What are the differences between regular pay and overtime pay?
Regular pay and overtime pay are two forms of wages in the state of Illinois. Regular pay is the currently-agreed upon rate of pay employees receive for the hours they work. Overtime pay is the amount an employee receives when they work more than 40 hours in a workweek. Under Illinois Wage and Hour Law, if an employee is paid an hourly wage, they are entitled to receive overtime pay if they work more than 40 hours in a workweek. The overtime rate must be at least 1.5 times their regular wage. For example, if an employee earns $10 an hour, their overtime rate is at least $15 an hour. In addition, if an employee is paid a salary, they may still be eligible for overtime pay if they are non-exempt. The wage must be divided by the number of hours worked in a week to determine their rate of pay and then multiplied by 1.5 to find the overtime rate. For example, if an employee earns an annual salary of $30,000 and works 50 hours a week, their rate of pay is $15 per hour and their overtime rate is at least $22.50. Finally, some employees may not be eligible for overtime pay at all. This is generally due to certain positions being exempt from the overtime rules. These positions may include executive and administrative employees, or certain professional workers. Overall, regular pay and overtime pay are two forms of wages regulated by Illinois Wage and Hour Law. Regular pay is the amount an employee receives when they work regular hours, while overtime pay is what they receive when they work more than 40 hours in a work week.
Related FAQs
How should employers handle employees who work remotely?Are employers allowed to pay different wages for the same job?
What is the federal minimum wage?
How is wage and hour law different from labor law?
What is the difference between paid and unpaid leave?
Is it legal to pay workers working abroad different wages than domestic workers?
What are the requirements for having a work week?
What is the overtime threshold for salaried employees?
What is the overtime rate for hourly employees?
When can employers legally ask employees to work off the clock?
Related Blog Posts
What is Wage and Hour Law and How Does it Affect Your Business? - July 31, 2023What Employers Need to Know About Wage and Hour Law - August 7, 2023
The Basics of Payroll Law and Compliance - August 14, 2023
Compensating Your Employees - Tips for Wage and Hour Law Compliance - August 21, 2023
Understanding Overtime Rules Under Wage and Hour Law - August 28, 2023