Tips from a Naperville Business Lawyer for Abiding by the Illinois Wage Payment and Collection Act

wage, Naperville business law attorneyAs a business owner, you probably realize the importance of remaining in full compliance with federal and state laws. Those that apply to wages and compensation are especially crucial, as they are often the basis for claims and lawsuits filed by underpaid or disgruntled employees.

In my practice as a business law attorney, I have helped hundreds of commercial clients develop and implement policies for fair compensation. Employers in DuPage County and the surrounding regions would do well to familiarize themselves with not only federal regulations but with the Illinois Wage Payment and Collection Act as well.

To ensure your business is operating according to the applicable state policies and standards regarding wages, consider these important details:

Pay Rates and Pay Periods

Every employee in the state of Illinois (unless employed by the state or federal government) is to be paid minimum wage, at $8.25 per hour for a non-tipped position. You must pay your employees on a regular, agreed-upon pay schedule, and no later than 13 days after the agreed upon pay date. The law also applies to final payments for employees who are terminated or who resign. Such workers must receive all remaining pay, including bonuses or vacation pay, no later than the next regularly scheduled pay date.

Payroll Deductions Require Itemized Statements

If you deduct any earnings from an employee’s check for health insurance, taxes, or other various dues, you must provide your workers with an itemized statement that clearly outlines each deduction and its type, along with the exact amount for each one. Deductions are only permissible if they are required by law, they benefit the employee, they are made with the written consent of the employee, or are due to a wage deduction order such as child support.

Written Paid Time Off Policies

In the state of Illinois, offering paid vacation or sick time is left to the discretion of the employer and is not a requirement. If your business does choose to provide these benefits, though, you must indicate the guidelines in written form of some sort, such as an employee handbook. If one of your employees quits or is fired and he or she has not used all accrued vacation time, you must pay them the monetary equivalent of all earned vacation as a part of their final compensation.

Wage-Related Legal Guidance

Operating in accordance with the state’s pay laws is a necessary part of running a successful business, but it can understandably cause a great deal of confusion for both employers and their staff. If you have questions about the law or are involved in a claim regarding pay laws, contact an experienced Naperville business law attorney right away. At The Gierach Law Firm, we have the skill and knowledge to help you protect your company at every turn. Call 630-756-1160 today for a confidential consultation.



Illinois Department of Labor

Management Association

Illinois Wage Payment and Collection Act