Illinois Employers Must Factor Some Bonuses Into OT Pay Math

Illinois’ minimum wage law requires employers to factor performance bonuses into the calculation of overtime wages, the state’s highest court ruled.

The Illinois Supreme Court on Friday reversed the lower courts’ decisions dismissing a class action complaint brought against two former employees of S&C Electric Co. who alleged the company underpaid their overtime wages by incorrectly excluding certain performance bonuses from the regular rate of pay used to calculate overtime pay. They remanded the case to the circuit court.

Justice Joy Virginia Cunningham said S&C’s reading of the state labor department’s regulations around what constitutes a gift and what counts ...