Illinois Overtime Laws: A Practical Guide for Employees and Employers

Overtime rules in Illinois are built on both state law and the federal Fair Labor Standards Act (FLSA). Understanding how these laws interact is essential for making sure workers are paid correctly and employers stay compliant.

This guide explains when overtime is owed, how it is calculated, who is exempt, and what options exist when overtime pay is not provided as required.

1. Core Overtime Rule in Illinois

For most covered workers in Illinois, overtime is based on a

40-hour workweek standard

• Overtime is owed for

  all hours worked over 40 in a single workweek

  .
• The overtime rate is

  at least 1.5 times (time-and-one-half) the employee’s regular rate of pay

  for each overtime hour.
• Illinois does not require daily overtime (for example, after 8 hours in a day); only weekly totals matter.
• The workweek is a fixed, recurring period of 7 consecutive 24-hour days selected by the employer.

Illinois’ Minimum Wage Law and the federal FLSA operate together. If one provides more generous protection or pay than the other, the rule more favorable to the employee generally applies.

2. Relationship Between Illinois Law and Federal Law

Illinois relies heavily on the federal FLSA framework while adding its own rules on minimum wage and enforcement.

• The

  FLSA

  sets the national floor for overtime: time-and-one-half after 40 hours in a workweek.
• The

  Illinois Minimum Wage Law

  adopts the same 40-hour overtime standard and incorporates the time-and-one-half rate for covered employees.
• Starting January 1, 2025, the federal minimum salary threshold for certain overtime exemptions (executive, administrative, professional) rises to

  $1,128 per week

  (about $58,656 per year).
• Illinois state minimum wage rises to

  $15.00 per hour for workers 18 and older

  as of January 1, 2025.

Because of these dual systems, an Illinois employee may be covered by both laws at once. Employers must apply whichever rule yields the higher pay or stronger protection.

3. Who Is Entitled to Overtime Pay?

Most Illinois workers are entitled to overtime unless they fall into a clearly defined exemption. When in doubt, the law presumes that an employee is

nonexempt

3.1 Commonly Covered Workers

• Most

  hourly employees

  working in the private or public sector.
• Non-management employees in retail, hospitality, warehouses, health care, and manufacturing.
• Part-time or full-time staff who exceed 40 hours in a workweek.
• Minors (under 18), subject to separate limits on hours under Illinois child labor rules.

Being paid a salary, working in an office, or having a particular job title does not automatically remove overtime rights. What matters is whether the employee’s job duties and pay level meet the criteria for an exemption.

3.2 Major Exemptions (No Overtime Required)

Illinois generally follows the FLSA’s list of exemptions. Typical examples include:

• **Executive** employees who primarily manage a business or department, regularly supervise at least two full-time equivalent employees, and meet the salary threshold.
• **Administrative** employees who perform office or non-manual work directly related to management or general business operations, exercise discretion and independent judgment, and meet the salary threshold.
• **Professional** employees such as certain licensed professionals (lawyers, doctors, some engineers) and employees in recognized learned or creative professions meeting both duties and salary tests.
• Some

  outside sales

  employees whose main duty is making sales away from the employer’s place of business.

The new federal salary threshold for these exemptions—$1,128 per week as of 2025—means that many lower-paid salaried employees will be reclassified as overtime-eligible unless their pay is increased.

4. How to Calculate Overtime Pay in Illinois

Calculating overtime starts with determining the employee’s

regular rate of pay

4.1 Determining the Regular Rate

For an hourly employee, the regular rate typically includes:

• Base hourly wage.
• Certain nondiscretionary bonuses (for example, production bonuses or guaranteed incentives).
• Commissions that are tied to measurable output.

To find the regular rate in a given week, total all covered compensation for that week and divide by total hours worked.

4.2 Basic Overtime Formula

Once the regular rate is known, overtime pay is computed using:

Overtime Pay = Overtime Hours × (1.5 × Regular Rate)

Key points:

• Only hours above 40 in a workweek count as overtime hours.
• An employer cannot avoid overtime by averaging hours across multiple weeks (for example, 50 hours one week and 30 the next may still mean 10 overtime hours in the first week).
• Private-sector employers generally may not substitute unpaid “comp time” in place of legally required overtime pay.

4.3 Special Considerations for Tipped Employees

Illinois allows a lower cash wage for tipped employees, but overtime rules still apply. The overtime rate must be based on the

full minimum wage

• The employer may take a tip credit up to the maximum allowed, but must still ensure tipped employees receive at least minimum wage for regular hours and time-and-one-half the regular rate for overtime hours.
• Overtime calculations cannot use a larger tip credit than allowed for non-overtime hours.

5. Work Hours, Rest, and Scheduling Limits

Overtime law often intersects with rules on scheduling and rest periods. In Illinois, several statutes affect how many hours employees can be asked to work.

5.1 One Day Rest in Seven Act (ODRISA)

Illinois’ One Day Rest in Seven Act generally requires that covered employees receive at least

one 24-hour rest period in every consecutive seven-day period

• Employers must schedule at least one full day off in each 7-day work period, subject to limited exemptions.
• The law aims to prevent excessively long work stretches, even when overtime pay is provided.

