Overtime Violations in Restaurants

Web Admin - Tuesday, May 27, 2014

illinois overtime violationsWage theft is an increasingly common practice in which employers deprive their workers of wages they are owed through practices like improperly logging their hours or simply failing to pay wages fully and promptly. The problem is serious enough that a report from the Center for Urban Economic Development at the University of Illinois at Chicago estimates that workers in Cook County lose more than one million dollars a day to the practice. One of the most common methods of wage theft is through the violation of overtime laws. Overtime in the restaurant industry is a particular problem because of how overtime rules interact with minimum wage provisions and the tip credit.

Understanding the Tip Credit

The tip credit is a specific exception to minimum wage law that allows employers to pay employees less than minimum wage on the assumption that the worker’s tips will make up the difference. Restaurants are one of the main industries that can take advantage of the tip credit because of their high percentage of tipped employees, such as servers and bartenders.

The exact amount of the tip credit varies by state. In Illinois, employers may deduct up to 40 percent of the Illinois minimum wage as tip credit, giving a new minimum wage of $4.95. The tip credit is a complex piece of the minimum wage law that can give rise to a variety of violations by employers. One of the most complicated of these issues related to the tip credit is how it interacts with overtime law.

The Tip Credit and Overtime

Generally speaking, overtime laws require employers to pay their workers one and a half times their hourly wage for working more than 40 hours in a week. However, restaurants and other employers can still take advantage of the tip credit. Unfortunately, many do so incorrectly. The issue is that many employers take the tip credit out before multiplying the hourly wage by one and a half, when they should take it out after. To illustrate the difference, suppose a server works 60 hours in one week and is paid $4.95 an hour plus tips.

For the first 40 hours, the employer can simply pay the $4.95, but for the last 20 they need to start paying overtime. The incorrect way to do the calculation would be to simply multiply the $4.95 wage by 1.5 giving a new wage of $7.43, which would result in a paycheck of $148.60 for those 20 hours. The proper way to perform the calculation is to multiply the full minimum wage, $8.25, by 1.5 to get $12.38, and then subtract the tip credit afterwards to get a minimum wage of $9.08 and a paycheck of $181.60, a serious difference from the incorrect calculation.

If you believe you have been the victim of an overtime violation, contact an Illinois employment lawyer today. Our firm helps clients in many towns across the northwest suburbs, including in Palatine, Barrington, and Schaumburg.

About the Author: Attorney Ken Apicella is a founding partner of DGAA focusing in the areas of personal injury, employment, insurance coverage disputes, and civil litigation. Ken earned his J.D. from DePaul University College of Law in 1999. He has been named a SuperLawyers Rising Star and a Forty Illinois Attorneys Under Forty to Watch. Ken has written and lectured for the Illinois Institute for Continuing Legal Education and regularly serves as a moderator at Northwest Suburban Bar Association's Continuing Legal Education seminars.

Common Methods of Wage Theft

Web Admin - Tuesday, February 11, 2014

illinois wage theft lawyerMore and more employees are facing issues related to wage theft. Even though many are not aware of what the term actually mean, legal claims related to it have been steadily rising in recent years.

Broadly speaking, wage theft happens when an employer illegally deprives an employee of wages that they are owed. In some cases that can mean subverting laws that guarantee certain benefits to employees, like the minimum wage law, while in others it can simply mean not abiding by the agreement between the employer and the employee, both of which are violations of the law. Wage theft can be broken down into two categories based on the method the employer uses, methods relating to simply depriving the worker of money they are owed, and methods relating to improperly documenting the worker or their pay.

Wage Deprivation

Wage deprivation methods involve improper payroll practices designed to deprive an employee of their pay. The simplest method of this is an employer’s failure to pay their employees on time. This can include tactics like withholding an employee’s last paycheck or paying them for only certain hours or days worked, rather than paying for all their time.

