Business & Work

In Illinois, you must be paid at least twice a month in most cases. Commissions may be paid once per month. If you work for an employment agency that usually pays daily, you can ask in writing for the agency to hold your wages and pay you either weekly or twice a month.

The Illinois Wage Payment and Collection Act (IWPCA) is the law that applies. IWPCA provides protections to employees, including:

• If you are paid twice a month or every 2 weeks, your employer must pay you within 13 days from the end of the pay period,
• If you are paid weekly, your employer must pay you within 7 days from the end of the pay period,
• If you are paid daily, your employer must pay you on the same day you earn the wages, or no later than 24 hours after the wages were earned,
• Employers must pay employees on strike or layoff, no later than the next regular pay day, all wages earned up to the time of the strike or layoff,
• Employers must reimburse you for all necessary expenses or losses that happen as part of your employment,
• Employers must tell employees their pay rates and how they will be paid before they begin working, and
• Employers cannot deduct funds from an employee's pay unless they meet specific criteria.  

The law protects both salaried and hourly employees, but does not cover: 

• Federal or state government employees,
• Independent contractors, or
• Employees who work outside of Illinois.   

Do you need to have all your pay stubs to prove you were underpaid?

No. While you should keep any evidence that you have showing that you were underpaid, such as pay stubs, time cards, and W-2, it is not necessary. State and federal laws require your employer to keep records of your hours and pay.

As of January 1, 2025, IWPCA requires employers to keep pay stubs for at least three years from the pay date. Employers must give copies of the pay stubs to employees within 21 days, when requested. This also applies to former employees for up to one year after their employment ends. An employer can require that the request be in writing. Employers are only required to give you copies twice in a 12-month period. 

When must you be paid if you are fired or leave a job?

You must be paid everything you are owed by your employer by the next regularly scheduled payday. You have the right to ask in writing that your final wages be paid by check and mailed to you. If your employer offers vacation pay, you should also be paid any paid vacation time you earned but did not take.

What if you or your employer are outside of Illinois?

IWPCA applies to employers and employees in Illinois. Sometimes, your employer may be based outside of Illinois, or you may only work in Illinois part of the time. In these cases, it can be hard to tell if you or your employer are considered “in Illinois” under IWPCA. 

Employees who do some work in Illinois might be covered by IWPCA even if they are not Illinois residents or work in other states, too. There is no exact rule about how much work has to be done in Illinois, but courts will look at your work in the state. If you have never worked in Illinois, IWPCA likely does not apply.

Employers may be covered by the IWPCA even if they are headquartered outside Illinois, as long as they have “sufficient contacts in the State.”  For example, an employer may have “sufficient contacts” if they:

• Are registered to do business in Illinois,
• Have a registered agent in Illinois,
• Market or provide services in Illinois,
• Keep an office in Illinois, or
• Direct work that happens in Illinois. 

Because this can be complicated, you may want to speak with a lawyer if you are not sure whether IWPCA applies to you or your employer.

Can you still recover owed wages if your employer is no longer operating?

Yes. Even if your employer has stopped operating and has closed its doors, they still owe you your earned wages. Both the company that hired you and the individuals in charge of the company are responsible for paying you all of your owed wages.

What if your employer does not follow IWPCA?

If your employer does not follow the wage laws, you can file a complaint with the Illinois Department of Labor (IDOL) or file a civil action. Employers found to have violated the act are responsible for the amount of unpaid wages, plus damages equal to 5% of the underpayment per month for each month wages continue to be unpaid. IDOL is responsible for enforcing IWPCA and tries to resolve disagreements between employees and employers. IDOL can also prosecute claims for an employee and can make an employer pay additional penalties. 

You can also sue your employer for unpaid wages and reasonable attorney's fees. Learn more about your options and how to start a case to get back unpaid wages.