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91_HB2041sam001
LRB9101251SMpram
1 AMENDMENT TO HOUSE BILL 2041
2 AMENDMENT NO. . Amend House Bill 2041 by replacing
3 the title with the following:
4 "AN ACT to amend the Illinois Wage Payment and Collection
5 Act by changing Section 9."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 5. The Illinois Wage Payment and Collection Act
9 is amended by changing Section 9 as follows:
10 (820 ILCS 115/9) (from Ch. 48, par. 39m-9)
11 Sec. 9. Except as hereinafter provided, deductions by
12 employers from wages or final compensation are prohibited
13 unless such deductions are (1) required by law; (2) to the
14 benefit of the employee; (3) in response to a valid wage
15 assignment or wage deduction order; (4) made with the express
16 written consent of the employee, given freely at the time the
17 deduction is made; or (5) made by a municipality with a
18 population of 500,000 or more, a community college district
19 in a city with a population of 500,000 or more, a housing
20 authority in a municipality with a population of 500,000 or
21 more, the Chicago Park District, the Metropolitan Transit
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1 Authority, or the Chicago School Reform Board of Trustees to
2 pay a debt owed by the employee to a municipality with a
3 population of 500,000 or more; provided, however, that the
4 amount deducted from any one salary or wage payment shall
5 not exceed 25% of the net amount of the payment; or (6) made
6 by a housing authority in a municipality with a population of
7 500,000 or more or a municipality with a population of
8 500,000 or more to pay a debt owed by the employee to a
9 housing authority in a municipality with a population of
10 500,000 or more; provided, however, that the amount deducted
11 from any one salary or wage payment shall not exceed 25% of
12 the net amount of the payment. Before the municipality with a
13 population of 500,000 or more, the Chicago Park District, the
14 Metropolitan Transit Authority, a housing authority in a
15 municipality with a population of 500,000 or more, or the
16 Chicago School Reform Board of Trustees deducts any amount
17 from any salary or wage of an employee to pay a debt owed to
18 a municipality with a population of 500,000 or more under
19 this Section, the municipality shall certify that the
20 employee has been afforded an opportunity for a hearing to
21 dispute the debt that is due and owing the municipality.
22 Before a housing authority in a municipality with a
23 population of 500,000 or more or a municipality with a
24 population of 500,000 or more deducts any amount from any
25 salary or wage of an employee to pay a debt owed to a housing
26 authority in a municipality with a population of 500,000 or
27 more under this Section, the housing authority shall certify
28 that the employee has been afforded an opportunity for a
29 hearing to dispute the debt that is due and owing the housing
30 authority. For purposes of this Section, "net amount" means
31 that part of the salary or wage payment remaining after the
32 deduction of any amounts required by law to be deducted and
33 "debt due and owing" means (i) a specified sum of money owed
34 to the municipality or housing authority for city services,
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1 work, or goods, after the period granted for payment has
2 expired, or (ii) a specified sum of money owed to the
3 municipality or housing authority pursuant to a court order
4 or order of an administrative hearing officer after the
5 exhaustion of, or the failure to exhaust, judicial review.
6 Where the legitimacy of any deduction from wages is in
7 dispute, the amount in question may be withheld if the
8 employer notifies the Department of Labor on the date the
9 payment is due in writing of the amount that is being
10 withheld and stating the reasons for which the payment is
11 withheld. Upon such notification the Department of Labor
12 shall conduct an investigation and render a judgment as
13 promptly as possible, and shall complete such investigation
14 within 30 days of receipt of the notification by the employer
15 that wages have been withheld. The employer shall pay the
16 wages due upon order of the Department of Labor within 15
17 calendar days of issuance of a judgment on the dispute.
18 The Department shall establish rules to protect the
19 interests of both parties in cases of disputed deductions
20 from wages. Such rules shall include reasonable limitations
21 on the amount of deductions beyond those required by law
22 which may be made during any pay period by any employer.
23 In case of a dispute over wages, the employer shall pay,
24 without condition and within the time set by this Act, all
25 wages or parts thereof, conceded by him to be due, leaving to
26 the employee all remedies to which he may otherwise be
27 entitled as to any balance claimed. The acceptance by an
28 employee of a disputed paycheck shall not constitute a
29 release as to the balance of his claim and any release or
30 restrictive endorsement required by an employer as a
31 condition to payment shall be a violation of this Act and
32 shall be void.
33 (Source: P.A. 90-22, eff. 6-20-97.)
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1 Section 99. Effective date. This Act takes effect upon
2 becoming law.".