One common, similar method of wage theft involves withholding overtime pay. Under the Fair Labor Standards act, many employees are entitled to overtime if they work more than 40 hours a week. Employers often take advantage of confusion among employees as to whether they qualify and refuse to pay overtime. Fortunately, the Department of Labor maintains a guide explaining worker’s overtime rights.

Documentation Issues

Documentation issues are a slightly subtler version of wage theft. Rather than simply withholding wages, employers will adjust their payroll or misclassify employees to stop paying them everything that the employer owes them. One of the simplest documentation violations is agreeing to pay someone below the minimum wage ($8.25 currently), which is illegal. Employers may also adopt improper policies related to clocking-in, like forcing employees to work for a period in the morning before they start logging hours. These sorts of policies qualify as wage theft since employers owe employees for that time.

Additionally, employers could improperly classify their employees as independent contractors. Independent contractor is a specific legal status related to the amount of freedom a worker has to set their hours and perform tasks as they see fit. Most workers a business hires will not fall into this category, but an employer may try to label employees as this since it allows the employer to avoid things like workers compensation insurance and payroll tax by shifting the burden to the worker.

If you believe you have been a victim of wage theft, or have questions about your employer’s practices, get in contact with an Illinois employment lawyer. We serve clients in areas across the northwest suburbs such as Buffalo Grove, Barrington, and Arlington Heights.

About the Author: Attorney Ken Apicella is a founding partner of DGAA focusing in the areas of personal injury, employment, insurance coverage disputes, and civil litigation. Ken earned his J.D. from DePaul University College of Law in 1999. He has been named a SuperLawyers Rising Star and a Forty Illinois Attorneys Under Forty to Watch. Ken has written and lectured for the Illinois Institute for Continuing Legal Education and regularly serves as a moderator at Northwest Suburban Bar Association's Continuing Legal Education seminars.

