Illinois lawmakers recently amended state law to provide current and former employees greater access to their paystubs – meaning you’ll have some new obligations to be aware of. The Wage Payment and Collection Act amendments go into effect in 2025, but you should be prepared to update your payroll practices, payroll recordkeeping, and your responses to requests for paystubs. What should you do to comply with these forthcoming changes?

What is the Illinois Wage Payment and Collection Act?

The Illinois Wage Payment and Collection Act (IWPCA) is the primary state statute that governs the payment of wages to employees and the deductions that an employer can make from an employee’s paycheck. The IWPCA generally establishes when, where, and how often wages must be paid.

What Do the IWPCA Amendments Entail?

Governor J.B. Pritzker signed into law new obligations on employers with respect to their payroll and recordkeeping practices, all of which go into effect on January 1, 2025.

Defining “Paystub”

The amendments first clarify the definition of a “paystub” to mean a document reflecting an employee’s hours worked, overtime hours worked, total wages earned, total deductions, and rate of pay during a pay period. In addition, the paystub must show year-to-date wages and deductions. Importantly, other state or local laws may require paystubs to reflect paid time off earned and used (among other information) – the IWPCA amendments do not change those requirements.

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