Illinois Paychecks laws & compensation compliance analysis

Illinois Paychecks: What you need to know

Wages include all compensation owed an employee by an employer pursuant to a contract or other agreement that may be determined by time, task, piecework, or any other method (820 ILCS 115/2).
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Illinois employers may establish semimonthly, biweekly, weekly, or daily pay periods for most employees (820 ILCS 115/3). Professional, administrative, and executive employees as defined in federal Fair Labor Standards Act and sales commissions may be paid monthly. The number of days between the end of a pay period and the actual payday varies, depending on the length of the pay period. In the absence of a union contract provision to the contrary, all paydays must comply with the following provisions:
Monthly pay periods. Wages must be paid on or before 21 calendar days after the end of the period in which they were earned (820 ILCS 115/4).
Semimonthly or biweekly pay periods. Wages must be paid no later than 13 days after the end of the pay period in which they were earned.
Weekly pay periods. Wages must be paid no later than 7 days after the end of the pay period in which they were earned.
Daily pay periods. Wages must be paid, as far as possible, on the day they were earned, and no later than 24 hours later.
Striking employees must be paid all wages earned up to the time of the strike or layoff no later than the next regular payday.
Employees who are absent on payday must be paid on demand at any time within 5 days after payday. After the expiration of the 5-day period, payment must be made on 5 days' demand.
Contractor Prompt Payment Act . This Act assists contractors and subcontractors in receiving timely payment for work. Owners must pay contractors within 15 days of the owner’s approval of the ...

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