| ||||
| Public Act 097-0120 | ||||
| ||||
| ||||
AN ACT concerning local government.
| ||||
Be it enacted by the People of the State of Illinois,
| ||||
represented in the General Assembly:
| ||||
Section 5. The Illinois Wage Payment and Collection Act is | ||||
amended by changing Section 9 as follows:
| ||||
(820 ILCS 115/9) (from Ch. 48, par. 39m-9)
| ||||
Sec. 9.
Except as hereinafter provided, deductions by | ||||
employers from wages
or final
compensation are prohibited | ||||
unless such deductions are (1) required by law; (2)
to the | ||||
benefit of the employee; (3) in response to a valid
wage
| ||||
assignment or wage deduction order; (4) made with the express | ||||
written
consent of the employee, given freely at the time the | ||||
deduction is made;
(5) made by a municipality with a population | ||||
of 500,000 or more, a county
with a population of 3,000,000 or | ||||
more, a
community college district in a city with a population | ||||
of 500,000 or more,
a housing authority in a municipality with
| ||||
a population of 500,000 or more,
the Chicago Park District, the | ||||
Metropolitan Transit Authority, the
Chicago Board of | ||||
Education,
the Cook County Forest Preserve District, or
the | ||||
Metropolitan Water Reclamation District
to pay a debt owed by | ||||
the employee to a
municipality
with a population of 500,000 or | ||||
more, a county with a population of 3,000,000
or more, the Cook | ||||
County Forest Preserve, the Chicago Park District, the
| ||||
Metropolitan Water Reclamation District, the Chicago Transit | ||
Authority, the
Chicago Board of Education, or a housing | ||
authority of a municipality with a
population of 500,000 or | ||
more;
provided, however, that the amount deducted from any one | ||
salary or wage
payment shall not exceed 25% of the net amount | ||
of the payment; or (6) made by
a housing authority in a | ||
municipality with
a
population of 500,000 or more
or a | ||
municipality with a population of 500,000 or more
to pay a debt | ||
owed by the employee to a
housing
authority in a municipality | ||
with a population of 500,000 or more; provided,
however, that | ||
the amount deducted from any one salary or
wage payment shall | ||
not exceed 25% of the net amount of the payment.
Before the | ||
municipality with a population of 500,000 or more,
the | ||
community college district in a city with a population of | ||
500,000 or
more, the Chicago Park District, the Metropolitan | ||
Transit Authority,
a housing authority in a municipality with
a | ||
population of 500,000 or more, the Chicago Board of Education,
| ||
the county with a population of 3,000,000 or more, the Cook | ||
County Forest
Preserve District,
or the Metropolitan Water | ||
Reclamation District
deducts any amount from any salary or wage | ||
of an
employee
to pay a debt owed to a municipality with a | ||
population of 500,000 or more, a
county with a population of | ||
3,000,000 or more, the Cook County Forest Preserve
District,
| ||
the Chicago Park District, the Metropolitan Water Reclamation | ||
District, the
Chicago Transit Authority, the Chicago Board of | ||
Education, or a housing
authority of a municipality with a | ||
population of 500,000 or more under this
Section, the | ||
municipality, the county, the Cook County Forest Preserve
| ||
District, the
Chicago Park District, the Metropolitan Water | ||
Reclamation District, the Chicago
Transit Authority, the | ||
Chicago Board of Education, or a housing authority of a
| ||
municipality with a population of 500,000 or more shall certify | ||
that (i)
the
employee has been
afforded an opportunity for a | ||
hearing to dispute the debt that is due and owing
the | ||
municipality, the county, the Cook County Forest Preserve | ||
District, the
Chicago
Park District, the Metropolitan Water | ||
Reclamation District, the Chicago Transit
Authority, the | ||
Chicago Board of Education, or a housing authority of a
| ||
municipality with a population of 500,000 or more and (ii) the | ||
employee has
received notice of a wage deduction order and has
| ||
been afforded an opportunity for a hearing to object to the | ||
order.
