🇺🇸 Illinois Overtime Laws — 2026 UPDATE

Overtime Laws in Illinois 2026: Pay Rates, Exemptions & Tax Deduction (2026)

⚠️Informational only — not legal or tax advice.

This guide explains Illinois overtime laws 2026

Last verified: February 26, 2026

Next scheduled review: May 26, 2026

overtime in Illinois 2026

Table of Contents

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Illinois Overtime Laws at a Glance (2026)

Details
Overtime threshold40 hours per workweek
Overtime pay rate1.5× regular rate of pay
Double timeNot required under Illinois or federal law
Daily overtimeNo — weekly calculation only
7th consecutive day ruleNo — Illinois follows FLSA weekly standard
Illinois minimum wage (2026)$15.00/hour (statewide); higher in Chicago
Exempt salary threshold (2026)Federal: $684/week ($35,568/year) — Illinois follows federal standard
Highly compensated employee exemptionNot recognized under Illinois law
State enforcement agencyIllinois Department of Labor (IDOL)
Federal enforcementU.S. DOL Wage and Hour Division
Overtime tax deduction (federal)Up to $12,500/year (2025–2028) — FLSA-covered workers
Statute of limitations3 years (Illinois IMWL) / 2 years FLSA (3 if willful)

Governing law: Illinois Minimum Wage Law, 820 ILCS 105/4a; Fair Labor Standards Act, 29 U.S.C. § 207
Last verified: February 26, 2026

Does Illinois Have Its Own Overtime Law?

Illinois has its own overtime law under the Illinois Minimum Wage Law (IMWL), 820 ILCS 105/4a, which provides protections comparable to — and in some respects broader than — the federal Fair Labor Standards Act (FLSA).

When Illinois law and the FLSA differ, the standard more favorable to the employee applies.

Key differences between Illinois and federal overtime law:

  • Employer coverage: The IMWL covers any employer with one or more gainfully employed employees. The FLSA generally requires employers to have $500,000 or more in annual gross sales or engage in interstate commerce. Illinois law is therefore broader in employer coverage.
  • No highly compensated employee (HCE) exemption: The FLSA allows employers to treat employees earning over $107,432/year as exempt under a streamlined duties test. Illinois does not recognize this HCE exemption. In Illinois, a highly paid employee who does not fully satisfy the duties test is not exempt.
  • Statute of limitations: Employees have 3 years under the IMWL to recover unpaid overtime, compared to 2 years (or 3 years for willful violations) under the FLSA. The longer deadline is generally more favorable to the employee.
  • Penalties: Under 820 ILCS 105/12(a), Illinois provides for damages of 2% of the underpayment per month that wages remain unpaid, plus attorney’s fees and court costs.
  • One Day Rest in Seven Act: Under 820 ILCS 140/2, Illinois employers must provide at least 24 hours of rest in every calendar week. This is a separate protection with no direct federal equivalent.

State statute: Illinois Minimum Wage Law, 820 ILCS 105/ — https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2400&ChapterID=68
Federal statute: Fair Labor Standards Act, 29 U.S.C. § 207 — https://www.dol.gov/agencies/whd/overtime
IDOL overtime page: https://labor.illinois.gov/laws-rules/fls/minimum-wage-law.html

How Overtime Pay Is Calculated in Illinois

What Is a “Workweek”?

Under the FLSA and the IMWL, a workweek is a fixed, regularly recurring period of 168 consecutive hours (seven consecutive 24-hour periods). A workweek does not need to begin on Monday or align with a calendar week — employers may designate any day and time as the start.

Each workweek stands alone. Employers cannot average hours across two or more workweeks to avoid paying overtime. If an employee works 50 hours one week and 30 the next, overtime is owed for the first week regardless of the second week’s hours.

Illinois does not have daily overtime. Working more than 8 hours in a single day does not by itself trigger overtime. Only total hours exceeding 40 in the workweek determine overtime eligibility.