Recent Posts


Des Plaines Crystal Lake criminal defense attorney caregiver Inverness civil lawyer medical research cell phone accidents Chicago attorney Arlington Heights car crash attorneys real estate lawyer special needs trust Fair Labor Standards Act construction contracts Arlington Heights accident attorney Rolling Meadows insurance dispute lawyers, insurance dispute sole proprietorship workplace sexual harassment insurance claim dispute Illinois trucking safety paid sick leave Palatine traffic accidents insurance claim delay Illinois personal injury attorney Chicago estate planning Illinois injury lawyer workers comp Rolling Meadows estate planning attorney personal injury, auto accident injuries, delayed injuries, serious injuries, Des Plaines personal injury attorneys Illinois employment law firm car accident Long Grove wills and trusts attorneys insurance dispute underfunded trust health insurance dispute civil litigation Illinois Workers’ Compensation Commission wrongful termination Palatine punch death Buffalo Grove personal injury attorney Illinois law Rolling Meadows Attorney Illinois medical malpractice attorney DUI attorney fiduciary rule Affordable Care Act liens rent to own real estate contracts wrongful death Rolling Meadows traffic law firm Crystal Lake accident attorney dram shop law distracted driving accidents Inverness estate planning lawyer Rolling Meadows corporate lawyer Inverness insurance attorney Schaumburg estate planning lawyer healthcare claims Illinois home inspection creditors Chicago insurance claim attorneys contracts Fourth of July Rolling Meadows real estate attorney Illinois real estate lawyer medical malpractice claims CAM Illinois Sales Representative Act Des Plaines pet law attorney commercial leases personal injury claim Crystal Lake pedestrian accident lawyer DUI Schaumburg employment law attorneys Barrington attorney DGAA owner responsibility Illinois insurance claim attorney fiduciary rule delay real estate attorneys Illinois insurance claim dispute lawyers Chicago will attorney Chicago trucking accident attorney Illinois workplace discrimination attorney Illinois car accident attorney Schaumburg civil litigation attorney bicycle accidents Inverness elder law lawyer Illinois motorcycle accident lawyer Schaumburg personal injury attorney medical malpractice, missed diagnosis, delayed diagnosis, medical mistake, Deer Creek medical malpractice lawyers deadly crashes foreclosed rental property construction accidents Kenilworth estate planning attorney car crash Illinois insurance dispute lawyers Deer Park personal injury lawyer Illinois pedestrian accident attorney Barrington Illinois estate planning lawyer digital evidence drug crime pet law probate fees BAIID Rolling Meadows car accident lawyers liability claims revenge porn Long Grove estate planning hands free device Des Plaines personal injury lawyers Arlington Heights Traffic Lawyer Deer Park criminal attorney Barrington boating accident attorney hit and run accident Crystal Lake traffic lawyer Inverness injury lawyer unfunded trust Palatine Attorney investment property bicycle dooring accidents liability accidental death benefits FSLA texting while driving insurance claim dispute attorney Illinois employment lawyer pet bites homestead rights POA traffic offenses Rolling Meadows life insurance claim denial attorney Barrington drug crime attorney wills and trusts Rolling Meadows employment attorney Illinois insurance disputes Arlington Heights TBI attorney Barrington personal injury lawyer life insurance policy Illinois small business Arlington Heights wills and trusts attorney probate Illinois construction accident attorney Inverness real estate attorney digital media accounts, estate planning, Arlington Heights estate planning attorney, Rolling Meadows personal injury attorney breathalyzer test Thanksgiving Arlington Heights employment attorney insurance claim denials drunk driving insurance dispute, insurance dispute lawyers, insurance claim denial, insurance claim delays, Rolling Meadows insurance dispute attorneys federal regulations for LLCs Barrington injury attorney disability benefits traffic crimes employment law Long Grove real estate attorney probate process murder life insurance claims Chicago lawyer car crashes Illinois business law atorneys license reinstatement Illinois insurance attorney workers compensation benefits power of attorney for healthcare Inverness corporate attorney Colin H. Gilbert Mount Prospect real estate lawyer Illinois employment law attorney Illinois elder law attorney trust payments trustee GM ignition switches minimum wage TBI criminal law personal injury lawyer wage theft life insurance lawyer employee rights Illinois insurance lawyer living trust Buffalo Grove employment lawyer Barrington real estate lawyer child safety insurance denial appeals