WAGE AND HOUR DEMAND LETTER
State of Illinois
Illinois Minimum Wage Law / Wage Payment and Collection Act / FLSA Claims
[ATTORNEY/FIRM LETTERHEAD]
[Firm Name]
[Address Line 1]
[City, Illinois ZIP]
Tel: [Phone Number]
Fax: [Fax Number]
[Attorney Email]
[Illinois ARDC Number]
VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA EMAIL TO: [recipient_email]
[Date]
[Employer Contact Name]
[Title]
[Company Legal Name]
[Company Address]
[City, State ZIP]
Copy to:
[Company General Counsel, if known]
[Registered Agent, if different]
Re: Wage and Hour Violations - [Client Full Name]
[and All Similarly Situated Employees - if collective/class action contemplated]
Demand for Unpaid Wages Under Illinois and Federal Law
CONFIDENTIAL SETTLEMENT COMMUNICATION PURSUANT TO FRE 408 AND ILL. R. EVID. 408
Dear [Mr./Ms./Mx. Last Name]:
This firm has been retained by [Client Full Name] ("our client") to pursue claims for unpaid wages against [Company Legal Name] ("[Company Short Name]" or "the Company") arising from violations of the Illinois Minimum Wage Law, 820 ILCS 105/1 et seq., the Illinois Wage Payment and Collection Act ("IWPCA"), 820 ILCS 115/1 et seq., and the Fair Labor Standards Act ("FLSA"), 29 U.S.C. Section 201 et seq.
Please direct all further communications regarding this matter to our office.
I. ILLINOIS-SPECIFIC LEGAL FRAMEWORK
A. Applicable Wage and Hour Law
Illinois has comprehensive wage and hour protections that exceed federal law, including a higher minimum wage, state overtime requirements, and robust penalty provisions including triple damages.
Key Legal Framework:
| Category | Illinois Requirement | Citation |
|---|---|---|
| Minimum Wage | $14.00/hour (2024); $15.00 (2025) | 820 ILCS 105/4 |
| Overtime | 1.5x regular rate after 40 hours/week | 820 ILCS 105/4a |
| Tipped Minimum | 60% of minimum wage ($8.40 in 2024) | 820 ILCS 105/4 |
| Payment Frequency | At least semi-monthly | 820 ILCS 115/3 |
Illinois Minimum Wage Schedule:
| Effective Date | Minimum Wage | Tipped Minimum |
|---|---|---|
| January 1, 2024 | $14.00 | $8.40 |
| January 1, 2025 | $15.00 | $9.00 |
Chicago Minimum Wage (Higher):
| Effective Date | Large Employers (21+) | Small Employers (4-20) |
|---|---|---|
| July 1, 2024 | $16.20 | $16.20 |
B. Statute of Limitations
| Claim Type | Limitations Period | Citation |
|---|---|---|
| Illinois Minimum Wage Law | 3 years | 820 ILCS 105/12(a) |
| IWPCA (wages) | 10 years | 735 ILCS 5/13-206 |
| FLSA (standard) | 2 years | 29 U.S.C. Section 255(a) |
| FLSA (willful) | 3 years | 29 U.S.C. Section 255(a) |
C. Illinois Wage Payment Requirements
Wage Payment Timing:
- 820 ILCS 115/3: Wages must be paid at least semi-monthly (executive, administrative, professional employees may be paid monthly)
- 820 ILCS 115/5: Final wages due on next regular payday after separation
Payroll Deductions:
- 820 ILCS 115/9: Deductions only permitted with written consent
- Must be for the benefit of the employee
- Cannot deduct for cash shortages, breakage, or lost property unless proven dishonesty
D. Enforcement Mechanisms
Administrative:
- Illinois Department of Labor, Fair Labor Standards Division
- File complaint: 160 N. LaSalle Street, Suite C-1300, Chicago, IL 60601
- Phone: (312) 793-2800
- Active administrative investigation and enforcement
Private Right of Action:
- 820 ILCS 105/12: Private action for minimum wage/overtime violations
- 820 ILCS 115/14: Private action for wage payment violations
- Class action mechanisms available
- FLSA collective action also available
E. Illinois Penalty Provisions
Illinois provides among the strongest remedies in the nation:
| Remedy | Standard | Citation |
|---|---|---|
| Back Wages | Full unpaid amount | 820 ILCS 105/12 |
| Triple Damages | 3x unpaid wages (IMWL) | 820 ILCS 105/12(a) |
| 2% Monthly Penalty | Per month wages remain unpaid (IWPCA) | 820 ILCS 115/14 |
| Attorney's Fees | Mandatory for prevailing plaintiff | 820 ILCS 105/12, 115/14 |
| Costs | Recoverable | 820 ILCS 105/12, 115/14 |
F. Tip Credit Rules (Illinois)
| Requirement | Standard |
|---|---|
| Cash wage minimum | 60% of minimum wage ($8.40 in 2024) |
| Tip credit maximum | 40% of minimum wage ($5.60 in 2024) |
