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Public Act 91-0443
HB2041 Enrolled LRB9101251SMdv
AN ACT to amend the Illinois Wage Payment and Collection
Act by changing Section 9.
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; or (5) made by a municipality with a
population of 500,000 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, or the Chicago School Reform Board of Trustees to
pay a debt owed by the employee to 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 Chicago Park District, the
Metropolitan Transit Authority, a housing authority in a
municipality with a population of 500,000 or more, or the
Chicago School Reform Board of Trustees 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 under
this Section, the municipality shall certify that the
employee has been afforded an opportunity for a hearing to
dispute the debt that is due and owing the municipality.
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 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 the employee has been afforded an opportunity for a
hearing to dispute the debt that is due and owing the housing
authority. 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 or housing authority for city services,
work, or goods, after the period granted for payment has
expired, or (ii) a specified sum of money owed to the
municipality 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.
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. 90-22, eff. 6-20-97.)
Section 99. Effective date. This Act takes effect upon
becoming law.
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