Compliance Watch:

What are my rights as a salaried employee in Illinois?

Salaried employment in Illinois, like in many other states in the United States, is a form of employment in which an employee receives a fixed, predetermined amount of compensation regularly, typically on a weekly, bi-weekly, or monthly schedule. This fixed compensation is often referred to as a salary and is usually expressed as an annual amount, which is then divided into regular pay periods. Salaried employees are typically exempt from certain labor laws, such as overtime pay, and are often classified as “exempt” employees under the Fair Labor Standards Act (FLSA). Key characteristics of salaried employment in Illinois include:

• Fixed Compensation: Salaried employees receive a consistent salary, regardless of the number of hours worked in a pay period. This is in contrast to hourly employees who are paid based on the number of hours they work.
• Exemption Status: Many salaried employees are considered exempt from FLSA regulations, which means they are not entitled to overtime pay for working more than 40 hours in a workweek. Exempt employees typically include professionals, managers, and certain administrative roles.
• Employment Agreements: Salaried employment often involves a formal employment agreement or contract that outlines the terms and conditions of employment, including salary, benefits, job responsibilities, and other employment terms.
• Benefits: Salaried employees may be eligible for a range of employee benefits, such as health insurance, retirement plans, paid time off, and other perks, which are typically offered as part of the compensation package.

These are some of the general differences between salaried and hourly employees in Illinois, but it’s essential to note that specific employment conditions may vary based on individual circumstances and employer policies. If you’d like to know more about Illinois labor laws,  you can access our guides on your rights as an hourly employee and salaried employee laws.

Salaried employees in Illinois, like all employees in the United States, are entitled to certain basic rights and protections under both federal and state labor laws. Here are some of the fundamental rights and protections for salaried employees in Illinois:

• Minimum Wage: Salaried employees in Illinois must be paid at least the state minimum wage, which is $14 per hour for workers 18 and up, and $12 per hour for workers under age 18 for the year 2024. For tipped employees, the minimum wage stands at $8.40.
• Overtime Pay: Salaried employees in Illinois may be entitled to overtime pay if they work more than 40 hours in a workweek unless they are classified as exempt employees. Exempt employees are not eligible for overtime, but non-exempt salaried employees are entitled to overtime pay at a rate of 1.5 times their regular hourly rate for each hour worked over 40 in a workweek.
• Employment Discrimination: Salaried employees are protected from employment discrimination based on race, color, religion, sex, national origin, age, disability, and other protected characteristics under federal and state anti-discrimination laws. They have the right to a workplace free from discrimination and harassment.
• Family and Medical Leave: Eligible salaried employees in Illinois have the right to take unpaid leave under the federal Family and Medical Leave Act (FMLA) for qualifying family or medical reasons, without the risk of losing their job. Illinois also has its leave laws, including the Illinois Employee Sick Leave Act.
• Breaks and Meal Periods: Illinois labor laws mandate that employees, including salaried employees, are entitled to certain break and meal period requirements. For example, employees are generally entitled to a 20-minute meal break when working at least 7.5 hours in a day.
• Workplace Safety: Salaried employees in Illinois have the right to a safe and healthy workplace. Employers are required to comply with federal and state occupational safety and health regulations.
• Pay Frequency: Illinois law requires that employees, including salaried employees, are paid at least twice a month, with specific paydays established by the employer.
• Equal Pay: Salaried employees have the right to equal pay for equal work. Illinois has laws in place to address gender-based pay discrimination and promote pay equity.
• Whistleblower Protections: Illinois law provides protections for employees who report violations of state or federal laws by their employers. Retaliation against whistleblowers is prohibited.
• Workers’ Compensation: Salaried employees in Illinois who are injured or become ill on the job are entitled to workers’ compensation benefits, including medical treatment and wage replacement.

