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Non-manager salaried employees gone in Illinois? Indiana Illinois

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  • Non-manager salaried employees gone in Illinois? Indiana Illinois

    A friend of mine insists that all employees that are not management can no longer be salaried in Illinois. As a manager of a department of salaried employees, I'm wondering if there is any truth behind this at all. I work for a small company, so a law change like this might very well slip past us.

    If anybody has any information about this, I'd greatly appreciate it. It's hard finding anything relating to this using normal internet searches.

    Junior Member
    Last edited by etietje; 12-30-2008, 07:58 PM.

  • #2
    Not true. Let's start with federal law (FLSA). Any employee without exception can be paid on a salaried basis. However, when most people say "salaried" they often mean Exempt (no legal right to paid overtime) and paid on a Salaried basis. Many (but not all) Exempt employees must be paid on a Salaried basis, which is where the common misunderstanding that Exempt = Salaried comes from. Point of fact, not all Exempt employees must be paid on a Salaried basis. Doctors, lawyers, and teachers to name a few can be paid on a Hourly basis. Outside Sales can be paid on any basis but are generally paid as Commission only. The Exempt employees who generally must be paid on a salaried basis are the so-called White Collar exceptions.

    Non-Exempt employees (legal right to paid overtime) are commonly paid on a Hourly basis. But this is not a legal requirement. As long as the employee is paid overtime for hours worked past 40 in the work week and paid at least minimum wage, many different payment basis are legal, including Salaried, Piece Work, and Commission.

    Could IL have some law specific to IL only that relates to this? Anything is possible, but as always the obvious next question is to ask your friend for the name of the actual law. IL is a large state and the type of law you are talking about would have been well reported. It has not been. And federal law as described certainly does not agree with this argument.
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)


    • #3
      I live in Il. & I haven't heard anything about such a law.
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