Public Act 097-0120
 
HB1513 EnrolledLRB097 10175 KMW 50365 b


  
    AN ACT concerning local government.
  
 
    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;
(5) made by a municipality with a population 
of 500,000 or more, a county
with a population of 3,000,000 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, the
Chicago Board of 
Education,
the Cook County Forest Preserve District, or
the 
Metropolitan Water Reclamation District
to pay a debt owed by 
the employee to a
municipality
with a population of 500,000 or 
more, a county with a population of 3,000,000
or more, the Cook 
County Forest Preserve, the Chicago Park District, the

Metropolitan Water Reclamation District, the Chicago Transit 
Authority, the
Chicago Board of Education, or a housing 
authority of 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 
community college district in a city 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, the Chicago Board of Education,

the county with a population of 3,000,000 or more, the Cook 
County Forest
Preserve District,
or the Metropolitan Water 
Reclamation District
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, a
county with a population of 
3,000,000 or more, the Cook County Forest Preserve
District,

the Chicago Park District, the Metropolitan Water Reclamation 
District, the
Chicago Transit Authority, the Chicago Board of 
Education, or a housing
authority of a municipality with a 
population of 500,000 or more under this
Section, the 
municipality, the county, the Cook County Forest Preserve

District, the
Chicago Park District, the Metropolitan Water 
Reclamation District, the Chicago
Transit Authority, the 
Chicago Board of Education, or a housing authority of a

municipality with a population of 500,000 or more shall certify 
that (i)
the
employee has been
afforded an opportunity for a 
hearing to dispute the debt that is due and owing
the 
municipality, the county, the Cook County Forest Preserve 
District, the
Chicago
Park District, the Metropolitan Water 
Reclamation District, the Chicago Transit
Authority, the 
Chicago Board of Education, or a housing authority of a

municipality with a population of 500,000 or more and (ii) the 
employee has
received notice of a wage deduction order and has

been afforded an opportunity for a hearing to object to the 
order.
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, a county with a population of 
3,000,000 or more, the Cook
County Forest Preserve District, 
the Chicago Park District, the Metropolitan
Water Reclamation 
District, the Chicago Transit Authority, the Chicago Board of

Education, or a housing authority of 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 (i) the employee has been afforded an opportunity for a 
hearing to
dispute the debt that is due and owing the housing

authority and (ii) the employee has received notice of a wage

deduction order and has
been afforded an opportunity for a 
hearing to object to the order.
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, county, the Cook County 
Forest Preserve District, the
Chicago Park
District, the 
Metropolitan Water Reclamation District, the Chicago Transit

Authority, the Chicago Board of Education, or housing authority

for
services, work, or
goods, after the period granted for 
payment has expired, or (ii) a specified
sum of money owed to 
the municipality, county, the Cook County Forest
Preserve 
District, the Chicago Park District, the Metropolitan Water

Reclamation
District, the Chicago Transit Authority, the 
Chicago Board of Education
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; 
(7) the result of an excess payment made due to, but not 
limited to, a typographical or mathematical error made by a 
municipality with a population of less than 500,000 or to 
collect a debt owed to a municipality with a population of less 
than 500,000 after notice to the employee and an opportunity to 
be heard; provided, however, that the amount deducted from any 
one salary or wage payment shall not exceed 15% of the net 
amount of the payment. Before the municipality deducts any 
amount from any salary or wage of an employee to pay a debt 
owed to the municipality, the municipality shall certify that 
(i) the employee has been afforded an opportunity for a 
hearing, conducted by the municipality, to dispute the debt 
that is due and owing the municipality, and (ii) the employee 
has received notice of a wage deduction order and has been 
afforded an opportunity for a hearing, conducted by the 
municipality, to object to the order. 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 for services, 
work, or goods, after the period granted for payment has 
expired, or (ii) a specified sum of money owed to the 
municipality 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. 91-443, eff. 8-6-99; 92-109, eff. 7-20-01.)