Minimum Wage/Overtime FAQ
The Frequently Asked Questions (FAQs) provided below highlight topics and specific questions that are often asked of the Illinois Department of Labor (IDOL). The information provided in the FAQs is intended to enhance public access and understanding of IDOL laws, regulations and compliance information.
The FAQs should not be considered a substitute for the appropriate official documents (i.e. statute and/or administrative rules.) Individuals are urged to consult legal counsel of their choice. Court decisions may affect the interpretation and constitutionality of statutes. The Department cannot offer individuals legal advice or offer advisory opinions. If you need a legal opinion, we suggest you consult your own legal counsel. These FAQs are not to be considered complete and do not relieve employers from complying with applicable IDOL laws and regulations.
- 1. What is the minimum wage in Illinois?
- 2. What is the minimum wage for tipped employees?
- 3. When is overtime pay legally due?
- 4. Who is exempt from being paid overtime?
- 5. How do I know if I qualify as an executive, administrative or professional employee?
- 6. If I am paid on salary do I still qualify for overtime pay?
- 7. Can I be required to work overtime?
- 8. Is "comp time" legal?
Beginning January 1, 2023, the minimum wage in Illinois is $13.00 per hour for those individuals who are 18 years and older. Employees over the age of 18, who do NOT receive tips, may be paid $12.50 for the first 90 days with employer. Those under 18 years of age may be paid at the rate of $10.50 per hour for less than 650 hours worked for an employer in a calendar year. Once the employee works more than 650 hours with an employer in a calendar year, they must be paid $13.00 per hour.
View the Hourly Minimum Wage Rates by Year.
For more information, visit the Minimum Wage/Overtime Law page. (820 ILCS 105/4)
Tipped employees must be paid minimum wage, but an employer may take credit for the employee's tips in an amount not to exceed 40% of the wages. An employer may pay a training wage for tipped employees 18 and over in the amount of $7.80 for the first 90 days if applying the tip credit of 40% or $12.50 if not utilizing the tip credit. After 90 days, the rate must be increased to $13.00 if not utilizing the tip credit. For more information, visit the Minimum Wage/Overtime Law page. (820 ILCS 105/4) (56 Ill. Adm. Code 210.200)
How is the 650-hour limit calculated for youth workers?
Answer: The calculation begins on the date of hire and runs through one calendar year from that point. For example, if an employer hires a worker under the age of 18 on April 30, 2020, the window of time to calculate the 650-hour limit runs through April 30, 2021. If that worker reaches 650 hours on April 15, 2021, they shall be paid the full minimum wage from that date going forward. Assuming the employer continues to employ that worker after April 30, 2021 – that worker shall continue to receive the full minimum wage. Once a worker reaches that 650-hour threshold with an employer in a calendar year, the employer should pay the worker at least the regular minimum wage paid to those over 18 years of age absent any other exemption that could apply.
You are entitled to pay at time and one-half your regular rate of pay if you worked over 40 hours in a workweek. You will need to ask your employer for their definition of a workweek. For more information, visit the Minimum Wage/Overtime Law page. (820 ILCS 105/4a (1)) (56 Ill. Adm. Code 210.400)
Does my employer have to pay me time and one half or double time for working a legal holiday or a Sunday?
No. If working the legal holiday or Sunday puts you over 40 hours in a workweek, then your employer must pay you at time and one-half of your regular rate of pay for those hours over 40. However, if your employer's policy allows for payment of time and one half or double time, then the employer must honor the agreement. For more information, visit the Minimum Wage/Overtime Law page. (820 ILCS 105/4a (1))
The following employees are exempt from overtime pay:
- Salesmen and mechanics involved in selling or servicing cars, trucks or farm implements at dealerships,
- agricultural labor,
- executive, administrative or professional employees as defined by the Fair Labor Standards Act,
- certain employees involved in radio/television in a city with a population under 100,000,
- commissioned employees defined by Section 7(i) of the Fair Labor Standards Act,
- employees who exchange hours pursuant to a workplace exchange agreement,
- employees of certain educational or residential child care institutions.
For further information, visit the Minimum Wage/Overtime Law page. (820 ILCS 105/4a (2))
The law provides that two tests must be fully met to determine if you are an executive, administrative or professional employee. First, as a general rule, you must be a salaried employee. For the definition of salary, see the question below. Second, the primary duties you perform must also be exempt. To determine if your primary duties meet the criteria outlined for the executive, administrative or professional employee, visit the US DOL site.
Possibly. You are paid a salary if you regularly receive each pay period on a weekly, or less frequent basis, a predetermined amount constituting all or part of your compensation, which amount is not subject to reduction because of variations in the quality or quantity of the work performed. However, an employee being paid on a salary basis is not automatically exempt from receiving overtime pay. The primary duties you perform must also be exempt to disqualify you from overtime pay. For more information, visit the US DOL site.
Yes, unless such work would violate the One Day Rest in Seven Act. For more information on this Act, click here. 820 ILCS 140/2.
No. Compensatory time off in place of payment for overtime is not legal in the private sector.