Understanding overtime laws in Illinois is essential for both employees and employers to ensure fair pay and legal compliance. This guide is part of our broader resource on Illinois labor laws overview, where you can explore more wage and workplace regulations.
Under the federal Fair Labor Standards Act (FLSA) and Illinois law, most non-exempt employees must receive overtime pay for hours worked beyond 40 in a workweek.
Read on to learn more about Illinois’ overtime laws, including overtime pay rates, exemptions, rules for tipped and salaried employees, and compensatory time off policy.
Illinois Overtime Laws Summary
| State overtime law | Overtime applies to all hours worked over 40 hours in a workweek |
| Overtime pay rate | 1.5 times the regular rate of pay for all overtime hours |
| Illinois’ minimum wage | $15.00 per hour |
| Training wage for 18+ employees for the first 90 days | $14.50 per hour (non-tipped) |
| Youth wage under 18 for up to 650 hours in a calendar year | $13.00 per hour |
| Minimum overtime wage | $22.50 per hour (for the full minimum wage workers) |
| Compensatory time instead of overtime pay | Not allowed in the private sector
May be permitted in public agencies under agreements |
| Salary threshold for overtime exemption | $684/week |
This Article Covers
- Overtime Rate in Illinois
- Who is Eligible for Overtime Pay in Illinois?
- Overtime Exemptions in Illinois
- Who is Eligible for Compensatory Time in Illinois?
- Overtime Pay for Tipped Employees in Illinois
- Overtime Pay for Salaried Employees in Illinois
- Mandatory Overtime and Rest Rules in Illinois
- Recordkeeping Requirements for Employers in Illinois
- Penalties for Violating Overtime Laws in Illinois
Overtime Rate in Illinois
In Illinois, overtime pay is calculated at 1.5 times the employee’s regular rate of pay for all hours worked over 40 in a workweek.
Beginning January 1, 2025, the minimum wage in Illinois is $15.00 per hour for employees aged 18 and older. The minimum overtime rate is $22.50 per hour (time‑and‑a‑half the minimum wage).
Employees over the age of 18 may be paid a training wage of $14.50 per hour for the first 90 days with an employer. After that, they must be paid the full minimum wage.
Employees under 18 may be paid $13.00 per hour if they work fewer than 650 hours in a calendar year. Once they exceed 650 hours, they must be paid the full $15.00 minimum wage.
Overtime is based on the total hours worked in a workweek, not daily hours.
Learn more about calculations in our guide on how to calculate overtime in Illinois.
What counts as hours worked for overtime calculations in Illinois?
Working weekends or holidays does not automatically qualify for overtime in Illinois, unless the employee’s total weekly hours exceed 40.
What is a workweek in Illinois?
In Illinois, the definition of a workweek is set by employers.
Under the FLSA, a workweek is a fixed, recurring period of seven consecutive 24‑hour days (168 hours total), and it can begin on any day of the week and at any time chosen by the employer.
Because each employer may establish their own start and end times, employees must ask their employer how they define the workweek. This definition is important because overtime pay is calculated based on hours worked within that specific workweek.
Who is Eligible for Overtime Pay in Illinois?
Most employees in Illinois are eligible for overtime pay if they are classified as non-exempt under the federal Fair Labor Standards Act. Eligibility generally depends on an employee’s salary level, job duties, and industry.
Employees earning less than $684 per week ($35,568 annually) are typically entitled to overtime pay, unless they fall under specific exemptions.
For a deeper breakdown, see our Illinois overtime rights guide.
Overtime Exemptions in Illinois
Certain employees are exempt from overtime pay under both Illinois overtime laws and the FLSA. These include:
- Employees earning at least $684 per week (equivalent to $35,568 annually), including executive, administrative, and professional employees
- Highly compensated employees earning over $107,432 annually
- Computer professionals earning at least $27.63/hour
- Outside sales employees
- Certain commissioned retail and service employees
- Salespeople and mechanics at vehicle or equipment dealerships
- Agricultural workers
- Certain broadcasting employees in smaller cities
- Employees of specific educational or residential care institutions
- Employees exchanging hours under workplace agreements
- Certain educational or residential child care institution employees
- Seamen
- Small newspaper staff
- Babysitters and companions for the elderly
- Live‑in domestic workers
Partial exemptions also apply to industries like agriculture, petroleum distribution, hospitals, residential care facilities, firefighters, and police officers. For a deeper understanding, explore a detailed guide to overtime exemptions under the FLSA.
Who is Eligible for Compensatory Time in Illinois?
Compensatory time (“comp time”) allows employees to receive paid time off instead of overtime pay.