5.2 Child Labor Limits

For minors, Illinois imposes stricter limits on work hours and times of day.

• Rules restrict how many hours per day and per week minors can work.
• There are additional protections for evening and overnight hours when school is in session.

These rules apply in addition to overtime requirements, meaning a minor might be barred from working certain hours even if they would otherwise earn overtime pay.

6. Comparing Federal and Illinois Overtime Standards

The table below highlights how Illinois overtime rules line up with federal law.

7. Recordkeeping, Payroll Practices, and Employer Duties

Illinois employers are responsible for tracking hours accurately and paying overtime on time. Proper recordkeeping is central to compliance.

• Maintain accurate daily and weekly time records for all nonexempt employees.
• Clearly define the workweek in writing (for example, Sunday–Saturday) and apply it consistently.
• Ensure payroll systems correctly compute the regular rate, including nondiscretionary bonuses and commissions when required.
• Review employee classifications (exempt vs. nonexempt), especially in light of changing salary thresholds.

Illinois’ Department of Labor emphasizes that employers must pay overtime after 40 hours in a week at time and one-half the regular rate. Failure to do so can lead to back pay, damages, and civil penalties.

8. What to Do if Overtime Pay Is Missing or Incorrect

Employees who believe they have not been properly paid for overtime have several options. Documentation is crucial: keeping copies of pay stubs, written schedules, and personal time records can make it easier to prove a claim.

8.1 Internal Resolution

• Review your own records of hours worked and wages paid.
• Ask your employer or HR department for an explanation or correction of any discrepancies.
• Request a written statement of how your overtime was calculated for particular pay periods.

8.2 Government Complaints

If internal efforts do not resolve the issue, workers may file wage claims with:

• The

  Illinois Department of Labor

  , which enforces state minimum wage and overtime requirements.
• The

  U.S. Department of Labor, Wage and Hour Division

  , for FLSA-based claims.

Each agency can investigate, seek back wages, and in some cases impose penalties on employers that violate overtime laws.

8.3 Private Lawsuits

Some workers choose to consult a private employment attorney to evaluate potential claims under federal and state law. In certain cases, employees may be able to recover:

• Unpaid overtime wages.
• Liquidated damages or penalties (often an additional amount equal to unpaid wages, depending on the statute and circumstances).
• Reasonable attorney’s fees and costs if allowed by law.

Time limits apply to wage claims, so delaying too long can reduce the amount of back pay recoverable. An attorney or government agency can explain the current filing deadlines.

9. Practical Tips for Employers to Stay Compliant

With minimum wage and salary thresholds changing, it is important for Illinois employers to regularly review wage practices.

• Reassess exempt classifications annually or whenever salary thresholds or job duties change.
• Train supervisors on when overtime must be authorized and how to avoid off-the-clock work.
• Audit timekeeping systems to ensure all hours worked are captured, including travel time and certain preparatory tasks when compensable.
• Update policies to reflect Illinois minimum wage increases and federal developments.
• Keep records of pay, deductions, and hours in accordance with state and federal retention rules.

10. Frequently Asked Questions About Illinois Overtime

Q: Do I get overtime pay if I work more than 8 hours in a single day in Illinois?

A: Not automatically. Illinois uses a weekly standard. You earn overtime only after more than 40 hours in the defined workweek, even if some days are longer than eight hours.

Q: My employer calls me “salaried,” so does that mean I am exempt from overtime?

A: Not necessarily. Being salaried alone does not make an employee exempt. Your eligibility depends on both your weekly salary level and whether your primary job duties fit an exemption such as executive, administrative, or professional.

Q: Can my employer average my hours over two weeks to avoid paying overtime?

A: No. Overtime is calculated by the workweek. Employers cannot offset a 50-hour week with a 30-hour week to avoid paying overtime for the 10 extra hours worked in the first week.

Q: Are tipped employees entitled to overtime in Illinois?

A: Yes. Tipped workers still earn overtime at time-and-one-half based on a regular rate that starts with the full minimum wage, not just the cash wage paid by the employer. Tip credits cannot be used to reduce overtime pay below legal limits.

Q: Where can I find official information on Illinois overtime rights?

A: The Illinois Department of Labor publishes guidance on minimum wage and overtime, including FAQs and contact information for filing complaints.

Similar Articles

Using Infographics to Explain Law and Engage Clients

Concierge Litigation Support: How Premium Services Transform Law Firm Workflows

Smart Legal Outsourcing: Tasks That Give You Time Back

Managing Time-Draining Legal Clients Effectively

Streamlining Court Filing Corrections with Smart Re-Submission Tools

From Formal to Flexible: How Law Firms Are Redefining Professionalism

Author

medha deb

 

Medha Deb is an editor with a master's degree in Applied Linguistics from the University of Hyderabad. She believes that her qualification has helped her develop a deep understanding of language and its application in various contexts.

Read full bio of medha deb