Final Paycheck Deadlines in Illinois
At a glance
| Governing law | Illinois Wage Payment and Collection Act, 820 ILCS 115/5 (final-compensation deadline and vacation payout); 115/14 (penalties); 115/11 (Dept. of Labor wage-claim process) |
|---|---|
| Deadline if fired or laid off | Final compensation is due in full at the time of separation if possible, but in no case later than the next regularly scheduled payday for that employee (820 ILCS 115/5) |
| Deadline if the employee quits | Same deadline as a discharge — the statute uses the single term "separated employees" and draws no distinction between quitting and being fired (820 ILCS 115/5) |
| Unused vacation/PTO payout required? | If an employment contract or policy provides paid vacation, the monetary equivalent of all earned, unused vacation must be paid as part of final compensation at the employee's final rate of pay, and no contract or policy may provide for its forfeiture — unless a collective bargaining agreement provides otherwise (820 ILCS 115/5) |
| How final pay must be delivered | Final compensation must be paid in lawful U.S. money — by check redeemable at a bank without discount, by deposit to an account the employee designates, or by a compliant payroll card; an employer can't designate one bank as the exclusive place of payment (820 ILCS 115/4). On the employee's written request, the final check must be mailed (820 ILCS 115/5) |
| Penalty for a late or unpaid final check | An underpaid employee recovers the unpaid amount plus damages of 5% of it for each month it remains unpaid, through a Department of Labor claim or a civil action (not both); a civil action also adds costs and attorney's fees (820 ILCS 115/14(a)). A willful, able-to-pay refusal to pay is a Class B misdemeanor (unpaid amount ≤$5,000) or Class A misdemeanor (>$5,000) on conviction, and a Class 4 felony for a repeat violation within 2 years (820 ILCS 115/14(a-5)) |
| How to enforce it | File a wage claim with the Illinois Department of Labor within one year of when the final compensation was due, or sue in circuit court — not both (820 ILCS 115/11, 115/14(a)). Corporate officers or agents who knowingly permit a violation are personally liable as the employer (820 ILCS 115/13). An employer that ignores a Department demand or order also owes a separate administrative fee, a 20% penalty to the Department, and a 1%-per-day penalty to the employee (820 ILCS 115/14(b)) |
| Exceptions and special rules | A valid collective bargaining agreement can override both the vacation no-forfeiture rule and the ordinary pay-period timing rules the Act otherwise sets (820 ILCS 115/4, 115/5). The Act doesn't cover state or federal government employees, or individuals who meet its 3-part independent-contractor test (820 ILCS 115/1, 115/2) |
Requirements one by one
Final pay uses the same deadline for a firing or a quit
Section 5 says: "Every employer shall pay the final compensation of separated employees in full, at the time of separation, if possible, but in no case later than the next regularly scheduled payday for such employee." Because the rule uses "separated employees" without splitting resignations from terminations, the same outside deadline applies to both.
A promised vacation benefit cannot be forfeited at separation
The statute requires "the monetary equivalent of all earned vacation" at the employee's final rate and says no employment contract or policy may forfeit earned vacation at separation. That rule applies when the employer has chosen to provide paid vacation through a contract or policy; it does not itself require every employer to offer vacation. A collective bargaining agreement may provide a different rule.
The monthly damages can be calculated from the unpaid balance
Section 14 adds damages equal to 5% of the underpayment for each month it remains unpaid. For example, if $1,000 remains unpaid for three months, the statutory monthly-damages component is $150, in addition to the $1,000 itself. A civil action also permits recovery of costs and reasonable attorney's fees.
What trips people up
The employee must choose one recovery track. Section 14 permits recovery through a Department of Labor claim or a civil action, "but not both." The Department complaint itself must be filed within one year after the final compensation was due; HB 4214 would extend that administrative window to three years, but it remains pending.
Ignoring an order creates additional liabilities. After the deadlines in § 14(b), an unpaid Department demand or administrative or court order can add a 20% penalty payable to the Department and a 1%-per-calendar-day penalty payable to the employee, separate from the ordinary monthly damages.
Common questions
Does Illinois require an employer to offer paid vacation?
No. Section 5 controls the payout only when a contract or employment policy provides paid vacation.
Can the employee require the final check to be mailed?
Yes. Section 5 requires the employer to mail a final-compensation check when the employee makes that request in writing.
Can a corporate officer be personally responsible?
Yes. Section 13 treats an officer or employer agent who knowingly permits a violation as the employer for purposes of the Act.
Statutes and sources
- 820 ILCS 115/5. "Every employer shall pay the final compensation of separated employees in full, at the time of separation, if possible, but in no case later than the next regularly scheduled payday for such employee." Official text (accessed July 18, 2026).
- 820 ILCS 115/4. "All wages and final compensation shall be paid in lawful money of the United States, by check ... by deposit of funds in an account in a bank or other financial institution designated by the employee, or by a payroll card that meets the requirements of Section 14.5." Official text (accessed July 18, 2026).
- 820 ILCS 115/14. "Any employee not timely paid wages, final compensation, or wage supplements by his or her employer as required by this Act shall be entitled to recover through a claim filed with the Department of Labor or in a civil action, but not both, the amount of any such underpayments and damages of 5% of the amount of any such underpayments for each month following the date of payment during which such underpayments remain unpaid." Official text (accessed July 18, 2026).
- 820 ILCS 115/11. "Complaints shall be filed within one year after the wages, final compensation, or wage supplements were due." Official text (accessed July 18, 2026).
- 820 ILCS 115/13. "Any officers of a corporation or agents of an employer who knowingly permit such employer to violate the provisions of this Act shall be deemed to be the employers of the employees of the corporation." Official text (accessed July 18, 2026).
- Illinois HB 4214. Pending proposal to extend the Department complaint deadline from one year to three years. Official bill page (accessed September 9, 2026).
Source links
Every statute quoted above, linked, with the date we checked it.
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