Legal Disclaimer: This article provides general information for educational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change frequently. For advice specific to your situation, consult a licensed attorney in your area.
Illinois has some of the strongest wage protection laws in the Midwest. The Illinois Wage Payment and Collection Act (IWPCA) gives workers powerful tools to recover unpaid wages, including penalties that can exceed the original amount owed. Combined with the Illinois Department of Labor's enforcement, Illinois workers have meaningful recourse when employers don't pay.
This comprehensive guide covers Illinois wage laws, how to calculate what you're owed, and the step-by-step process for recovering unpaid wages.
Key Law: The Illinois Wage Payment and Collection Act (820 ILCS 115) requires employers to pay all wages earned and provides penalties of 2% per month for violations. Illinois also has one of the longest statutes of limitations—10 years for IWPCA claims.
Final Paycheck Requirements
When You Quit
If you voluntarily resign, your employer must pay all final wages by the next regularly scheduled payday.
When You're Fired
If you're terminated, all wages must be paid by the next regular payday. There's no "immediate payment" requirement in Illinois, but the next payday rule is strictly enforced.
What Must Be Paid
- All hours worked through termination
- Accrued but unused vacation time (if company policy provides for it)
- Commissions earned
- Bonuses that were promised or earned
- Expense reimbursements
Vacation Pay: Illinois law treats earned vacation as wages. If your employer's policy provides vacation time, they cannot forfeit it upon termination unless the policy clearly states otherwise.
Illinois Minimum Wage
As of 2024, Illinois minimum wage is $14.00 per hour statewide. Chicago has a higher minimum:
- Chicago (large employers): $15.80/hour
- Chicago (small employers): $15.00/hour
- Tipped employees: $9.00/hour (must equal minimum with tips)
Overtime Requirements
Illinois follows federal overtime rules with some additions:
- Time-and-a-half after 40 hours per week
- No daily overtime requirement
- Certain employees (domestic workers, some healthcare) have additional protections
Common Overtime Violations
- Misclassifying workers as exempt "managers"
- Paying salary to avoid overtime
- Requiring off-the-clock work
- Averaging hours over two weeks
- Not counting training or meeting time
Penalties for Violations
Illinois provides strong penalties for wage violations:
Under IWPCA
- 2% per month penalty on unpaid wages
- Penalty accrues from date wages were due
- Attorney fees recoverable by prevailing employee
- No cap on penalty amount
Example Calculation
If you're owed $5,000 and it takes 12 months to recover:
- Original wages: $5,000
- Penalty (2% × 12 months): $1,200
- Total recovery: $6,200 (plus attorney fees)
How to File a Wage Claim
Option 1: Illinois Department of Labor
File a wage claim with IDOL:
- No cost to file
- IDOL investigates on your behalf
- Can recover wages and 2% penalty
- Must file within 3 years of violation
Option 2: Private Lawsuit
Sue your employer directly:
- Small claims court for amounts under $10,000
- Circuit court for larger amounts
- Can recover attorney fees if you win
- May be faster than IDOL complaint
Demand Letter Strategy
Before filing a formal claim, a demand letter often resolves the matter. Include:
- Specific wages owed with dates worked
- Citation to Illinois Wage Payment and Collection Act
- Notice of 2% monthly penalty accruing
- Deadline to pay (typically 10-14 days)
- Statement that you'll file with IDOL and seek attorney fees if unpaid
Illegal Deductions
Illinois restricts what employers can deduct from wages:
- Allowed: Taxes, court-ordered garnishments, voluntary deductions with written consent
- Not allowed: Cash register shortages, breakage, tools/uniforms (in most cases), employer errors
Retaliation Protection
Illinois law prohibits employers from retaliating against workers who:
- File wage complaints
- Participate in wage investigations
- Discuss wages with coworkers
- Refuse to sign documents waiving wage rights
Statute of Limitations
- IWPCA claims: 10 years
- Minimum wage/overtime: 3 years
- Federal FLSA claims: 2-3 years
Pro tip: Illinois has one of the longest statutes of limitations for wage claims in the country. Even if it's been years, you may still have a valid claim.
Additional Illinois Labor Protections
One Day Rest in Seven Act
Illinois requires employers to provide at least 24 consecutive hours of rest in every calendar week. Violations can result in penalties.
Day and Temporary Labor Services Act
Temporary workers in Illinois have special protections:
- Must be paid at least weekly
- Entitled to wage parity with permanent employees after 90 days
- Cannot be charged for equipment or uniforms
- Protected against retaliation for exercising rights
Prevailing Wage Act
Workers on public construction projects must be paid prevailing wages, which are typically higher than minimum wage and include benefits. If you work on government-funded construction and aren't receiving prevailing wages, you may have a claim.
Filing a Wage Claim with IDOL
The Illinois Department of Labor accepts wage claims online or by mail. Here's the process:
- Gather documentation: Pay stubs, time records, employment contract, communications about pay
- Complete the claim form: Available online at IDOL website
- Submit with supporting documents: Include all evidence of wages owed
- IDOL investigates: They'll contact your employer and review evidence
- Resolution: IDOL can order payment or you can proceed to court
Frequently Asked Questions
Can my employer pay me late in Illinois?
No. Illinois employers must pay wages at least semi-monthly on designated paydays. Executive, administrative, and professional employees may be paid monthly. The 2% monthly penalty begins accruing immediately when wages are late.
What if I was misclassified as an independent contractor?
Misclassification is common and illegal. If you were treated as an employee (set schedule, employer-provided tools, controlled work methods) but paid as a contractor, you may be entitled to unpaid overtime, minimum wage, and benefits. Illinois has strong enforcement against misclassification.
Can I be fired for filing a wage complaint?
No. Illinois law prohibits retaliation against employees who file wage complaints, participate in investigations, or discuss wages with coworkers. If you're fired for asserting your rights, you may have an additional retaliation claim.
Do I need a lawyer to file an IDOL complaint?
No. The IDOL complaint process is designed for workers to use without attorneys. However, for complex cases or larger amounts, an attorney may be helpful. Many wage attorneys work on contingency, meaning they only get paid if you win.
What if my employer goes out of business?
You may still be able to recover wages. Options include filing claims against business owners personally (if they're personally liable), filing with IDOL before the statute of limitations expires, or filing a claim in bankruptcy proceedings if the business filed for bankruptcy.
Is there a minimum amount to file a wage claim?
No. You can file a claim for any amount of unpaid wages. However, for very small amounts, you may want to consider whether the time investment is worthwhile. Remember that you can also recover the 2% monthly penalty, which adds up over time.
Recover Your Illinois Wages
Generate a demand letter citing the Illinois Wage Payment and Collection Act.
Create Your Letter