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Summary of differences between federal and state regulations
The federal Fair Labor Standards Act contains certain provisions in regard to compensation in terms of minimum wage, overtime, child labor and recordkeeping requirements. Corresponding state provisions will be found under those topic areas. States are free to adopt additional provisions that are not regulated by the federal government such as frequency of payday and wage deductions. These provisions are discussed in this section.
Illinois law contains the following provisions:
Frequency of payday
Every employer is required to pay employees at least semi-monthly. Executive, administrative and professional employees (as defined in the Fair Labor Standards Act) may be paid once per month. 820 ILCS 115/3
Wages earned during a bi-weekly or semi-monthly pay period must be paid no later than 13 days after the end of the pay period, and no later than 7 days for an employee paid weekly. Wages of executive, administrative and professional employees may be paid on or before 21 calendar days after the end of the pay period in which they are earned. 820 ILCS 115/4
Wage deductions
Deductions from an employee’s wages are allowed where required by law, to the employee’s benefit, in connection with a valid wage assignment or deduction, and by employee’s written authorization, among other conditions. 820 ILCS 115/9
Notification and itemization
Employers must notify employees at the time of hiring of the rate of pay and time and place of payment, in writing when possible. Employers must post a notice indicating the regular paydays and place and time of payment and also notify employees of any changes in the arrangements prior to the change. Employers must provide employees with an itemized statement of deductions for each pay period. 820 ILCS 115/10
Deductions for medical exams
Deductions are not allowed for the cost of medical exams or medical records required by the employer. 820 ILCS 235/1
Payment for medical deductions
An employee may pay cash to an employer for medical deductions at the regular rate if the amount of wages in his or her paycheck do not cover the cost, for up to six months; in the event of layoff, the employee must have recall rights and not accept other employment for this to be in effect. 820 ILCS 150/1
Agreement to deduct
Any agreement for deduction of wages between an employer and employee must be given freely and in writing. Admin. Code Title 56, §300.720
Deduction for shortages
Cash or inventory shortages may be deducted from an employee’s wages only with the employee’s express written consent. Admin. Code Title 56, §300.730
Deduction limit
An employer may not deduct more than 15% of an employee’s gross wages per check for the repayment of a cash advance. Admin. Code Title 56, §300.800
Deduction for damage
Losses an employer suffers from property damage may be deducted from an employee’s wages only with the employee’s express written consent. Admin. Code Title 56, §300.820
Deduction for uniforms
Deductions are not allowed for the cost or cleaning of uniforms required by the employer except with employee’s express written consent. Admin.Code Title 56, §300.840
Overpayment of wages
When employer and employee agree regarding an error in the overpayment of wages, the entire amount can be deducted on the next paycheck. If the overpayment is not discovered immediately, the employer and employee may set up a repayment schedule. If no agreement can be reached on a repayment schedule, the employer must treat the overpayment as a cash advance and act accordingly. Admin. Code Title 56, §300.900
Travel reimbursements
Beginning in January 2019, employers must reimburse an employee for all necessary expenditures or losses incurred by the employee within the employee’s scope of employment and directly related to services performed for the employer. This includes all reasonable expenditures or losses required of the employee in the discharge of employment duties and that inure to the primary benefit of the employer.
State
Contact
Regulations
Frequency of payday
Wage deductions
Notification and itemization
Illinois Compiled Statutes Chapter 820, Section 115
Deductions for medical exams
Illinois Compiled Statutes Chapter 820, Section 235
Payment for medical deductions
Illinois Compiled Statutes Chapter 820, Section 150
Agreement to deduct
Ill. Dept. of Labor Admin. Code Title 56, §300.720
Deduction for shortages
Ill. Dept. of Labor Admin. Code Title 56, §300.730
Deduction limit
Ill. Dept. of Labor Admin. Code Title 56, §300.800
Deduction for damage
Ill. Dept. of Labor Admin. Code Title 56, §300.820
Deduction for uniforms
Ill. Dept. of Labor Admin. Code Title 56, §300.840
Overpayment of wages
Ill. Admin. Code Title 56, §300.900
Federal
Contacts
None.
Regulations
None.