With the enactment of SB 3208, Illinois has implemented new pay statement requirements for employers.
The details:
Effective Jan. 1, 2025, Illinois employers must meet certain pay statement requirements in relation to recordkeeping and employee requests for copies of pay statements.
Record retention
Employers must retain copies of pay statements for a period of three years as measured from the date of the payment of wages, regardless of whether the employee’s employment ends during this period.
Request for Copies of Pay Statements
Under SB 3208, in addition to providing a pay statement for each pay period, an employer must provide copies of pay statements to current and former employees upon request in accordance with the following rules:
· Employers may require that any request for copies of pay statements be made in writing.
· Requests from either a current or former employee must be made to a person responsible for maintaining the employer’s payroll such as a designated individual in the employer’s payroll or human resources department.
· Upon receipt of a written request, employers must provide copies of the pay statements within 21 calendar days.
· Employers are not required to fulfill more than two requests for pay statement records within a 12-month period.
· Employers are not required to grant pay statement requests from former employees made more than one year after the date of separation.
· Former employees may request whether they would prefer to receive the pay statements in a physical or electronic format.
· If an employer furnishes electronic pay statements that a former employee cannot access for at least a full year after separation, the employer, upon the employee’s separation, must offer to provide the outgoing employee with a record of their pay statements from the year preceding their separation. The offer must be made by the end of the outgoing employee’s final pay period. The employer must record in writing the date of the offer was made and the outgoing employee’s response.
Penalties
Employers who fail to comply with the requirements of SB 3208 may be subject to a civil penalty of up to $500 per violation payable to the Illinois Department of Labor.
Next steps:
Illinois employers should begin to discuss and then implement the processes necessary to meet the requirements of SB 3208 prior to the Jan. 1, 2025 effective date.
Have questions?
Please contact your dedicated service professional with any questions.