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91_HB4651
LRB9112767WHdv
1 AN ACT concerning local governments.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Counties Code is amended by adding
5 Section 3-14002.5 as follows:
6 (55 ILCS 5/3-14002.5 new)
7 Sec. 3-14002.5. Power to deduct wages for municipal
8 debts.
9 (a) Upon receipt of notice from the comptroller of a
10 municipality with a population of 500,000 or more or a county
11 with a population of 3,000,000 or more that a debt is due and
12 owing the municipality or county by an employee of the County
13 of Cook, the County of Cook may withhold, from the
14 compensation of that employee, the amount of the debt that is
15 due and owing and pay the amount withheld to the municipality
16 or county; provided, however, that the amount deducted from
17 any one salary or wage payment shall not exceed 25% of the
18 net amount of the payment.
19 (b) Before the County of Cook deducts any amount from
20 any salary or wage of an employee under this Section, the
21 municipality or county shall certify that the employee has
22 been afforded an opportunity for a hearing to dispute the
23 debt that is due and owing the municipality or county.
24 (c) For purposes of this Section:
25 (1) "Net amount" means that part of the salary or
26 wage payment remaining after the deduction of any amounts
27 required by law to be deducted.
28 (2) "Debt due and owing" means (i) a specified sum
29 of money owed to the municipality or county for city
30 services, work, or goods, after the period granted for
31 payment has expired, or (ii) a specified sum of money
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1 owed to the municipality or county pursuant to a court
2 order or order of an administrative hearing officer after
3 the exhaustion of, or the failure to exhaust, judicial
4 review.
5 Section 10. The Cook County Forest Preserve District Act
6 is amended by adding Section 17.5 as follows:
7 (70 ILCS 810/17.5 new)
8 Sec. 17.5. Power to deduct wages for municipal debts.
9 (a) Upon receipt of notice from the comptroller of a
10 municipality with a population of 500,000 or more or a county
11 with a population of 3,000,000 or more that a debt is due and
12 owing the municipality or county by an employee of the
13 District, the District may withhold, from the compensation of
14 that employee, the amount of the debt that is due and owing
15 and pay the amount withheld to the municipality or county;
16 provided, however, that the amount deducted from any one
17 salary or wage payment shall not exceed 25% of the net amount
18 of the payment.
19 (b) Before the District deducts any amount from any
20 salary or wage of an employee under this Section, the
21 municipality or county shall certify that the employee has
22 been afforded an opportunity for a hearing to dispute the
23 debt that is due and owing the municipality or county.
24 (c) For purposes of this Section:
25 (1) "Net amount" means that part of the salary or
26 wage payment remaining after the deduction of any amounts
27 required by law to be deducted.
28 (2) "Debt due and owing" means (i) a specified sum
29 of money owed to the municipality or county for city
30 services, work, or goods, after the period granted for
31 payment has expired, or (ii) a specified sum of money
32 owed to the municipality or county pursuant to a court
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1 order or order of an administrative hearing officer after
2 the exhaustion of, or the failure to exhaust, judicial
3 review.
4 Section 15. The Metropolitan Water Reclamation District
5 Act is amended by adding Section 4.39 as follows:
6 (70 ILCS 2605/4.39 new)
7 Sec. 4.39. Power to deduct wages for municipal debts.
8 (a) Upon receipt of notice from the comptroller of a
9 municipality with a population of 500,000 or more or a county
10 with a population of 3,000,000 or more that a debt is due and
11 owing the municipality by an employee of the District, the
12 District may withhold, from the compensation of that
13 employee, the amount of the debt that is due and owing and
14 pay the amount withheld to the municipality or county;
15 provided, however, that the amount deducted from any one
16 salary or wage payment shall not exceed 25% of the net amount
17 of the payment.
18 (b) Before the District deducts any amount from any
19 salary or wage of an employee under this Section, the
20 municipality or county shall certify that the employee has
21 been afforded an opportunity for a hearing to dispute the
22 debt that is due and owing the municipality or county.
23 (c) For purposes of this Section:
24 (1) "Net amount" means that part of the salary or
25 wage payment remaining after the deduction of any amounts
26 required by law to be deducted.
27 (2) "Debt due and owing" means (i) a specified sum
28 of money owed to the municipality or county for city
29 services, work, or goods, after the period granted for
30 payment has expired, or (ii) a specified sum of money
31 owed to the municipality or county pursuant to a court
32 order or order of an administrative hearing officer after
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1 the exhaustion of, or the failure to exhaust, judicial
2 review.
3 Section 20. The Housing Authorities Act is amended by
4 adding Section 6.1 as follows:
5 (310 ILCS 10/6.1 new)
6 Sec. 6.1. Power to deduct wages for municipal debts.
7 (a) Upon receipt of notice from the comptroller of a
8 municipality with a population of 500,000 or more or a county
9 with a population of 3,000,000 or more that a debt is due and
10 owing the municipality or county by an employee of the
11 housing authority of a municipality with a population of
12 500,000 or more, that authority may withhold, from the
13 compensation of that employee, the amount of the debt that is
14 due and owing and pay the amount withheld to the municipality
15 or county; provided, however, that the amount deducted from
16 any one salary or wage payment shall not exceed 25% of the
17 net amount of the payment.