| Total must equal | $14.00/hour minimum (2024) |
| Notice required | Yes |
| Tip pooling | Restricted; no management participation |
II. INTRODUCTION AND SUMMARY OF CLAIMS
Our client was employed by [Company Short Name] as a [Job Title] from [Start Date] to [End Date / Present], working at [Work Location(s)] in Illinois. During this employment, [Company Short Name] violated Illinois and federal wage laws by:
[ ] Failing to pay the Illinois minimum wage of $14.00 per hour
[ ] Failing to pay overtime compensation at 1.5 times the regular rate for hours worked over 40 per week
[ ] Misclassifying our client as exempt from overtime when [he/she/they] should have been classified as non-exempt
[ ] Misclassifying our client as an independent contractor when [he/she/they] was an employee entitled to wage protections
[ ] Failing to pay for all hours worked, including:
[ ] Off-the-clock work before/after shifts
[ ] Uncompensated meal periods during which work was performed
[ ] Time spent on required pre-shift or post-shift activities
[ ] Travel time that should have been compensated
[ ] Training time
[ ] On-call time
[ ] Failing to pay wages semi-monthly as required by 820 ILCS 115/3
[ ] Failing to pay final wages timely upon separation
[ ] Making unlawful deductions from wages
[ ] Unlawful tip pooling or tip credit violations
These violations entitle our client to triple damages under Illinois law.
III. FACTUAL BACKGROUND
A. Employment Relationship
| Category | Details |
|---|---|
| Employee Name | [Client Full Name] |
| Job Title(s) | [Title(s)] |
| Dates of Employment | [Start Date] to [End Date / Present] |
| Work Location(s) | [Address(es) in Illinois] |
| Primary Duties | [Describe job duties] |
| Rate of Pay | $[Amount] per [hour/week/year] |
| Classification | [Exempt / Non-Exempt / Independent Contractor] |
| Pay Frequency | [Weekly / Bi-weekly / Semi-monthly / Monthly] |
| Supervisor(s) | [Name(s) and Title(s)] |
B. Hours Worked
Our client regularly worked the following schedule:
Typical Weekly Schedule:
| Day | Scheduled Hours | Actual Hours Worked | Unpaid Time |
|---|---|---|---|
| Monday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Tuesday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Wednesday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Thursday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Friday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Saturday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Sunday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Weekly Total | [X hours] | [X hours] | [X hours] |
Average overtime hours per week not compensated at 1.5x rate: [X hours]
C. Specific Wage Violations
[Detail specific violations as applicable - off-the-clock work, misclassification, tip violations, etc.]
IV. LEGAL ANALYSIS
A. Coverage Under Illinois Law
Illinois Minimum Wage Law Coverage:
820 ILCS 105/3 applies to all employers in Illinois with 4 or more employees. [Company Short Name] is a covered employer.
IWPCA Coverage:
820 ILCS 115/1 applies to all employers. [Company Short Name] is a covered employer.
B. Minimum Wage Violation (820 ILCS 105/4)
Illinois law requires covered employers to pay employees at least $14.00 per hour. By [describe violation], [Company Short Name] failed to pay our client the required minimum wage.
C. Overtime Violation (820 ILCS 105/4a)
Illinois law requires employers to pay non-exempt employees overtime at a rate of 1.5 times the regular rate for all hours worked over 40 in a workweek.
Our client worked an average of [X hours] per week. [Company Short Name] failed to pay overtime compensation for an average of [X overtime hours] per week.
D. Wage Payment Violations (820 ILCS 115)
[Company Short Name] violated the IWPCA by:
- [Failing to pay wages semi-monthly]
- [Failing to pay final wages on next regular payday]
- [Making unauthorized deductions]
E. Triple Damages and Penalties
Under 820 ILCS 105/12(a), our client is entitled to triple the amount of underpayment for minimum wage and overtime violations.
Under 820 ILCS 115/14, our client is entitled to 2% per month on unpaid wages for wage payment violations.
