In Illinois, employers may be permitted to take deductions from workers’ paychecks in certain situations. Compensation for workers is the payments and benefits that the worker receives in exchange for the services that they provide their employer.
An employer can discipline a worker by docking their pay or by placing them on unpaid suspension for violating workplace policies. These types of policies, however, may cause issues when the worker is exempt from overtime or if they are not entitled to overtime because they are paid a salary.
In order for a worker to be exempt, they have to be paid a set amount every pay period without reductions based on their quality or amount of work. When an employer takes deductions from a worker’s pay, they treat them as though they are a non-exempt employee, meaning they are entitled to overtime.
The funds that the employer might save by docking the worker’s salary may be much less than the worker would make in overtime. Whether or not an employer docking a paycheck in Illinois is permitted will depend mostly on whether the worker is hourly or on a salary.
If the employee is hourly, it may be easier for the employer to dock their paycheck. In Illinois, employees must typically provide express written consent before any deductions can be taken from their paycheck.
One of the main limitations on employers docking paychecks is that the deductions cannot allow the pay to drop below the federal minimum wage. It is also important to note that salaried employees cannot be docked for the quality or amount of their work.
This means that, if their paycheck is docked for performance, they are no longer considered to be a salaried employee and could then be eligible to collect overtime. This does not apply, however, to violations of safety rules.
It is important to consult with Illinois lawyers for information about pay docking and the laws and rules that apply.
What Types of Compensation Do Workers Typically Receive in Illinois?
Most workers get a salary or wage payments as their main type of compensation. Workers can also receive other forms of compensation, which can include, but may not be limited to:
- Health insurance
- Life insurance
- Pensions
- Vacation benefits
- Disability insurance
- Stock options
There are two main categories of compensation workers receive, fixed and variable. Fixed compensation is usually a set rate and includes the worker’s wages or salary and benefits. Variable compensation will depend on the worker’s performance and can include sales commissions, bonuses, case incentives, and other similar types of compensation.
Usually, the type and amount of compensation that a worker can expect to receive is in their employment contract between the worker and their employer. This contract can also include information on when and how paycheck deductions may be used as a way to penalize a worker for subpar performance or workplace infractions.
In Illinois, Is It Legal To Dock Pay for Poor Performance or for Mistakes?
In general, it is illegal for an Illinois employer to dock a worker’s pay for mistakes or poor performance. An employer is not permitted to reduce a worker’s pay for errors or lost property unless the worker provides express written consent at the time the deduction is made.
In addition, at the time of the deduction, the worker’s pay cannot fall below the federal minimum wage. If the worker agrees in writing to allow the deduction, the employer is permitted to make it.
If an Illinois worker or employer has any questions about these paycheck issues, they should schedule an Illinois lawyer consultation to find out more information and ensure they follow the proper processes.
What Remedies Do I Have?
If an individual has a deduction from their pay that they believe is illegal or improper, they can file a complaint with the wage and hour division of the United States Department of Labor. When a worker’s labor complaint is resolved in their favor, they can recover the funds that were illegally deducted from their pay.
Additionally, employees who face deductions under Illinois state laws can contact the Illinois Department of Labor. These departments often have offices in various locations, including counties and major cities. In cases where illegal deductions are made under state and federal laws, both the U.S. Department of Labor and Illinois Department of Labor should be notified.
It is important to note that both federal and state laws prohibit employers from engaging in retaliation against workers who file illegal wage deduction complaints. Retaliation from employers may come in the form of worker demotion, worker suspension, and worker termination.
If any of these happen, the worker might be able to file a second complaint for retaliation if they think their employer retaliated against them for their illegal deduction claim. This means workers can file their claims for illegal wage deductions without fear that they will miss promotions, face consequences, or lose their job.
This also applies to reporting illegal deductions internally, such as through the Human Resources (HR) department or externally, with a government agency. If a worker has concerns about filing their claim, they can reach out to an attorney who will help them throughout the process.
Does the Employer Have Any Defenses?
When a worker files an illegal pay deduction claim, an employer may have some defenses available, such as the worker provided written consent or the deduction is allowed under Illinois state law. Some paycheck deductions are voluntary, or the worker can authorize them by choice.
Workers commonly authorize deductions such as health insurance premiums, 401(k) contributions, union dues, and others. In some situations, employers also allow workers advances or loans and the worker consents to deductions each pay period to repay those.
The deductions that are allowed vary by state. Examples of deductions that can vary state-by-state include, but may not be limited to, deductions for:
- The cost of the uniform the worker is required to wear
- A cash register shortage which is attributable to the worker
- Employer-mandated training and seminars
- The cost for these requirements cannot be deducted from the employee’s salary or wages
Employers will likely not be penalized for an improved deduction if the deduction only happened once or was a mistake and the worker was reimbursed for the improperly withheld amount. There are also other steps employers can take to avoid facing penalties for improper deductions.
These may include having clear policies that prohibit improper deductions and compliance procedures, reimbursing employees in a reasonable time frame for any amounts improperly withheld, and making good faith efforts to comply with all applicable laws in the future.
Should I Contact an Illinois Attorney?
If your paycheck has been improperly docked, you may be afraid of facing negative consequences at work for filing a complaint. You may also think you do not have the funds to find an attorney since you already got paid less than you normally do.
It is free for you to use LegalMatch’s attorney matching services to find an Illinois employment law attorney who can review your paycheck to see if it was, in fact, improperly docked. Your attorney will guide you through the entire complaint process, ensuring that your rights are protected and helping you get back the funds that you earned. Get started today with LegalMatch’s free lawyer matching services and get your paycheck back on track.
