Illinois Payroll Rules

Frequency of Payments

You must pay your employees at least twice per month.

If you pay your employees twice per month, you must pay them within 13 days after the end of the pay period.

If you pay your employees weekly, you must pay them within seven (7) days after the end of the pay period.

If you pay your employees daily, you must pay them the same day the wages are earned (as possible) or within 24 hours.

Manner of Payments

You may pay your employees by cash, check, or direct deposit.

Payment Upon Separation

If an employee leaves your company for any reason, you must pay them by the next regularly scheduled payday.

Deductions

You cannot withhold any amount from an employee’s wages, unless it is

• required by law;
• for the employee’s benefit;
• in response to a garnishment, wage assignment, or wage deduction order; or
• with the employee’s written consent.

You may only deduct the following with the employee’s written consent:

• 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 necessary items.

Uniforms & Other Required Equipment or Tools

You may require an employee to pay for a required uniform or necessary equipment. However, you can only deduct the cost from the employee’s paycheck if you have their written consent.

Pre-Hire Medical, Physical, & Drug Tests

You cannot require an employee to pay for the cost of any pre-hire exams.

Notice of Wage Reduction

You must notify your employees of any changes to their wage rate or to the time and place of payment prior to making the changes.

Paystubs

You must give each employee an itemized statement of deductions for each pay period.

Recordkeeping

For each employee, you must keep the following records for at least three (3) years:

• name and address,
• hours worked each day,
• rate of pay,
• amount paid for each pay period,
• deductions made from each paycheck,
• the number of vacation days earned each year, and
• the dates vacation days were taken and paid.

Notices

When you hire a new employee, you must notify them of their rate of pay and the time and place of payment. When possible, the notice must be in writing and acknowledged by both you and the employee.

You must notify your employees of any changes to their wage rate or to the time and place of payment prior to making the changes.

You must post, in a position easily accessible to all employees, notices indicating the regular paydays and the place and time for payment.