Overtime pay is generally applicable to salaried employees in Illinois, as it is in the rest of the United States, but it depends on whether the salaried employee is classified as exempt or non-exempt under the Fair Labor Standards Act (FLSA) and Illinois state labor laws. Here’s how it works:

• Exempt Salaried Employees: Exempt salaried employees are not entitled to overtime pay. To be considered exempt, an employee must meet specific criteria, including earning a salary that meets or exceeds the salary threshold established by law, and primarily performing exempt job duties, such as managerial, professional, or administrative tasks. Exempt employees are typically paid a fixed salary regardless of the number of hours worked, and they do not receive overtime pay for working more than 40 hours in a workweek.
• Non-Exempt Salaried Employees: Non-exempt salaried employees are eligible for overtime pay in Illinois. If they work more than 40 hours in a workweek, they are entitled to overtime compensation at a rate of 1.5 times their regular hourly rate for each hour worked beyond 40 hours.

It’s important for employers to correctly classify their employees as exempt or non-exempt, as misclassification can lead to legal issues and potential wage and hour violations. Illinois labor laws and the FLSA establish the guidelines for determining exempt and non-exempt status.

Employers in Illinois are generally allowed to make specific deductions from the wages of salaried employees, but some legal restrictions and guidelines must be followed. These deductions typically fall into two categories:

• Mandatory Deductions: Employers are legally required to make certain deductions from employees’ wages. These deductions include federal and state income taxes, Social Security, and Medicare taxes.
• Voluntary Deductions: Salaried employees may agree to certain deductions, such as those for health insurance premiums, retirement plan contributions, or other benefits. These deductions are typically made with the employee’s consent.
• Salary Basis Test: Salaried employees who are classified as exempt under the Fair Labor Standards Act (FLSA) are generally paid a fixed salary for each pay period, regardless of the number of hours worked. Deductions from an exempt employee’s salary are subject to strict rules. Generally, employers cannot make deductions that would reduce an exempt employee’s salary for any workweek in which the employee performs work. There are exceptions for certain deductions, such as for absences due to personal reasons, sickness, or disability, but these must comply with FLSA regulations.
• Written Authorization: For voluntary deductions, employers typically require written authorization from the employee. This is often the case for deductions related to benefits like health insurance, retirement contributions, or union dues.
• Wage Garnishments: In cases of wage garnishments for things like child support or tax debt, employers are generally required by law to comply with court orders and make these deductions.
• Limitations on Deductions: Deductions for voluntary benefits are usually limited to a reasonable percentage of the employee’s salary. Employers cannot deduct an amount that would reduce the employee’s pay below the applicable minimum wage.

Salaried employees in Illinois are generally eligible for breaks and leaves following state labor laws, but the specific requirements for breaks and leaves can vary depending on the nature of the employment, the size of the employer, and other factors. Here are some key points to consider:

• Meal Breaks: Illinois labor laws require employers to provide unpaid meal breaks to employees who work a certain number of hours in a day. Employees are entitled to a 10-minute paid meal break after every 4 hours of work. For employees who work at least 7.5 hours, they are entitled to a 20-minute meal break. However, if an employer and employee mutually agree, this meal break can be waived. The break should be given to the employee no later than 5 hours into the shift.
• Rest Breaks: Illinois law does not specifically require employers to provide rest breaks to employees, whether they are salaried or hourly. However, if an employer has a policy or practice of providing short breaks (usually 20 minutes or less), they must adhere to those policies consistently.
• Sick Leave: As of my last knowledge update in September 2021, Illinois had the Illinois Employee Sick Leave Act, which required certain employers to provide employees with paid sick leave. The specifics of this law could vary depending on the size and type of employer, so it’s important to consult the latest state labor laws and regulations.
• Family and Medical Leave: Under the federal Family and Medical Leave Act (FMLA), eligible salaried employees in Illinois may take up to 12 weeks of unpaid leave in 12 months for certain family or medical reasons. The state of Illinois also has its own family and medical leave laws that provide additional protections for employees in some cases.
• Paid Time Off (PTO): Many employers offer paid time off, which can be used for vacation, personal days, or illness. The accrual and usage of PTO can vary by employer.

