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Form of Payment FAQ

The Frequently Asked Questions (FAQs) provided below highlight topics and specific questions that are often asked of the Illinois Department of Labor (IDOL). The information provided in the FAQs is intended to enhance public access and understanding of IDOL laws, regulations and compliance information. 

The FAQs should not be considered a substitute for the appropriate official documents (i.e. statute and/or administrative rules.) Individuals are urged to consult legal counsel of their choice. Court decisions may affect the interpretation and constitutionality of statutes. The Department cannot offer individuals legal advice or offer advisory opinions. If you need a legal opinion, we suggest you consult your own legal counsel. These FAQs are not to be considered complete and do not relieve employers from complying with applicable IDOL laws and regulations.

1. Can I be required by company policy to accept direct deposit of my paycheck?

No. An employer must pay each of its employees his/her wages in a form that s/he may readily convert into cash (without the need of a personal bank account), unless an employee volunteers to be paid by direct deposit in an account at a bank or financial institution of his/her choice. 820 ILCS 115/4 and 56 Ill. Adm. Code 300.600.

2. Does my employer have to provide a paystub?

Yes, the law mandates that each employee shall be furnished with an itemized statement of deductions for each pay period. 820 ILCS 115/10 and see Section 300.600.

3. Is it legal to pay in cash?

Yes. The law allows wages or final compensation to be paid in lawful money of the United States (which includes cash) or by check, redeemable upon demand and without discount at a bank or other financial institution, or by deposit of funds in an account in a bank or other financial institution designated by the employee. The employer must obtain a signed receipt for a cash payment. See Section 300.600.

4. Can an employer require direct deposit?

No. See Section 300.600​.

5. If I believe I have not been properly paid or the employer made an improper deduction, what can I do?

You may file a claim with the Illinois Department of Labor by completing a claim form which can be found on the Department's web site or you may prosecute your own claim in the Circuit Court of Illinois. If you elect to submit a claim form to the Department, the Department will commence an investigation into your claim. Acceptance by the Department of your claim does not mean the Department has found merit in your claim.​

6. Is it a violation of the Wage Payment and Collection Act to offer an employee the choice of payment of wages through a payroll card or direct deposit without the option of a check?​

Yes, as an employee must be offered the choice of payment by a check. Please view this information regarding the use of electronic payroll debit/credit cards for the payment of wages.