Bill assures overtime benefits
April 13, 2004
Illinois employees who are eligible for overtime pay remain assured of overtime benefits because of a bill signed by Gov. Rod Blagojevich.
The bill, written by Illinois Senator Barack Obama (D-Chicago) and signed April 2, states that certain employees who would not get overtime pay by federal mandates still would receive compensation. The bill would apply only to those employed in Illinois.
“The federal law would take effect unless [a state] opts out,” said Bob Pritchard (R-Hinckley,) 70th District representative. The bill is Illinois’ way of opting out of the law.
The Fair Labor Standards Act, a federal mandate, states that the administrators and executives paid on salary are exempt from being paid for overtime, said Maria Antonia Berrios (D-Chicago), 39th District representative and a supporter of the bill. Firefighters, EMTs, police officers and nurses were also exempt in the federal act from collecting overtime if they are paid on salary.
“Even if you’re on salary, if you’re making overtime, you will be paid overtime,” Berrios said. “You should be getting paid if you work.”
Pritchard said he voted for the bill because the bill applied to firefighters and nurses. Workers are eligible for overtime after 40 hours and receive time and one-half beyond that.
Stephanie Noble, a spokeswoman for the Illinois Department of Labor, said a change in salary minimum outlined in the bill will determine the threshold at which anyone will be able to be paid for overtime. The original level of $155 per week, set in 1975, will change to $425. Those in salaried positions collecting up to the new amount will receive overtime compensation.
Noble said there is effectively no change since salaried workers collected overtime before the federal switch.
The bill may have some unwanted side effects for the Illinois economy, Pritchard said.
“It’s always a concern when Illinois tries to exempt itself from what other states are doing,” Pritchard said.
He said the bill, coupled with Illinois’ Jan. 1 minimum wage increase to $5.50, potentially could cost Illinois businesses more to pay employees.
This could discourage future employers from choosing Illinois as a home state, Pritchard said.