Schaumburg employment attorney residential real estate estate planning for college students Family Medical Leave Act Crystal Lake employment lawyer car collision small business internet insurance dispute attorney Illinois employment attorneys cause-of-death exclusions Legal Info drugs pay when paid contract Schaumburg ObamaCare construction accidents, personal injury, wrongful death, Arlington Heights personal injury attorneys, workers' compensation Des Plaines motorcycle accident attorney Illinois estate planning law firm insufficient documentation traffic deaths Retaliatory Discharge Palatine employment attorney Class A misdemeanor Crystal Lake pet attorney Chicago estate planning lawyer Illinois criminal defense attorney living trust benefits Inverness real estate lawyer Illinois employment law attorneys ACA Buffalo Grove real estate attorney Barrington civil litigation attorney field sobriety test Deer Park medical malpractice attorney Illinois medical malpractice lawyers Arlington Heights insurance attorney Buffalo Grove corporate attorney Chicago employment attorney texting and driving traumatic brain injury Des Plaines personal injury lawyer Exclusions Inverness DUI lawyer motorcycle accident criminal defense Schaumburg life insurance attorney real estate contract real estate closing Palatine elder law attorney loss of consortium murder defense home inspection lawyer insurance claim Illinois estate planning attorney insurance agents landlord tenant law cell phone slip and fall accidents probate claims top life insurance claim denials Joliet general practice lawyers Barrington criminal lawyer Illinois traffic attorney Barrington workers compensation attorney Illinois employment law mortgage digital assets estate planning, death tax, succession plans, business estate plans, Barrington estate planning lawyers DNR Crystal Lake traffic attorney DUI defense Crystal Lake medical malpractice law firm insurance disputes, Illinois insurance disputes, Illinois insurance dispute attorneys, denied insurance claims, Arlington Heights insurance dispute attorneys Arlington Heights wills and trusts lawyer Buffalo Grove law firm real estate leasing traumatic brain injuries traffic tickets no contest clauses Crystal Lake medical malpractice lawyer product liability employment contract Illinois Des Plaines accident attorney estate planning trusts Des Plaines Traffic Lawyer Palatine injury attorney Illinois insurance claim dispute lawyer forming a corporation in Illinois underage DUI Arlington Heights car accident lawyer truck collisions taxes Schaumburg injury lawyer estate tax federal crimes Riverwoods estate planning lawyer Rolling Meadows criminal lawyer Schaumburg drug defense lawyer criminal Inverness probate lawyer Buffalo Grove traffic lawyers Palatine life insurance lawyer South Barrington real estate lawyer guardianship attorney Rolling Meadows employment law attorneys Employment Discrimination Law Illinois medical malpractice case Crystal Lake business law attorneys Des Plaines injury law firm Arlington Heights lawyer workers compensation jet ski accidents unpaid assessment estate plan FMLA irrevocable trust Illinois wills and trusts Rolling Meadows insurance attorney reckless homicide Illinois DUI attorney Arlington Heights medical malpractice lawyer overtime pay Illinois speeding lawyer condo association estate planning lawyer caretaker rights Arlington Heights criminal lawyer Illinois wrongful termination lawyer Illinois defective products attorney Arlington Heights tax lawyer deed transfer Crystal Lake car accident attorney Des Plaines medical malpractice attorney institutional trustee Des Plaines claims law firm employment law, Illinois employment laws Jay Andrew Crystal Lake employment law attorney capital gains tax Illinois wills and trusts attorneys startup company rollover accidents Rolling Meadows medical malpractice lawyers dynasty trusts landlord Des Plaines insurance attorney Illinois Smoke Detector Act medical malpractice compensation car accident lawyers Long Grove estate planning attorney Illinois business lawyer new real estate form real estate attorney Rolling Meadows drug defense attorney BUI Palatine real estate lawyer Illinois workers compensation lawyer Deer Park traffic accident attorney Home Remodeling Repair Act privacy laws Arlington Heights pedestrian accidents Illinois jet ski accident lawyer pain and suffering rollover car crashes head on collisions employees trucking accidents Illinois job attorney elder law Rolling Meadows gift tax exemption, estate planning, estate planning strategies, Illinois estate planning, South Barrington estate planning attorneys Rolling Meadows traffic attorney Long Grove estate planning attorneys IRS denied insurance claims Barrington employment law attorney pedestrian accidents Arlington Heights injury attorney Crystal Lake