Minimum Wage Law Summaries
Illinois, Minimum Wage Law Summaries
Illinois' minimum wage law is codified in the Illinois Compiled Statutes Annotated at Chapter 820. The full text of the law is available beginning at Wages-Hours ¶14-41,001 .
DEFINITIONS
“Employer” includes any individual, partnership, association, corporation, limited liability company, business trust, governmental or quasi-governmental body, or any person or group of persons acting directly or indirectly in the interest of an employer in relation to an employee, for which one or more persons are gainfully employed on some day within a calendar year. An employer is subject to the minimum wage law in a calendar year on and after the first day of the calendar year in which it employs one or more persons, and for the following calendar year (Sec. 820 ILCS 105/3, as amended by S. 2339, L. 2005, effective July 14, 2006).
“Employee” includes any individual permitted to work by an employer in an occupation, but does not include individuals working (Sec. 820 ILCS 105/3):
for an employer employing fewer than four employees, exclusive of the employer's parent, spouse or child or other members of the immediate family;
as an employee in agriculture or aquaculture, under the following conditions: (a) if the employee is employed by an employer who did not, during any calendar quarter during the preceding calendar year, use more than 500 man-days of agricultural or aquacultural labor during any calendar quarter in the preceding year; (b) if the employee is the parent, spouse, child or other member of the employer's immediate family; (c) if the employee is employed as a hand harvest laborer and is paid on a piece rate basis as is customary for the type of operation in the region, who commutes daily to the farm, and has been employed in agriculture less than 13 weeks during the preceding calendar year; or (d) if the employee is 16 years of age or under and is employed as a hand harvest laborer who is paid on a piece rate basis at the same rate as paid to employees over 16 on the same farm.
in domestic service in or about a private home;
as an outside salesperson;
as a member of a religious corporation or organization;
at an accredited Illinois college or university at which he or she is a student who is covered under the provisions of the Fair Labor Standards Act;
for a motor carrier whose qualifications and maximum hours of service are regulated by the U.S. Secretary of Transportation or the State of Illinois.
“Wages” means compensation due to an employee by reason of the employee's employment, including allowances determined by the Director of the Labor Department for gratuities and, when furnished by the employer, for meals and lodging actually used by an employee (Sec. 820 ILCS 105/3).
“Day camp” means a seasonal recreation program in operation for no more than 16 weeks intermittently throughout the calendar year, accommodating for profit or under philanthropic or charitable auspices, five or more children under 18 years of age, not including overnight programs. The term “day camp” does not include a day care agency, child care facility or foster family home as licensed by the Illinois Department of Children and Family Services (820 ILCS 105/3, as amended by H. 4583, L. 2007, enacted August 29, 2008).
COVERAGE
All Illinois employees are covered by the minimum wage law, except those in certain occupations as explained below.
EXCEPTIONS
Illinois' minimum wage law does not apply to employees working in small businesses with fewer than four employees; in agriculture or aquaculture; domestics; outside salespersons; members of religious organizations; students working for colleges or universities they attend; or motor carriers (Sec. 820 ILCS 105/3).
WHAT THE EMPLOYER MUST DO
Through June 30, 2009, the minimum wage is $7.75 per hour. From July 1, 2009, through June 30, 2010, the minimum wage will be $8.00 per hour. On and after July 1, 2010, the minimum wage will be $8.25 per hour (820 ILCS 105/4(a)(1), as amended by S. 1268, L. 2005, enacted December 18, 2006).
Unless an employee's wages are reduced under 820 ILCS 105/6, then in lieu of the rates prescribed just above, an employer may pay an employee who is 18 years of age or older, during the first 90 consecutive calendar days after the employee is initially employed by the employer, a wage that is not more than 50 cents less than the wage prescribed just above; however, effective July 1, 2007, an employer shall pay not less than the wage prescribed just above to (1) a day or temporary laborer who is 18 years of age or older; and (2) an employee who is 18 years of age or older and whose employment is occasional or irregular and requires not more than 90 days to complete (820 ILCS 105/4(a)(2), as amended by P.A. 94-1102 (H. 3752), L. 2005, enacted February 9, 2007 and effective July 1, 2007).
At no time shall the wages paid to any employee under 18 years of age be more than 50 cents less than the wage required to be paid to employees who are at least 18 under 820 ILCS 105/4(a)(1) just above (820 ILCS 105/4(a)(3), as amended by S. 1268, L. 2005, enacted December 18, 2006).
