. Illinois Minimum Wage Law 820 ILCS 105/1-16
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
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6. Illinois Minimum Wage Law 820 ILCS 105/1-16
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
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7. Illinois Minimum Wage Law 820 ILCS 105/1-16
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
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8. Illinois Minimum Wage Law 820 ILCS 105/1-16
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 (Half of regular minimum wage $ % of minimum wage $4.95 = $9.07 for overtime rate)
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9. Illinois Minimum Wage Law 820 ILCS 105/1-16
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
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10. Illinois Minimum Wage Law 820 ILCS 105/1-16
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
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11. Illinois Minimum Wage Law 820 ILCS 105/1-16
Sub-minimum wage allowance
Licensed by IDOL to employ handicapped workers
Licensed by IDOL to employ learners
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12. Illinois Minimum Wage Law 820 ILCS 105/1-16
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
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13. Illinois Minimum Wage Law 820 ILCS 105/1-16
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 $ per week or higher
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14. Illinois Minimum Wage Law 820 ILCS 105/1-16
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 ½ times the federal minimum wage ($7.75 x’s 1.5 = $11.63) for representative period of 1 to 6 months
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15. Illinois Minimum Wage Law 820 ILCS 105/1-16
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
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16. Illinois Minimum Wage Law 820 ILCS 105/1-16
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
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17. Illinois Minimum Wage Law 820 ILCS105/1-16
Contact:
Illinois Department of Labor
Fair Labor Standards Division
160 N. LaSalle St. Suite C-1300
Chicago, IL 60601
(312)
Website:
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18. Illinois Minimum Wage Law 820 ILCS105/1-16
Questions??
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19. One Day of Rest in Seven 820 ILCS 140
Illinois Department of Labor
820 ILCS 140
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20. One Day of Rest in Seven 820 ILCS 140
Provisions
Day off in each week
24 hours of rest in each calendar week
Meal period
20 minutes after 5 hours of work if 7 1/2 hour of work or longer
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21. One Day of Rest in Seven 820 ILCS 140
One day off each week
Every employee must receive 24 consecutive hours of rest in each calendar week
Calendar week is always Sunday through Saturday
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22. One Day of Rest in Seven 820 ILCS 140
Meal period required
20 minutes required within five hours of starting time for all employees required to work 7 1/2 hours or longer
additional 20 minutes in each continuous 7 1/2 hours
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23. One Day of Rest in Seven 820 ILCS 140
Exception from the statute
Watchmen and security guards
Employees who work less than 20 hours per week
Agricultural employees
Governmental employees
Certain seasonal perishable products producers
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24. One Day of Rest in Seven 820 ILCS 140
Exception from the day off provision
Executive, administrative and professional employees as defined by the Fair Labor Standards Act
Certain supervisors defined by the NLRB
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25. One Day of Rest in Seven 820 ILCS 140
Exception from meal period provision
Employees whose meal periods are bargained for through the collective bargaining process
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26. One Day of Rest in Seven 820 ILCS 140
Exception from the day off provision
Employer request Written exception from IDOL prior to the work
All work must be voluntary even with the written permission
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27. One Day of Rest in Seven 820 ILCS 140
Exception from the day off provision cont.
If requested, eight weeks granted each year without justification
Additional weeks granted if justified as to necessity
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28. One Day of Rest in Seven 820 ILCS 140
Record keeping
Three years retention
Hours worked each day and each week
Lunch hours, documented received
Open to inspection by IDOL
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29. One Day of Rest in Seven 820 ILCS 140
Illinois Department of Labor
Fair Labor Standards Division
160 North LaSalle St. C-1300
Chicago, IL 60601
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30. One Day of Rest in Seven 820 ILCS 140
Questions??
