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Illinois Bill Will Amend the Illinois Wage Payment and Collection Act 

05 Jun

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Update Applicable to:Effective date
All employers with at least 1 worker who performs work in IllinoisSee below


What happened?

The Illinois Senate introduced legislation that will amend specific sections of the Illinois Wage Payment and Collection Act. As of 5/24/2024, the bill has passed both houses and is expected to be sent to the Governor for consideration soon. If there is no specific date provided, the amended law will take effect upon signature.


What are the details?

  • An employer must keep a copy of an employee’s pay stub for at least 3 years after payment.
  • Current employees can request a copy of their pay stubs, with the employer required to provide them within 21 days and not more than twice in a 12-month period.
  • Former employees can request their pay stubs within one year of separation,
    and the employer must provide them within 21 days.
  • Former employees can choose to receive their pay stubs in physical or electronic format.
  • Employers must offer outgoing employees access to their pay stubs
    from the previous year if electronic access is unavailable after separation.
  • Requests for pay stubs can be made to designated individuals responsible for maintaining payroll records.
  • An employer who fails to furnish an employee with a pay stub or commits any other violation of this Act, except for specified violations, shall be subject to a civil penalty of $500 per violation payable to the Department of Labor.


Business Considerations

  • Record Keeping: Employers will need to ensure they have a robust system for maintaining and storing pay stubs for at least 3 years. This may require an investment in secure storage solutions or cloud-based systems.
  • Timely Response: Employers will need to ensure they have the capacity to respond to pay stub requests within the 21-day window. This may require additional administrative resources or the implementation of automated systems.
  • Employee Separation: Employers will need to have a process in place for providing former employees with their pay stubs in a timely manner and in the format of their choosing. This could involve creating a standard procedure for outgoing employees.
  • Designated Personnel: Employers will need to designate individuals who are responsible for maintaining payroll records and responding to pay stub requests.
    This could involve training specific staff members on these new responsibilities.
  • Penalties: Employers should be aware of the potential for significant penalties if they fail to comply with these requirements. They may want to consider seeking legal advice to ensure they fully understand their obligations under this new law.


Source References


Resources

  • Bill Summary: Link

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This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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