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92_SB0982
LRB9206667WHcs
1 AN ACT concerning wages.
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
5 is amended by changing Sections 1, 2, and 9 as follows:
6 (820 ILCS 115/1) (from Ch. 48, par. 39m-1)
7 Sec. 1. This Act applies to all employers, labor
8 organizations, and employees in this State, including
9 employees of units of local government and school districts,
10 but excepting employees of the State or Federal governments.
11 (Source: P.A. 84-883.)
12 (820 ILCS 115/2) (from Ch. 48, par. 39m-2)
13 Sec. 2. For all employees, other than separated
14 employees, "wages" shall be defined as any compensation owed
15 an employee by an employer pursuant to an employment contract
16 or agreement between the 2 parties, whether the amount is
17 determined on a time, task, piece, or any other basis of
18 calculation. Payments to separated employees shall be termed
19 "final compensation" and shall be defined as wages, salaries,
20 earned commissions, earned bonuses, and the monetary
21 equivalent of earned vacation and earned holidays, and any
22 other compensation owed the employee by the employer pursuant
23 to an employment contract or agreement between the 2 parties.
24 Where an employer is legally committed through a collective
25 bargaining agreement or otherwise to make contributions to an
26 employee benefit, trust or fund on the basis of a certain
27 amount per hour, day, week or other period of time, the
28 amount due from the employer to such employee benefit, trust,
29 or fund shall be defined as "wage supplements", subject to
30 the wage collection provisions of this Act.
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1 As used in this Act, the term "employer" shall include
2 any individual, partnership, association, corporation,
3 business trust, employment and labor placement agencies where
4 wage payments are made directly or indirectly by the agency
5 or business for work undertaken by employees under hire to a
6 third party pursuant to a contract between the business or
7 agency with the third party, or any person or group of
8 persons acting directly or indirectly in the interest of an
9 employer in relation to an employee, for which one or more
10 persons is gainfully employed.
11 As used in this Act, the term "employee" shall include
12 any individual permitted to work by an employer in an
13 occupation, but shall not include any individual:
14 (1) who has been and will continue to be free from
15 control and direction over the performance of his work,
16 both under his contract of service with his employer and
17 in fact; and
18 (2) who performs work which is either outside the
19 usual course of business or is performed outside all of
20 the places of business of the employer unless the
21 employer is in the business of contracting with third
22 parties for the placement of employees; and
23 (3) who is in an independently established trade,
24 occupation, profession or business.
25 As used in this Act, "labor organization" means any
26 association or organization of employees, and any agency,
27 employee representation committee, or plan in which employees
28 participate that exists, in whole or in part, to advocate on
29 behalf of employees about grievances, labor disputes, wages,
30 rates of pay, hours of employment, or conditions of work.
31 (820 ILCS 115/9) (from Ch. 48, par. 39m-9)
32 Sec. 9. Except as hereinafter provided, deductions by
33 employers from wages or final compensation are prohibited
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1 unless such deductions are (1) required by law; (2) to the
2 benefit of the employee; (3) in response to a valid wage
3 assignment or wage deduction order; (4) made with the express
4 written consent of the employee, given freely at the time the
5 deduction is made; (5) made by a municipality with a
6 population of 500,000 or more, a community college district
7 in a city with a population of 500,000 or more, a housing
8 authority in a municipality with a population of 500,000 or
9 more, the Chicago Park District, the Metropolitan Transit
10 Authority, or the Chicago School Reform Board of Trustees to
11 pay a debt owed by the employee to a municipality with a
12 population of 500,000 or more; provided, however, that the
13 amount deducted from any one salary or wage payment shall
14 not exceed 25% of the net amount of the payment; or (6) made
15 by 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 to pay a debt owed by the employee to a
18 housing authority in a municipality with a population of
19 500,000 or more; provided, however, that the amount deducted
20 from any one salary or wage payment shall not exceed 25% of
21 the net amount of the payment. Before the municipality with a
22 population of 500,000 or more, the Chicago Park District, the
23 Metropolitan Transit Authority, a housing authority in a
24 municipality with a population of 500,000 or more, or the
25 Chicago School Reform Board of Trustees deducts any amount
26 from any salary or wage of an employee to pay a debt owed to
27 a municipality with a population of 500,000 or more under
28 this Section, the municipality shall certify that the
29 employee has been afforded an opportunity for a hearing to
30 dispute the debt that is due and owing the municipality.
31 Before a housing authority in a municipality with a
32 population of 500,000 or more or a municipality with a
33 population of 500,000 or more deducts any amount from any
34 salary or wage of an employee to pay a debt owed to a housing
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1 authority in a municipality with a population of 500,000 or
2 more under this Section, the housing authority shall certify
3 that the employee has been afforded an opportunity for a
4 hearing to dispute the debt that is due and owing the housing
5 authority. For purposes of this Section, "net amount" means
6 that part of the salary or wage payment remaining after the
7 deduction of any amounts required by law to be deducted and
8 "debt due and owing" means (i) a specified sum of money owed
9 to the municipality or housing authority for services, work,
10 or goods, after the period granted for payment has expired,
11 or (ii) a specified sum of money owed to the municipality or
12 housing authority pursuant to a court order or order of an
13 administrative hearing officer after the exhaustion of, or
14 the failure to exhaust, judicial review. Where the
15 legitimacy of any deduction from wages is in dispute, the
16 amount in question may be withheld if the employer notifies
17 the Department of Labor on the date the payment is due in
18 writing of the amount that is being withheld and stating the
19 reasons for which the payment is withheld. Upon such
20 notification the Department of Labor shall conduct an
21 investigation and render a judgment as promptly as possible,
22 and shall complete such investigation within 30 days of
23 receipt of the notification by the employer that wages have
24 been withheld. The employer shall pay the wages due upon
25 order of the Department of Labor within 15 calendar days of
26 issuance of a judgment on the dispute.
27 The Department shall establish rules to protect the
28 interests of both parties in cases of disputed deductions
29 from wages. Such rules shall include reasonable limitations
30 on the amount of deductions beyond those required by law
31 which may be made during any pay period by any employer.
32 In case of a dispute over wages, the employer shall pay,
33 without condition and within the time set by this Act, all
34 wages or parts thereof, conceded by him to be due, leaving to
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1 the employee all remedies to which he may otherwise be
2 entitled as to any balance claimed. The acceptance by an
3 employee of a disputed paycheck shall not constitute a
4 release as to the balance of his claim and any release or
5 restrictive endorsement required by an employer as a
6 condition to payment shall be a violation of this Act and
7 shall be void.
8 An employer is prohibited from deducting from wages or
9 final compensation, including funds collected by an employer
10 for a labor organization, any amounts for political purposes,
11 unless the employer is provided written permission from the
12 employee expressly allowing the employer to deduct the
13 amounts from his or her wages or final compensation.
14 (Source: P.A. 90-22, eff. 6-20-97; 91-443, eff. 8-6-99.)