Before a housing authority in a
municipality
with a | ||
population of 500,000 or more or a municipality with a | ||
population of
500,000 or more, a county with a population of | ||
3,000,000 or more, the Cook
County Forest Preserve District, | ||
the Chicago Park District, the Metropolitan
Water Reclamation | ||
District, the Chicago Transit Authority, the Chicago Board of
| ||
Education, or a housing authority of a municipality with a | ||
population of
500,000 or more
deducts any amount from any | ||
salary or
wage of an employee to pay a debt owed to a
housing | ||
authority in a municipality
with a population of 500,000 or | ||
more under this Section, the
housing authority shall certify
| ||
that (i) the employee has been afforded an opportunity for a | ||
hearing to
dispute the debt that is due and owing the housing
| ||
authority and (ii) the employee has received notice of a wage
| ||
deduction order and has
been afforded an opportunity for a | ||
hearing to object to the order.
For purposes of this Section, | ||
"net amount" means that part of the salary or
wage payment | ||
remaining after the deduction of any amounts required by law to | ||
be
deducted and "debt due and owing" means (i) a specified sum | ||
of money owed to
the municipality, county, the Cook County | ||
Forest Preserve District, the
Chicago Park
District, the | ||
Metropolitan Water Reclamation District, the Chicago Transit
| ||
Authority, the Chicago Board of Education, or housing authority
| ||
for
services, work, or
goods, after the period granted for | ||
payment has expired, or (ii) a specified
sum of money owed to | ||
the municipality, county, the Cook County Forest
Preserve | ||
District, the Chicago Park District, the Metropolitan Water
| ||
Reclamation
District, the Chicago Transit Authority, the | ||
Chicago Board of Education
or housing authority pursuant
to a
| ||
court order or order of an administrative hearing officer after | ||
the exhaustion
of, or the failure to exhaust, judicial review; | ||
(7) the result of an excess payment made due to, but not | ||
limited to, a typographical or mathematical error made by a | ||
municipality with a population of less than 500,000 or to | ||
collect a debt owed to a municipality with a population of less | ||
than 500,000 after notice to the employee and an opportunity to | ||
be heard; provided, however, that the amount deducted from any | ||
one salary or wage payment shall not exceed 15% of the net | ||
amount of the payment. Before the municipality deducts any | ||
amount from any salary or wage of an employee to pay a debt | ||
owed to the municipality, the municipality shall certify that | ||
(i) the employee has been afforded an opportunity for a | ||
hearing, conducted by the municipality, to dispute the debt | ||
that is due and owing the municipality, and (ii) the employee | ||
has received notice of a wage deduction order and has been | ||
afforded an opportunity for a hearing, conducted by the | ||
municipality, to object to the order. For purposes of this | ||
Section, "net amount" means that part of the salary or wage | ||
payment remaining after the deduction of any amounts required | ||
by law to be deducted and "debt due and owing" means (i) a | ||
specified sum of money owed to the municipality for services, | ||
work, or goods, after the period granted for payment has | ||
expired, or (ii) a specified sum of money owed to the | ||
municipality pursuant to a court order or order of an | ||
administrative hearing officer after the exhaustion of, or the | ||
failure to exhaust, judicial review. Where the legitimacy of | ||
any
deduction from wages is in
dispute, the amount in question | ||
may be withheld if the employer notifies
the Department of | ||
Labor on the date the payment is due in writing of the
amount | ||
that is being withheld and stating the reasons for which the
| ||
payment is withheld. Upon such notification the Department of | ||
Labor
shall conduct an investigation and render a judgment as | ||
promptly as
possible, and shall complete such investigation | ||
within 30 days of
receipt of the notification by the employer | ||
that wages have been
withheld. The employer shall pay the wages | ||
due upon order of the
Department of Labor within 15 calendar | ||
days of issuance of a judgment on the
dispute.
| ||
The Department shall establish rules to protect the | ||
interests of both
parties in cases of disputed deductions from | ||
wages. Such rules shall
include reasonable limitations on the | ||
amount of deductions beyond those
required by law which may be | ||
made during any pay period by any employer.
| ||
In case of a dispute over wages, the employer shall pay, | ||
without condition
and within the time set by this Act, all | ||
wages or parts thereof, conceded
by him to be due, leaving to | ||
the employee all remedies to which he may
otherwise be entitled | ||
as to any balance claimed. The acceptance by an employee
of a | ||
disputed paycheck shall not constitute a release as to the | ||
balance of his
claim and any release or restrictive endorsement | ||
required by an employer as a
condition to payment shall be a | ||
violation of this Act and shall be void.
| ||
(Source: P.A. 91-443, eff. 8-6-99; 92-109, eff. 7-20-01.)
| ||