HB1513 EngrossedLRB097 10175 KMW 50365 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Wage Payment and Collection Act is
5amended by changing Section 9 as follows:
 
6    (820 ILCS 115/9)  (from Ch. 48, par. 39m-9)
7    Sec. 9. Except as hereinafter provided, deductions by
8employers from wages or final compensation are prohibited
9unless such deductions are (1) required by law; (2) to the
10benefit of the employee; (3) in response to a valid wage
11assignment or wage deduction order; (4) made with the express
12written consent of the employee, given freely at the time the
13deduction is made; (5) made by a municipality with a population
14of 500,000 or more, a county with a population of 3,000,000 or
15more, a community college district in a city with a population
16of 500,000 or more, a housing authority in a municipality with
17a population of 500,000 or more, the Chicago Park District, the
18Metropolitan Transit Authority, the Chicago Board of
19Education, the Cook County Forest Preserve District, or the
20Metropolitan Water Reclamation District to pay a debt owed by
21the employee to a municipality with a population of 500,000 or
22more, a county with a population of 3,000,000 or more, the Cook
23County Forest Preserve, the Chicago Park District, the

 

 

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1Metropolitan Water Reclamation District, the Chicago Transit
2Authority, the Chicago Board of Education, or a housing
3authority of a municipality with a population of 500,000 or
4more; provided, however, that the amount deducted from any one
5salary or wage payment shall not exceed 25% of the net amount
6of the payment; or (6) made by a housing authority in a
7municipality with a population of 500,000 or more or a
8municipality with a population of 500,000 or more to pay a debt
9owed by the employee to a housing authority in a municipality
10with a population of 500,000 or more; provided, however, that
11the amount deducted from any one salary or wage payment shall
12not exceed 25% of the net amount of the payment. Before the
13municipality with a population of 500,000 or more, the
14community college district in a city with a population of
15500,000 or more, the Chicago Park District, the Metropolitan
16Transit Authority, a housing authority in a municipality with a
17population of 500,000 or more, the Chicago Board of Education,
18the county with a population of 3,000,000 or more, the Cook
19County Forest Preserve District, or the Metropolitan Water
20Reclamation District deducts any amount from any salary or wage
21of an employee to pay a debt owed to a municipality with a
22population of 500,000 or more, a county with a population of
233,000,000 or more, the Cook County Forest Preserve District,
24the Chicago Park District, the Metropolitan Water Reclamation
25District, the Chicago Transit Authority, the Chicago Board of
26Education, or a housing authority of a municipality with a

 

 

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1population of 500,000 or more under this Section, the
2municipality, the county, the Cook County Forest Preserve
3District, the Chicago Park District, the Metropolitan Water
4Reclamation District, the Chicago Transit Authority, the
5Chicago Board of Education, or a housing authority of a
6municipality with a population of 500,000 or more shall certify
7that (i) the employee has been afforded an opportunity for a
8hearing to dispute the debt that is due and owing the
9municipality, the county, the Cook County Forest Preserve
10District, the Chicago Park District, the Metropolitan Water
11Reclamation District, the Chicago Transit Authority, the
12Chicago Board of Education, or a housing authority of a
13municipality with a population of 500,000 or more and (ii) the
14employee has received notice of a wage deduction order and has
15been afforded an opportunity for a hearing to object to the
16order. Before a housing authority in a municipality with a
17population of 500,000 or more or a municipality with a
18population of 500,000 or more, a county with a population of
193,000,000 or more, the Cook County Forest Preserve District,
20the Chicago Park District, the Metropolitan Water Reclamation
21District, the Chicago Transit Authority, the Chicago Board of
22Education, or a housing authority of a municipality with a
23population of 500,000 or more deducts any amount from any
24salary or wage of an employee to pay a debt owed to a housing
25authority in a municipality with a population of 500,000 or
26more under this Section, the housing authority shall certify

 

 

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1that (i) the employee has been afforded an opportunity for a
2hearing to dispute the debt that is due and owing the housing
3authority and (ii) the employee has received notice of a wage
4deduction order and has been afforded an opportunity for a
5hearing to object to the order. For purposes of this Section,
6"net amount" means that part of the salary or wage payment
7remaining after the deduction of any amounts required by law to
8be deducted and "debt due and owing" means (i) a specified sum
9of money owed to the municipality, county, the Cook County
10Forest Preserve District, the Chicago Park District, the
11Metropolitan Water Reclamation District, the Chicago Transit
12Authority, the Chicago Board of Education, or housing authority
13for services, work, or goods, after the period granted for
14payment has expired, or (ii) a specified sum of money owed to
15the municipality, county, the Cook County Forest Preserve
16District, the Chicago Park District, the Metropolitan Water
17Reclamation District, the Chicago Transit Authority, the
18Chicago Board of Education or housing authority pursuant to a
19court order or order of an administrative hearing officer after
20the exhaustion of, or the failure to exhaust, judicial review;
21(7) the result of an excess payment made due to, but not
22limited to, a typographical or mathematical error made by a
23municipality with a population of less than 500,000 or to
24collect a debt owed to a municipality with a population of less
25than 500,000 after notice to the employee and an opportunity to
26be heard; provided, however, that the amount deducted from any

 

 

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1one salary or wage payment shall not exceed 15% of the net
2amount of the payment. Before the municipality deducts any
3amount from any salary or wage of an employee to pay a debt
4owed to the municipality, the municipality shall certify that
5(i) the employee has been afforded an opportunity for a
6hearing, conducted by the municipality, to dispute the debt
7that is due and owing the municipality, and (ii) the employee
8has received notice of a wage deduction order and has been
9afforded an opportunity for a hearing, conducted by the
10municipality, to object to the order. For purposes of this
11Section, "net amount" means that part of the salary or wage
12payment remaining after the deduction of any amounts required
13by law to be deducted and "debt due and owing" means (i) a
14specified sum of money owed to the municipality for services,
15work, or goods, after the period granted for payment has
16expired, or (ii) a specified sum of money owed to the
17municipality pursuant to a court order or order of an
18administrative hearing officer after the exhaustion of, or the
19failure to exhaust, judicial review. Where the legitimacy of
20any deduction from wages is in dispute, the amount in question
21may be withheld if the employer notifies the Department of
22Labor on the date the payment is due in writing of the amount
23that is being withheld and stating the reasons for which the
24payment is withheld. Upon such notification the Department of
25Labor shall conduct an investigation and render a judgment as
26promptly as possible, and shall complete such investigation

 

 

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1within 30 days of receipt of the notification by the employer
2that wages have been withheld. The employer shall pay the wages
3due upon order of the Department of Labor within 15 calendar
4days of issuance of a judgment on the dispute.
5    The Department shall establish rules to protect the
6interests of both parties in cases of disputed deductions from
7wages. Such rules shall include reasonable limitations on the
8amount of deductions beyond those required by law which may be
9made during any pay period by any employer.
10    In case of a dispute over wages, the employer shall pay,
11without condition and within the time set by this Act, all
12wages or parts thereof, conceded by him to be due, leaving to
13the employee all remedies to which he may otherwise be entitled
14as to any balance claimed. The acceptance by an employee of a
15disputed paycheck shall not constitute a release as to the
16balance of his claim and any release or restrictive endorsement
17required by an employer as a condition to payment shall be a
18violation of this Act and shall be void.
19(Source: P.A. 91-443, eff. 8-6-99; 92-109, eff. 7-20-01.)