Chicago “living wage.”- A Chicago city ordinance requires employers or subcontractors of employers that hold a contract advertised or awarded by the city on or after January 1, 1999, to pay employees a minimum wage of $10.60 per hour. On July 1 each year, the base wage shall be adjusted, using the most recent federal poverty guidelines for a family of four as published annually by the U.S. Dept. of Health and Human Services, to constitute the following: the poverty guideline for a family of four divided by 2000 hours or the current base wage, whichever is higher. Covered employers or subcontractors include those employers that employ 25 or more noncity employed security guards, parking attendants, day laborers, home and health care workers, cashiers, elevator operators, custodial workers and clerical workers. City contracts with nonprofit organizations are not affected (Chicago Municipal Code, Section 2-92-610, as amended effective July 1, 2008).
Cook County “living wage.”- A Cook County, Illinois, ordinance requires employers holding a contract advertised or awarded by the county on or after December 1, 1998, to pay employees a living wage of $9.43 per hour if employee health benefits are provided, or $11.78 per hour without health benefits. Contracts with not-for-profit organizations, community development block grants, President's office of employment training, sheriff's work alternative program, or Department of Corrections inmates are exempt from the living wage requirements. Cook County, Illinois, includes the City of Chicago, which has its own living wage ordinance (see above) (County of Cook Living Wage Ordinance, No. 07-O-47, approved September 15, 1998, and as last amended July 10, 2007; Code of Ordinances of Cook County, Chapter 34, Art. IV, Div. 1, Sec. 34-127).
Note, Proposed City of Bloomington “living wage.” -Voters said “yes” to an advisory referendum question that asked whether the city of Bloomginton should pay its workers a “living wage” in the November 4, 2008, election (“SHALL ALL EMPLOYEES AND SUBCONTRACTED WORKERS OF THE CITY OF BLOOMINGTON BE PAID A LIVING WAGE OF AT LEAST $9.81 PER HOUR, WITH AN ANNUAL COST OF LIVING ADJUSTMENT?” ). However, since this was an advisory question only, the issue still requires approval of the city council, which is expected to vote on the issue during the April 13, 2009, meeting (Source: http:www.week.com/news; City Hall Spotlight, October 15, 2008.)
Tipped employee credit.- In occupations in which gratuities have customarily and usually constituted and have been recognized as part of the remuneration for hire purposes, the employer is entitled to an allowance for gratuities as part of the minimum hourly wage rate, not to exceed 40 percent of the applicable minimum wage rate. Employers taking a tip allowance are required to provide substantial evidence that the amount claimed was received by the employee in the period for which the claim of exemption is made and that no part was returned to the employer (820 ILCS 105/4, as amended by S. 600, L. 2003).
Wages-special circumstances.-Camp counselors.- Camp counselors who reside on the premises of a nonprofit seasonal camp are not subject to the adult minimum wage, if the counselor works 40 or more hours per week, and receives a total weekly salary of not less than the adult minimum wage for a 40-hour week. Counselors working less than 40 hours per week must be paid the minimum hourly wage for each hour worked. Every employer of a camp counselor is entitled to an allowance for meals and lodging as part of the minimum hourly wage rate, not to exceed 25 percent of the minimum wage rate (820 ILCS 105/4, as amended by S. 600, L. 2003).
Similarly, a camp counselor employed at a day camp is not subject to the adult minimum wage if the camp counselor is paid a stipend on a onetime or periodic basis and, if the camp counselor is a minor, the minor's parent, guardian or other custodian has consented in writing to the terms of payment before the commencement of employment (820 ILCS 105/4, as amended by H. 4583, L. 2007, enacted August 29, 2008).
Personal care attendants.- Personal care attendants must be paid a $5.40 per hour minimum rate (20 ILCS 2405/3, as amended by S. 697, L. 1997).
Subminimum wages: Individuals with impaired earning capacity.- The Director of the Labor Department may provide by regulation for the employment at subminimum wages in any occupation of individuals whose earning capacity is impaired by age, or physical or mental deficiency or injury, if the director finds it appropriate to prevent curtailment of opportunities for employment, to avoid undue hardship, and to safeguard Illinois' minimum wage rate. However, no person who maintains a production level within the limits required of other employees may be paid at less than the minimum wage. No employee may be employed at subminimum wages except under a special license issued by the director (Sec. 820 ILCS 105/5).
Learners.- For any occupation, the director may provide by regulation for the employment of learners at subminimum wages, if the director finds it appropriate to prevent curtailment of opportunities for employment and to safeguard Illinois' minimum wage rate (Sec. 820 ILCS 105/6(a), as amended by S. 1268, L. 2005, enacted December 18, 2006).
