What Illinois Employers Need to Know About New Pay Stub Requirements
The Illinois legislature has approved significant changes to pay stub requirements that will affect employers starting January 1, 2025. The Illinois Wage Statement Act introduces new obligations for detailed paystub information, recordkeeping, and employee access to records.
Understanding the Key Requirements
The legislation mandates several critical changes that employers must implement:
- Provide detailed pay stubs to employees each pay period, including:
- Hours worked and pay rates
- Overtime hours and compensation
- Gross wages and deductions
- Year-to-date totals for wages and deductions
- Maintain pay stub records for three years after payment
- Furnish pay stub copies within 21 days of request
- Ensure former employees can access electronic pay stubs for one year after separation
- Face potential penalties of up to $500 per violation for non-compliance
What This Means for Employers
For businesses operating in Illinois, these new requirements create additional administrative responsibilities and potential compliance risks. Employers must review and potentially update their payroll processes, pay stub details, recordkeeping systems, and employee offboarding procedures to ensure compliance.
How People2.0 Supports Your Compliance
As your workforce solutions partner, People2.0 manages these new requirements on your behalf. Our comprehensive services include:
- Generating and distributing compliant pay stubs that meet all new requirements
- Maintaining secure records for the mandated three-year period
- Processing and fulfilling pay stub requests from current and former employees
- Ensuring electronic accessibility requirements are met
- Protecting you from costly penalties through proper compliance
Next Steps
While the law doesn’t take effect until January 2025, now is the time to ensure your workforce management practices align with these new requirements. People2.0 is already preparing to implement these changes, ensuring a smooth transition for our partners.
For more information about how People2.0 can help you navigate these new requirements, contact your representative today.
