UNPAID WAGE CLAIMS
New Changes to Illinois Law for Worker Rights to Payment and Compensation
What do you do when you feel that you have been cheated out of wages or compensation by your employer? Too often, employees do nothing because they do not want to sue or go through the expense of retaining a lawyer for what is a small amount. This is unfortunate because Illinois law provides significant relief. The law allows an employee to sue the employer and recover the amount owed. This matters to all employees whether you are a waitress, construction worker or corporate executive.
As an employee, you are entitled to be paid your wages within a certain number of days depending on the term of your pay period. For example, if you are paid every week, your employer must pay you no later than seven days after the end of the week in which you earned the wages. The law defines wages broadly and includes bonuses, commissions and even vacation days. If your job provides paid vacation days, then those are covered as well and must be paid to you in the event of termination.
The law applies equally whether you are employed with an oral agreement or by written contract. Although the preferred method would be to have terms of employment and compensation in writing, this is rarely the case in the event of unpaid wages. This is because employers sometimes take advantage of the fact that it is just an employee’s word against them. Keeping good records of your work schedule, where you worked, what you did and who you spoke to will help in proving your case. The employer, however, is required to keep records of your work history and if he did not, his credibility will be affected before the judge. If you are paid on commission, be sure to keep accurate records of the transactions you believe entitle you to payment. Make sure that your commission schedule is in writing from your employer. If your employer refuses to put the commission schedule in writing, you should consider it a warning that they may not be committed to what they told you.
If your employer wants to reduce your pay, they can, but not without telling you before you do the work. Waiting until after the work is done to tell an employee of a pay reduction is forbidden. The opposite situation, where an employer accidently pays too much, does not automatically allow a deduction. You and your must agree on a repayment schedule and if you cannot, then there are very specific rules that the employer must follow in order to recover the money.
In the event of termination, employees are to be paid all of their final compensation at the time of separation, if possible, but in no case later than the next regularly scheduled payday. The compensation to be paid includes wages, commissions, accrued vacation days and bonuses. If your employer fails to pay you by your next pay period after termination, then you can bring an action against them.
Another frequent source of disputes is when an employer makes deductions from wages. Under the law, there are only a few deductions your employer can make without your permission. For example, these include deductions required by law (such as taxes), deductions for the benefit of the employee (such as health insurance, union dues, etc), deductions ordered by a court, or with your written permission. Some of the deductions that your employer cannot make without your permission include medical examinations required for work, advanced commissions that were voided, cash or inventory shortages, cash advances, tuition advances, uniform costs and equipment costs. There are other examples, but generally, without the employee’s permission, they are illegal. Your employer is required to provide you with an itemized list of all deductions for each pay period. If a dispute arises, the employer is required to pay you the amount of your check that is undisputed.
This law applies equally to all workers, regardless of legal status. There is no basis for an inquiry into your immigration status and the law does not allow immigration status to be a defense. Besides, it is far worse for your employer because any allegation that an employee should not be paid because they are not legal is an admission they violated federal labor and immigration law – a far greater problem since it is criminal matter.
In addition, the employee should recover his or her costs and reasonable attorney fees. In general, a person who sues cannot recover their attorney fees unless there is an agreement to pay your attorney fees or the law requires it. The benefit is tremendous because now you can retain a lawyer to recover your lost wages without losing a portion of your wages.
Finally, it is often the case that employers stop paying when they know they are going out of business. Just because your employer was a company may not mean that you are out of luck. If company executives knew that you were not being paid and deliberately did not pay you, they may be held personally liable. This means that you can recover your wages from their personal money or force the sale of their property to get paid.
Ronald Stearney, Jr.
Attorney at Law
Ronald Stearney and his law firm cooperate with Kurczaba Law Offices, P.C. to provide representation for unpaid and underpaid wage claims.
Please contact us to schedule an appointment so that we can discuss your wage claims.
