Illinois Pay Stub Law Expands Worker Rights in 2025

The 2025 Illinois Pay Stub Law expands employee transparency and wage accountability statewide. Beginning January 1, 2025, Illinois employers are required to provide itemized pay stubs each pay period and retain copies for at least three years. This mandate, established under Public Act 103-0953, amends the Illinois Wage Payment and Collection Act and gives workers greater insight into their earnings, deductions, and working hours. According to the Illinois Department of Labor, the law is designed to strengthen workplace protections by helping employees verify pay and detect potential payroll issues.

This regulation aligns with broader legislative efforts to prevent wage theft and ensure fair compensation. For employees, this change means reliable access to key payroll information; for employers, it introduces strict recordkeeping and compliance expectations. The law reflects growing recognition of wage transparency as a core labor right, reinforcing Illinois’ position as a national leader in workplace fairness.

Key Provisions of the 2025 Illinois Pay Stub Law

Under the 2025 Illinois Pay Stub Law, employers must issue pay stubs that include detailed information for each pay period. These pay stubs must disclose hours worked, hourly pay rates, gross wages, overtime hours and pay, deductions, and year-to-date totals. Whether employees are paid hourly, on salary, or via payroll cards, the requirement applies uniformly.

Public Act 103-0953 defines a “pay stub” as an itemized statement (electronic or paper) that includes these required elements. Employers must maintain copies of each employee’s pay stub for a minimum of three years, regardless of whether the employee is still employed. This requirement extends to both in-house and third-party payroll systems.

Failing to comply may result in civil penalties, especially if pay stubs are inaccurate or not maintained. Employers should ensure that payroll systems are capable of generating compliant statements and archiving them according to the law.

Access and Recordkeeping Rights for Current and Former Employees

The law grants both current and former employees the right to request and receive pay stubs from their employer. Employees may submit written requests by letter, email, or text to a designated payroll contact. Employers are required to fulfill these requests within 21 calendar days. However, they are not obligated to grant more than two requests in any 12-month period.

Former employees may also request prior pay stubs for up to one year following separation. If an employer uses an electronic payroll system that becomes inaccessible upon separation, they must offer a full year’s worth of pay stubs by the employee’s final pay period. The departing employee can choose the delivery format—physical or electronic.

Employers are expected to log the date of the offer and whether the employee accepted. This provision ensures that workers retain access to critical documentation even after leaving their jobs and supports accurate records for unemployment, taxes, or legal claims.

Enforcement, Penalties, and Employer Compliance Obligations

The Illinois Department of Labor is responsible for enforcing the Illinois Pay Stub Law. Employers that fail to furnish required pay stubs or retain records as specified may face civil penalties of up to $500 per violation. If multiple violations occur, employers may face compounded penalties, additional audits, or legal action.

The law also protects employees from retaliation. Any worker who files a complaint or requests pay stub copies cannot be lawfully terminated, harassed, or penalized for doing so. Violators may be subject to further civil or even criminal penalties.

Compliance starts with internal payroll reviews and updated HR procedures. Employers must ensure proper formatting, tracking, and accessibility of pay stub records. Inaccurate or missing documentation can expose businesses to wage theft claims or fines under the Illinois Wage Payment and Collection Act.

Preparing for Compliance with the Illinois Pay Stub Law

With the Illinois Pay Stub Law now in effect, employers must proactively align payroll practices with state requirements. Start by reviewing current pay stub formats to ensure all required details are included—update policies to clarify who handles requests from employees and how to provide pay stubs after separation.

If managed internally or by third parties, ensure payroll systems can store and retrieve pay stubs for at least three years. Employers should also inform HR teams and managers of their roles in accurately responding to employee requests and documenting interactions.

Workers now benefit from increased transparency, gaining more power to identify discrepancies in pay and verify deductions. The Illinois Department of Labor has clarified that this law is part of a broader commitment to wage accountability and workplace fairness.

Employers seeking guidance can contact DOL.Wages@Illinois.gov or call (312) 793-2808 to ensure they follow best practices. As labor protections evolve in 2025 and beyond, staying compliant with new regulations like this one is critical to both legal risk management and employee trust.

To learn more about the new Illinois pay stub law in 2025, contact the Chicago-based civil rights and employment law firm at O’Malley & Madden, P.C.