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1     AN ACT concerning employment.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Minimum Wage Law is amended by changing
5 Sections 3, 7, and 12 as follows:
 
6     (820 ILCS 105/3)  (from Ch. 48, par. 1003)
7     Sec. 3. As used in this Act:
8     (a) "Director" means the Director of the Department of
9 Labor, and "Department" means the Department of Labor.
10     (b) "Wages" means compensation due to an employee by reason
11 of his employment, including allowances determined by the
12 Director in accordance with the provisions of this Act for
13 gratuities and, when furnished by the employer, for meals and
14 lodging actually used by the employee.
15     (c) "Employer" includes any individual, partnership,
16 association, corporation, limited liability company, business
17 trust, governmental or quasi-governmental body, or any person
18 or group of persons acting directly or indirectly in the
19 interest of an employer in relation to an employee, for which
20 one or more persons are gainfully employed on some day within a
21 calendar year. An employer is subject to this Act in a calendar
22 year on and after the first day in such calendar year in which
23 he employs one or more persons, and for the following calendar
24 year.
25     (d) "Employee" includes any individual permitted to work by
26 an employer in an occupation, but does not include any
27 individual permitted to work:
28         (1) For an employer employing fewer than 4 employees
29     exclusive of the employer's parent, spouse or child or
30     other members of his immediate family.
31         (2) As an employee employed in agriculture or
32     aquaculture (A) if such employee is employed by an employer

 

 

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1     who did not, during any calendar quarter during the
2     preceding calendar year, use more than 500 man-days of
3     agricultural or aquacultural labor, (B) if such employee is
4     the parent, spouse or child, or other member of the
5     employer's immediate family, (C) if such employee (i) is
6     employed as a hand harvest laborer and is paid on a piece
7     rate basis in an operation which has been, and is
8     customarily and generally recognized as having been, paid
9     on a piece rate basis in the region of employment, (ii)
10     commutes daily from his permanent residence to the farm on
11     which he is so employed, and (iii) has been employed in
12     agriculture less than 13 weeks during the preceding
13     calendar year, (D) if such employee (other than an employee
14     described in clause (C) of this subparagraph): (i) is 16
15     years of age or under and is employed as a hand harvest
16     laborer, is paid on a piece rate basis in an operation
17     which has been, and is customarily and generally recognized
18     as having been, paid on a piece rate basis in the region of
19     employment, (ii) is employed on the same farm as his parent
20     or person standing in the place of his parent, and (iii) is
21     paid at the same piece rate as employees over 16 are paid
22     on the same farm.
23         (3) In domestic service in or about a private home.
24         (4) As an outside salesman.
25         (5) As a member of a religious corporation or
26     organization.
27         (6) At an accredited Illinois college or university
28     employed by the college or university at which he is a
29     student who is covered under the provisions of the Fair
30     Labor Standards Act of 1938, as heretofore or hereafter
31     amended.
32         (7) For a motor carrier and with respect to whom the
33     U.S. Secretary of Transportation has the power to establish
34     qualifications and maximum hours of service under the
35     provisions of Title 49 U.S.C. or the State of Illinois
36     under Section 18b-105 (Title 92 of the Illinois

 

 

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1     Administrative Code, Part 395 - Hours of Service of
2     Drivers) of the Illinois Vehicle Code.
3     The above exclusions from the term "employee" may be
4 further defined by regulations of the Director.
5     (e) "Occupation" means an industry, trade, business or
6 class of work in which employees are gainfully employed.
7     (f) "Gratuities" means voluntary monetary contributions to
8 an employee from a guest, patron or customer in connection with
9 services rendered.
10     (g) "Outside salesman" means an employee regularly engaged
11 in making sales or obtaining orders or contracts for services
12 where a major portion of such duties are performed away from
13 his employer's place of business.
14 (Source: P.A. 91-357, eff. 7-29-99.)
 