In any occupation, every employer may pay a subminimum wage to learners during their period of learning. However, under no circumstances may an employer pay a learner a wage less than 70 percent of Illinois' minimum wage rate for employees 18 years of age or older (Sec. 820 ILCS 105/6(b), as amended by S. 1268, L. 2005, enacted December 18, 2006).
No person is a “learner” in any occupation for which the person has completed required training or six months of training, except where the director finds, after investigation, that for the particular occupation a minimum level of proficiency cannot be acquired in six months (Sec. 820 ILCS 105/6).
Ridesharing arrangements.- Participation by an employee in any kind of ridesharing arrangement does not result in the application of the minimum wage law to the period of time necessary to effectively use the arrangement (Sec. 820 ILCS 105/2.1).
Collective bargaining.- Nothing in the minimum wage law may interfere with, impede, or in any way diminish the right of employees to bargain collectively with their employers through representatives of their own choosing in order to establish wages or other conditions of work in excess of the standards provided in the minimum wage law (Sec. 820 ILCS 105/14).
NOTICE
Every employer covered by Illinois' minimum wage law or regulation must post a summary of the law, approved by the Director of the Labor Department, and copies of applicable regulations or a summary of the regulations, posted in a conspicuous and accessible place in the workplace. On request, employers will be furnished copies of the summaries and regulations without charge (Sec. 820 ILCS 105/9).
ENFORCEMENT
Investigative authority.- The Director of the Labor Department or an authorized representative has the authority to investigate and gather data regarding the wages, hours and other conditions and practices of employment in any industry covered by the minimum wage law. Also, the director or an authorized representative may enter and inspect places and records (and make transcriptions) at reasonable times during regular business hours, not including lunch time at a restaurant, question employees, and investigate facts, conditions, practices or matters as deemed necessary or appropriate to determine whether any person has violated the minimum wage law or to enforce the law (Sec. 820 ILCS 105/7).
Additionally, the director may require employers to submit full and correct statements and reports in writing, including sworn statements of the wages, hours, names, addresses, and other information pertaining to its employees as necessary for the enforcement of the minimum wage law (Sec. 820 ILCS 105/7).
The director or his or her authorized representatives have the authority to require by subpoena the attendance and testimony of witnesses and the production of all books, records, and other evidence relative to a matter under investigation or hearing (Sec. 820 ILCS 105/7, as amended by S. 2339, L. 2005, effective July 14, 2006).
Supervision of wages.- If an employee has not collected damages under 820 ILCS 105/7(a) for the same violation, the director is authorized to supervise the payment of the unpaid minimum wages owing to any employee or employees under the minimum wage law and may bring any legal action necessary to recover the amount of the unpaid minimum wages and an equal additional amount as damages, and the employer shall be required to pay the costs incurred in collecting such claim. Such employer shall be additionally liable to the Department of Labor for up to 20 percent of the total employer's underpayment where the employer's conduct is proven by a preponderance of the evidence to be willful, repeated, or with reckless disregard of the minimum wage law or any rule adopted under the law. The action must be brought within five years from the date of the failure to pay the wages or compensation (Sec. 820 ILCS 105/12, as amended by S. 2339, L. 2005, effective July 14, 2006).
Court actions.- At the request of an employee, or upon the director's motion, the Department of Labor may make an assignment of a wage claim in trust for the assigning employee and may bring any legal action necessary to collect the claim. The employer will be required to pay the costs incurred in collecting the claim (Sec. 820 ILCS 105/12, as amended by S. 281, L. 2001).
Fair Labor Standards Act.- An employee of the state who is aggrieved by any conduct or action or inaction of the state that would constitute a violation of the Fair Labor Standards Act of 1938 (FLSA), if committed by an employer covered by that law, may bring an action under the FLSA against the state in state circuit court or federal court (745 ILCS 5/1.5, as added by H. 469, L. 2003).
Civil penalties.- The employer will be liable to the Department of Labor for up to 20 percent of the total underpayment where the employer's conduct is proven by a preponderance of the evidence to be willful, repeated, or with reckless disregard of the minimum wage law or any rule adopted under the law. Such employer shall be additionally liable to the employee for damages in the amount of two percent of the underpayments for each month following the date of payment during which the underpayments remain unpaid (Sec. 820 ILCS 105/12, as amended by S. 2339, L. 2005, effective July 14, 2006).
