What's New in State Laws: Illinois
Illinois Human Rights Act
Effective January 1, 2026, a new law protects employees from discrimination caused by the use of AI in the workplace and also ensures that employers are transparent about their use of AI for employment-related decisions (HB 3773, 103rd Gen. Assem. (Ill. 2024)).
Illinois Wage Payment
The Illinois Wage Payment and Collection Act was amended to enhance the transparency and accountability of wage payments to employees. Under the changes, employers will be required to provide detailed pay stubs that must include information such as hours worked, rate of pay, overtime pay, gross wages earned, deductions, and year-to-date totals. Employers will be required to maintain copies of the pay stubs for at least three years, even after the employee's termination. Additionally, employers must furnish covers of pay stubs to current and former employees upon request, with specific timelines and conditions for compliance. The legislation also stipulates that employers must notify employees in writing of their rate of pay and payment schedules at the time of hiring and any subsequent changes.
The act imposes penalties for non-compliance, including fines for failing to provide pay stubs or other violations. Employers who do not timely pay wages, final compensation, or wage supplements are subject to damages of 5% per month of the unpaid amount, and additional penalties if they willfully refuse to pay.
In addition, employers who are ordered to pay wages owed will be subject to administrative fees, with amounts varying based on the sum owed. Thes fees and penalties are directed to the Wage Theft Enforcement fund, which supports the enforcement of the act and related educational activities.
Employees are protected from unlawful retaliation for filing a complaint or participating in proceedings related to wage disputes; such actions by employers will be considered a Class C misdemeanor. Employers found guilty of subsequent violations within two years of a prior conviction face increased penalties, including potential felony charges. The legislations aim to ensure that employees receive accurate and timely compensation and that employers adhere to fair labor practices (SB 3208, 103rd Gen Assemb. (Ill. 2024), effective January 1, 2025.
Source(s): Gallagher via Wolters Kluwer, received on October 8, 2024; (SB3208), accessed on October 11, 2024; HB 3773, accessed on October 11, 2024
This was an e-mail Compliance received from Gallagher "Compliance Directions", received on Tuesday October 8, 2024. We decided to break the information out by State. Compliance Calendar will be updated appropriately.