Illinois Pay Period and Frequency Laws
Various labor laws and regulations are in effect across the United States. Some federal laws apply to all states, but no law is in place around pay period and frequency on a nationwide level. Explore the requirements around the schedule for paying employees in Illinois.
Does Illinois Have Pay Period and Frequency Laws That Differ from Federal Laws?
Yes, Illinois has laws in place around pay period and frequency that differ from federal law.
How Often Do Employers Need to Pay Employees in Illinois?
The Illinois Wage Payment and Collection Act dictates the pay frequency requirements. Under the law, all employees except those employed by the state or federal government, must be paid at least semi-monthly. Employees defined under the FLSA as executive, administrative, and professional are allowed to be paid once per month.
How Long After a Pay Period Must Wage be Paid in Illinois?
Employees must be paid wages earned during a pay period within 13 days after the period ends. If an employer offers weekly pay, it is required to be issued to employees no later than 7 days after the pay period ends. Employees covered under a valid collective bargaining agreement may be exempt from these requirements.
What Are the Penalties to Employers for Late Paychecks in Illinois?
The Wage Payment and Collection Act also includes penalties for employers who fail to comply with the pay requirements. These may include financial penalties, administrative fees ranging from $250 to $1,000 per instance, and criminal charges. Employers may also be held liable for statutory damages.
What Are the Paycheck Requirements for An Employee Whose Employment Has Been Terminated?
An employee who has resigned or been terminated must receive their final paycheck on the next schedule payday, unless immediate payment is an option. The final check should include any earned wages and/or commissions, bonuses, and the value of all accrued, unused vacation time. It can be mailed or paid via direct deposit.
Are There Any Municipalities or Cities in Illinois That Have Differing Pay Period or Pay Frequency Laws?
No, the pay period and frequency laws apply to employers statewide.
Are There Any Other Laws in Illinois Regarding Pay Periods and Pay Frequency?
As of January 1, 2025, employers in Illinois are required to provide information to employees each pay period. This information includes hours worked, pay rates, deductions, and overtime pay. Employers must maintain records of all pay stubs for three years from the date of payment, even for employees who are no longer employed with the organization.
Accurate hours are critical to accurate paychecks. An automated time and labor platform like WorkforceHub streamlines how you collect employee time data. Integrations with top payroll platforms ensure that employees receive the proper pay for hours worked. Plus, you can set up pay periods within the platform that comply with Illinois regulations.
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