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90_HB1264
820 ILCS 105/4a from Ch. 48, par. 1004a
Amends the Minimum Wage Law. Provides that, if specified
conditions are met, an employee may choose to receive
compensatory time off instead of overtime pay. Sets forth
various limitations and requirements concerning
applicability, compensatory time, and agreements regarding
compensatory time.
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1 AN ACT to amend the Minimum Wage Law by changing Section
2 4a.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Minimum Wage Law is amended by changing
6 Section 4a as follows:
7 (820 ILCS 105/4a) (from Ch. 48, par. 1004a)
8 Sec. 4a. (1) Except as otherwise provided in this
9 Section, no employer shall employ any of his employees for a
10 workweek of more than 40 hours unless such employee receives
11 compensation for his employment in excess of the hours above
12 specified at a rate not less than 1 1/2 times the regular
13 rate at which he is employed.
14 (2) The provisions of subsection (1) of this Section are
15 not applicable to:
16 A. Any salesman or mechanic primarily engaged in
17 selling or servicing automobiles, trucks or farm
18 implements, if he is employed by a nonmanufacturing
19 establishment primarily engaged in the business of
20 selling such vehicles or implements to ultimate
21 purchasers;
22 B. Any salesman primarily engaged in selling
23 trailers, boats, or aircraft, if he is employed by a
24 nonmanufacturing establishment primarily engaged in the
25 business of selling trailers, boats, or aircraft to
26 ultimate purchasers.
27 C. Any employer of agricultural labor, with respect
28 to such agricultural employment.
29 D. Any governmental body.
30 E. Any employee employed in a bona fide executive,
31 administrative or professional capacity, including any
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1 radio or television announcer, news editor, or chief
2 engineer, as defined by or covered by the Federal Fair
3 Labor Standards Act of 1938, as now or hereafter amended.
4 For bona fide executive, administrative, and professional
5 employees of not-for-profit corporations, the Director
6 may, by regulation, adopt a weekly wage rate standard
7 lower than that provided for executive, administrative,
8 and professional employees covered under the Fair Labor
9 Standards Act of 1938, as now or hereafter amended.
10 F. Any commissioned employee as described in
11 paragraph (i) of Section 7 of the Federal Fair Labor
12 Standards Act of 1938 and rules and regulations
13 promulgated thereunder, as now or hereafter amended.
14 G. Any employment of an employee in the stead of
15 another employee of the same employer pursuant to a work
16 time exchange agreement between employees.
17 H. Any employee of a not-for-profit educational or
18 residential child care institution who (a) on a daily
19 basis is directly involved in educating or caring for
20 children who (1) are orphans, foster children, abused,
21 neglected or abandoned children, or are otherwise
22 homeless children and (2) reside in residential
23 facilities of the institution and (b) is compensated at
24 an annual rate of not less than $13,000 or, if the
25 employee resides in such facilities and receives without
26 cost board and lodging from such institution, not less
27 than $10,000.
28 (3) Any employer may employ any employee for a period or
29 periods of not more than 10 hours in the aggregate in any
30 workweek in excess of the maximum hours specified in
31 subsection (1) of this Section without paying the
32 compensation for overtime employment prescribed in subsection
33 (1) if during that period or periods the employee is
34 receiving remedial education that:
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1 (a) is provided to employees who lack a high school
2 diploma or educational attainment at the eighth grade
3 level;
4 (b) is designed to provide reading and other basic
5 skills at an eighth grade level or below; and
6 (c) does not include job specific training.
7 (4) Compensatory time off for private employers.
8 (a) General rule.
9 (i) Compensatory time off. An employee may
10 receive, in accordance with this subsection and in
11 lieu of monetary overtime compensation, compensatory
12 time off at a rate not less than one and one-half
13 hours for each hour of employment for which overtime
14 compensation otherwise would be required by
15 subsection (1) of this Section.
16 (ii) Definition. For purposes of this
17 subsection, the term "employee" does not include an
18 employee of a government body.