Source: 29 C.F.R. § 778.104–778.105; 820 ILCS 105/4a(1)

Pay Rates

Under the IMWL and the FLSA, nonexempt employees in Illinois earn:

Time-and-a-half (1.5× regular rate):

  • All hours worked over 40 in a single workweek

There is no double-time requirement under either Illinois or federal law.

What Counts as the “Regular Rate of Pay”

The regular rate is not always the same as the base hourly wage. Under 29 C.F.R. § 778.108, it includes:

  • Base hourly rate or salary equivalent
  • Non-discretionary bonuses and incentive pay
  • Shift differentials
  • Commissions
  • Piece-rate earnings

The regular rate does not include discretionary bonuses (e.g., holiday gifts), employer contributions to benefit plans, or payments for vacation, holiday, or sick time when no work is performed.

Calculation Example

Example — Weekly overtime in Illinois:

An employee earns $15.00/hour (the Illinois statewide minimum wage as of 2026) and works 48 hours in one workweek:

  • Regular pay: 40 hours × $15.00 = $600.00
  • Overtime pay: 8 hours × ($15.00 × 1.5) = 8 × $22.50 = $180.00
  • Total weekly gross pay: $780.00

Example — Salaried nonexempt employee:

A nonexempt salaried employee earns $800/week and works 50 hours in one workweek:

  • Regular rate: $800 ÷ 40 = $20.00/hour
  • Overtime pay: 10 hours × ($20.00 × 0.5) = 10 × $10.00 = $100.00 (half-time premium under the fluctuating workweek method, if applicable)
  • Or under the standard method: 10 hours × ($20.00 × 1.5) = $300.00

Note: The applicable method depends on the employment agreement. Consult IDOL or the WHD for guidance on the fluctuating workweek calculation.

Source: 820 ILCS 105/4a(1); 29 C.F.R. § 778.108–778.122; IDOL Minimum Wage/Overtime FAQ — https://labor.illinois.gov/faqs/minimum-wage-overtime-faq.html

For the current Illinois minimum wage used in this calculation, see the [Illinois Minimum Wage page on RemoteLaws.com].

Who Is Exempt from Overtime in Illinois?

Not all employees in Illinois are entitled to overtime pay. Exemptions are determined by both the FLSA and the IMWL. Illinois follows FLSA exemption categories but, importantly, does not recognize the highly compensated employee (HCE) exemption.

Federal FLSA Exemption Requirements

To be exempt from overtime under the FLSA, an employee must meet ALL THREE criteria:

1. Salary basis test: Paid a predetermined, fixed salary each pay period (not hourly)

2. Salary level test: Earns at least $684 per week ($35,568 per year)

3. Duties test: Performs specific job duties in one of these categories:

Exemption Key duty requirement Salary threshold (IL/Federal)
Executive Manages enterprise or department; directs 2+ employees; authority to hire/fire $684/week
Administrative Office/non-manual work related to management; exercises independent judgment on significant matters $684/week
Professional (learned) Work requiring advanced knowledge in science or learning acquired through prolonged specialized study $684/week
Professional (creative) Work requiring invention, imagination, or talent in a recognized field of artistic endeavor $684/week
Computer employee Systems analysis, programming, software engineering $684/week salary OR $27.63/hour
Outside sales Primary duty is making sales away from employer's place of business No minimum salary

Source: IDOL FLSA Exemptions page — https://labor.illinois.gov/laws-rules/fls/overtime-exemption.html; 29 C.F.R. Part 541; Public Act 093-0672

Important: No Highly Compensated Employee Exemption in Illinois

The FLSA allows a streamlined HCE exemption for employees earning over $107,432/year who meet a minimal duties test. Illinois does not recognize this exemption. Under Illinois law, a high-earning employee who does not fully satisfy the standard duties test is nonexempt and entitled to overtime.

What Happened to the 2024 DOL Salary Threshold Increase?

In April 2024, the U.S. Department of Labor issued a final rule that would have raised the exempt salary threshold to $1,128 per week ($58,656/year) effective January 1, 2025.

