Illinois Wage Payment Laws
- Frequency of wage payments
- Manner of wage payments
- Direct deposit
- Payment upon separation from employment
- Wage in dispute
- Deductions from wages
- Uniforms, tools, and other equipment necessary for employment
- Pre-hire medical, physical, or drug tests
- Notice of wage reduction
- Statement of wages (pay stubs)
- Record keeping requirements
- Notice requirements
Frequency of Wage Payments
An employer must pay employees all wages due at least twice per month. Wages of executive, administrative and professional employees, as defined in theFair Labor Standards Act (FLSA), may be paid once a month. Commission may be paid once a month.
An employee employed by an employment or labor placement agency which makes daily wage payments to employees may request in writing that their wages be paid either weekly or twice per month. Employment and labor placement agencies that make daily wage payments must provide written notice to all daily wage payment employees of the right to request weekly or semi-monthly checks. The employer may provide this notice by conspicuously posting the notice at the location where the wages are received by the daily wage employees. 820 ILCS 115/3
An employer who pays wages twice per month must pay its employees within 13 days of the end of the pay period. An employer who pays wages once per week must pay employees within 7 days of the end of the pay period. An employer who pays wages on a daily basis must pay employees on the same day the wages are earned, insofar as possible, but no later than 24 hours after the day on which the wages were earned. An employer paying executive, administrative and professional employees monthly must pay wages with 21 calendar days after the end of the pay period.
An employer must pay any employee who is absent at the time fixed for payment, or who for any other reason is not paid at that time, within a period of 5 days after the time fixed for payment. If the wages are not paid within 5 days, the employer must pay the employee within 5 days after the employee demands payment. Payment to the absent employee
shall be made by mail if the employee so requests in writing. 820 ILCS 115/4
Manner of Wage Payments
An employer may pay wages by:
- check, redeemable upon demand and without discount at a bank or other financial institution readily available to the employee, or
- direct deposit, so long as the employee designates the financial institution with which the wages are deposited.
An employer may pay wages by direct deposit, so long as the employee designates the financial institution with which the wages are deposited. 820 ILCS 115/4 Illinois law does not indicate whether an employer may require an employee to receive wages by direct deposit.
Payment upon Separation from Employment
Employees who are fired, discharged, terminated, or laid off
When an employee is discharged or laid off, an employer must pay the employee all wages due by the next regularly scheduled payday. The employee may request in writing that his final wages be paid by check and mailed to him or her. 820 ILCS 115/5
Employees who quit or resign
When an employee quits, an employer must pay the employee all wages due by the next regularly scheduled payday. The employee may request in writing that his final wages be paid by check and mailed to him or her. 820 ILCS 115/5
Employees who are suspended or resigns due to a labor dispute (strike)
When an employee is discharged, an employer must pay the employee all wages due by the next regularly scheduled payday. 820 ILCS 115/4
Wages in Dispute
In case of a dispute over wages between the employer and employee, the employer must timely pay, without condition, all wages or parts thereof, conceded by the employer to be due the employee, leaving to the employee all remedies to which he or she may otherwise be entitled as to any balance claimed. The acceptance by an employee of a disputed paycheck does not constitute a release of any claim. Any release or restrictive endorsement required by an employer as a condition to payment is void. 820 ILCS 115/9
Deductions from Wages
Without an employee’s express written consent given freely at the time the deduction is made, an employer may not make a deduction from an employee’s wages for:
- cash shortages,
- inventory shortages,
- failure to follow proper credit card, check cashing or accounts receivable procedures,
- damaged property,
- required uniforms,
- necessary equipment, or
- deposits on loaned equipment or other items.
An employer may not withdraw or deduct wages from an employee’s paycheck, unless it is:
- required by law;
- for the benefit of the employee;
- in response to a valid, garnishment, wage assignment, or wage deduction order ; or
- made with the express written consent of the employee, given freely at the time the deduction is made.
An employer cannot withhold all or part of the final compensation due an employee while it awaits return of property in the possession of the employee, unless the employee’s express written consent is given freely at the time the deduction is made. IL Admin Code 300.830
Uniforms, Tools, and Other Equipment Necessary for Employment
An employer may require an employee to pay for required uniforms or necessary equipment, but it cannot deduct the cost from the employee’s paycheck without the employee’s voluntary written consent. IL Admin Code 300.840
Pre-hire Medical, Physical, or Drug Tests
An employer cannot require an employee to pay for medical examinations or the cost of any record required as a condition of employment. IL Admin Code 300.860
Notice of Wage Reduction
An employer must notify employees of any changes in their rate of pay or of the time and place of payment of wages prior to the time of change. 820 ILCS 115/10
Statement of Wages (Pay Stub)
An employer must furnish each employee with an itemized statement of deductions made from his wages for each pay period. 820 ILCS 115/10
Record Keeping Requirements
An employer must keep, for a period of not less than three years, true and accurate records of:
- the name and address of each employee,
- the hours worked each day in each work week by each employee,
- the rate of pay,
- the amount paid each pay period to each employee, and
- all deductions made from wages.
An employer that provides paid vacation to its employees must maintain true and accurate records for a period of not less than three years of the number of vacation days earned for each year and the dates on which such vacation days were taken and paid. IL Admin Code 300.630
An employer must notify employees, at the time of hiring, of the rate of pay and of the time and place of payment. Whenever possible, such notification shall be in writing and shall be acknowledged by both parties. An employer must notify employees of any changes in their rate of pay or of the time an place of payment of wages prior to the time of change.
An employer must post and keep posted at each regular place of business in a position easily accessible to all employees one or more notices indicating the regular paydays and the place and time for payment of its employees. 820 ILCS 115/10