IDOL lightens up about
Payroll Deduction Rule
But the change is limited
For years the Illinois Wage Payment and Collection Act has been interpreted by the Ilinois Department of Labor to require employers to deduct from final wages for shortages, etc. only if the employee voluntarily gave consent in writing at the time the deduction is made.
As part of its campaign to update and renovate its regulations the IDOL recently loosened this requirement by permitting such deductions without a contemporaneous written consent. When deductions are to “recur over a period of time” an employer may secure the voluntary written consent in advance of making such deductions.
This is conceptually akin to the existing regulation for advances on wages, in which the employer gets authorization to pay back the advance in installments through payroll deductions.
So clients may enter into a “one time” written agreement for recurring deductions, but the rule that a single deduction requires written agreement at the time of the deduction, including at the time of final wages, remains in effect.