Illinois Payday Laws 2026: Pay Frequency, Timing, and Final Pay Rules

Illinois provides strong protections for employee wages through the Illinois Wage Payment and Collection Act (IWPCA), codified at 820 ILCS 115. This law governs when employees must be paid, how final paychecks are handled, what deductions employers can take, and what happens when employers violate these rules. Unlike some states that leave pay frequency largely to employer discretion, Illinois mandates semi-monthly pay for most workers and imposes strict limits on wage deductions — even requiring written consent for deductions that many employers assume they can make automatically. For small business owners, understanding these rules is critical: the IWPCA gives employees a private right of action to sue for unpaid wages, with penalties that include 2% per month on the unpaid amount plus attorney's fees.

Pay Frequency Requirements

Under the Illinois Wage Payment and Collection Act (820 ILCS 115/3), most employees must be paid at least semi-monthly — twice per month. This is the minimum pay frequency required by Illinois law for the vast majority of workers. Employers who want to pay more frequently are welcome to do so, but paying less frequently than semi-monthly is restricted to specific categories of employees.

The permitted pay frequency options in Illinois are:

• Semi-monthly: Twice per month (e.g., the 15th and the last day of the month). This is the minimum frequency required by Illinois law for most employees.
• Biweekly: Every two weeks (26 pay periods per year). Common and fully compliant.
• Weekly: Every week (52 pay periods per year). Also common and compliant.
• Monthly: Once per month. This is only permitted for employees classified as executive, administrative, or professional under state and federal law. Hourly and non-exempt employees cannot be paid on a monthly basis.

Employers are required to establish regular paydays and notify employees of those scheduled paydays. This notification should happen at the time of hire and whenever the pay schedule changes. Consistency matters — once you set a pay schedule, employees have the right to rely on it.

Pay Timing Rules

Illinois law specifies not just how often employees must be paid, but also how quickly after the work is performed. Under 820 ILCS 115/4, wages must be paid within 13 days after the end of the pay period in which they were earned. This 13-day window applies to all pay frequencies — semi-monthly, biweekly, and weekly.

For example, if your semi-monthly pay period runs from the 1st through the 15th of the month, wages for that period must be paid no later than the 28th of that same month. If the pay period runs from the 16th through the last day of the month, wages must be paid by the 13th of the following month.

Employers should be aware that the 13-day rule means the wages must actually be available to the employee — not simply mailed or initiated as a direct deposit. If you pay by check, the check should be in the employee's hands (or available for pickup) within the 13-day window. If you pay by direct deposit, the funds should be accessible in the employee's bank account by the deadline.

Final Paycheck Rules

Illinois takes a straightforward approach to final paychecks that is notably simpler than states like California. Whether the employee quits voluntarily or is terminated by the employer, the rule is the same:

Involuntary Termination (Fired, Laid Off, or Discharged)

Under 820 ILCS 115/5, when an employer terminates an employee, all wages earned through the date of separation must be paid by the next regularly scheduled payday. There is no requirement to have the final paycheck ready on the day of termination — unlike California, which requires immediate payment upon discharge.

Voluntary Resignation

The same rule applies: when an employee quits, all wages earned through the last day of work are due by the next regularly scheduled payday. There is no distinction based on whether the employee gave advance notice or resigned without warning.

If the employer does not have a regular payday (for example, for a seasonal or irregular arrangement), the final wages are due within 13 days of the employee's last day of work.

The final paycheck must include all earned wages — regular pay, overtime, earned commissions, and any other compensation owed through the date of separation. Illinois does not have a statute requiring payout of accrued vacation or PTO at termination, but if your company policy or employment agreement promises vacation payout, that promise is enforceable under the IWPCA as part of the wages owed.

Illinois Wage Payment and Collection Act

The Illinois Wage Payment and Collection Act (IWPCA), 820 ILCS 115, is the primary state law governing wage payments in Illinois. It is one of the most employee-friendly wage payment statutes in the country, and every Illinois employer should understand its key provisions:

• Pay frequency: Establishes the semi-monthly minimum pay requirement and monthly exception for exempt employees (Section 3).
• Pay timing: Requires wages to be paid within 13 days of the end of the pay period (Section 4).
• Final pay: Sets the next-regular-payday deadline for all separations (Section 5).
• Deduction rules: Strictly limits what employers can deduct from wages (Section 9) — one of the most restrictive deduction rules in any state.
• Pay stubs: Requires itemized statements of deductions with each payment (Section 10).

The IWPCA applies to all employers in Illinois, regardless of size. There is no small-employer exemption. Whether you have 1 employee or 10,000, the same rules apply.

Strict Deduction Rules

One of the most important — and most commonly violated — provisions of the IWPCA is its strict limitation on wage deductions. Under Section 9 of the Act (820 ILCS 115/9), employers cannot deduct from an employee's wages without the express written consent of the employee. This is far more restrictive than many employers realize.

Specifically, without proper written authorization, an employer cannot deduct for:

• Cash register shortages
• Damage to company property (even if caused by the employee's negligence)
• Lost or stolen equipment
• Uniforms or tools
• Customer walkouts or bad debts
• Overpayment of wages (without following specific procedures)

For a wage deduction to be lawful under the IWPCA, the following conditions must all be met:

• The employee must provide express written consent to the specific deduction.
• The consent must be voluntary — not coerced as a condition of employment or continued employment.
• The consent must be specific — a blanket authorization to "deduct any amounts owed" is not sufficient. The employee must know the amount and reason for the deduction.
• The deduction must be for the employee's benefit or must fall within other narrow exceptions.

