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


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