V. DAMAGES CALCULATION
A. Illinois Law Damages
Relevant Period: [Date - 3 years prior for IMWL / 10 years for IWPCA] to [End Date / Present]
Total Weeks in Period: [X weeks]
1. Unpaid Overtime
| Period | Avg. OT Hours/Week | Regular Rate | OT Rate (1.5x) | Unpaid OT/Week | Weeks | Total |
|---|---|---|---|---|---|---|
| [Period 1] | [X] | $[X.XX] | $[X.XX] | $[X.XX] | [X] | $[Amount] |
| Unpaid Overtime Subtotal | $[Amount] |
2. Unpaid Minimum Wage
| Period | Hours Below MW | Shortfall/Hour | Weeks | Total |
|---|---|---|---|---|
| [Period] | [X] | $[X.XX] | [X] | $[Amount] |
| Minimum Wage Subtotal | $[Amount] |
3. Off-the-Clock Work
| Activity | Hours/Week | Rate | Weeks | Total |
|---|---|---|---|---|
| [Pre-shift work] | [X] | $[X.XX] | [X] | $[Amount] |
| Off-the-Clock Subtotal | $[Amount] |
4. IWPCA 2% Monthly Penalty
| Amount Owed | Months Unpaid | 2% Monthly Rate | Total Penalty |
|---|---|---|---|
| $[Amount] | [X months] | 2% | $[Amount] |
B. Summary of Damages
| Category | Amount |
|---|---|
| Unpaid Wages | $[Amount] |
| Triple Damages (3x under IMWL) | $[Amount] |
| IWPCA 2% Monthly Penalty | $[Amount] |
| Pre-Judgment Interest | $[Amount] |
| Attorney's Fees (estimated) | $[Amount] |
| Costs (estimated) | $[Amount] |
| TOTAL INDIVIDUAL DAMAGES | $[Amount] |
C. Class Action Exposure
| Category | Individual | Estimated Class Size | Total Exposure |
|---|---|---|---|
| Unpaid Wages | $[Amount] | [X employees] | $[Amount] |
| Triple Damages | $[Amount] | [X employees] | $[Amount] |
| Monthly Penalties | $[Amount] | [X employees] | $[Amount] |
| Class Exposure | $[Amount] |
VI. SETTLEMENT DEMAND
Based on the foregoing, we demand that [Company Short Name] pay $[Settlement Demand Amount] to settle all claims of [Client Full Name].
This demand includes:
- Unpaid wages
- Triple damages under Illinois Minimum Wage Law
- IWPCA penalties
- Pre-judgment interest
- Attorney's fees and costs incurred to date
This demand will remain open for twenty-one (21) days from the date of this letter, expiring on [Response Deadline Date].
VII. RESPONSE AND LITIGATION
If we do not receive a satisfactory response by the deadline, we will file suit in:
[ ] United States District Court for the Northern District of Illinois
[ ] United States District Court for the Central District of Illinois
[ ] United States District Court for the Southern District of Illinois
[ ] Illinois Circuit Court, [County]
The Complaint will seek:
1. Unpaid minimum wages under 820 ILCS 105/4
2. Unpaid overtime under 820 ILCS 105/4a
3. Wage payment violations under 820 ILCS 115
4. Triple damages under 820 ILCS 105/12(a)
5. 2% monthly penalties under 820 ILCS 115/14
6. Attorney's fees and costs
7. Class certification under Illinois Supreme Court Rule 23 / FLSA collective action
VIII. DOCUMENT PRESERVATION
LITIGATION HOLD NOTICE
[Company Short Name] must immediately preserve all documents and ESI relevant to these claims, including:
[ ] Time and attendance records
[ ] Payroll records and pay stubs
[ ] Personnel files and job descriptions
[ ] Employee handbooks and policies
[ ] Scheduling records
[ ] Communications regarding pay practices
[ ] Training materials
[ ] Prior IDOL investigations
[ ] Tip records (if applicable)
Spoliation of evidence will result in severe sanctions.
IX. CONFIDENTIALITY
This letter is a confidential settlement communication protected under Federal Rule of Evidence 408 and Illinois Rule of Evidence 408.
We look forward to your prompt response.
Sincerely,
[Attorney Name]
[Title]
[Firm Name]
[Illinois ARDC No.]
Enclosures:
[ ] Authorization to Represent
[ ] Pay stubs / wage statements (sample)
[ ] Time records (if available)
cc: [Client Name] (via email)
ILLINOIS-SPECIFIC PRACTICE NOTES
[ ] Higher Minimum Wage: Illinois minimum wage ($14.00 in 2024, $15.00 in 2025) exceeds federal; Chicago is even higher ($16.20)
[ ] Triple Damages: 820 ILCS 105/12(a) provides triple damages - more favorable than FLSA's double damages
[ ] Long Statute of Limitations: IWPCA claims have 10-year statute of limitations
[ ] State Overtime Law: Illinois has its own overtime statute (820 ILCS 105/4a)
[ ] Active State Enforcement: Illinois Department of Labor actively investigates wage claims
[ ] One Day Rest in Seven Act: 820 ILCS 140 requires one day of rest per week; may provide additional claims
[ ] Chicago/Cook County Ordinances: Check for higher local minimum wages and additional protections
[ ] Federal Court Venue:
- Northern District (Chicago): Chicago metro and northern Illinois
- Central District (Springfield): Central Illinois
- Southern District (East St. Louis): Southern Illinois
[ ] IDOL Contact: Fair Labor Standards Division
- Address: 160 N. LaSalle Street, Suite C-1300, Chicago, IL 60601
- Phone: (312) 793-2800
- Website: labor.illinois.gov