Under the Illinois Wage Payment and Collection Act, employers may deduct from their employees' paychecks only for legally authorized reasons or with their employees' written consent. Illinois employers may make deductions only when specifically authorized by Illinois law, by federal law or for their employees' benefit. Illinois allows employers to deduct the costs of insurance from their employees' paychecks if they obtain written permission authorizing those deductions.
Paycheck Requirements
Employers in Illinois must pay their employees at least twice every month for all wages earned during their semiannual pay periods in increments not exceeding 13 days between pay periods. Employers may pay their administrative and professional employees once per month. Employers cannot legally deduct wages from their employees' paychecks without a court order requiring wage withholdings, without express written permission from their employees or as required by the Internal Revenue Service or Illinois Department of Revenue. Employers may deduct insurance costs if their employees provide written consent allowing those deductions.
Payment of Wages
Under the Illinois Wage Payment and Collection Act, employers must pay their employees all disputed wages and cannot require their employees to execute release agreements that release them from future liability in exchange for compensation. Employers must keep records of their wage deductions and pay for each period for a minimum of three years. The Illinois Department of Labor requires employers to post their scheduled paydays and place of payment in a conspicuous area, provide written notification of their pay practices to each employee and obtain signed receipt of their compensation disclosures.
Written Consent
The Illinois Wage Payment and Collection Act requires employers to obtain written consent from their employees prior to deducting their wages from their paychecks. Employers must obtain unconditional and voluntary consent from their employees before deducting their wages. In addition to keeping accurate wage records, employers must provide each employee with pay stubs or written itemized deduction statements with each paycheck.
Penalties
The Illinois Department of Labor has the authority to file lawsuits in Illinois circuit courts and can require the employer to participate in an adjudicatory hearing with the Department of Labor. The Attorney general of Illinois represents the employee's interests and can recover fees and penalties against noncompliant employers. Employers who retaliate against employees exercising their rights by filing a complaint with the director of labor or with authorized union representatives may be guilty of a Class A, B or C misdemeanor, punishable by damage awards, payment of reasonable legal fees and equitable remedies including payment of back wages for up to $5,000.
Considerations
Since employment laws can frequently change, do not use this information as a substitute for legal advice. Seek advice through an attorney licensed to practice law in your jurisdiction.
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