The following discussion focuses on two areas of the employer-employee relationship where problems are commonplace: the prompt payment of wages and the payment of minimum wage and overtime pay. Other aspects of the law relating to employment, including discrimination in the workplace, work-related injuries and unemployment compensation will be dealt with in a subsequent column.

I. Minimum Wage

Employers whose businesses have gross revenues of $362,500 or more a year (excluding sales and/or excise taxes collected at retail level) are covered by the federal minimum wage law, which requires a wage of $3.35 an hour. Businesses with gross revenues of less than $362,500 are covered by the state minimum wage law, requiring at least $3.35 an hour for employees 18 years of age and over, and $2.85 an hour for employees under age 18.

Under Illinois and federal law, employees who customarily and regularly receive tips may be paid a wage less than the required minimum, but wages plus tips must at least equal the minimum wage. Tips used to bring earnings up to the required minimum may not account for more than 40 percent. Under federal law, an employer may not take advantage of this provision unless the employee customarily and regularly receives over $30 per month in tips. The federal minimum wage law requires that employees be allowed to retain all tips, whether earned individually or through a pooling arrangement, regardless of whether or not the employer uses tips to meet the minimum wage laws.

Federal laws allow the cost of uniforms to be deducted from employees’ wages, but the amount of the deduction may not bring the employees’ wages below the minimum. The cost of meals provided by the employer to the employee may also be deducted.

Under federal law, employees must be paid for all hours on the job, including those hours when the employee is required to be on duty, on the employer’s premises or at a prescribed workplace.

Employees covered by either the federal or the state minimum wage laws must be paid time and a half for all hours over 40 which are worked in a single week. This means that persons being paid the minimum would receive a wage of $5.02 per hour for every hour over 40.

Both state and federal overtime laws exempt a variety of employees from the overtime rules, including: executive, administrative and professional employees; salespersons of automobiles, trucks, farm implements, trailers, boats and aircrafts; and mechanics working for firms engaged primarily in selling or servicing cars, trucks or farm implements. State law also exempts government employees. State and federal law exempts a wide variety of workers in agricultural occupations from both the minimum wage and overtime laws.

Complaints about possible violations of federal wage and hour laws should be sent to the United States Department of Labor, Wage and Hour Division, Room 309, Federal Center Building, 202 E. Washington, Madison, Wis., 53703. The telephone number is 608-264-5221. Complaints about state law violations should be sent to the Illinois Department of Labor, Labor Law Enforcement Division, 310 S. Michigan Ave., 10th Floor, Chicago, Ill., 60604. The telephone number for that office is 312-793-2804.

II. Payment of Wages

The prompt payment of wages and related issues is governed by the Illinois Wage Payment and Collection Act. The Act applies to all employers and employees in Illinois, except employees of the state or federal government and any of their political subdivisions, and except where a collective bargaining agreement provides for different arrangements for the payment of wages.

Pursuant to the Act, every employer is required to pay every employee on at least a semi-monthly basis all wages earned during the semi-monthly pay period. All wages earned by an employee during a weekly pay period must be paid not later than seven days after the end of the pay period in which the wages were earned. All wages earned by any employee during a semi-monthly or bi-weekly pay period must be paid not later than 13 days after the end of the pay period in which the wages were earned. Final compensation of separated employees must be paid in full at the time of separation, if possible, but in no case later than the next regularly scheduled pay day for such employees.

The Act prohibits “unilateral” deductions by employers from wages or final compensation unless such deductions are: (1) required by law; (2) to the benefit of the employee; (3) in response to a valid wage assignment or wage deduction order; or, (4) made with the express written consent of the employee, given freely at the time the deduction is made. Illinois Department of Labor regulations absolutely prohibit the employer from making deductions for damage to his property. Written agreements permitting an employer to make such deductions are void. Employees can, however, voluntarily reimburse the employer or customer. Department of Labor regulations also prohibit an employer from withholding all or part of the final compensation due an employee while the employer awaits return of property in the possession of the employee. An employer may request that a deposit be paid on a particular piece of property, but cannot deduct the deposit from the employee’s wages without the employee’s express written consent.

Complaints about an employer’s failure to pay wages or about unilateral deductions from one’s wages can be made, in writing, to the Illinois Department of Labor, Wage Claim Division, 310 S. Michigan Avenue, Chicago, Ill. 60604.