Can an Employer Cut Your Wages Down Legally in Illinois?

Fair Labor Standards Act.

In Illinois, employers are bound by the Fair Labor Standards Act. The FLSA determines the minimum wage employers must pay, as well as what determines overtime pay. Illinois follows the guidelines set by the FLSA and does not have any unique pay requirements. This means employers must pay no less than $7.25 per hour to employees, unless the employee is a salaried worker or works in an exempt field.

In some states, such as Connecticut, if an employer cuts an employee's wages, the employer must notify the employee in writing before the pay period when the cut happens. In many cases, employers reduce wages to stay competitive. Many employees prefer having reduced wages over losing their jobs. Illinois does not require written notification to cut wages.

Illinois has a higher minimum wage than the federal minimum wage. While the federal minimum wage is $7.25 an hour, the minimum wage in Illinois is $8.25 for workers who are at least 18 years old. This means an employer in Illinois must pay Illinois minimum wage, as opposed to federal minimum wage. Workers younger than 18 years old earn a minimum wage of $7.75 an hour.

If an employer in Illinois decides to cut employee pay, employees need to find out if the pay cut is permanent or temporary. Doing this allows them to decide whether or not it might make more sense to look for another job. If the pay cut is temporary, employees should get the conditions of the pay cut in writing. There should be a starting date and an ending date. Some jobs, such as airline pilots, have unions protecting their rights when pay is cut. For employees with no union protection, getting the pay conditions in writing is their only recourse.

In Illinois, even if an employee takes a reduction in pay, the employer legally must provide for overtime pay, in the event the employee works more than 40 hours a week. The only exception to having to pay overtime is if the employee is exempt, due to either the position held in the company or the job description. For example, in Illinois, agricultural workers are not entitled to overtime pay.