10 Most Common Wage Violations in Illinois
1) Not Paying Overtime
The federal Fair Labor Standards Act (FLSA) requires employers to pay all their non-exempt, hourly workers at least one and one-half times their normal hourly rate for all time they spend working after eight hours a day or forty hours a week. But employers continue to find ways to avoid paying overtime – from refusing to log the overtime hours to misclassifying their hourly employees as exempt from overtime, even if they don’t meet the requirements.
2) Making Improper Deductions from Employees’ Pay
Employers can make certain deductions from their employees’ pay without the employees’ permission, such as taxes and social security. Anything else requires express, written permission from the employee at the time the deduction is made, but many companies take advantage of this and make illegal deductions from their workers’ pay without their consent, thereby making their employees (especially their low-income employees) pay for some of the company’s overhead costs.
3) Miscalculating Overtime Rate
Most companies just multiply their employees’ normal hourly rate by 1.5, multiply that by however many overtime hours they worked, and leave it that. In many cases, that’s probably fine, but if the employee earned any tips, bonuses, commissions, or any other income during the overtime pay period, that income also needs to be included when calculating their overtime rate, but many employers neglect to do so.
4) Improper Use of Tip Pooling
Because employees who earn tips can be paid a lower minimum wage ($4.95/hr in Illinois compared to $8.25/hr) many restaurants look for ways to justify paying the lower minimum wage, even to employees who don’t earn tips. Many of them do this by making tipped employees, such as servers, share their tips with non-tipped employees, such as cooks and dishwashers.
5) Manipulating Timecards to Make It Look Like Employees Worked Less Time
Some employers round out an employee’s time when they punch in or out, often resulting in the employee working a few minutes more or less than the time for which they get paid. It may not seem like much, but those few minutes add up over time. Other companies simply refuse to include all the hours their employees spent working, especially overtime, so they can pay them less than they earned.
6) Misclassifying Employees as Independent Contractors
Companies don’t have to pay taxes, social security, or benefits for the independent contractors they hire, but because those expenses fall on the worker, there are specific requirements a worker needs to meet in order to qualify as an independent contractor. Far too many companies have been misclassifying their employees as independent contractors and placing the burden of these extra expenses on low-earning workers who can’t afford them. Continue reading