98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB4571

 

Introduced , by Rep. Mary E. Flowers

 

SYNOPSIS AS INTRODUCED:
 
820 ILCS 115/4  from Ch. 48, par. 39m-4

    Amends the Illinois Wage Payment and Collection Act. Provides that wages and final compensation may be deposited, with the authorization of the employee, in a payroll debit card account, to be paid with a payroll debit card. Provides that an employee may be paid via payroll debit card account only if the employee (i) provides to the employer voluntary, written authorization; (ii) is fully informed of the terms of the account at the time of authorization; and (iii) has access, for purpose of withdrawal, to the employee's full net wages at least once per pay period. Provides that an employer must disclose and inform the employee of the features and uses of the payroll debit card and furnish the employee with a statement of deductions for each pay period. Provides that an employer may not intimidate or threaten an employee with any adverse employment action, such as discharge, for refusal to accept a payroll debit card, nor may an employer make a payroll debit card a condition of hire or continued employment. Defines "payroll debit card account".


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A BILL FOR

 

HB4571LRB098 13601 HEP 53669 b

1    AN ACT concerning employment.
 
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 4 as follows:
 
6    (820 ILCS 115/4)  (from Ch. 48, par. 39m-4)
7    Sec. 4. All wages earned by any employee during a
8semi-monthly or bi-weekly pay period shall be paid to such
9employee not later than 13 days after the end of the pay period
10in which such wages were earned. All wages earned by any
11employee during a weekly pay period shall be paid not later
12than 7 days after the end of the weekly pay period in which the
13wages were earned. All wages paid on a daily basis shall be
14paid insofar as possible on the same day as the wages were
15earned, or not later in any event than 24 hours after the day
16on which the wages were earned. Wages of executive,
17administrative and professional employees, as defined in the
18Federal Fair Labor Standards Act of 1938, may be paid on or
19before 21 calendar days after the period during which they are
20earned.
21    The terms of this Section shall not apply, if there exists
22a valid collective bargaining agreement which provides for a
23different date or for different arrangements for the payment of

 

 

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1wages.
2    Employers shall pay to workers on strike or layoff, no
3later than the next regular payday, all wages earned up to the
4time of such strike or layoff.
5    Any employee who is absent at the time fixed for payment,
6or who for any other reason is not paid at that time, shall be
7paid upon demand at any time within a period of 5 days after
8the time fixed for payment; and after the expiration of the 5
9day period, payment shall be made upon 5 days demand. Payment
10to the absent employee shall be made by mail if the employee so
11requests in writing.
12    All wages and final compensation shall be paid in lawful
13money of the United States, by check, redeemable upon demand
14and without discount at a bank or other financial institution
15readily available to the employee, or by deposit of funds in an
16account in a bank or other financial institution designated by
17the employee, or by deposit of funds, with the authorization
18from the employee, in a payroll debit card account, to be paid
19with a payroll debit card. An employee may be paid via payroll
20debit card account only if the employee (i) provides to the
21employer voluntary, written authorization; (ii) is fully
22informed of the terms of the account at the time of
23authorization; and (iii) has access, for purpose of withdrawal,
24to the employee's full net wages at least once per pay period.
25An employer must disclose and inform the employee of the
26features and uses of the payroll debit card and furnish the

 

 

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1employee with a statement of deductions for each pay period. No
2employer may designate a particular financial institution,
3bank, savings bank, savings and loan, or currency exchange for
4the exclusive payment or deposit of a check for wages. An
5employer may not intimidate or threaten an employee with any
6adverse employment action, such as discharge, for refusal to
7accept a payroll debit card, nor may an employer make a payroll
8debit card a condition of hire or continued employment. No
9financial institution, bank, savings bank, savings and loan, or
10currency exchange shall refuse to honor a check for wages that
11exclusively designates, in violation of this Section, a
12particular bank, savings bank, savings and loan, or currency
13exchange as the exclusive place of payment or deposit except to
14the extent the bank, savings bank, savings and loan, or
15currency exchange is otherwise excused from honoring the check
16under Section 3-111 of the Uniform Commercial Code because the
17bank, savings bank, savings and loan, or currency exchange is
18not the drawee or the maker of the check.
19    As used in this Section, "payroll debit card account" means
20an account that is directly or indirectly established through
21an employer and to which the electronic fund transfers or the
22employee's wages, salary, or other employee compensation (such
23as commissions), are made on a recurring basis, whether the
24account is operated or managed by the employer, a third-party
25payroll processor, a depository institution, or any other
26person. The payroll card simply represents another choice of

 

 

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1financial institution into which employees' net pay may be
2deposited.
3(Source: P.A. 89-364, eff. 8-18-95.)