Illinois just changed what counts as work time. Here's what payroll teams need to do now.

The federal Portal-to-Portal Act (PPA), which amended the Fair Labor Standards Act, allows employers to exclude certain pre- and post-shift activities from compensable time — things like walking from the entrance to the time clock, changing clothes, or going through security. These activities are only compensable under federal law if they are "integral and indispensable" to an employee's principal duties.

Illinois's Minimum Wage Law takes a different position. It requires compensation for "all the time an employee is required to be on duty, or on the employer's premises." There are no express exceptions for preliminary or postliminary activities.

The court found that while Illinois courts can look to the FLSA for guidance where the two laws are parallel, the Illinois Wage Law has material differences — and where those differences exist, it stands on its own.

Did you know 50% of employers have declined to hire a qualified candidate because of compliance concerns tied to that candidate's state? Multi-state compliance is getting harder and harder. 

This ruling doesn't create new categories of compensable work — it removes the federal exceptions that Illinois employers may have been relying on. Activities that were previously treated as unpaid pre- or post-shift time are now squarely on the clock if employees are required to be on premises.

Affected activities include, but are not limited to:

• Security screenings at building entry

• Walking from a gate, parking area, or entrance to a time clock or workstation

• Donning and doffing uniforms, PPE, or other required work gear 

• Logging into computer systems or equipment before shift start 

• Post-shift activities that occur while employees are still required to be on premises

Industries such as staffing, healthcare, construction, and transportation are particularly exposed here. These workforces often have structured entry procedures, physical worksite requirements, and distributed shift starts that create exactly these kinds of pre- and post-shift activities at scale. 

The Illinois Wage Law carries a three-year statute of limitations. That means if employees have been performing uncompensated pre- or post-shift activities on your premises, the exposure window runs back three years from the date of a claim.

The court's ruling doesn't contain any guidance suggesting the legislature will act quickly to bring Illinois law in line with the federal standard. The analysis in the opinion specifically notes that legislative "corrective" action would be needed to change the outcome — and until that happens, the exposure is real.

For employers with large non-exempt Illinois workforces — or operations where pre-shift activities are common — the financial exposure from class or collective actions is significant. The time to audit is now, not after a claim is filed.

This ruling requires a concrete operational response. Payroll teams own the timekeeping infrastructure — which means this lands on your desk.

• Audit your current timekeeping setup: Review any timekeeping policies that explicitly exclude pre- or post-shift time.

• Review your time capture methods: Consult your payroll system vendor to confirm whether configuration changes are needed to capture additional compensable time.

• Get ahead of the three-year window: Work with legal counsel to assess whether any historical backpay exposure requires proactive remediation.

Employers that act now will have a defensible record showing they identified the issue and corrected it promptly. Employers that don't will be building a backpay exposure with every passing pay period.

Does Illinois follow the federal Portal-to-Portal Act?

No. The Illinois Supreme Court ruled in March 2026 that the Illinois Minimum Wage Law does not incorporate the federal Portal-to-Portal Act's preliminary and postliminary exceptions. Illinois requires compensation for all time an employee is required to be on the employer's premises, regardless of whether those activities are integral to their job duties.

What activities count as compensable work time under the Illinois Minimum Wage Law?

Under the Illinois Minimum Wage Law, compensable time includes all time a non-exempt employee is required to be on the employer's premises — before and after a scheduled shift. This includes security screenings, walking from an entrance to a time clock, donning and doffing required gear, and logging into required systems.

How far back can employees claim unpaid wages in Illinois?

The Illinois Wage Law has a three-year statute of limitations. Employees can bring wage claims going back three years from the date of each violation. For employers with ongoing timekeeping gaps, that exposure accumulates with each pay period.

Does this ruling affect all Illinois employers or only certain industries?

The ruling applies to all Illinois employers with non-exempt employees. However, industries where structured pre-shift activities are routine — including staffing, healthcare, construction, and transportation — face the most immediate practical exposure. Any workplace with security entry, physical worksite access requirements, or required equipment donning and doffing should review its timekeeping practices now. 

What should payroll do if employees aren't currently being paid for pre-shift time?

Payroll teams should audit current timekeeping procedures to identify where gaps exist, document the review, and work with legal counsel on whether historical backpay exposure needs to be addressed. Correcting the gap promptly creates a defensible record. The Illinois Wage Law's three-year statute of limitations means the window for liability grows with every pay period the issue goes unaddressed.