Today, the Illinois Supreme Court issued a ruling in Carmen Mercado v. S&C Electric, a case involving important issues related to the proper calculation of overtime pay and whether an employer is subject to penalties if it pays overtime wages many months late. HSPRD argued the case on behalf of plaintiffs this past September, and the Illinois Attorney General filed a brief in support of our clients’ arguments.
The lower court concluded that performance bonuses not measured by hours worked should not be included in the rate used to calculate overtime pay. The lower court also ruled that if an employer pays overtime wages many months after they are due, then the employer cannot be held liable for treble damages and other penalties typically owed under the Illinois Minimum Wage Law.
In today’s decision, the Illinois Supreme Court reversed the lower court’s ruling, holding that performance bonuses must be included in the rate used to calculate overtime pay. It also held that employers can be held liable for penalties if they pay overtime wages after they are due. The Court said, “The plain, unambiguous language of section 12(a) [of the IMWL] refutes the argument that there is no deadline in the statute for reimbursing an employee for an underpayment.” This is the first time that the Illinois Supreme Court has issued an opinion interpreting the Illinois Minimum Wage Law.
HSPRD partner Margaret Truesdale, who argued the case on behalf of Ms. Mercado, said this about today’s ruling, “We are pleased that the Illinois Supreme Court adopted Plaintiffs’ reading of the Illinois Minimum Wage Law. The important decision ensures that workers who do not timely receive overtime pay can redress their injuries in state court. The ruling also deters employers from adopting pay structures designed to avoid paying workers all overtime wages due.”
Read the ruling here.