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31. Illinois Wage Payment and Collection Act 820 ILCS 115/1 - 16
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32. Illinois Wage Payment and Collection Act 820 ILCS 115/1 - 16
What the Act provides
The Act provides three basic areas of protection to workers:
Regulates the time of payment of wages, requires employers to pay by certain dates
Prohibits unilateral/illegal deductions, cannot take money from your pay check
Establishes requirements for final compensation, what you are entitled to at termination
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33. Illinois Wage Payment and Collection Act 820 ILCS 115/1 - 16
All wages must be paid within:
13 days if paid bi-weekly or semi-monthly
7 days if weekly pay
24 hours if paid daily
Wages of Executive, Administrative, and Professional employees as defined in FLSA may be paid monthly
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34. Illinois Wage Payment and Collection Act 820 ILCS 115/1 - 16
Payments
Must be in lawful money, check or cash
redeemable without discount
Cannot require direct deposit
Statement of deductions is required
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35. Illinois Wage Payment and Collection Act 820 ILCS 115/1 - 16
Deductions prohibited
All unilateral or unauthorized deductions are prohibited unless:
required by law, example taxes
to the benefit of the employee, union due, health insurance
voluntary written consent of the employee
at the time the deduction is being made
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36. Illinois Wage Payment and Collection Act 820 ILCS 115/1 - 16
Not allowed to deduct for:
- damages
- shortages
- breakage
- failure to return employer property,etc.
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37. Illinois Wage Payment and Collection Act 820 ILCS 115/1 - 16
Final compensation
Required at next regular pay day;
not on day of exit
Must calculate all earnings including pro rata vacation, commission and bonus
Must make check available to separated employee for five days
If employee fails to pickup upon scheduled pay day, then demands after the five day limit, employer has additional five days to re-issue
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38. Illinois Wage Payment and Collection Act 820 ILCS 115/1 - 16
All Claims
are filed in writing by individual employee
information is shared through the mail with employer
If employer pays, file is closed
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39. Illinois Wage Payment and Collection Act 820 ILCS 115/1 - 16
Claims continued:
Employer responds in dispute or disagreement,
file reviewed and a copy sent to the claimant
one of three things occur:
case is dismissed
case is set for hearing
automatic demand for payment is issued
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40. Illinois Wage Payment and Collection Act 820 ILCS 115/1 - 16
Claims cont.
If Claimant does not respond to employer’s disagreement statements:
the case is dismissed!
Important to let the agency know your correct address
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41. Illinois Wage Payment and Collection Act 820 ILCS 115/1 - 16
If necessary:
Informal Hearing is conducted.
Case is dismissed or,
Employer is demanded to pay.
If employer fails to pay
case is referred to Attorney General, or
case is closed.
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42. Illinois Wage Payment and Collection Act 820 ILCS 115/1 - 16
For information
Call:
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43. Illinois Wage Payment and Collection Act 820 ILCS 115/1 - 16
Questions??
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44. Executive, Administrative and Professional Exemptions FLSA 29 CFR 541
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45. Executive, Administrative and Professional Exemptions FLSA 29 CFR 541
Guaranteed Salary Salary not subject to deductions
Paid the same promised salary each pay day (can be paid semi-monthly or monthly)
Salary must be $ per week
Initial and termination weeks can be prorated by day
Partial day deductions are prohibited
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46. Executive, Administrative and Professional Exemptions FLSA 29 CFR 541
Guaranteed salary continued: Full day deductions allowed only if:
With Leave Plan:
Employee voluntarily absent for a full day
Sick, and has exhausted a sick or leave plan
Without Leave Plan:
If no leave plan in place, can not deduct for sickness
If one hour is worked the whole week is payable
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47. Executive, Administrative and Professional Exemptions FLSA 29 CFR 541
Executive Exemption Must meet all criteria
Primary Duty must be management
Supervises two full time employees
Authority to hire and fire or recommend
Customarily and regularly exercise discretionary powers
Guaranteed salary of more than $ per week
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48. Executive, Administrative and Professional Exemptions FLSA 29 CFR 541
Primary duty must be management:
Hired to function as the manager
More than 50% of time spent supervising
Recognized as the supervisor
Job title is not significant
What do they actually do?
