Illinois final paycheck law

Layoffs and other situations

Applies to all separations. If the employee asks in writing, pay by check and mail it. Final compensation includes earned bonuses, commissions and earned vacation. Source: ilga.gov↗ (opens in a new tab)

Unused vacation and PTO

Required. Earned unused vacation must be paid out at the final rate of pay (unless a union contract says otherwise). Policies cannot forfeit earned vacation at separation. Use-it-or-lose-it is allowed only with a reasonable chance to use the time and clear notice. Source: labor.illinois.gov↗ (opens in a new tab) Source: ilga.gov↗ (opens in a new tab)

If the final paycheck is late

Damages of 5% of the unpaid amount for each month it stays unpaid. If an IDOL demand or order is ignored: a 20% penalty to the state and 1% per day to the employee, plus administrative fees. Source: labor.illinois.gov↗ (opens in a new tab)

Recent changes

Public Act 104-0135 (2025) changed how the Illinois Department of Labor hears and enforces wage claims. Final pay timing did not change. Source: ilga.gov↗ (opens in a new tab)

The law and where to check

The law: 820 ILCS 115/5 and 115/14 (Illinois Wage Payment and Collection Act) (opens in a new tab)

The agency: Illinois Department of Labor (IDOL), Fair Labor Standards Division (opens in a new tab)

What federal law says

The federal Fair Labor Standards Act does not require employers to give a final paycheck immediately. The U.S. Department of Labor says an employee who has not received final pay by the regular payday for their last pay period can contact its Wage and Hour Division or the state labor department. Source: U.S. Department of Labor↗ (opens in a new tab)

Final paycheck checklist for Illinois employers

A simple order of work, based on the rules above. It is not a legal checklist.

1. Write down how the job ended: fired or let go, or the employee quit. If they quit, note whether and when they gave notice.
2. Find the deadline for that situation in the table above.
3. Add up all hours worked up to the last day, including any overtime.
4. Check your written vacation or PTO policy and the vacation rule above.
5. Add any commission or bonus that was earned, using the rules above.
6. Pay on time by your usual method, or by mail if the rules above allow it and the employee asks.
7. Keep a dated record of what you paid and when.

More Illinois employment law guides

• All Illinois employment laws
• Illinois paid sick leave law
• Illinois meal and rest break laws
• Illinois overtime law
• Illinois pay frequency law
• Illinois vacation and PTO payout law
• Illinois new hire reporting
• Illinois at-will exceptions

Final paycheck laws in other states

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Disclaimer: This guide provides general information based on publicly available official sources and is for information only. It is not legal, tax, payroll or employment-law advice and does not guarantee compliance with federal, state or local requirements. Rules can depend on your location, industry, contracts and other circumstances, and laws change. Always check the official source, the relevant government agency or a qualified professional before making a decision. MadyHR.ai accepts no responsibility for any action taken based on this page.

Last checked: October 19, 2026. Every rule and source link on this page was checked against the official government source on this date. Laws change, so always open the source link before you act.