On November 15, 2024, the U.S. District Court for the Eastern District of Texas vacated that rule nationwide in Texas v. U.S. Department of Labor (No. 4:24-cv-00499).

The salary threshold remains $684/week ($35,568/year) as of 2026.

Illinois-Specific Overtime Exemptions Under the IMWL

In addition to the FLSA exemptions, the IMWL at 820 ILCS 105/4a provides exemptions for:

  • Automobile, truck, and farm implement dealership employees: Salespeople and mechanics involved in selling or servicing cars, trucks, or farm implements at licensed dealerships
  • Agricultural workers: Employees engaged in agriculture, including farming, planting, harvesting, and livestock care
  • Certain radio and television employees: Employees of radio or television stations located in cities with a population under 100,000
  • Certain nonprofit childcare institution employees
  • Commissioned retail/service employees: Employees whose regular rate exceeds 1.5× the minimum wage and whose earnings are more than half from commissions (mirrors FLSA § 7(i))
  • ILRB-recognized union members: Employees covered by a collective bargaining agreement with an alternate shift schedule authorized under FLSA § 7(b) (820 ILCS 105/4a(2)(J))

Source: 820 ILCS 105/4a(2); IDOL — https://labor.illinois.gov/laws-rules/fls/overtime-exemption.html

Overtime Tax Deduction: "No Tax on Overtime" (2025–2028)

The One Big Beautiful Bill Act (Public Law 119-21), signed on July 4, 2025, created a new federal income tax deduction for qualified overtime compensation under Internal Revenue Code § 225.

This deduction is available for tax years 2025 through 2028.

Who Is Eligible

  • Nonexempt employees covered by the Fair Labor Standards Act (29 U.S.C. § 207)
  • Must have a Social Security number valid for employment
  • Cannot use the Married Filing Separately filing status

Who is NOT eligible:

  • Exempt (salaried) employees who do not receive FLSA overtime
  • Independent contractors (1099 workers) not covered by the FLSA
  • Employees receiving overtime only under Illinois state law or employer policy that exceeds FLSA requirements (i.e., the deduction applies to FLSA-required overtime only)

What Is Deductible

The deduction covers the premium portion of overtime pay — the amount that exceeds the regular rate of pay.

Overtime type What is deductible Example ($15.00/hr regular rate)
Time-and-a-half (1.5×) The "half" — 1/3 of total OT pay $7.50/hr per OT hour ($22.50 − $15.00)

IRS shortcut for 2025: If you only know your total overtime pay and were paid time-and-a-half, divide the total overtime amount by 3. (Source: IRS Notice 2025-69)

Deduction Limits
Filing status Maximum annual deduction Phase-out begins Phase-out rate
Single $12,500 $150,000 MAGI $100 reduction per $1,000 above threshold
Married filing jointly $25,000 $300,000 MAGI $100 reduction per $1,000 above threshold
W-2 Reporting
Tax year Employer reporting requirement
2025 NOT required to separately report (transition year — IRS Notice 2025-62). May voluntarily report in W-2 Box 14 as "QUAL OT" or provide a separate statement
2026 and later REQUIRED to separately report qualified overtime compensation on updated W-2 forms

If an employer did not separately report overtime for 2025, the IRS allows employees to use “any reasonable method” to calculate the deductible amount, including one-third of total overtime pay for time-and-a-half workers.

What This Deduction Does NOT Do

  • Does NOT exempt overtime from Social Security (6.2%) or Medicare (1.45%) taxes
  • Does NOT apply to Illinois state income tax (federal deduction only — see below)
  • Does NOT change how much overtime pay an employee receives
  • Does NOT apply to overtime paid only under Illinois law or employer policy that exceeds FLSA requirements

Source: IRS FAQs on Qualified Overtime Compensation Deduction; IRS Notice 2025-69; IRS Notice 2025-62; IRC § 225; P.L. 119-21, § 70202; Schedule 1-A (Form 1040)
Official IRS page: https://www.irs.gov/newsroom/questions-and-answers-about-the-new-deduction-for-qualified-overtime-compensation

Illinois State Income Tax and Overtime

The federal overtime deduction applies to federal income tax only. Overtime pay in Illinois remains fully subject to Illinois state income tax at the flat rate of 4.95%.