These penalties and damages may be recovered in a civil action brought by the director in any circuit court (Sec. 820 ILCS 105/12, as amended by S. 2339, L. 2005, effective July 14, 2006).
If an employee collects damages of two percent of the amount of underpayments as a result of an action brought by the director, the employee may not also collect those damages in a private action brought by the employee for the same violation. If an employee collects damages of two percent of the amount of underpayments in a private action brought by the employee, the employee may not also collect those damages as a result of an action brought by the director for the same violation (Sec. 820 ILCS 105/12, as amended by S. 2339, L. 2005, effective July 14, 2006).
Employee's remedies.- If any employee is paid less than the wage to which he or she is entitled under the minimum wage law, the employee may recover in a civil action the amount of the underpayment, together with costs and reasonable attorney's fees as may be allowed by the court, and damages of two percent of the amount of any such underpayments remaining unpaid. Any agreement between the employee and the employer to work for less than such wage is no defense to such action (Sec. 820 ILCS 105/12, as amended by S. 2339, L. 2005, effective July 14, 2006).
Limitations.- Every action must be brought within three years from the date of the underpayment (Sec. 820 ILCS 105/12, as amended by S. 281, L. 2001).
WHO TO CONTACT
Contact the Director of the Labor Department at 160 N. LaSalle St., Suite C-1300, Chicago, IL 60601. Telephone: (312) 793-1808. Fax: (312) 793-5257.
RECORDKEEPING
Every employer covered by the minimum wage law or any order issued under the law must make and keep, for a period of not less than three years, true and accurate records of the name, address and occupation of each of its employees, the rate of pay, and the amount paid each pay period to each employee, the hours worked each day in each workweek by each employee, and other information as may be prescribed by regulation. Employers must also make reports from these records as prescribed by the Director of the Labor Department (820 ILCS 105/8).
Each worker employed at the learner rate must be designated as such on the employer's payroll, with the learner's occupation shown (Sec. 820 ILCS 105/8).
Open records.- An employer's wage records must be open for inspection or transcription by the director or an authorized representative at any reasonable time (as limited by the director's investigative authority). Every employer must furnish to the director or an authorized representative a sworn statement of the records and information, upon demand, on forms prescribed or approved by the director (Sec. 820 ILCS 105/8).
POSTING
Every employer covered by the minimum wage law or regulation must keep an approved summary of the law, and copies of applicable regulations or a summary of the regulations, posted in a conspicuous and accessible place in the workplace. Employers will be furnished copies of the summaries and regulations without charge by the state on request (Sec. 820 ILCS 105/9).
PENALTIES
Wage violations.- An employer or its agent, or the officer or agent of any private employer, that pays or agrees to pay to any employee wages at a rate less than the minimum wage rate is guilty of a Class B misdemeanor. Each week on any day of which the employee is paid less than the applicable wage rate constitutes a separate offense (Sec. 820 ILCS 105/11).
Records violations.- An employer or its agent, or the officer or agent of any private employer, that fails to keep the records required under the minimum wage law or to furnish required records or any other required information to the director or an authorized representative upon request; or fails to make and preserve required records; or falsifies records; or refuses to make records available to the director or an authorized representative; or refuses to furnish a sworn statement of its records or any other information required for the proper enforcement of the minimum wage law; or fails to post a summary of the minimum wage law or a copy of any applicable regulations is guilty of a Class B misdemeanor. Each day of the failure to keep the records required under the minimum wage law or to furnish records or information to the director or an authorized representative or each day of the failure to post required information constitutes a separate offense (Sec. 820 ILCS 105/11).
Interference with enforcement.- An employer or its agent, or the officer or agent of any private employer that hinders or delays the Director of the Labor Department or an authorized representative in the performance of his or her enforcement duties or refuses to admit the director or an authorized representative to any place of employment is guilty of a Class B misdemeanor. Each day of the failure to keep the records required under the minimum wage law or to furnish records or information to the director or an authorized representative or each day of the failure to post information as required constitutes a separate offense (Sec. 820 ILCS 105/11).
Discrimination.- An employer or its agent, or the officer or agent of any private employer, that discharges or in any other manner discriminates against any employee because that employee has made a complaint to his or her employer, or to the director or an authorized representative, that the employee has not been paid wages in accordance with the provisions of the minimum wage law, or because that employee has caused to be instituted or is about to cause to be instituted any minimum wage proceeding, or because that employee has testified or is about to testify in a minimum wage investigation or proceeding, is guilty of a Class B misdemeanor (Sec. 820 ILCS 105/11).
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