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49. Executive, Administrative and Professional Exemptions FLSA 29 CFR 541
Supervise two or more employees:
Two full-time employees or part time equivalent
Must be 80 hours of labor
Can be three or four part as long as it is 80 hours
Must be direct supervision
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50. Executive, Administrative and Professional Exemptions FLSA 29 CFR 541
Authority to hire and fire or recommend:
Must have exercised that authority
Must be part of the evaluation process
Must have ability to set rates of pay
Some weight has to be given to their recommendations
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51. Executive, Administrative and Professional Exemptions FLSA 29 CFR 541
Customarily and regularly exercise discretionary powers:
Answer the phone
Call for help
Ability to fix what is broken
Not very well defined
Make independent decisions
Set schedules
Call for service work if there is a breakdown
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52. Executive, Administrative and Professional Exemptions FLSA 29 CFR 541
Administrative Exemption Criteria for determination:
Office or non-manual work directly related to management policies or general business operations; OR
Academic instruction or training carried out in the administration of a school system or educational establishment; AND
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53. Executive, Administrative and Professional Exemptions FLSA 29 CFR 541
Criteria continued:
Customarily exercise discretion and use independent judgement
Assist a proprietor or bona fide executive
Perform work only under general supervision along specialized or technical lines that require special training
Execute special assignments
Spend no more than 20% of time (40% in retail or service establishment) on non-exempt work
Must be paid on a salary or fee basis of $ per week
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54. Executive, Administrative and Professional Exemptions FLSA 29 CFR 541
Who are these employees?
Thinkers and planners
Advisory specialists, buyers, purchasing agents
Wage rate analysts
Safety directors
Human Resource managers
People that make decisions that affect profit and loss
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55. Executive, Administrative and Professional Exemptions FLSA 29 CFR 541
Who are they in schools?
Academic administrative employees
Principals and heads of departments
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56. Executive, Administrative and Professional Exemptions FLSA 29 CFR 541
Who are they NOT???
Bank tellers, bookkeepers
Secretaries
Shipping and receiving clerks
Accounts receivable and payable staff
Payroll staff
Building management and maintenance
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57. Executive, Administrative and Professional Exemptions FLSA 29 CFR 541
Key Issues
Perform no production work of any kind
They are not the people who do not fit the other exemptions
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58. Executive, Administrative and Professional Exemptions FLSA 29 CFR 541
Learned
Artistic
Teaching
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59. Executive, Administrative and Professional Exemptions FLSA 29 CFR 541
Learned Professions
Knowledge of an advanced type, four year degree or its equivalency
Field of science of learning
Examples – attorneys, doctors, registered nurses, architects, and engineers
Technologists not technicians
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60. Executive, Administrative and Professional Exemptions FLSA 29 CFR 541
Artistic Professions
Creative work requiring imagination or invention
Talent, entertainment industry personnel, radio and television talents, actors and musicians
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61. Executive, Administrative and Professional Exemptions FLSA 29 CFR 541
Teaching Professionals
Certified or recognized
Educational institution or school system
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62. Executive, Administrative and Professional Exemptions FLSA 29 CFR 541
Other criteria
Exercise discretion and judgement
Work is predominantly intellectual and varied – as distinguishable from routine or mechanical
Not more than 20% of time is spent on activities not essentially a part of the professional duties
Salary or fee of $ per week
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63. Executive, Administrative and Professional Exemptions FLSA 29 CFR 541
Exemptions from the salary test:
Holder of a valid license in the practice of law or medicine and engaged in the practice
Medical interns or residents
Teachers in schools or education institutions
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64. Executive, Administrative and Professional Exemptions FLSA 29 CFR 541
“Salary test” waived
Limited to highly skilled computer analysts, programmers, software engineers and specialists, etc.