As confirmed by Illinois payroll guidance: both tips and overtime are still subject to Illinois state income tax regardless of the federal OBBBA deduction.

Pending Illinois Legislation:

Several bills have been introduced in the Illinois General Assembly to create a state-level income tax deduction for overtime wages:

As of February 2026, none of these bills have been enacted into law. Overtime pay in Illinois remains subject to state income tax at 4.95%.

Cross-reference: For Illinois income tax details, see the [Illinois Income Tax page on RemoteLaws.com].

Can an Employer Require Overtime in Illinois?

Under the FLSA, there is no federal limit on the number of hours an employer can require an adult employee (age 16 and older) to work in a workweek, as long as the employee is properly compensated at the applicable overtime rate.

An employer may discipline or terminate an employee for refusing to work overtime, unless a specific law, employment contract, or collective bargaining agreement provides otherwise.

Illinois does not have state-level mandatory overtime restrictions for most private-sector workers. Employers in Illinois may generally require overtime for at-will employees, and those who refuse may face disciplinary action.

One Day Rest in Seven Act

Illinois law does provide one notable working-hours protection: under the One Day Rest in Seven Act (820 ILCS 140/2), employers must give each employee at least 24 consecutive hours of rest in every calendar week (Sunday 12:01 a.m. through the following Saturday midnight).

Employers may apply to IDOL for a permit allowing employees to work seven consecutive days, provided employees have voluntarily agreed. Any hours worked over 40 in the workweek remain subject to overtime compensation.

Source: 820 ILCS 140/2 — https://labor.illinois.gov/laws-rules/fls/odrisa.html; IDOL FAQ — https://labor.illinois.gov/faqs/minimum-wage-overtime-faq.html

Protections That Always Apply

Regardless of mandatory overtime policies, the following apply in Illinois:

  • All overtime hours must be compensated at 1.5× the regular rate
  • Employers cannot retaliate against employees who file wage complaints (29 U.S.C. § 215(a)(3); 820 ILCS 105/11)
  • Disability accommodation requests under the ADA may limit overtime requirements
  • Child labor laws restrict hours for employees under 18 — IDOL enforces these under 820 ILCS 205/

Source: 29 U.S.C. § 207; 820 ILCS 105/4a; 820 ILCS 140/2

Industry-Specific Overtime Rules in Illinois

Automobile, Truck, and Farm Implement Dealerships

Salespeople and mechanics involved in selling or servicing cars, trucks, or farm implements at licensed dealerships are exempt from overtime under 820 ILCS 105/4a(2). This mirrors the FLSA § 13(b)(10) exemption and applies only to dealership employees in these specific roles.

Source: 820 ILCS 105/4a(2); 29 U.S.C. § 213(b)(10)

Healthcare — 8-and-80 System

Hospitals and residential care facilities may use an alternative “8-and-80” pay period arrangement under 29 U.S.C. § 207(j). Under this system:

  • Overtime is calculated over a fixed 14-day work period (instead of a 7-day workweek)
  • Overtime is due for hours over 8 in a single day OR 80 hours in the 14-day period, whichever calculation results in greater overtime pay
  • A prior written agreement between the employer and employee is required before work is performed under this system

Note: This does not reduce the overtime owed — it changes the calculation period. The employee always receives at least as much overtime pay as under the standard 40-hour method.

