Illinois Enacts New Pay Stub Requirements for Employers – Effective 1/1/25

Written by Becky Sherer | Dec 26, 2024 8:35:20 PM

Starting January 1, 2025, amendments to the Illinois Wage Payment and Collection Act (IWPCA) introduce new requirements for employers regarding pay stubs. Key points include:

1. Pay Stub: A "pay stub" must itemize:

Hours worked
Rate of pay
Overtime pay and hours worked
Gross wages
Deductions
Total wages and deductions for the year.

2. Employer Obligations:

Provide an electronic or physical pay stub each pay period.
Retain pay stubs for at least three years, even if the employee leaves before this period ends.
Respond to requests for pay stubs from current or former employees within 21 days.
For electronic pay stubs, ensure access for at least one year after employment ends.

3. Limits on Requests:

Employers can require written requests for pay stubs.
Employees can request pay stubs no more than twice per year.
Former employees can only request stubs within one year of separation.

4.Penalties: Employers who fail to comply may face civil penalties of up to $500 per violation, in addition to damages or attorney's fees for other wage-related issues.

Action Steps for Employers:

Ensure pay stubs meet the new requirements.
Train payroll staff to handle requests efficiently.
Maintain records for three years.
Ensure electronic stubs are accessible for one year after separation or implement an alternative process.

Our team of HR experts is here to help you navigate these changes with confidence and keep your business running smoothly. If you're interested in working with our HR experts, please reach out to us at info@gocgo.com.

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