19 (b) Conditions. An employer may provide
20 compensatory time to employees under paragraph (a)(i)
21 only pursuant to the following:
22 (i) Such time may be provided only in
23 accordance with:
24 (A) applicable provisions of a collective
25 bargaining agreement between the employer and
26 the representative of the employees recognized
27 as provided in Section 9(a) of the National
28 Labor Relations Act, or
29 (B) in the case of employees who are not
30 represented by a labor organization recognized
31 as provided in Section 9(a) of the National
32 Labor Relations Act, an agreement or
33 understanding arrived at between the employer
34 and employee before the performance of the work
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1 if the agreement or understanding was entered
2 into knowingly and voluntarily by the employee,
3 but only if the agreement or understanding was
4 not a condition of employment.
5 (ii) If the employee has affirmed, in a
6 written or otherwise verifiable statement that is
7 made, kept, and preserved in accordance with Section
8 8, that the employee has chosen to receive
9 compensatory time in lieu of overtime compensation.
10 (iii) If the employee has not accrued
11 compensatory time in excess of the limit applicable
12 to the employee prescribed by paragraph (c).
13 (c) Hour limit.
14 (i) Maximum hours. An employee may accrue not
15 more than 240 hours of compensatory time.
16 (ii) Compensation date. Not later than January
17 31 of each calendar year, the employee's employer
18 shall provide monetary compensation for any unused
19 compensatory time off accrued during the preceding
20 calendar year which was not used prior to December
21 31 of the preceding year at the rate prescribed by
22 paragraph (f). An employer may designate and
23 communicate to the employer's employees a 12-month
24 period other than the calendar year, including but
25 not limited to a 12-month period based on an
26 employee's anniversary date, in which case the
27 compensation shall be provided not later than 31
28 days after the end of the 12-month period.
29 (iii) Excess of 80 hours. The employer may
30 provide monetary compensation for an employee's
31 unused compensatory time in excess of 80 hours at
32 any time after giving the employee at least 30 days
33 notice. Such compensation shall be provided at the
34 rate prescribed by paragraph (f).
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1 (iv) Policy. An employer which has adopted a
2 policy offering compensatory time to employees may
3 discontinue the policy upon giving employees 30 days
4 notice.
5 (v) Written request. An employee may withdraw
6 an agreement or understanding described in paragraph
7 (b)(i)(B) at any time. An employee may also request
8 in writing that monetary compensation be provided,
9 at any time, for all compensatory time accrued which
10 has not yet been used. Within 30 days of receiving
11 the written request, the employer shall provide the
12 employee the monetary compensation due in accordance
13 with paragraph (f).
14 (d) Private employer actions. An employer which
15 provides compensatory time under paragraph (a) to
16 employees shall not directly or indirectly intimidate,
17 threaten, or coerce or attempt to intimidate, threaten,
18 or coerce any employee for the purpose of:
19 (i) interfering with the employee's rights
20 under this subsection to request or not request
21 compensatory time off in lieu of payment of overtime
22 compensation for overtime hours; or
23 (ii) requiring any employee to use the
24 compensatory time.
25 (e) Termination of employment. An employee who has
26 accrued compensatory time off authorized to be provided
27 under paragraph (a) shall, upon the voluntary or
28 involuntary termination of employment, be paid for the
29 unused compensatory time in accordance with paragraph
30 (f).
31 (f) Rate of compensation.
32 (i) General rule. If compensation is to be
33 paid to an employee for accrued compensatory time
34 off, the compensation shall be paid at a rate of
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1 compensation not less than the higher of the
2 following:
3 (A) the regular rate received by the
4 employee when the compensatory time was earned,
5 or
6 (B) the final regular rate received by
7 the employee.
8 (ii) Consideration of payment. An payment owed
9 to an employee under this subsection for unused
10 compensatory time shall be considered unpaid
11 overtime compensation.
12 (g) Use of time. An employee:
13 (i) who has accrued compensatory time off
14 authorized to be provided under paragraph (a), and
15 (ii) who has requested the use of the
16 compensatory time,
17 shall be permitted by the employee's employer to use the
18 time within a reasonable period after making the request
19 if the use of the compensatory time does not unduly
20 disrupt the operations of the employer.
21 (Source: P.A. 88-122; 89-453, eff. 1-1-97.)