Source: 29 U.S.C. § 207(j)

Retail and Commission Employees

Under 29 U.S.C. § 207(i), retail or service establishment employees may be exempt from overtime if:

  1. Their regular rate of pay exceeds 1.5× the applicable minimum wage (i.e., more than $22.50/hour in Illinois in 2026), and
  2. More than half their total compensation for a representative period comes from commissions

Source: 29 U.S.C. § 207(i)

Public Sector — Compensatory Time

Under 29 U.S.C. § 207(o), Illinois state and local government employers may offer compensatory time off instead of overtime pay, provided:

  • A prior written agreement exists with the employee or their union
  • Comp time accrues at 1.5 hours for each overtime hour worked
  • The maximum accrual cap is 240 hours for most public employees
  • The cap is 480 hours for public safety, emergency response, and seasonal employees

Private-sector employers in Illinois cannot offer comp time in lieu of overtime pay. The Illinois Department of Labor has confirmed that substituting paid time off for overtime wages is not lawful in the private sector. Overtime must be paid in cash or a negotiable instrument.

Source: 29 U.S.C. § 207(o); IDOL FAQ — https://labor.illinois.gov/faqs/minimum-wage-overtime-faq.html

Agriculture

Agricultural workers are exempt from overtime under both the FLSA and the IMWL (820 ILCS 105/4a(2)). This covers employees engaged in farming, planting, cultivating, harvesting, and livestock care.

Unlike California and Washington, Illinois has not enacted agricultural overtime protections.

Source: 820 ILCS 105/4a(2); 29 U.S.C. § 213(b)(12)

Transportation — Motor Carrier Exemption

Employees whose duties affect the safe operation of motor vehicles in interstate commerce may be exempt from FLSA overtime under the Motor Carrier Act exemption (49 U.S.C. § 31502). This applies to drivers, driver’s helpers, loaders, and mechanics who are subject to U.S. Department of Transportation hours-of-service regulations.

Source: 29 U.S.C. § 213(b)(1); 49 U.S.C. § 31502

How to File an Overtime Wage Complaint in Illinois

Employees who believe they have not received proper overtime pay have three options.

Option 1: Illinois Department of Labor (IDOL)

Details
Agency Illinois Department of Labor — Fair Labor Standards Division
Online filing https://labor.illinois.gov/unpaidwages.html (requires Illinois Public ID account)
Complaint page https://labor.illinois.gov/file-a-workplace-complaint.html
Phone 1-800-478-3998 (toll-free)
Chicago office 115 S. LaSalle St., 37th Floor, Chicago, IL 60603
Springfield office 524 S. 2nd St., Suite 400, Springfield, IL 62701
Email (wages) DOL.MWOT@illinois.gov
Deadline 3 years from date wages were due (820 ILCS 105/12(a))

Important local note: If work took place within the City of Chicago, file with the Chicago Department of Business Affairs and Consumer Protection. If work took place in Cook County (outside Chicago), file with the Cook County Commission on Human Rights.

Option 2: U.S. Department of Labor — Wage and Hour Division

Details
Online https://www.dol.gov/agencies/whd/contact/complaints
Phone 1-866-487-9243 (toll-free)
Deadline 2 years from violation (3 years if willful)

Option 3: Private Lawsuit

Employees may file a lawsuit in state or federal court under 29 U.S.C. § 216(b) (FLSA) or 820 ILCS 105/12(a) (IMWL). Remedies may include:

  • Back wages owed
  • Under the FLSA: liquidated damages equal to the unpaid amount
  • Under the IMWL: damages of 2% of the underpaid wages per month from the date of underpayment
  • Reasonable attorney’s fees and court costs

Employees may file under both statutes simultaneously in federal court.

Retaliation Protection

Under 29 U.S.C. § 215(a)(3) and 820 ILCS 105/11, employers cannot retaliate against employees for:

  • Filing an overtime wage complaint
  • Participating in an investigation
  • Testifying in proceedings related to overtime violations

Source: 820 ILCS 105/12(a); https://labor.illinois.gov/unpaidwages.html; 29 U.S.C. § 216(b)

Penalties for Overtime Violations in Illinois

Federal FLSA Penalties
Penalty type Amount
Back wages Full amount of unpaid overtime owed
Liquidated damages Equal to unpaid wages (effectively doubles recovery)
Civil monetary penalty Up to $2,451 per violation (willful/repeated — adjusted annually)
Criminal prosecution Willful: fines up to $10,000; second offense: imprisonment up to 6 months