In Illinois, private-sector employees are not allowed to receive comp time instead of overtime pay. Public agencies may allow comp time at 1.5 hours per overtime hour under specific agreements, but private employers must pay overtime wages.
Overtime Pay for Tipped Employees in Illinois
Starting January 1, 2025, tipped employees in Illinois must earn at least the state’s minimum wage of $15.00 per hour.
Employers can pay them a minimum cash wage of $9.00 per hour and apply a tip credit of up to 40% of their wages, which equals to $6.00 per hour (for minimum wage). However, the employee’s total earnings (cash wage + tips) must be at least $15.00 per hour. If the employee’s tips are not enough to meet the state’s minimum wage, the employer must make up the difference.
For tipped employees aged 18 and older, employers can pay a training wage of $9.00 per hour (with tip credit) or $14.50 per hour (without tip credit) for the first 90 days. After 90 days, tipped employees must be paid the full $15.00 per hour if no tip credit is applied.
Overtime pay for tipped employees in Illinois must be calculated at 1.5 times the full minimum wage, not the reduced cash wage. Employers may apply the same tip credit used for regular hours, but cannot increase the tip credit for overtime hours. These rules ensure tipped employees receive fair wages and proper overtime compensation.
For accuracy in calculations and compliance with Illinois overtime laws, use our FREE overtime pay calculator.
Overtime Pay for Salaried Employees in Illinois
Salaried employees regularly receive a predetermined amount each pay period (weekly or less frequently). This amount or salary does not vary based on the quantity or quality of work performed.
However, being paid a salary does not automatically exempt an employee from overtime pay in Illinois. To be exempt, the employee’s primary job duties must meet exemption criteria under the Fair Labor Standards Act (FLSA).
Non-exempt salaried employees in Illinois are entitled to overtime pay for hours worked over 40 in a workweek. To calculate overtime, employers must convert the employee’s weekly salary into an hourly rate.
Employee’s regular rate of pay = Their weekly pay / The number of hours the salary is intended to cover
Overtime pay = 1.5 x Employee’s regular hourly rate x Number of hours worked over 40 in a workweek
Overtime pay applies only for hours exceeding 40 in the workweek. If an employee’s salary covers fewer than 40 hours, the employee is paid their regular rate for additional hours up to 40. Overtime begins only after 40 hours.
Explore more laws for salaried employees in Illinois.
Mandatory Overtime and Rest Rules in Illinois
Illinois employers can require overtime work. However, under the Illinois One Day Rest in Seven Act (ODRISA):
- Employees must receive at least 24 hours of rest every seven days.
- Employers may request permits for seventh-day work under certain conditions.
- Employees must receive a 20-minute meal break for every 7.5-hour shift and additional breaks for long shifts. Reasonable restroom breaks must also be provided.
Recordkeeping Requirements for Employers in Illinois
Employers must follow strict recordkeeping rules under federal law. They must retain payroll records for at least three years and wage calculation records for at least two years.
Records must include:
- Employee details (name, address, occupation, DOB if under 19)
- Hours worked (daily and weekly)
- Pay rate and basis of pay
- Total wages and deductions
- Payment dates
Records must be accurate, accessible, and available for inspection. Using a reliable time tracking tool can help employers stay compliant and avoid costly errors.
Penalties for Violating Overtime Laws in Illinois
Employers in Illinois who fail to pay overtime or wages properly can face significant financial penalties. These include:
- Paying the full amount of unpaid wages or final compensation
- Paying additional damages equal to 5% of the underpaid amount for each month the wages remain unpaid. This penalty continues to accumulate without limit until the employee is fully paid.
If the Illinois Department of Labor (IDOL) or a court orders payment, the employer must also pay:
- $250 administrative fee (minimum)
- $500 fee if the unpaid amount is over $3,000
- $1,000 fee if the unpaid amount is $10,000 or more
These fees may not apply if the employer pays before an official order is issued.
If the employer still fails to comply with the order, additional penalties apply.
- 20% penalty of the unpaid wages (paid to the state)
- 1% per day penalty of the unpaid amount (paid to the employee). This daily penalty also continues to grow without limit until the wages are paid in full.
Not only the company, but also owners, officers, or managers who knowingly allow violations can be personally responsible for unpaid wages and penalties under Illinois laws.
Employees who believe they have not been paid correctly can file a wage claim with the Illinois Department of Labor. For violations under federal law, complaints can also be filed with the US Department of Labor’s Wage and Hour Division.
See a real example of what happens when a law is violated: A $142K overtime pay settlement case in Illinois
Important Cautionary Note
This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.