The consequences of making an unauthorized deduction are severe. The employee can file a wage claim with IDOL or sue directly in court. If the employer is found to have made an unauthorized deduction, the employer must repay the full amount plus the 2% per month penalty and attorney's fees. Illinois courts have consistently held that employers bear the burden of proving that a deduction was properly authorized.

Pay Stub Requirements

Under 820 ILCS 115/10, Illinois employers are required to provide employees with an itemized statement of deductions with each wage payment. This pay stub requirement ensures that employees can verify that their wages are being calculated correctly and that only authorized deductions are being taken.

The pay stub must include:

• Hours worked during the pay period (for hourly employees)
• Rate of pay
• Gross wages earned
• All deductions — each one individually itemized with the amount and purpose
• Net wages paid

Failure to provide proper pay stubs does not carry a separate penalty under the IWPCA, but it can be used as evidence in a wage claim. If an employee alleges they were underpaid and the employer cannot produce accurate pay records, the employee's version of events is more likely to be believed by IDOL investigators or a court.

Direct Deposit Rules

Illinois permits employers to pay employees via direct deposit, but the arrangement must be voluntary. Here are the key rules:

• Written consent required. The employee must provide written authorization to receive wages by direct deposit. Employers cannot require direct deposit as a condition of employment.
• Employee can revoke at any time. An employee has the right to withdraw their consent and switch to receiving a physical paycheck at any time, with reasonable notice to the employer.
• Funds must be available on payday. The deposited wages must be accessible in the employee's bank account on the designated payday — not merely initiated on payday.
• No fees to access wages. The employee should not be charged fees by the employer to access their full wages through direct deposit.

Payroll cards (prepaid debit cards loaded with wages) are also an option in Illinois, subject to similar voluntary-consent requirements. Employees must always have the option to receive payment by check or direct deposit instead.

Wage Claims and Enforcement

Illinois employees who believe their employer has violated the IWPCA have two primary avenues for recovery:

Filing a Complaint with the Illinois Department of Labor (IDOL)

Employees can file a wage complaint with IDOL, which will investigate the claim at no cost to the employee. IDOL has the authority to order the employer to pay the unpaid wages plus penalties. The complaint must generally be filed within one year of the date the wages were due (for non-payment claims) or within one year of the unauthorized deduction. IDOL may extend this period in certain circumstances.

Filing a Private Lawsuit

Alternatively — or in addition to the IDOL complaint — employees can file a private lawsuit in Illinois state court. This is a significant feature of the IWPCA: unlike many state wage laws that require employees to exhaust administrative remedies first, the IWPCA allows employees to go directly to court. The statute of limitations for a private lawsuit is 10 years under the general statute of limitations for written contracts, giving employees a long window to bring claims.

Penalties and Damages

If an employer is found to have violated the IWPCA, the remedies include:

• Full payment of unpaid wages
• 2% per month penalty on the amount of underpaid or unpaid wages, accruing from the date the wages were due until the date they are paid in full
• Attorney's fees and costs — the prevailing employee can recover their legal costs from the employer
• Damages for retaliation — if the employer retaliates against an employee for filing a wage claim, additional damages may be awarded

Special Situations

Commissioned Employees

Employees paid on commission are covered by the IWPCA. Commissions that have been earned are considered wages and must be paid in accordance with the terms of the commission agreement. Upon termination, all earned and calculable commissions must be included in the final paycheck by the next regular payday. If the commission agreement specifies that commissions are not "earned" until a triggering event (such as payment by the customer), the employer must follow those terms — but the agreement must be clear and in writing.

Deceased Employees

When an employee dies, all wages earned through the date of death must be paid to the employee's estate or surviving spouse. Illinois law provides a simplified process for small amounts — wages up to a certain threshold may be paid to the surviving spouse or next of kin without requiring full probate proceedings, upon presentation of proper documentation.

Seasonal and Temporary Workers

Seasonal and temporary workers are subject to the same IWPCA rules as permanent employees. They must be paid at least semi-monthly, and their final wages are due by the next regular payday when the assignment ends. There is no exception for short-term or seasonal employment arrangements.

Compliance Checklist for Illinois Employers

Use this checklist to ensure your business is fully compliant with Illinois payday laws:

• Pay frequency: Non-exempt employees are paid at least semi-monthly. Monthly pay is only for qualifying executive, administrative, or professional employees.
• Pay timing: Wages are paid within 13 days after the end of the pay period in which they were earned.
• Regular paydays established: You have set regular paydays and notified all employees of the schedule.
• Final pay (termination): Final paycheck is delivered by the next regularly scheduled payday after separation, for both quits and firings.
• Wage deductions: All non-legally-required deductions have specific, voluntary, written consent from the employee. No deductions for shortages, damage, or lost property without proper authorization.
• Pay stubs: Every payment includes an itemized statement showing hours worked, rate of pay, all deductions, and net pay.
• Direct deposit: Written authorization is on file for every employee paid by direct deposit. Employees know they can opt out at any time.
• Overtime wages: Overtime is paid no later than the next regular payday following the pay period in which it was worked.
• Commission agreements: Written commission agreements are in place for all commissioned employees, clearly defining when commissions are "earned."
• Record retention: Payroll records are maintained for at least 3 years (5 years recommended for full protection under IWPCA's extended statute of limitations).