Source: 29 U.S.C. § 216

Illinois IMWL Penalties

Under 820 ILCS 105/12(a), Illinois employers who violate the IMWL are liable for:

Penalty type Amount
Back wages Full amount of unpaid overtime
Monthly damages 2% of the unpaid amount for each month wages remain unpaid from date of underpayment
Attorney’s fees Reasonable costs awarded to successful claimants
Court costs Included in recoverable amounts
Willful/repeated violation penalty Up to 20% of the total underpayment, payable to IDOL
Additional IMWL penalty $1,500 for certain violations, payable to IDOL’s Wage Theft Enforcement Fund
Non-compliance penalty 1% of unpaid wages per day if employer fails to comply with a final IDOL order

Source: 820 ILCS 105/12(a) — https://www.ilga.gov/legislation/ilcs/fulltext.asp?DocName=082001050K12

Illinois Overtime Law Updates (2025–2026)

Federal Changes Affecting Illinois

  • July 4, 2025: One Big Beautiful Bill Act (P.L. 119-21) signed — created federal overtime tax deduction for tax years 2025–2028 (IRC § 225). Overtime in Illinois remains subject to state income tax.
  • November 15, 2024: DOL salary threshold rule vacated by U.S. District Court (Eastern District of Texas) — exempt salary threshold remains $684/week ($35,568/year) as of 2026.

Illinois Changes

  • January 1, 2025: Illinois statewide minimum wage reached $15.00/hour, its final scheduled increase under Public Act 101-0001. No further scheduled increases are planned for 2026. The minimum overtime rate is therefore $22.50/hour for time-and-a-half.
  • January 1, 2026: Illinois amended IHRA to prohibit use of AI tools that discriminate in employment decisions (Public Act 104-0320) — not directly an overtime change, but affects employment classification practices.

Pending Illinois Overtime Tax Legislation

As of February 2026, the following bills to exempt overtime from Illinois state income tax have been introduced but not enacted:

Employees and employers should monitor the Illinois General Assembly website (https://www.ilga.gov) for updates.

Last reviewed: February 26, 2026
Next scheduled review: May 27, 2026

Frequently Asked Questions About Overtime in Illinois

Does Illinois have its own overtime law?

Yes. Illinois has its own overtime law under the Illinois Minimum Wage Law, 820 ILCS 105/4a, which requires nonexempt employees to be paid 1.5 times their regular rate for all hours worked over 40 in a workweek. Illinois law is broader than the FLSA in some respects — it covers employers with as few as one employee and does not recognize the highly compensated employee (HCE) exemption.

What is the overtime rate in Illinois in 2026?

The overtime rate in Illinois is 1.5 times the employee’s regular rate of pay. Based on the statewide minimum wage of $15.00/hour, the minimum overtime rate is $22.50/hour. There is no double-time requirement under Illinois or federal law.

Does Illinois require daily overtime?

No. Overtime in Illinois is calculated on a weekly basis only. Working more than 8 hours in a single day does not trigger overtime under either the IMWL or the FLSA — only total weekly hours over 40 trigger the overtime obligation.

Is mandatory overtime legal in Illinois?

Yes, in most cases. Illinois is an at-will employment state, and the FLSA places no cap on the hours an adult employee (16 and older) may be required to work. Employers may discipline or terminate employees who refuse mandatory overtime, unless a law, employment contract, or collective bargaining agreement says otherwise. All mandatory overtime hours must be paid at the applicable overtime rate. Note: The One Day Rest in Seven Act guarantees at least 24 hours of rest per calendar week.

Am I exempt from overtime in Illinois?

Exemption depends on both salary level and job duties. Under the FLSA and IMWL, employees must earn at least $684/week on a salary basis AND perform executive, administrative, professional, computer, or outside sales duties to qualify for exemption. Unlike the FLSA, Illinois does not recognize a highly compensated employee (HCE) exemption — a high-earning employee who does not satisfy the full duties test is nonexempt in Illinois.

Can salaried employees get overtime in Illinois?

