State of Illinois
91st General Assembly
Legislation

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[ Introduced ][ Enrolled ][ Senate Amendment 001 ]

91_HB2041eng

 
HB2041 Engrossed                               LRB9101251SMdv

 1        AN ACT to amend the Illinois Wage Payment and  Collection
 2    Act by changing Section 9.

 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:

 5        Section 5.  The Illinois Wage Payment and Collection  Act
 6    is amended by changing Section 9 as follows:

 7        (820 ILCS 115/9) (from Ch. 48, par. 39m-9)
 8        Sec.  9.  Except  as  hereinafter provided, deductions by
 9    employers from wages or  final  compensation  are  prohibited
10    unless  such  deductions  are (1) required by law; (2) to the
11    benefit of the employee; (3) in  response  to  a  valid  wage
12    assignment or wage deduction order; (4) made with the express
13    written consent of the employee, given freely at the time the
14    deduction  is  made;  or  (5)  made  by a municipality with a
15    population of 500,000 or more, a community  college  district
16    in  a  city with a population of 500,000 or more, the Chicago
17    Park District, the Metropolitan  Transit  Authority,  or  the
18    Chicago School Reform Board of Trustees to pay a debt owed by
19    the  employee  to a municipality with a population of 500,000
20    or more; provided, however, that the amount deducted from any
21    one salary or wage  payment shall not exceed 25% of  the  net
22    amount  of  the  payment;  or  (6)  made  at the request of a
23    housing authority in a  municipality  with  a  population  of
24    500,000  or  more  to  pay a debt owed by the employee to the
25    housing  authority;  provided,  however,  that   the   amount
26    deducted from any one salary or wage payment shall not exceed
27    25% of the net amount of the payment. Before the municipality
28    with  a  population  of  500,000  or  more,  the Chicago Park
29    District, the Metropolitan Transit Authority, or the  Chicago
30    School  Reform  Board of Trustees deducts any amount from any
31    salary or  wage  of  an  employee  under  this  Section,  the
 
HB2041 Engrossed            -2-                LRB9101251SMdv
 1    municipality   shall  certify  that  the  employee  has  been
 2    afforded an opportunity for a hearing  to  dispute  the  debt
 3    that  is  due and owing the municipality. Before an employer,
 4    at the request of a housing authority in a municipality  with
 5    a  population of 500,000 or more, deducts any amount from any
 6    salary or wage of an employee under this Section, the housing
 7    authority shall certify that the employee has  been  afforded
 8    an  opportunity for a hearing to dispute the debt that is due
 9    and  owing  the  housing  authority.  For  purposes  of  this
10    Section, "net amount" means that part of the salary  or  wage
11    payment remaining after the deduction of any amounts required
12    by  law  to  be deducted and "debt due and owing" means (i) a
13    specified sum of money owed to the  municipality  or  housing
14    authority  for  city   services,  work,  or  goods, after the
15    period granted for payment has expired, or (ii)  a  specified
16    sum  of  money  owed to the municipality or housing authority
17    pursuant to a court  order  or  order  of  an  administrative
18    hearing  officer  after  the exhaustion of, or the failure to
19    exhaust,  judicial  review.   Where  the  legitimacy  of  any
20    deduction from wages is in dispute, the  amount  in  question
21    may  be  withheld  if the employer notifies the Department of
22    Labor on the date the payment is due in writing of the amount
23    that is being withheld and stating the reasons for which  the
24    payment is withheld. Upon such notification the Department of
25    Labor shall conduct an investigation and render a judgment as
26    promptly  as  possible, and shall complete such investigation
27    within 30 days of receipt of the notification by the employer
28    that wages have been withheld. The  employer  shall  pay  the
29    wages  due  upon  order  of the Department of Labor within 15
30    calendar days of issuance of a judgment on the dispute.
31        The Department  shall  establish  rules  to  protect  the
32    interests  of  both  parties  in cases of disputed deductions
33    from wages. Such rules shall include  reasonable  limitations
34    on  the  amount  of  deductions  beyond those required by law
 
HB2041 Engrossed            -3-                LRB9101251SMdv
 1    which may be made during any pay period by any employer.
 2        In case of a dispute over wages, the employer shall  pay,
 3    without  condition  and  within the time set by this Act, all
 4    wages or parts thereof, conceded by him to be due, leaving to
 5    the employee all  remedies  to  which  he  may  otherwise  be
 6    entitled  as  to  any  balance claimed.  The acceptance by an
 7    employee of  a  disputed  paycheck  shall  not  constitute  a
 8    release  as  to  the  balance of his claim and any release or
 9    restrictive  endorsement  required  by  an  employer   as   a
10    condition  to  payment  shall  be a violation of this Act and
11    shall be void.
12    (Source: P.A. 90-22, eff. 6-20-97.)

13        Section 99.  Effective date.  This Act takes effect  upon
14    becoming law.

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