Salaried employees in Illinois have the option to request flexible work arrangements, but whether these requests are granted depends on several factors, including the employer’s policies and the nature of the job. Here are some considerations regarding flexible work arrangements for salaried employees in Illinois:

• Employer Policies: Many employers have policies in place regarding flexible work arrangements. These policies may outline procedures for requesting flexible schedules, remote work, or other accommodations. Salaried employees should consult their employer’s policies and HR department to understand the process and criteria for requesting flexibility.
• Job Role and Industry: The feasibility of flexible work arrangements can vary depending on the nature of the job and the industry. Some jobs, such as those in healthcare, manufacturing, or retail, may have limited flexibility due to the need for on-site presence. However, in office-based roles, flexible work arrangements like telecommuting, flexible hours, or compressed workweeks may be more feasible.
• Reasons for Request: Salaried employees may request flexible work arrangements for various reasons, such as childcare needs, health concerns, or a desire for work-life balance. It can be beneficial to provide a clear and compelling reason for the request.
• Legal Protections: Illinois does not have a specific state law that mandates flexible work arrangements, but federal and state anti-discrimination laws require that requests for flexibility be considered without discrimination based on protected characteristics such as age, gender, or disability. Employers must reasonably accommodate employees’ needs to the extent that it does not create an undue hardship for the business.
• Trial Periods: In some cases, employers may agree to a trial period for flexible work arrangements to assess their impact on productivity and business operations.
• Telecommuting Agreements: For remote work arrangements, it’s common for employers to establish telecommuting agreements that outline expectations, responsibilities, and terms of the arrangement.

Salaried employees should proactively communicate with their employers about their needs and be prepared to discuss the potential benefits and any concerns related to flexible work arrangements. While not guaranteed, many employers are open to accommodating such requests when they align with business needs and can be implemented without significant disruption.

Exempt status in Illinois refers to a classification under the Fair Labor Standards Act (FLSA) that exempts certain employees from minimum wage and overtime pay requirements. The FLSA establishes rules for determining whether an employee is exempt or non-exempt based on their job duties, salary, and other factors. Here are the key aspects of exempt status in Illinois and its implications:

• Exempt Employee Categories: Exempt employees generally fall into three main categories:
  • Executive: Employees in positions of management and authority who primarily manage other employees, make significant decisions, and have control over hiring and firing.
  • Administrative: Employees involved in tasks related to the management and operation of the business, such as an office or non-manual work that involves independent judgment and discretion.
  • Professional: Employees with specialized knowledge and advanced education who perform work that requires intellectual or creative abilities and involves the exercise of judgment and discretion.
• Salary Basis: Exempt employees in Illinois must receive a predetermined, fixed salary that meets or exceeds a specific minimum threshold established by federal and state law. The salary requirement is subject to periodic adjustments.
• Overtime Exemption: Exempt employees are not entitled to overtime pay for hours worked beyond 40 in a workweek. They receive their full salary, regardless of the number of hours worked, as they are expected to fulfill their job duties regardless of the time it takes.

Implications of Exempt Status:

• Exempt employees are typically paid a fixed salary, which means they receive the same amount each pay period regardless of hours worked.
• They are not eligible for overtime pay, even if they work long hours.
• Exempt employees do not need to track their work hours in the same way non-exempt employees do.
• They may be expected to work beyond the standard 40-hour workweek if necessary to fulfill their job responsibilities.
• Exempt employees often have more flexibility and autonomy in managing their work schedules.
• Employers must comply with FLSA regulations when classifying employees as exempt, and misclassification can lead to legal issues and potential wage and hour violations.

Please note that this table provides a general overview of the differences between exempt and nonexempt employees in Illinois. Specific details may vary depending on individual employment contracts, industry standards, and changes in labor laws. It’s crucial to stay informed about the latest regulations to ensure compliance.

To determine if you’re exempt or non-exempt in Illinois, you should consider the criteria outlined by the Fair Labor Standards Act (FLSA) and Illinois labor laws. This classification depends on your job duties, salary or pay structure, and other factors. Here’s a step-by-step guide to help you determine your status:

