The FLSA establishes a federal minimum wage that employers must pay to covered employees. As of January 2025, the federal minimum wage is $7.25 per hour. However, Illinois has set a higher minimum wage.
As of 2025, the Illinois minimum wage is $15 per hour for most workers, with lower rates for tipped employees and minors under 18 working part-time. Employers in Illinois must comply with state laws if they mandate higher wages than federal regulations.
Overtime pay regulations
Under the FLSA, non-exempt employees are entitled to overtime pay at a rate of one and a half times their regular pay for hours worked over 40 in a workweek. Certain employees may be exempt from overtime provisions, depending on their job duties and salary.
Child labor provisions
The FLSA includes child labor regulations to protect the educational opportunities of minors and prohibit their employment in jobs that could be detrimental to their health or well-being. These provisions vary based on the age of the minor and the type of work involved.
Recordkeeping responsibilities
Employers must maintain accurate records of employees’ wages, hours worked, and other essential information. Proper recordkeeping ensures compliance with the FLSA and provides documentation in case of disputes.
Employee misclassification risks
Some employers misclassify employees as independent contractors to avoid paying minimum wage or overtime. The FLSA provides guidelines to determine whether a worker qualifies as an employee or an independent contractor. Factors such as control over work, financial dependence, and job permanence play a role in classification. Misclassification can result in legal penalties and back pay requirements.
Understanding your rights and obligations
Both employers and employees should familiarize themselves with the FLSA to ensure fair labor practices. Employers must adhere to the act’s provisions to avoid legal issues, while employees should be aware of their rights to receive proper compensation and work in safe conditions.