Sen. Kwame Raoul
Filed: 5/9/2014
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1 | AMENDMENT TO HOUSE BILL 5622
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2 | AMENDMENT NO. ______. Amend House Bill 5622 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Illinois Wage Payment and Collection Act is | ||||||
5 | amended by changing Sections 2 and 4 and by adding Section 14.5 | ||||||
6 | as follows:
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7 | (820 ILCS 115/2) (from Ch. 48, par. 39m-2)
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8 | Sec. 2. For all employees, other than separated employees, | ||||||
9 | "wages"
shall be defined as any compensation owed an employee | ||||||
10 | by an employer pursuant
to an employment contract or agreement | ||||||
11 | between the 2 parties, whether
the amount is determined on a | ||||||
12 | time, task, piece, or any other basis of
calculation. Payments | ||||||
13 | to separated employees shall be termed "final
compensation" and | ||||||
14 | shall be defined as wages, salaries, earned commissions,
earned | ||||||
15 | bonuses, and the monetary equivalent of earned vacation and | ||||||
16 | earned
holidays, and any other compensation owed the employee |
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1 | by the employer pursuant
to an employment contract or agreement | ||||||
2 | between the 2 parties. Where an
employer is legally committed | ||||||
3 | through a collective bargaining agreement
or otherwise to make | ||||||
4 | contributions to an employee benefit, trust or fund on
the | ||||||
5 | basis of a certain amount per hour, day, week or other period | ||||||
6 | of time,
the amount due from the employer to such employee | ||||||
7 | benefit, trust, or fund
shall be defined as "wage supplements", | ||||||
8 | subject to the wage collection
provisions of this Act.
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9 | As used in this Act, the term "employer" shall include any | ||||||
10 | individual,
partnership, association, corporation, limited | ||||||
11 | liability company, business trust, employment and
labor | ||||||
12 | placement agencies where wage payments are made
directly or | ||||||
13 | indirectly by the agency or business for work undertaken by
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14 | employees under hire to a third party pursuant to a contract | ||||||
15 | between the
business or agency with the third party, or any | ||||||
16 | person or group of
persons acting directly or indirectly in the | ||||||
17 | interest of an employer in
relation to an employee, for which | ||||||
18 | one or more persons is gainfully employed.
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19 | As used in this Act, the term "employee" shall include any | ||||||
20 | individual
permitted to work by an employer in an occupation, | ||||||
21 | but shall not include any
individual:
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22 | (1) who has been and will continue to be free from | ||||||
23 | control and direction
over the performance of his work, | ||||||
24 | both under his contract of service with his
employer and in | ||||||
25 | fact; and
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26 | (2) who performs work which is either outside the usual |
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1 | course of business
or is performed outside all of the | ||||||
2 | places of business of the employer unless
the employer is | ||||||
3 | in the business of contracting with third parties for the
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4 | placement of employees; and
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5 | (3) who is in an independently established trade, | ||||||
6 | occupation, profession
or business.
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7 | The following terms apply to an employer's use of payroll | ||||||
8 | cards to pay wages to an employee under the requirements of | ||||||
9 | this Act: | ||||||
10 | "Payroll card" means a card provided to an employee by an | ||||||
11 | employer or other payroll card issuer as a means of accessing | ||||||
12 | the employee's payroll card account. | ||||||
13 | "Payroll card account" means an account that is directly or | ||||||
14 | indirectly established through an employer and to which | ||||||
15 | deposits of a participating employee's wages are made. | ||||||
16 | "Payroll card issuer" means a bank, financial institution, | ||||||
17 | or other entity that issues a payroll card to an employee under | ||||||
18 | an employer payroll card program. | ||||||
19 | (Source: P.A. 94-1025, eff. 7-14-06.)
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20 | (820 ILCS 115/4) (from Ch. 48, par. 39m-4)
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21 | Sec. 4.