• Examine Your Job Duties:
  • Review your job responsibilities: Exempt employees typically fall into one of three categories: executive, administrative, or professional. To qualify for exemption, your primary job duties should align with one of these categories.
  • Executive: You must have management authority, supervise employees, and make significant decisions, including hiring and firing.
  • Administrative: Your role should involve tasks related to the management and operation of the business, requiring independent judgment and discretion.
  • Professional: Your work should require specialized knowledge and advanced education and involve the exercise of judgment and discretion.
• Check Your Salary Basis:
  • Exempt employees must generally receive a fixed salary that meets or exceeds the minimum salary threshold established by federal and state laws. This threshold is subject to change, so ensure you are aware of the current minimum salary requirement.
  • Non-exempt employees are typically paid an hourly wage and are eligible for overtime pay.
• Consult Federal and State Laws: Review the federal Fair Labor Standards Act (FLSA) and Illinois labor laws to understand the specific requirements and exemptions. Federal law sets minimum standards, and state laws can provide additional protections and regulations.
• Consider Industry and Local Regulations: Some industries and localities may have specific regulations or labor agreements that affect exempt or non-exempt status. For example, collective bargaining agreements or industry-specific regulations may impact your classification.
• Document Your Work Hours: If you are classified as non-exempt, keep accurate records of your work hours, including overtime. This documentation is crucial for ensuring you are paid correctly.

Remember that your classification as exempt or non-exempt affects your entitlement to minimum wage, overtime pay, and various labor protections. Misclassification can lead to legal issues, so it’s important to understand and ensure that your classification is accurate.

In Illinois, minimum wage requirements apply to both hourly and salaried employees. The minimum wage in Illinois is subject to gradual increases as part of a state law passed in 2019. The Illinois minimum wage law raised the minimum wage incrementally over several years, aiming to reach $15 per hour by 2025. The law has the following schedule:

• January 1, 2020: $9.25 per hour
• July 1, 2020: $10.00 per hour
• January 1, 2021: $11.00 per hour
• January 1, 2022: $12.00 per hour
• January 1, 2023: $13.00 per hour
• January 1, 2024: $14.00 per hour
• January 1, 2025: $15.00 per hour

It’s essential to note that the minimum wage rates can change. Salaried employees in Illinois must be paid at a rate at least equal to the applicable minimum wage for the hours they work. If their salary does not meet this requirement, the employer must make up the difference to ensure compliance with minimum wage laws. Additionally, employers should be aware that there may be exceptions and different minimum wage rates for certain categories of workers, such as tipped employees or minors. 

Overtime compensation for salaried employees in Illinois follows the guidelines set forth by the Fair Labor Standards Act (FLSA) and Illinois labor laws. Whether a salaried employee is eligible for overtime pay depends on their classification as exempt or non-exempt. Here’s how overtime compensation works for salaried employees:

• Exempt Salaried Employees: Exempt salaried employees are not entitled to overtime pay. They receive a fixed salary regardless of the number of hours worked and are considered exempt from overtime requirements. Exempt employees typically include those in executive, administrative, or professional roles, provided they meet the FLSA criteria for exemption.
• Non-Exempt Salaried Employees: Non-exempt salaried employees are eligible for overtime pay. When they work more than 40 hours in a workweek, they must be compensated for those additional hours at a rate of 1.5 times their regular hourly rate. To calculate the regular hourly rate for non-exempt salaried employees, divide their weekly salary by the number of hours they typically work in a workweek. The overtime rate is then 1.5 times the regular hourly rate for hours worked beyond 40.

It’s important to understand that the exemption status is determined by an employee’s job duties and salary, not by the fact that they are paid on a salary basis. If you are a salaried employee and believe you are misclassified as exempt when you should be non-exempt, it’s advisable to consult your employer’s HR department or seek legal guidance.

In Illinois, permissible deductions from the pay of salaried employees are subject to specific legal guidelines and limitations. Permissible deductions generally fall into two categories: mandatory and voluntary deductions. Here’s an overview of these deductions for salaried employees in Illinois:

• Mandatory Deductions:
  • Taxes: Employers are required to withhold federal and state income taxes, Social Security (FICA), and Medicare taxes from employees’ salaries. These deductions are mandatory and go directly to government agencies.
  • Court-Ordered Garnishments: If a court orders wage garnishments for purposes such as child support, spousal support, or tax debt, employers are legally obligated to deduct and remit these funds to the appropriate entities.
  • Cafeteria Plan Deductions: If an employer offers benefits like health insurance, flexible spending accounts (FSAs), or retirement plans as part of a cafeteria plan, employees may choose to have deductions for these benefits taken from their salary. These deductions are generally considered mandatory once the employee has enrolled.
• Voluntary Deductions:
  • Health Insurance Premiums: Salaried employees may opt to have health insurance premiums deducted from their salary, as part of their benefits package.
  • Retirement Contributions: Employees can voluntarily contribute to retirement plans, such as 401(k) or 403(b) accounts, through salary deductions.
  • Other Voluntary Benefits: Salaried employees may choose to have other benefits, like life insurance, disability insurance, or savings plans, deducted from their salary. These deductions are typically made with the employee’s consent.
  • Union Dues: If an employee is a member of a labor union, they may have union dues deducted from their salary if they consent to this arrangement.

