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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 for city services,
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.
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