Understanding Illinois Wage Payment and Collection Act

The Illinois Wage Payment and Collection Act is a law that protects employees' rights to receive fair compensation for their work. It requires employers to pay employees on time and in full, with some exceptions for certain industries or circumstances.

Under this law, employers must pay employees at least once a month, on a regular payday, unless the employee is paid on a daily or weekly basis. This means that if you're paid biweekly, you should receive your paycheck every other week.

The Act also specifies that employers must pay employees for all work performed, including overtime, within 13 days of the end of the pay period. This means that if your pay period ends on the 15th of the month, you should receive your paycheck by the 28th of the same month.

If an employer fails to pay an employee on time, the employee may be entitled to recover up to 2% interest on the unpaid wages, in addition to any other damages or penalties that may be owed.

The Illinois Wage Payment and Collection Act requires employers to pay employees all wages due at least twice a month. This means you can expect to receive your paychecks on a regular schedule.

Employers are not allowed to pay employees once a month, except for executive, administrative, and professional employees, who may be paid once a month. This is defined by the Fair Labor Standards Act.

Wages can be paid on a time, task, piece, or any other basis of calculation. This means your pay is determined by your employment contract or agreement with your employer.

If you're employed by an employment or labor placement agency that makes daily wage payments, you have the right to request in writing that your wages be paid either weekly or twice a month.

Employers who pay wages twice a month must pay employees within 13 days of the end of the pay period. This gives you a clear deadline to expect your paycheck.

Employers who pay wages once a week must pay employees within seven days of the end of the pay period. This is a shorter deadline than for bi-weekly pay.

Employers who pay wages on a daily basis must pay employees on the same day the wages are earned, or within 24 hours after the day on which the wages were earned.

If you're absent at the time fixed for payment, or for any other reason are not paid at that time, your employer must pay you within five days after the time fixed for payment. If you demand payment, your employer must pay you within five days after your demand.

Here's a summary of the payment deadlines for different types of pay periods:

An employer must notify employees at the time of hiring of the rate of pay and the time and place of payment. This is a requirement under the IWPCA, 820 ILCS 115/10.

Employers are required to pay all wages earned at least semi-monthly. Wages must be paid no later than 13 days after the end of the pay period in which the wages were earned, unless the employee is an executive, administrative, or professional employee, in which case wages may be paid once a month.

An employer may pay commissions once a month, but must pay gratuities to employees as earned, and not keep them. Failure to pay gratuities owed to an employee more than 13 days after the end of the pay period in which gratuities were earned constitutes a violation of the IWPCA.

Employers are required to reimburse employees for all necessary expenses incurred within the employee's scope of employment and directly related to services performed for the employer. However, employees must comply with the requirements of the IWPCA, 820 ILCS 115/9.5 in order to receive reimbursement of expenses.

Employers cannot change an employee's rate of compensation or rate of pay without first notifying the employee before the effective date of the change. This is a requirement under the IWPCA, 820 ILCS 115/10.

Employers must pay their employees in full at the time of separation, or no later than the next regularly scheduled payday for such employee.

Here are some key employer duties under the IWPCA:

Payment frequency is important, and Illinois law is clear on this. An employer must pay employees all wages due at least twice per month, except for executive, administrative, and professional employees, who may be paid once a month.

Commission payments can also be made once a month. Employment and labor placement agencies that make daily wage payments must provide written notice to employees of their right to request weekly or semi-monthly checks.

Employers who pay wages twice a month must pay employees within 13 days of the end of the pay period. Those who pay wages weekly must pay employees within seven days of the end of the pay period. Daily wage payments must be made on the same day the wages are earned, or no later than 24 hours after.

Payment can be made by various methods, including cash, check, direct deposit, or payroll card. Employers must pay absent employees within five days after the time fixed for payment, and can make payment by mail if the employee requests it in writing.

Direct Deposit is a convenient way to receive your wages. You can designate a financial institution to receive your direct deposit.

According to Illinois law, an employer may pay wages by direct deposit, but only if the employee designates the financial institution with which the wages are deposited. This means you have the power to choose where your wages are deposited.

The law doesn't specify whether an employer can require an employee to receive wages by direct deposit, so it's best to check your employment contract or talk to your HR representative to confirm their policies.

When paying wages, employers have some flexibility in how they can do so. Employers can pay wages in cash, which is a straightforward option.

Employers can also pay wages by check, as long as the check is redeemable upon demand and without discount at a bank or other financial institution readily available to the employee. This means the employee should be able to cash the check easily.

Direct deposit is another option, but it requires the employee to designate the financial institution with which the wages are deposited. This can be a convenient option for employees who want to have their wages directly deposited into their bank accounts.

Employers can also use payroll cards to pay wages, but this option is not mentioned in the article section.

Here are the options for wage payment methods:

Deductions from an employee's wages or final compensation are still permitted under the IWCPA if certain requirements are met, and agreements to make deductions over a defined duration are limited to a maximum of six months.

An employer may not make a deduction from an employee's wages for various reasons, including cash shortages, inventory shortages, and failure to follow proper credit card or accounts receivable procedures, unless the employee has given their express written consent.

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, or made with the employee's express written consent.

Here are some examples of deductions that require express written consent:

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.

Deductions from wages or final compensation are still permitted under the IWCPA, but only if certain requirements are met.

Employers can't make deductions from an employee's wages without their express written consent. This consent must be given freely at the time the deduction is made.

Deductions are limited to a maximum of six months if they're made over a defined duration.

Here are some examples of deductions that are not permitted without an employee's express written consent:

An employer may not withdraw or deduct wages from an employee's paycheck unless it's required by law, for the benefit of the employee, or in response to a valid garnishment, wage assignment, or wage deduction order.

An employer must notify employees in writing of any changes in their rate of pay prior to the effective date of the change.

If an employer fails to notify an employee in writing, the employee's continued employment does not constitute consent to the change.

However, if an employee continues to work after being notified of a change in writing, it will be presumed that they have consented to the change, unless evidence to the contrary is provided.

An employer cannot retroactively reduce an employee's wages that have already been earned.

Employers must post notices indicating the regular paydays and the place and time for payment of wages at each regular place of business.