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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 forcityservices, 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.