Yes. Being paid a salary does not automatically make an employee exempt. Salaried employees who earn less than $684/week, who are not paid on a true salary basis, or who do not meet the duties tests are nonexempt and entitled to overtime pay for all hours over 40 in a workweek.

Is overtime taxed in Illinois?

Overtime pay is subject to both federal and Illinois state income taxes. However, under the One Big Beautiful Bill Act (2025–2028), FLSA-covered nonexempt employees may deduct up to $12,500 ($25,000 joint) of the premium portion of overtime from federal taxable income. This deduction does not apply to Illinois state income tax — overtime remains taxable at Illinois’s flat 4.95% rate unless the General Assembly enacts a state-level exemption.

How do I calculate the overtime tax deduction?

For time-and-a-half pay, the deductible amount is one-third of total overtime pay. For example, if you earned $9,000 in total overtime at time-and-a-half, the qualified overtime compensation deduction is $3,000. This calculation method is confirmed in IRS Notice 2025-69 and the Schedule 1-A instructions.

How do I file an overtime complaint in Illinois?

File a wage claim online with the Illinois Department of Labor at https://labor.illinois.gov/unpaidwages.html (requires a free Illinois Public ID account) or call 1-800-478-3998. You can also file with the U.S. DOL Wage and Hour Division at https://www.dol.gov/agencies/whd/contact/complaints or call 1-866-487-9243. The IMWL deadline is 3 years; the FLSA deadline is 2 years (3 for willful violations).

Can my employer fire me for refusing overtime in Illinois?

In most cases, yes. Illinois is an at-will employment state, and employers may discipline or terminate employees who refuse overtime, unless a specific law, contract, or collective bargaining agreement provides otherwise. However, employers cannot retaliate against employees who file wage or overtime complaints — that protection applies under both 29 U.S.C. § 215(a)(3) and 820 ILCS 105/11.

Can my employer give comp time instead of overtime pay?

Private-sector employers in Illinois cannot substitute compensatory time off for overtime pay. The FLSA requires that nonexempt private-sector employees be paid in cash or a negotiable instrument for overtime hours. IDOL has confirmed this position. State and local government employers may offer comp time at 1.5 hours per overtime hour under 29 U.S.C. § 207(o), up to 240 hours (480 hours for public safety employees), provided a prior agreement exists.

Does working on weekends or holidays trigger overtime in Illinois?

No. Under both the FLSA and Illinois law, working on weekends or holidays does not automatically constitute overtime. The overtime obligation depends only on total hours worked in the workweek, regardless of which days those hours fall on. If an employer’s policy provides holiday or Sunday premium pay, that policy must be honored — but state law does not require it independently of the overtime threshold.

What is the statute of limitations for overtime claims in Illinois?

Under the IMWL (820 ILCS 105/12(a)): 3 years from the date wages were due. Under the FLSA: 2 years (3 years if the violation is willful). Employees may file under both statutes, and the longer IMWL deadline generally applies for wages owed to workers covered by Illinois law.

What happens if my employer doesn’t pay overtime?

Under the IMWL, employees may recover unpaid overtime wages plus 2% of the underpayment per month, attorney’s fees, and court costs. Under the FLSA, employees may recover back wages plus liquidated damages equal to the unpaid amount. Willful violations can result in additional IDOL penalties up to 20% of underpayment, plus a $1,500 IMWL penalty payable to the Wage Theft Enforcement Fund.

Does Illinois have a different overtime rule for Chicago employees?

Chicago applies its own minimum wage (currently $16.20/hour for businesses with 4+ employees in 2026, subject to annual increases) under the Chicago Minimum Wage Ordinance. The overtime premium is calculated on the employee’s actual regular rate — so a Chicago employee earning $16.20/hour would have a minimum overtime rate of $24.30/hour. The overtime threshold (40 hours/week) and exemption rules otherwise follow state and federal standards. Chicago-area employees with wage complaints should contact the Chicago Department of Business Affairs and Consumer Protection rather than IDOL.

Sources and Verification

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