All wages earned by any employee during a | ||||||
22 | semi-monthly or bi-weekly
pay period shall be paid to such | ||||||
23 | employee not later than 13 days after
the end of the pay period | ||||||
24 | in which such wages were earned. All wages
earned by any | ||||||
25 | employee during a weekly pay period shall be paid not
later |
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1 | than 7 days after the end of the weekly pay period in which the
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2 | wages were earned. All wages paid on a daily basis shall be | ||||||
3 | paid insofar
as possible on the same day as the wages were | ||||||
4 | earned, or not later in
any event than 24 hours after the day | ||||||
5 | on which the wages were earned.
Wages of executive, | ||||||
6 | administrative and professional employees, as
defined in the | ||||||
7 | Federal Fair Labor Standards Act of 1938, may be paid on
or | ||||||
8 | before 21 calendar days after the period during which they are
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9 | earned.
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10 | The terms of this Section shall not apply, if there exists | ||||||
11 | a valid
collective bargaining agreement which provides for a | ||||||
12 | different date or
for different arrangements for the payment of | ||||||
13 | wages.
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14 | Employers shall pay to workers on strike or layoff, no | ||||||
15 | later than the
next regular payday, all wages earned up to the | ||||||
16 | time of such strike or
layoff.
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17 | Any employee who is absent at the time fixed for payment, | ||||||
18 | or who for
any other reason is not paid at that time, shall be | ||||||
19 | paid upon demand at
any time within a period of 5 days after | ||||||
20 | the time fixed for payment; and
after the expiration of the 5 | ||||||
21 | day period, payment shall be made upon 5
days demand. Payment | ||||||
22 | to the absent employee shall be made by mail if the
employee so | ||||||
23 | requests in writing.
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24 | All wages and final compensation shall be paid in lawful | ||||||
25 | money of the
United States, by check, redeemable upon demand | ||||||
26 | and without discount
at a bank or other financial institution |
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1 | readily available to the
employee, or by deposit of funds in an | ||||||
2 | account in a bank or other financial
institution designated by | ||||||
3 | the employee , or by a payroll card that meets the requirements | ||||||
4 | of Section 14.5 .
No employer may designate a particular | ||||||
5 | financial institution, bank, savings
bank, savings and loan, or | ||||||
6 | currency exchange for the exclusive payment or
deposit of a
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7 | check for wages. No financial institution, bank, savings bank, | ||||||
8 | savings and
loan, or currency exchange shall refuse to honor a | ||||||
9 | check for wages that
exclusively designates, in violation of | ||||||
10 | this Section, a particular bank,
savings bank,
savings and | ||||||
11 | loan, or currency exchange as the exclusive place of payment or
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12 | deposit except to the extent the bank, savings bank, savings | ||||||
13 | and loan, or
currency exchange is otherwise excused from | ||||||
14 | honoring the check under
Section 3-111 of the Uniform | ||||||
15 | Commercial Code because the bank, savings bank,
savings and | ||||||
16 | loan, or currency exchange is not the drawee or the maker of | ||||||
17 | the
check.
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18 | (Source: P.A. 89-364, eff. 8-18-95.)
