Q: In IL, former employee was paid bonus but should not have been. Identified a month ago. Employee quit but owes money;

A: Refer to IDOL's Deductions From Pay FAQ

https://labor.illinois.gov/faqs/deductions-from-pay-faq.html

FAQ #6 states:

6. Can an employer make deductions from my pay for overpayments made to me?

When an employee agrees an overpayment has been made the entire sum may be deducted on the employee's first regular payday subsequent to the payday on which the overpayment occurred. If an overpayment is not discovered and one or more paydays have passed, the employer and employee shall agree on a repayment schedule. If the employer and employee cannot agree, the employer cannot make deductions without complying with Section 9 of the Act. See Subpart D.

FAQ #4 states:

4. What deductions can an employer legally make from my pay?

An employer may make certain deductions from your pay, but the law mandates that each employee shall be furnished with an itemized statement of deductions for each pay period. Deductions may be made when required by law (such as taxes), to the benefit of the employee (such as health insurance premiums, union dues etc.​),

a valid wage assignment or wage deduction order in effect, made with the express written consent of the employee, given freely at the time the deduction is made.

The law allows other deductions for employees of the City of Chicago, METRA, CTA, CHA, Chicago Park District, Chicago Board of Education and Chicago City Colleges.

In addition, an employer cannot withhold earned vacation or wages or any final compensation because you have failed to give notice of the termination of your employment, because your termination of employment was not voluntary or you have failed to return equipment, uniforms, telephones, pagers or other employer owned equipment you used during the course of your employment. Where an employee accepts a disputed paycheck with a deduction, acceptance will not be considered evidence that the employee has accepted the deduction.

A: In Illinois, employers generally have limited rights to withhold final pay and accrued PTO from an employee, even if they owe the employer money. The Illinois Wage Payment and Collection Act prohibits deductions from an employee's final paycheck, including for overpayment of wages or bonuses, without the employee's written consent. Employers often need to seek repayment through other means, such as negotiating a repayment plan directly with the employee or pursuing legal action. Withholding final pay or accrued PTO as a method of reclaiming an overpaid bonus could potentially violate Illinois state law. For personalized legal advice tailored to your unique circumstances, it's advisable to consult with an attorney.