Full Text of SB1505 103rd General Assembly
SB1505 103RD GENERAL ASSEMBLY |
| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 SB1505 Introduced 2/7/2023, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED: |
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820 ILCS 115/2 | from Ch. 48, par. 39m-2 |
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Amends the Illinois Wage Payment and Collection Act. Provides that the definition of "employee" does not include an employer or any individual who has an ownership interest in the partnership, association, corporation (other than ownership of shares of a publicly traded corporation), limited liability company, business trust, or employment placement agency.
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| | A BILL FOR |
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| | | SB1505 | | LRB103 28784 SPS 55169 b |
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| 1 | | AN ACT concerning employment.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Wage Payment and Collection Act is | 5 | | amended by changing Section 2 as follows:
| 6 | | (820 ILCS 115/2) (from Ch. 48, par. 39m-2)
| 7 | | Sec. 2. For all employees, other than separated employees, | 8 | | "wages"
shall be defined as any compensation owed an employee | 9 | | by an employer pursuant
to an employment contract or agreement | 10 | | between the 2 parties, whether
the amount is determined on a | 11 | | time, task, piece, or any other basis of
calculation. Payments | 12 | | to separated employees shall be termed "final
compensation" | 13 | | and shall be defined as wages, salaries, earned commissions,
| 14 | | earned bonuses, and the monetary equivalent of earned vacation | 15 | | and earned
holidays, and any other compensation owed the | 16 | | employee by the employer pursuant
to an employment contract or | 17 | | agreement between the 2 parties. Where an
employer is legally | 18 | | committed through a collective bargaining agreement
or | 19 | | otherwise to make contributions to an employee benefit, trust | 20 | | or fund on
the basis of a certain amount per hour, day, week or | 21 | | other period of time,
the amount due from the employer to such | 22 | | employee benefit, trust, or fund
shall be defined as "wage | 23 | | supplements", subject to the wage collection
provisions of |
| | | SB1505 | - 2 - | LRB103 28784 SPS 55169 b |
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| 1 | | this Act.
| 2 | | As used in this Act, the term "employer" shall include any | 3 | | individual,
partnership, association, corporation, limited | 4 | | liability company, business trust, employment and
labor | 5 | | placement agencies where wage payments are made
directly or | 6 | | indirectly by the agency or business for work undertaken by
| 7 | | employees under hire to a third party pursuant to a contract | 8 | | between the
business or agency with the third party, or any | 9 | | person or group of
persons acting directly or indirectly in | 10 | | the interest of an employer in
relation to an employee, for | 11 | | which one or more persons is gainfully employed.
| 12 | | As used in this Act, the term "employee" shall include any | 13 | | individual
permitted to work by an employer in an occupation, | 14 | | but shall not include any
individual:
| 15 | | (1) who has been and will continue to be free from | 16 | | control and direction
over the performance of his work, | 17 | | both under his contract of service with his
employer and | 18 | | in fact; and
| 19 | | (2) who performs work which is either outside the | 20 | | usual course of business
or is performed outside all of | 21 | | the places of business of the employer unless
the employer | 22 | | is in the business of contracting with third parties for | 23 | | the
placement of employees; and
| 24 | | (3) who is in an independently established trade, | 25 | | occupation, profession
or business.
| 26 | | "Employee" also does not include an employer or any |
| | | SB1505 | - 3 - | LRB103 28784 SPS 55169 b |
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| 1 | | individual who has an ownership interest in the partnership, | 2 | | association, corporation (other than ownership of shares of a | 3 | | publicly traded corporation), limited liability company, | 4 | | business trust, or employment placement agency. | 5 | | The following terms apply to an employer's use of payroll | 6 | | cards to pay wages to an employee under the requirements of | 7 | | this Act: | 8 | | "Payroll card" means a card provided to an employee by an | 9 | | employer or other payroll card issuer as a means of accessing | 10 | | the employee's payroll card account. | 11 | | "Payroll card account" means an account that is directly | 12 | | or indirectly established through an employer and to which | 13 | | deposits of a participating employee's wages are made. | 14 | | "Payroll card issuer" means a bank, financial institution, | 15 | | or other entity that issues a payroll card to an employee under | 16 | | an employer payroll card program. | 17 | | (Source: P.A. 98-862, eff. 1-1-15 .)
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