It’s important to note that when implementing voluntary deductions, employees usually provide written authorization for these deductions. Employers are expected to honor these authorizations and make the necessary deductions accordingly. Employers must also adhere to the rules outlined by the Fair Labor Standards Act (FLSA) when it comes to making deductions from the salaries of exempt employees. Deductions from exempt employees’ salaries are subject to specific limitations to maintain their exempt status, such as deductions for personal absences or absences due to illness or disability.

Illinois state law provides various benefits and protections for employees under the Illinois Workers’ Compensation Act. These protections are designed to support employees who suffer work-related injuries or occupational diseases. Some of the key benefits and protections provided by Illinois state law include:

• Medical Care: Employees who are injured on the job or suffer from work-related occupational diseases are entitled to receive medical care that is reasonably required to cure or relieve the effects of their injury or illness. This includes medical treatment, surgeries, rehabilitation, and related expenses.
• Temporary Total Disability: If an employee is disabled from work for a temporary period due to a work-related injury or illness, they are entitled to compensation to replace lost wages during their recovery.
• Permanent Total Disability: Employees who are rendered permanently unable to work due to a work-related injury or illness are entitled to compensation. The assessment of permanent total disability is made based on the extent of the injury or illness.
• Death Benefits: In the unfortunate event that an employee dies as a result of a work-related injury or occupational disease, surviving family members are eligible for death benefits. These benefits can help provide financial support to the dependents of the deceased worker.

It’s important to note that the Illinois Workers’ Compensation Act is a no-fault system, meaning that employees are generally entitled to these benefits regardless of who was at fault for the injury or illness. In exchange for these benefits, employees are generally prohibited from filing a lawsuit against their employer for work-related injuries or diseases. Employers with one or more employees are required to obtain and post notices of workers’ compensation insurance, with limited exceptions. This helps ensure that employees are aware of their rights under the workers’ compensation system.

Reporting violations to authorities or labor departments in Illinois is an important step in addressing workplace issues and ensuring that employees’ rights are protected. If you believe that your employer is violating labor laws or employment regulations, here’s how to report violations to the appropriate authorities or agencies in Illinois:

• Document the Violations: Keep detailed records of the violations, including dates, times, locations, individuals involved, and any evidence such as emails, pay stubs, or photographs. These records can be crucial when reporting violations.
• Know Your Rights: Familiarize yourself with your rights as an employee in Illinois. Understand the specific labor laws, wage and hour regulations, and workplace protections that apply to your situation. The Illinois Department of Labor provides resources to help employees understand their rights.
• Contact the Illinois Department of Labor: The Illinois Department of Labor (IDOL) is the state agency responsible for enforcing labor laws and regulations. You can contact the IDOL to report violations or seek guidance on how to proceed. You can reach the IDOL through their website.
• File a Complaint: Depending on the nature of the violation, you may need to file a formal complaint with the IDOL. You can typically do this online through the IDOL’s website. Be prepared to provide all relevant information about the violation.
• Contact Federal Agencies: Some workplace violations may fall under federal jurisdiction. If you believe your rights under federal law, such as the Fair Labor Standards Act (FLSA), have been violated, you can contact the United States Department of Labor (DOL) or the Wage and Hour Division (WHD) to file a complaint.
• Whistleblower Protections: If you are reporting violations related to health and safety concerns, discrimination, or other protected activities, be aware of whistleblower protections. Whistleblower laws protect employees from retaliation for reporting violations.
• Report Discrimination or Harassment: If the violation involves workplace discrimination or harassment, you can also contact the Illinois Department of Human Rights (IDHR) or the U.S. Equal Employment Opportunity Commission (EEOC) to report the issue.

Remember that it’s essential to follow the proper channels and take appropriate action based on the specific nature of the violation. Reporting violations helps ensure that labor laws are enforced and that employees are protected in the workplace.