18 (b) Before the housing authority of a municipality with
19 a population of 500,000 or more deducts any amount from any
20 salary or wage of an employee under this Section, the
21 municipality or county shall certify that the employee has
22 been afforded an opportunity for a hearing to dispute the
23 debt that is due and owing the municipality or county.
24 (c) For purposes of this Section:
25 (1) "Net amount" means that part of the salary or
26 wage payment remaining after the deduction of any amounts
27 required by law to be deducted.
28 (2) "Debt due and owing" means (i) a specified sum
29 of money owed to the municipality or county for city
30 services, work, or goods, after the period granted for
31 payment has expired, or (ii) a specified sum of money
32 owed to the municipality or county pursuant to a court
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1 order or order of an administrative hearing officer after
2 the exhaustion of, or the failure to exhaust, judicial
3 review.
4 Section 25. The Illinois Wage Payment and Collection Act
5 is amended 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
8 employers from wages or final compensation are prohibited
9 unless such deductions are (1) required by law; (2) to the
10 benefit of the employee; (3) in response to a valid wage
11 assignment or wage deduction order; (4) made with the express
12 written consent of the employee, given freely at the time the
13 deduction is made; (5) made by a municipality with a
14 population of 500,000 or more, a county with a population of
15 3,000,000 or more, a community college district in a city
16 with a population of 500,000 or more, a housing authority in
17 a municipality with a population of 500,000 or more, the
18 Chicago Park District, the Metropolitan Transit Authority, or
19 the Chicago School Reform Board of Trustees, the County of
20 Cook, the Cook County Forest Preserve District, or the
21 Metropolitan Water Reclamation District to pay a debt owed by
22 the employee to a municipality with a population of 500,000
23 or more or a county with a population of 3,000,000 or more;
24 provided, however, that the amount deducted from any one
25 salary or wage payment shall not exceed 25% of the net
26 amount of the payment; or (6) made by housing authority in a
27 municipality with a population of 500,000 or more or a
28 municipality with a population of 500,000 or more to pay a
29 debt owed by the employee to a housing authority in a
30 municipality with a population of 500,000 or more; provided,
31 however, that the amount deducted from any one salary or wage
32 payment shall not exceed 25% of the net amount of the
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1 payment. Before the municipality with a population of 500,000
2 or more, the community college district in a city with a
3 population of 500,000 or more, the Chicago Park District, the
4 Metropolitan Transit Authority, a housing authority in a
5 municipality with a population of 500,000 or more, or the
6 Chicago School Reform Board of Trustees, the County of Cook,
7 the Cook County Forest Preserve District, or the Metropolitan
8 Water Reclamation District deducts any amount from any salary
9 or wage of an employee to pay a debt owed to a municipality
10 with a population of 500,000 or more or a county with a
11 population of 3,000,000 or more under this Section, the
12 municipality or county shall certify that the employee has
13 been afforded an opportunity for a hearing to dispute the
14 debt that is due and owing the municipality or county. Before
15 a housing authority in a municipality with a population of
16 500,000 or more or a municipality with a population of
17 500,000 or more or a county with a population of 3,000,000 or
18 more deducts any amount from any salary or wage of an
19 employee to pay a debt owed to a housing authority in a
20 municipality with a population of 500,000 or more under this
21 Section, the housing authority shall certify that the
22 employee has been afforded an opportunity for a hearing to
23 dispute the debt that is due and owing the housing authority.
24 For purposes of this Section, "net amount" means that part of
25 the salary or wage payment remaining after the deduction of
26 any amounts required by law to be deducted and "debt due and
27 owing" means (i) a specified sum of money owed to the
28 municipality, county, or housing authority for services,
29 work, or goods, after the period granted for payment has
30 expired, or (ii) a specified sum of money owed to the
31 municipality, county, or housing authority pursuant to a
32 court order or order of an administrative hearing officer
33 after the exhaustion of, or the failure to exhaust, judicial
34 review. Where the legitimacy of any deduction from wages is
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1 in dispute, the amount in question may be withheld if the
2 employer notifies the Department of Labor on the date the
3 payment is due in writing of the amount that is being
4 withheld and stating the reasons for which the payment is
5 withheld. Upon such notification the Department of Labor
6 shall conduct an investigation and render a judgment as
7 promptly as possible, and shall complete such investigation
8 within 30 days of receipt of the notification by the employer
9 that wages have been withheld. The employer shall pay the
10 wages due upon order of the Department of Labor within 15
11 calendar days of issuance of a judgment on the dispute.
12 The Department shall establish rules to protect the
13 interests of both parties in cases of disputed deductions
14 from wages. Such rules shall include reasonable limitations
15 on the amount of deductions beyond those required by law
16 which may be made during any pay period by any employer.
17 In case of a dispute over wages, the employer shall pay,
18 without condition and within the time set by this Act, all
19 wages or parts thereof, conceded by him to be due, leaving to
20 the employee all remedies to which he may otherwise be
21 entitled as to any balance claimed. The acceptance by an
22 employee of a disputed paycheck shall not constitute a
23 release as to the balance of his claim and any release or
24 restrictive endorsement required by an employer as a
25 condition to payment shall be a violation of this Act and
26 shall be void.
27 (Source: P.A. 90-22, eff. 6-20-97; 91-443, eff. 8-6-99.)
28 Section 99. Effective date. This Act takes effect upon
29 becoming law.