Written Notice Required to Document Change in Pay!

November, 2015
By Nancy E. Joerg, Esq.

Another legal requirement for Illinois employers to follow! The Illinois Wage Payment and Collection Act now requires Illinois employers to provide a written notice to the employee of his/her rate of pay when the employee begins to work for an employer.

Additionally, if the employer changes the rate of pay at some point, a new written notice must be given to the employee. This Illinois law became effective August 22, 2014.

Below is an excerpt from Section 300.630 Records and Notice Requirements of the Illinois Wage Payment and Collection Act which states the following with regard to this requirement:

• An employer is required to notify an employee in writing, at the time of hiring, of the rate of pay. An employee commencing work shall reflect mutual assent to the rate of pay.
• An employer shall not change an agreement regarding the payment of wages and compensation without first notifying the employee prior to the effective date of the change. 
• The employer shall place the arrangement in writing at the time of the change and present the change to the employee unless impossible to do so.

Because of extraordinary circumstances, the immediate placement in writing may not be able to be accomplished, but this inability to do so must be immediately rectified.

An employer cannot rely upon an employee's continued employment as affirmation that the employee consented to an adverse modification of the employee's rate of compensation when the employee was not notified in writing of the modification prior to its effective date.

However, when the employee continues to work after being notified of a change in writing, the employee shall be presumed to have assented to the change, absent evidence to the contrary. An employer may not retroactively adversely affect the wages earned by an employee.

IMPORTANT TIP: Have the employee sign and date a copy of the written notification of salary change, and keep the signed and dated copy in the employee’s personnel file.

Questions?: Contact Nancy Joerg at Wessels Sherman's St. Charles, Illinois office: (630) 377-1554 or email her at najoerg@wesselssherman.com.