Can I recover unpaid wages after leaving a job?

Yes. Earned wages must be paid even after termination or resignation.

Can undocumented workers file wage claims in Illinois?

Yes. Illinois labor protections apply regardless of immigration status.

What Chicago Workers Need to Know

Q: Can my employer refuse to pay me if business is slow?

No. Illinois law requires employers to pay wages for all hours worked regardless of business conditions.

Q: Is being paid in cash illegal?

No, but cash payments must still comply with minimum wage, overtime, and record-keeping laws.

(Encabezado en español: Leyes de robo de salario en Illinois)

Wage theft remains one of the most common workplace violations in Chicago. Illinois law provides strong protections for workers who are not paid correctly, paid on time, or paid at all. In 2026, enforcement efforts continue at both the state and city level, but many workers still lose thousands of dollars each year due to unpaid wages, unpaid overtime, or misclassification.

This guide explains how Illinois wage theft law works, what counts as illegal pay practices, and what options Chicago workers have when their employer violates the law.

Key laws include the Illinois Wage Payment and Collection Act (IWPCA) and the Illinois Minimum Wage Law, along with local Chicago ordinances.
Official sources:

Illinois Wage Payment and Collection Act (820 ILCS 115): https://www.ilga.gov/
Illinois Minimum Wage Law (820 ILCS 105): https://www.ilga.gov/

What Is Wage Theft Under Illinois Law

(Encabezado en español: Qué es el robo de salario)

Wage theft occurs when an employer fails to pay workers what they are legally owed. This can include:

Not paying earned wages
Paying below minimum wage
Failing to pay overtime
Making illegal deductions
Paying workers late or not at all

Illinois law treats unpaid wages as a serious civil violation, and in some cases, penalties can exceed the amount of wages originally owed.

Common Forms of Wage Theft in Chicago

Payroll Fraud and Wage Theft Illustration

(Encabezado en español: Formas comunes de robo de salario)

Chicago workers frequently experience wage theft through practices such as:

Being paid “off the clock”
Automatic meal break deductions not actually taken
Being labeled as an independent contractor instead of an employee
Being paid a flat salary to avoid overtime
Tips being withheld or improperly shared

These practices are often illegal, even if the worker initially agreed to them.

Minimum Wage Rules in Illinois and Chicago

(Encabezado en español: Salario mínimo en Illinois y Chicago)

Illinois sets a statewide minimum wage, while Chicago enforces a higher local minimum wage for most workers. Employers must pay the higher applicable rate.

Minimum wage violations include:

Paying less than the required hourly rate
Failing to increase wages as rates rise
Using tip credits improperly

Employers cannot waive minimum wage requirements by agreement.

Overtime Pay Requirements

(Encabezado en español: Pago de horas extra)

Most non‑exempt employees in Illinois are entitled to overtime pay at 1.5 times their regular rate for hours worked over 40 in a workweek.

Common overtime violations include:

Misclassifying workers as exempt
Paying a salary without overtime
Averaging hours across weeks

Job title alone does not determine overtime eligibility.

Employee vs. Independent Contractor Misclassification

(Encabezado en español: Clasificación incorrecta de trabajadores)

Misclassification is a major wage theft issue in construction, delivery, cleaning, and gig‑based work. Independent contractors are not entitled to overtime or minimum wage protections—but many workers are incorrectly labeled.

Illinois uses a fact‑based test focusing on control, independence, and the nature of the work. Misclassification can lead to back wages, penalties, and interest.

Paydays, Final Paychecks, and Timing Rules

(Encabezado en español: Fechas de pago y cheques finales)

Illinois law requires employers to:

Pay employees regularly on designated paydays
Provide a final paycheck promptly after termination
Include all earned wages, commissions, and accrued vacation (if promised)

Late payment alone can trigger penalties under the IWPCA.

Illegal Deductions from Pay

(Encabezado en español: Deducciones ilegales)

Employers may not deduct wages for:

Broken equipment
Cash register shortages
Uniforms (in many cases)
Training costs without proper authorization

Unauthorized deductions are treated as unpaid wages under Illinois law.

Chicago‑Specific Worker Protections

(Encabezado en español: Protecciones laborales en Chicago)

Chicago enforces additional worker protections, including:

Fair Workweek scheduling rules (for covered industries)
Higher minimum wage standards
Anti‑retaliation protections

Local violations may result in fines, back pay, and additional damages.

Retaliation Is Illegal

(Encabezado en español: Represalias ilegales)

Employers may not retaliate against workers who:

Ask about pay
File a wage complaint
Cooperate in an investigation

Retaliation can include termination, reduced hours, or threats. Illinois law provides separate penalties for retaliation.

Professionals discussing workplace issues and employment rights in Chicago.

How Long Do Workers Have to File a Wage Claim

(Encabezado en español: Plazos para reclamar salarios)

Deadlines depend on the claim type:

Wage claims under IWPCA generally allow up to 10 years
Minimum wage and overtime claims may have shorter limits

Waiting too long can reduce or eliminate recovery.

How Wage Claims Are Resolved

(Encabezado en español: Resolución de reclamos salariales)

Wage disputes may be resolved through:

Illinois Department of Labor claims
Civil lawsuits
Settlement negotiations

Each option has different timelines, costs, and strategic considerations.

Chicago Wage Theft & Employment Law Help

For employment law help in Chicago, visit our website.

Frequently Asked Questions About Wage Theft

(Encabezado en español: Preguntas frecuentes sobre robo de salario)

FAQ 1: Can my employer refuse to pay me if business is slow?

No. Employers must pay wages for all hours worked, regardless of business conditions.

FAQ 2: Is being paid in cash illegal?

No, but cash payments must still meet minimum wage, overtime, and record‑keeping requirements.

FAQ 3: Can I recover unpaid wages if I quit or was fired?

Yes. Earned wages must be paid even after employment ends.

FAQ 4: Can undocumented workers file wage claims?

Yes. Illinois labor laws protect workers regardless of immigration status.

Legal Disclaimer

This blog post is provided for general informational and educational purposes only and does not constitute legal advice. Reading this content does not create an attorney-client relationship between you and Servicios Legales Abogados Chicago. Laws and regulations may change, and the application of the law depends on the specific facts and circumstances of each case.

You should not act or rely on any information in this post without first consulting a qualified attorney licensed in Illinois regarding your particular situation. Past results do not guarantee future outcomes. Any references to legal procedures, timelines, or potential outcomes are general in nature and may not apply to your case.

If you need legal advice or representation, contact a licensed attorney directly. Servicios Legales Abogados Chicago provides legal services only after a formal agreement is established.

Illinois Wage Theft Law in 2026