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19 | (820 ILCS 115/14.5 new) | ||||||
20 | Sec. 14.5. Payroll cards. An employer using a payroll card | ||||||
21 | to pay an employee's wages shall meet the following | ||||||
22 | requirements: | ||||||
23 | (1) The employer shall not make receipt of wages by | ||||||
24 | payroll card a condition of employment or a condition for | ||||||
25 | the receipt of any benefit or other form of remuneration |
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1 | for any employee. | ||||||
2 | (2) The employer shall not initiate payment of wages to | ||||||
3 | the employee by electronic fund transfer to a payroll card | ||||||
4 | account unless: | ||||||
5 | (A) the employer provides the employee with a clear | ||||||
6 | and conspicuous written disclosure notifying the | ||||||
7 | employee that payment by payroll card is voluntary, | ||||||
8 | listing the other method or methods of payment offered | ||||||
9 | by the employer in accordance with Section 4, and | ||||||
10 | explaining the terms and conditions of the payroll card | ||||||
11 | account option, including: | ||||||
12 | (i) an itemized list of all fees that may be | ||||||
13 | deducted from the employee's payroll card account | ||||||
14 | by the employer or payroll card issuer; | ||||||
15 | (ii) a notice that third parties may assess | ||||||
16 | transaction fees in addition to the fees assessed | ||||||
17 | by the employee's payroll card issuer; and | ||||||
18 | (iii) an explanation of how the employee may | ||||||
19 | obtain, at no cost, the employee's net wages, check | ||||||
20 | the account balance, and request to receive paper | ||||||
21 | or electronic transaction histories, as provided | ||||||
22 | in item (3); | ||||||
23 | (B) the employer also offers the employee another | ||||||
24 | method or methods of payment in compliance with Section | ||||||
25 | 4; and | ||||||
26 | (C) the employer obtains the employee's voluntary |
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1 | written or electronic consent to receive the wages by | ||||||
2 | payroll card. | ||||||
3 | (3) A payroll card program offered by the employer | ||||||
4 | shall provide the employee with: | ||||||
5 | (A) at least one method of withdrawing the | ||||||
6 | employee's full net wages from the payroll card once | ||||||
7 | per pay period, but not less than twice per month, at | ||||||
8 | no cost to the employee, at a location readily | ||||||
9 | available to the employee; | ||||||
10 | (B) at the employee's request, one transaction | ||||||
11 | history, which the employee may request to receive in | ||||||
12 | paper or electronic form, each month that includes all | ||||||
13 | deposits, withdrawals, deductions, or charges by any | ||||||
14 | entity from or to the employee's payroll card account | ||||||
15 | at no cost to the employee; and | ||||||
16 | (C) at least one of the following options for the | ||||||
17 | employee to obtain the payroll card account balance on | ||||||
18 | the payroll card at any time without incurring a fee: | ||||||
19 | online, by telephone, by text message, or at an ATM | ||||||
20 | location. | ||||||
21 | (4) An employer may not use a payroll card program that | ||||||
22 | charges fees for declined transactions, point of sale | ||||||
23 | transactions, or the application, initiation, loading of | ||||||
24 | wages by the employer, or participation in the payroll card | ||||||
25 | program. Fees for account inactivity may be assessed | ||||||
26 | following one year of inactivity. |
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1 | (5) The payroll card or payroll card account may not be | ||||||
2 | linked to any form of credit including, but not limited to, | ||||||
3 | overdraft fees or overdraft service fees, a loan against | ||||||
4 | future pay, or a cash advance on future pay or work not yet | ||||||
5 | performed. | ||||||
6 | (6) An employee paid wages by payroll card may request | ||||||
7 | to be paid wages by another method of payment provided by | ||||||
8 | the employer in accordance with Section 4. Following the | ||||||
9 | request, the employer shall, within 2 pay periods, begin | ||||||
10 | payment to the employee by the allowable method requested | ||||||
11 | by the employee. | ||||||
12 | (7) A payroll card program offered by an employer shall | ||||||
13 | provide the employee with protections from unauthorized | ||||||
14 | use of the payroll card in accordance with State and | ||||||
15 | federal law concerning electronic fund transfers. | ||||||
16 | (8) The employer's obligations under this Section | ||||||
17 | shall cease 180 days after the employer-employee | ||||||
18 | relationship has ended and the employee has been paid the | ||||||
19 | employee's full and final wages. | ||||||
20 | (9) Within 30 days of the termination of the | ||||||
21 | employer-employee relationship, the employer shall: | ||||||
22 | (A) notify the employee that the terms and | ||||||
23 | conditions of the account may change if the employee | ||||||
24 | chooses to continue a relationship with the payroll | ||||||
25 | card issuer; and | ||||||
26 | (B) provide the employee with contact information |
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1 | for the payroll card issuer.
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2 | Section 99. Effective date. This Act takes effect January | ||||||
3 | 1, 2015.".
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