Illinois Bill Will Amend the Illinois Wage Payment and Collection Act - Update - VensureHR (2024)

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What happened?

On August 9, 2024, Illinois Governor J. B. Pritzker signed SB 3208, which amends specific sections of the Illinois Wage Payment and Collection Act.

What are the details?

As we previously reported in our Vensure Legal Updates, the amendment modifies the Illinois Wage Payment and Collection Act in the following ways:

• The law aims to enhance transparency and ensure that employees have access to their pay information.

• Employee Pay Stub Inspection: Employers must allow employees to inspect their pay stubs upon request. This request may need to be in writing on a form provided by the employer.

• Record Keeping: Employers are required to keep records of employees’ names, addresses, and wages paid each payday, and must maintain copies of pay stubs for at least 3 years after the date of payment.

• Provision of Pay Stubs: Employers must furnish pay stubs to employees for each pay period. If an employee separates from the company, the employer must provide a paper or emailed electronic record of all pay stubs for up to three years before the separation.

• Penalties for Non-Compliance: Employers who fail to provide pay stubs or violate other provisions of the Act may face a civil penalty of $500 per violation, payable to the Department of Labor.

Business Considerations

• Employers should ensure that all employees are aware of their right to inspect their pay stubs and provide clear instructions on how to make such requests.
• Employers should maintain accurate and up-to-date records of employees’ information in the way required by the law, as well as ensure these records are easily accessible for at least three years.
• Employers should update their practices and procedures to provide pay stubs to employees for each pay period, either in paper form or electronically, and implement a system to promptly furnish former employees with their pay stubs for up to 3 years before their separation from the company.
• Employers should regularly review their compliance with the Personnel Record Review Act and the Illinois Wage Payment and Collection Act to avoid potential penalties and ensure permanent compliance.
• Employers should train HR and payroll staff on the new requirements to ensure consistent and accurate application of the law.

Source References

• IL SB 3208
• Illinois Governor Signs Legislation Impacting Small Business (National Federation of Independent Business)

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