15     (820 ILCS 105/7)  (from Ch. 48, par. 1007)
16     Sec. 7. The Director or his authorized representatives have
17 the authority to:
18     (a) Investigate and gather data regarding the wages, hours
19 and other conditions and practices of employment in any
20 industry subject to this Act, and may enter and inspect such
21 places and such records (and make such transcriptions thereof)
22 at reasonable times during regular business hours, not
23 including lunch time at a restaurant, question such employees,
24 and investigate such facts, conditions, practices or matters as
25 he may deem necessary or appropriate to determine whether any
26 person has violated any provision of this Act, or which may aid
27 in the enforcement of this Act.
28     (b) Require from any employer full and correct statements
29 and reports in writing, including sworn statements, at such
30 times as the Director may deem necessary, of the wages, hours,
31 names, addresses, and other information pertaining to his
32 employees as he may deem necessary for the enforcement of this
33 Act.
34     (c) Require by subpoena the attendance and testimony of
35 witnesses and the production of all books, records, and other

 

 

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1 evidence relative to a matter under investigation or hearing.
2 The subpoena shall be signed and issued by the Director or his
3 or her authorized representative. If a person fails to comply
4 with any subpoena lawfully issued under this Section or a
5 witness refuses to produce evidence or testify to any matter
6 regarding which he or she may be lawfully interrogated, the
7 court may, upon application of the Director or his or her
8 authorized representative, compel obedience by proceedings for
9 contempt.
10 (Source: P.A. 77-1451.)
 
11     (820 ILCS 105/12)  (from Ch. 48, par. 1012)
12     Sec. 12. (a) If any employee is paid by his employer less
13 than the wage to which he is entitled under the provisions of
14 this Act, the employee may recover in a civil action the amount
15 of any such underpayments together with costs and such
16 reasonable attorney's fees as may be allowed by the Court, and
17 damages of 2% of the amount of any such underpayments for each
18 month following the date of payment during which such
19 underpayments remain unpaid. Any any agreement between the
20 employee him and the his employer to work for less than such
21 wage is no defense to such action. At the request of the
22 employee or on motion of the Director of Labor, the Department
23 of Labor may make an assignment of such wage claim in trust for
24 the assigning employee and may bring any legal action necessary
25 to collect such claim, and the employer shall be required to
26 pay the costs incurred in collecting such claim. Every such
27 action shall be brought within 3 years from the date of the
28 underpayment. Such employer shall be liable to the Department
29 of Labor for up to 20% of the total employer's underpayment
30 where the employer's conduct is proven by a preponderance of
31 the evidence to be willful, repeated, or with reckless
32 disregard of this Act or any rule adopted under this Act. Such
33 employer and shall be additionally liable to the employee for
34 punitive damages in the amount of 2% of the amount of any such
35 underpayments for each month following the date of payment

 

 

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1 during which such underpayments remain unpaid. These penalties
2 and damages The Director may promulgate rules for the
3 collection of these penalties. The amount of a penalty may be
4 determined, and the penalty may be assessed, through an
5 administrative hearing. The penalty may be recovered in a civil
6 action brought by the Director of Labor in any circuit court.
7 The penalty shall be imposed in cases in which an employer's
8 conduct is proven by a preponderance of the evidence to be
9 willful. In any such action, the Director of Labor shall be
10 represented by the Attorney General.
11     If an employee collects damages of 2% of the amount of
12 underpayments as a result of an action brought by the Director
13 of Labor, the employee may not also collect those damages in a
14 private action brought by the employee for the same violation.
15 If an employee collects damages of 2% of the amount of
16 underpayments in a private action brought by the employee, the
17 employee may not also collect those damages as a result of an
18 action brought by the Director of Labor for the same violation.
19     (b) If an employee has not collected damages under
20 subsection (a) for the same violation, the The Director is
21 authorized to supervise the payment of the unpaid minimum wages
22 and the unpaid overtime compensation owing to any employee or
23 employees under Sections 4 and 4a of this Act and may bring any
24 legal action necessary to recover the amount of the unpaid
25 minimum wages and unpaid overtime compensation and an equal
26 additional amount as punitive damages, and the employer shall
27 be required to pay the costs incurred in collecting such claim.
28 Such and the employer shall be additionally liable to the
29 Department of Labor for up to 20% of the total employer's
30 underpayment where the employer's conduct is proven by a
31 preponderance of the evidence to be willful, repeated, or with
32 reckless disregard of this Act or any rule adopted under this
33 Act. be required to pay the costs. The action shall be brought
34 within 5 years from the date of the failure to pay the wages or
35 compensation. Any sums thus recovered by the Director on behalf
36 of an employee pursuant to this subsection shall be paid to the

 

 

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1 employee or employees affected. Any sums which, more than one
2 year after being thus recovered, the Director is unable to pay
3 to an employee shall be deposited into the General Revenue
4 Fund.
5 (Source: P.A. 92-392, eff. 1-1-02.)
 
