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| [ Engrossed ] | [ Enrolled ] | [ Senate Amendment 001 ] |
91_HB2041
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
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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
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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.