car accident lawyer breach of contract traffic violations insurance claim denial unpaid overtime Chicago traffic lawyer severance agreements auto accidents license suspension beneficiary complications insurance attorney Palatine law firm Mount Prospect wills and trusts lawyers Schaumburg estate attorney Arlington Heights employment law attorneys car accidents Rolling Meadows personal injury lawyer speeding Rolling Meadows insurance dispute lawyers Illinois lawyer Schaumburg estate planning attorney Rolling Meadows Traffic Lawyer real estate zoning Palatine construction attorney Federal Food Drug and Cosmetic Act Illinois estate planning power of attorney Crystal Lake law firm Kenilworth estate planning lawyer drug crimes Rolling Meadows boating crash lawyer Deer Park DUI lawyer Deer Park real estate law firm Inverness traffic law firm Illinois driving without license slip and fall Illinois traffic ticket lawyer wills civil rights violation Barrington employment attorney Rolling Meadows employment law attorney changes to mortgage law work unions Des Plaines drug lawyer comp time life insurance social media after death Illinois traffic attorneys suspended license Barrington employment law firm IRELA dog bites Illinois boating accident lawyer Chicago corporate attorney probate claims process Arlington Heights Attorney murder charges PTSD Barrington life insurance lawyer Barrington litigation attorney probate lawyer South Barrington real estate attorney Transfer on Death Instrument Palatine corporate law attorneys how to avoid common denials of life insurance claims Schaumburg criminal attorney Barrington Traffic Lawyer in terrorem provision preventing accidents Crystal lake insurance dispute attorney spinal cord injury Barrington criminal defense lawyer appealing an insurance claim spinal cord injuries real estate Food and Drug Administration's Food Safety Modernization Act employment attorney Barrington business law firm Schaumburg construction accident lawyer Illinois workers compensation attorney Illinois civil litigation lawyer sexual images surgical mistakes rest breaks Palatine corporate attorney filing a medical malpractice claim personal injury law firm income distribution deducation Illinois bicycle safety Barrington medical malpractice lawyers Buffalo Grove insurance claim dispute lawyers Schaumburg car accident attorney Crystal Lake employment attorney material misrepresentation Palatine criminal defense lawyer attorney fees marijuana crimes attorney living wills eluding a police officer elder abuse Policy Cancellation insurance claims insurance agent negligence natural gas Deer Park employment law attorney Illinois will lawyer estate planning, digital assets, Revised Uniform Fiduciary Access to Digital Assets Act, Illinois digital assets, Illinois estate planning, Schaumburg personal injury lawyer college kids Schaumburg real estate lawyer dealing with problem employees Des Plaines real estate lawyer Illinois real estate Buffalo Grove traffic attorney commercial leasing Deer Park accident attorney preventable medical errors Crystal Lake injury attorney boating under the influence Illinois medical malpractice claim license Arlington Heights wills and trusts lawyers pedestrian-automobile accident estate planning Palatine workers compensation lawyer agent Schaumburg medical malpractice lawyer Illinois personal injury lawyer estate planning attorney Illinois Transfer on Death Instrument Crystal Lake personal injury attorney Illinois collections attorney Long Grove real estate lawyer gift taxes pedestrian accident Illinois attorney Des Plaines civil attorney Whistleblower Claims Mt Prospect Attorney Palatine personal injury lawyer Illinois rollover accident lawyers manufacturing right to work Rolling Meadows litigation lawyer Illinois pet lawyer Barrington estate planning lawyer modern family estate planning medication errors civil litigation attorney Arlington Heights estate planning attorney hiring employees traffic violations defense Illinois trusts attorney Schaumburg insurance lawyers expungement commercial real estate Schaumburg criminal law attorney vacation home fines foreclosure criminal record jet ski holiday statistics denied insurance claim Des Plaines DUI attorney medical malpractice Illinois workplace lawyer involuntary manslaughter Illinois employment laws denial of insurance claim operating agreements Rolling Meadows personal injury lawyers Palatine civil attorney Crystal Lake will lawyer Inverness personal injury attorney boating accidents Schaumburg probate attorney Illinois probate lawyer DMV crossover accidents Barrington estate planning attorney subcontractor natural gas explosion Deer Park traffic lawyer traffic laws personal injury blended families low-ball insurance settlement Forcible Entry Illinois living will Palatine employment lawyer digital