6     Section 10. The Illinois Wage Payment and Collection Act is
7 amended by changing Sections 2 and 14 as follows:
 
8     (820 ILCS 115/2)  (from Ch. 48, par. 39m-2)
9     Sec. 2. For all employees, other than separated employees,
10 "wages" shall be defined as any compensation owed an employee
11 by an employer pursuant to an employment contract or agreement
12 between the 2 parties, whether the amount is determined on a
13 time, task, piece, or any other basis of calculation. Payments
14 to separated employees shall be termed "final compensation" and
15 shall be defined as wages, salaries, earned commissions, earned
16 bonuses, and the monetary equivalent of earned vacation and
17 earned holidays, and any other compensation owed the employee
18 by the employer pursuant to an employment contract or agreement
19 between the 2 parties. Where an employer is legally committed
20 through a collective bargaining agreement or otherwise to make
21 contributions to an employee benefit, trust or fund on the
22 basis of a certain amount per hour, day, week or other period
23 of time, the amount due from the employer to such employee
24 benefit, trust, or fund shall be defined as "wage supplements",
25 subject to the wage collection provisions of this Act.
26     As used in this Act, the term "employer" shall include any
27 individual, partnership, association, corporation, limited
28 liability company, business trust, employment and labor
29 placement agencies where wage payments are made directly or
30 indirectly by the agency or business for work undertaken by
31 employees under hire to a third party pursuant to a contract
32 between the business or agency with the third party, or any
33 person or group of persons acting directly or indirectly in the
34 interest of an employer in relation to an employee, for which

 

 

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1 one or more persons is gainfully employed.
2     As used in this Act, the term "employee" shall include any
3 individual permitted to work by an employer in an occupation,
4 but shall not include any individual:
5         (1) who has been and will continue to be free from
6     control and direction over the performance of his work,
7     both under his contract of service with his employer and in
8     fact; and
9         (2) who performs work which is either outside the usual
10     course of business or is performed outside all of the
11     places of business of the employer unless the employer is
12     in the business of contracting with third parties for the
13     placement of employees; and
14         (3) who is in an independently established trade,
15     occupation, profession or business.
16 (Source: P.A. 89-364, eff. 8-18-95; 89-626, eff. 8-9-96.)
 
17     (820 ILCS 115/14)  (from Ch. 48, par. 39m-14)
18     Sec. 14. (a) Any employer or any agent of an employer, who,
19 being able to pay wages, final compensation, or wage
20 supplements and being under a duty to pay, wilfully refuses to
21 pay as provided in this Act, or falsely denies the amount or
22 validity thereof or that the same is due, with intent to secure
23 for himself or other person any underpayment of such
24 indebtedness or with intent to annoy, harass, oppress, hinder,
25 delay or defraud the person to whom such indebtedness is due,
26 upon conviction, is guilty of a Class C misdemeanor. Each day
27 during which any violation of this Act continues shall
28 constitute a separate and distinct offense.
29     (b) Any employer who has been demanded ordered by the
30 Director of Labor or ordered by the court to pay wages due an
31 employee and who shall fail to do so within 15 days after such
32 demand or order is entered shall be liable to pay a penalty of
33 1% per calendar day to the employee for each day of delay in
34 paying such wages to the employee up to an amount equal to
35 twice the sum of unpaid wages due the employee.

 

 

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1     (c) Any employer, or any agent of an employer, who
2 knowingly discharges or in any other manner knowingly
3 discriminates against any employee because that employee has
4 made a complaint to his employer, or to the Director of Labor
5 or his authorized representative, that he or she has not been
6 paid in accordance with the provisions of this Act, or because
7 that employee has caused to be instituted any proceeding under
8 or related to this Act, or because that employee has testified
9 or is about to testify in an investigation or proceeding under
10 this Act, is guilty, upon conviction, of a Class C misdemeanor.
11 (Source: P.A. 83-202.)
 
12     Section 99. Effective date. This Act takes effect upon
13 becoming law.