If employee is compensated at 6 ½ times the minimum wage in effect at the time of the change
$4.25 x’s 6 ½ = $27.63 per hour
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65. Executive, Administrative and Professional Exemptions FLSA 29 CFR 541
For further information:
Contact info: Illinois Dept of Labor
Fair Labor Standards
Website:
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66. Executive, Administrative and Professional Exemptions FLSA 29 CFR 541
Questions??
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67. Illinois Child Labor Law 820 ILCS 205/1 et seq.
Illinois Department of Labor
Fair Labor Standards Division
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68. Illinois Child Labor Law 820 ILCS 205/1 et seq.
Protects minors ONLY until their 16th birthday
The Fair Labor Standards Act, federal law, continues to protect minors until the age of 18 years from certain hazardous occupations if the employer is covered by the Act.
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69. Illinois Child Labor Law 820 ILCS 205/1 et seq.
Three basic areas of protection
Certifies the age of the worker
Restricts the hours of work allowed
Prohibits certain types of work
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70. Illinois Child Labor Law 820 ILCS 205/1 et seq.
Employment and Age Certificates
Both are issued by the local school or the Regional Office of Education
Employment Certificates (work permits) issued for those under 16 years of age and expire annually
Age Certificates for ages 16 to 20 years and valid for the term of employment
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71. Illinois Child Labor Law 820 ILCS 205/1 et seq.
Procedure for securing certificate:
Minor must be accompanied by a parent or guardian and must appear at the school
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72. Illinois Child Labor Law 820 ILCS 205/1 et seq.
Documents Required
Letter of intent to employ from the employer stating the type of work and hours to be worked.
Birth certificate
Physical fitness examination current within one year
Principal’s statement, if work is during the school year, verifying that the minor is in good academic standing.
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73. Illinois Child Labor Law 820 ILCS 205/1 et seq.
Hours of work restrictions:
Not before 7:00 AM
Not after 7:00 PM (except June 1st through Labor Day when minor is allowed to work until 9:00 PM)
Not more than 3 hours per day when school is in session
Not more than 8 hours per day when school is not in session
Not more than 24 hours per week when school is in session
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74. Illinois Child Labor Law 820 ILCS 205/1 et seq.
Hours of work (continued):
Not more than 48 hours per week when school is not in session
Not more than 8 hours per day combining school and work
Not more than six days in one week
Scheduled meal period of at least 30 minutes required after five hours of work
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75. Illinois Child Labor Law 820 ILCS 205/1 et seq.
Hazardous Occupations
Work is not allowed in the 26 listed prohibited areas
No exceptions!!!!!!!
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76. Illinois Child Labor Law 820 ILCS 205/1 et seq.
List of hazardous occupations
Numerous amusement facilities like bowling alleys, pool halls, exhibition parks, skating rinks, plus messenger services
In the oiling / cleaning of machinery
Mines and quarries
Stone cutting or polishing
Hazardous factory work
Manufacturing or use of explosives
Plants manufacturing iron or steel
Operation of machinery used in rolling of metal stock
In or about sawmills or lath
Power driven woodworking machines
Freight elevators / hoisting machines and cranes
In spray painting, exposure to lead or its components as well as other dyes and chemicals
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77. Illinois Child Labor Law 820 ILCS 205/1 et seq.
Hazardous Occupations cont.
In logging operations
Public and private utilities and related services
Meat slaughtering, processing, and packaging
Working on elevated surfaces
In security positions as well as any that requires the use of carrying a firearm
Those that involve the handling or storage of any biohazard substance
In any place that alcoholic drinks are served or sold for consumption on the premises (some exceptions allowed)
In oil refineries
In laundry or dry cleaning
Radioactive substances
Any gas filling or service station
In any construction work
In roofing operations
In excavating operations
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78. Illinois Child Labor Law 820 ILCS 205/1 et seq.
Illinois Department of Labor
Child Labor Hotline
Questions??
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79. Contact: Illinois Department of Labor Fair Labor Standards Division
160 N. LaSalle St. Suite C-1300
Chicago, IL 60601
(312)
Website:
24th Illinois Statewide Payroll Conference "Be a Payroll Champion"