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| [ Introduced ] | [ Engrossed ] | [ Senate Amendment 001 ] |
91_HB2041enr HB2041 Enrolled 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, a housing 17 authority in a municipality with a population of 500,000 or 18 more, the Chicago Park District, the Metropolitan Transit 19 Authority, or the Chicago School Reform Board of Trustees to 20 pay a debt owed by the employee to a municipality with a 21 population of 500,000 or more; provided, however, that the 22 amount deducted from any one salary or wage payment shall 23 not exceed 25% of the net amount of the payment; or (6) made 24 by a housing authority in a municipality with a population of 25 500,000 or more or a municipality with a population of 26 500,000 or more to pay a debt owed by the employee to a 27 housing authority in a municipality with a population of 28 500,000 or more; provided, however, that the amount deducted 29 from any one salary or wage payment shall not exceed 25% of 30 the net amount of the payment. Before the municipality with a 31 population of 500,000 or more, the Chicago Park District, the HB2041 Enrolled -2- LRB9101251SMdv 1 Metropolitan Transit Authority, a housing authority in a 2 municipality with a population of 500,000 or more, or the 3 Chicago School Reform Board of Trustees deducts any amount 4 from any salary or wage of an employee to pay a debt owed to 5 a municipality with a population of 500,000 or more under 6 this Section, the municipality shall certify that the 7 employee has been afforded an opportunity for a hearing to 8 dispute the debt that is due and owing the municipality. 9 Before a housing authority in a municipality with a 10 population of 500,000 or more or a municipality with a 11 population of 500,000 or more deducts any amount from any 12 salary or wage of an employee to pay a debt owed to a housing 13 authority in a municipality with a population of 500,000 or 14 more under this Section, the housing authority shall certify 15 that the employee has been afforded an opportunity for a 16 hearing to dispute the debt that is due and owing the housing 17 authority. For purposes of this Section, "net amount" means 18 that part of the salary or wage payment remaining after the 19 deduction of any amounts required by law to be deducted and 20 "debt due and owing" means (i) a specified sum of money owed 21 to the municipality or housing authority forcityservices, 22 work, or goods, after the period granted for payment has 23 expired, or (ii) a specified sum of money owed to the 24 municipality or housing authority pursuant to a court order 25 or order of an administrative hearing officer after the 26 exhaustion of, or the failure to exhaust, judicial review. 27 Where the legitimacy of any deduction from wages is in 28 dispute, the amount in question may be withheld if the 29 employer notifies the Department of Labor on the date the 30 payment is due in writing of the amount that is being 31 withheld and stating the reasons for which the payment is 32 withheld. Upon such notification the Department of Labor 33 shall conduct an investigation and render a judgment as 34 promptly as possible, and shall complete such investigation HB2041 Enrolled -3- LRB9101251SMdv 1 within 30 days of receipt of the notification by the employer 2 that wages have been withheld. The employer shall pay the 3 wages due upon order of the Department of Labor within 15 4 calendar days of issuance of a judgment on the dispute. 5 The Department shall establish rules to protect the 6 interests of both parties in cases of disputed deductions 7 from wages. Such rules shall include reasonable limitations 8 on the amount of deductions beyond those required by law 9 which may be made during any pay period by any employer. 10 In case of a dispute over wages, the employer shall pay, 11 without condition and within the time set by this Act, all 12 wages or parts thereof, conceded by him to be due, leaving to 13 the employee all remedies to which he may otherwise be 14 entitled as to any balance claimed. The acceptance by an 15 employee of a disputed paycheck shall not constitute a 16 release as to the balance of his claim and any release or 17 restrictive endorsement required by an employer as a 18 condition to payment shall be a violation of this Act and 19 shall be void. 20 (Source: P.A. 90-22, eff. 6-20-97.) 21 Section 99. Effective date. This Act takes effect upon 22 becoming law.