information whistleblower protections Illinois mortgages Palatine trusts lawyer fatal car accidents Chicago employment lawyer employee discrimination Buffalo Grove car accident lawyer trench injuries Crystal Lake tax lawyer Home Sale Contingencies defective products Buffalo Grove life insurance attorney drug possession employment contract, employment law, employment at-will, Deer Park employment law attorneys, contract, Chicago insurance law firm back injuries insurance adjusters distracted driving accident victims Rolling Meadows DUI lawyer Crystal Lake civil litigation lawyer Colin Gilbert Illinois LLC creation driving Detainer Actions Des Plaines personal injury attorney brain injury Illinois corporate lawyer denial of life insurance digital assets, digital fiduciary, estate planning, digital content, Long Grove estate planning lawyers Liquor Control Act overtime violations llinois Real Estate Lawyers Association condo Schaumburg corporate attorney Chicago biking tips Arlington Heights traffic attorney products liability Schaumburg traffic lawyer Des Plaines tax law firm nursing home negligence car crash injuries Chicago will attorney, social media platforms, Illinois estate planning lawyer, underinsured motorist fault based insurance LLCs privacy DUI penalities personal injury attorney Illinois insurance claims lawyers lapse in policy corporate law Palatine drug lawyer swimming pools job lawyers personal injury accidents Illinois tax attorney installment contracts healthcare unauthorized overtime insurance denials Rolling Meadows marijuana attorney Palatine probate lawyer bad faith insurance claims advance healthcare directive IRA benefits Palatine insurance lawyer golf accidents estate attorney Barrington personal injury attorney ken apicella Arlington Heights personal injury lawyer drunk driving statistics Buffalo Grove injury lawyer Arlington Heights personal injury attorney controlled substance problem employees tax attorney Schaumburg wrongful death attorney Illinois red light cameras most common reasons for life insurance claim denials Chicago car accident lawyer insurance negligence compensatory time Crystal Lake personal injury lawyer Chicago life insurance attorney employee misclassification employment law, meal breaks, rest breaks, hotel employees, Des Plaines employment law attorneys Crystal Lake estate planning lawyer uninsured motorist motorcycle accident lawyer Buffalo Grove criminal defense lawyer Rolling Meadows business lawyer meal breaks Palatine traffic lawyer Arlington Heights wills and trusts attorneys rumble strips anesthesia errors vacation home premises liability pedestrian injuries, pedestrian fatality Inverness accident lawyer pregnant women Mount Prospect elder law attorney BAC independent contractor Arlington Heights trucking lawyer Des Plaines collections attorney Arlington Heights real estate lawyer sexual harassment Landlord Tenant Ordinance Palatine employment law lawyer senior citizens Illinois personal injury lawyers Schaumburg elder law lawyer Rolling Meadows criminal attorney coronavirus trauma after an accident Deer Park motorcycle accident lawyer drug crimes lawyer first degree murder Do Not Resuscitate car accident lawyer Des Plaines criminal attorney trusts Super Mario loopholes Crystal Lake insurance lawyer Buffalo Grove personal injury lawyer Illinois Probate Act of 1975 Crystal Lake medical malpractice attorneys Illinois Wage Payment and Collection Act Schaumburg personal injury lawyers Rolling Meadows accident lawyer blood alcohol content Illinois Trust Code mass shooting Rolling Meadows tax attorney food poisoning icy parking lots IRA trust transfer Buffalo Grove probate lawyer financial advisors Crystal Lake bike accident lawyer automated cars employment lawyer Palatine business attorney personal injury claims Illinois Human Rights Act Illinois personal injury wrongful termination, employment law, whistleblower protections, Illinois employment laws, discrimination in the workplace Palatine civil litigation lawyer Illinois employee rights attorney. living trust vs will traffic accidents Rolling Meadows insurance lawyer cell phone tower data Schaumburg Attorney Attorney Ken Apicella Deer Park workers compensation lawyer life insurance claim denial, denial of life insurance claim defective products lawyer consent to a search Palatine estate planning lawyer Rolling Meadows probate lawyer license revocation trucking accident lawyers business litigation boating DUI insurance disputes medical marijuana School Visitation Rights Act Illinois traffic laws Buffalo Grove medical malpractice lawyers Illinois traffic accident lawyer clemency bike accident comparative negligence Des Plaines drug crimes lawyer Des Plaines real estate attorney pizza emoji Self-Directed IRA Accounts Kenilworth estate planning attorneys marijuana Illinois registered agent