Illinois Administrative Code › Title 56 - LABOR AND EMPLOYMENT › Part 210 - MINIMUM WAGE LAW › Subpart D - OVERTIME › Section 210.430 - Methods of Computing Overtime

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Hourly Rate Employees: If an employee is employed solely on the basis of a
				single hourly rate, the hourly rate is the "regular rate". For overtime hours,
				the employees must be paid, in addition to the straight time hourly earning, a
				sum determined by multiplying one-half the hourly rate by the number of hours
				worked over the maximum set by statute.
b) Pieceworker: When an employee is employed
				on a piece-rate basis (so much per piece, dozen, gross, etc.) the regular rate
				of pay is computed by adding together the total earnings for the workweek from
				piece rates and all other earnings (such as bonuses) and any sums paid for
				waiting time or other hours worked. This sum is then divided by the number of
				hours worked in that week to yield the piece worker's "regular rate" for that
				week. For the overtime work the piece worker is entitled to be paid, in
				addition to the total straight time weekly earnings, one-half this regular rate
				for each hour over the maximum set by statute.
c) Day Rates and Job Rates: An employee may
				be paid a flat sum for a day's work or for doing a particular job, without
				regard to the number of hours worked in the day or at the job, and receive no
				other form of compensation. In such a case, the employee's regular rate is
				found by totalling all sums received at such day rates or job rates in the
				workweek and dividing by the total hours actually worked. The employee is then
				entitled to extra half-time pay at this rate for all hours worked over the
				maximum set by statute.
d) Employee
				Paid on a Salary Basis: If an employee is employed solely on a weekly salary
				basis, the regular hourly rate of pay is computed by dividing the salary by the
				number of hours which the salary is intended to compensate.
e) Salary for Periods Other Than a Workweek:
				Where the salary covers a period longer than a workweek, such as a month, it
				must be reduced to its workweek equivalent. A monthly salary can be converted
				to its equivalent weekly wage by multiplying by 12 (the number of months) and
				dividing by 52 (the number of weeks). A semi-monthly salary is converted to its
				equivalent weekly wage by multiplying by 24 and dividing by 52.
f) Fixed Salary for Fluctuating Hours: The
				regular rate of an employee whose hours of work fluctuate from week to week,
				who is paid a stipulated salary with the clear understanding that it
				constitutes straight time pay for all hours worked, whatever their number and
				whether few or many, will vary from week to week. The regular rate is obtained
				for each week by dividing the salary by the number of hours worked in the week.
				It cannot be less than the applicable minimum wage in any week. Since straight
				time compensation has already been paid, the employee must receive additional
				overtime pay for each overtime hour worked in the week at not less than
				one-half this regular rate.
g)
				Employees Working at Two or More Rates: Where an employee in a single workweek
				works at two or more different types of work for which different straight time
				rates have been established, the regular rate for that week is the weighted
				average of such rates. That is, the earnings from all such rates are added
				together and this total is then divided by the total number of hours worked at
				all jobs.
h) Payments Other Than
				Cash: Where payments are made to employees in the form of goods or facilities
				which are regarded as part of wages, the reasonable cost to the employer or the
				fair value of such goods must be included in the regular rate (for example,
				lodging would be one such facility).
i) Commission Payments: Commissions (whether
				based on a percentage of total sales or of sales in excess of a specified
				amount or on some other formula) are payments for hours worked and must be
				included in the regular rate. This is so regardless of whether the commission
				is the sole source of the employee's compensation or is paid in addition to a
				salary or hourly rate. It does not matter whether the commission earnings are
				computed daily, weekly, monthly or at some other interval.
j) Commission Paid on a Workweek Basis: When
				a commission is paid on a workweek basis, it is added to the employee's other
				earnings for that workweek, and the total is divided by the total number of
				hours worked in the workweek to obtain the employee's regular rate for the
				particular workweek. The employee must be paid extra compensation at one-half
				of that rate for each overtime hour worked.
k) Deferred Commission Payments: If the
				calculation and payment of the commission cannot be completed until some time
				after the regular pay day for the workweek, the employer may disregard it until
				the amount of commission can be determined. When the commission can be computed
				and paid, the additional overtime compensation will be paid.
l) To compute this additional overtime
				compensation, the commission is apportioned back over the workweeks of the
				period during which it was earned. The employee must then receive additional
				overtime pay for each week during the period in which overtime was worked. If
				it is not possible or practicable to allocate the commission on the basis of
				the amount of commission actually earned each week some other reasonable
				equitable method must be adopted. One such method is to allocate an equal
				amount of commission earnings to each workweek in the period in which the
				commission was earned. Another is to allocate equal amounts to each hour worked
				in that period.
m) Nothing in this
				Section limits the Department of Labor from authorizing the use of legal
				methods of computation for the purpose of computing overtime.