Public Act 103-0953
 
SB3208 EnrolledLRB103 37566 SPS 67692 b

    AN ACT concerning employment.
 
    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 Sections 2, 10, and 14 as follows:
 
    (820 ILCS 115/2)  (from Ch. 48, par. 39m-2)
    Sec. 2. Definitions. For all employees, other than 
separated employees, "wages" shall be defined as any 
compensation owed an employee by an employer pursuant to an 
employment contract or agreement between the 2 parties, 
whether the amount is determined on a time, task, piece, or any 
other basis of calculation. Payments to separated employees 
shall be termed "final compensation" and shall be defined as 
wages, salaries, earned commissions, earned bonuses, and the 
monetary equivalent of earned vacation and earned holidays, 
and any other compensation owed the employee by the employer 
pursuant to an employment contract or agreement between the 2 
parties. Where an employer is legally committed through a 
collective bargaining agreement or otherwise to make 
contributions to an employee benefit, trust or fund on the 
basis of a certain amount per hour, day, week or other period 
of time, the amount due from the employer to such employee 
benefit, trust, or fund shall be defined as "wage 
supplements", subject to the wage collection provisions of 
this Act.
    As used in this Act, the term "employer" shall include any 
individual, partnership, association, corporation, limited 
liability company, business trust, employment and labor 
placement agencies where wage payments are made directly or 
indirectly by the agency or business for work undertaken by 
employees under hire to a third party pursuant to a contract 
between the business or agency with the third party, or any 
person or group of persons acting directly or indirectly in 
the interest of an employer in relation to an employee, for 
which one or more persons is gainfully employed.
    As used in this Act, the term "employee" shall include any 
individual permitted to work by an employer in an occupation, 
but shall not include any individual:
        (1) who has been and will continue to be free from 
    control and direction over the performance of his work, 
    both under his contract of service with his employer and 
    in fact; and
        (2) who performs work which is either outside the 
    usual course of business or is performed outside all of 
    the places of business of the employer unless the employer 
    is in the business of contracting with third parties for 
    the placement of employees; and
        (3) who is in an independently established trade, 
    occupation, profession or business.
    "Pay stub" means an itemized statement or statements 
reflecting an employee's hours worked, rate of pay, overtime 
pay and overtime hours worked, gross wages earned, deductions 
made from the employee's wages, and the total of wages and 
deductions year to date.
    The following terms apply to an employer's use of payroll 
cards to pay wages to an employee under the requirements of 
this Act:
    "Payroll card" means a card provided to an employee by an 
employer or other payroll card issuer as a means of accessing 
the employee's payroll card account.
    "Payroll card account" means an account that is directly 
or indirectly established through an employer and to which 
deposits of a participating employee's wages are made.
    "Payroll card issuer" means a bank, financial institution, 
or other entity that issues a payroll card to an employee under 
an employer payroll card program. 
(Source: P.A. 98-862, eff. 1-1-15.)
 
    (820 ILCS 115/10)  (from Ch. 48, par. 39m-10)
    Sec. 10.  
    (a) Employers shall notify employees, at the time of 
hiring, of the rate of pay and of the time and place of 
payment. Whenever possible, such notification shall be in 
writing and shall be acknowledged by both parties. Employers 
shall also notify employees of any changes in the 
arrangements, specified above, prior to the time of change.
    (b) Employers shall keep records of names and addresses of 
all employees and of wages paid each payday, and shall furnish 
each employee with a pay stub an itemized statement of 
deductions made from his wages for each pay period.
    (c) An employer shall maintain a copy of an employee's pay 
stub for a period of not less than 3 years after the date of 
payment, regardless of whether the employee's employment ends 
during this period, whether the pay stub is furnished 
electronically or in paper form.
    (d) In addition to furnishing a pay stub for each pay 
period as required under subsection (b), an employer shall 
furnish copies of pay stubs to current and former employees as 
follows:
        (1) An employer shall provide an employee with a copy 
    of the employee's pay stubs upon the employee's request. 
    The employer may require that the employee submit the 
    request in writing. The employer shall furnish the copy of 
    the pay stubs to the employee within 21 calendar days of 
    the employee's request. An employer is not required to 
    grant an employee's request for a copy of pay stubs more 
    than twice in a 12-month period.
        (2) An employer shall provide a former employee with a 
    copy of the former employee's previous pay stubs upon the 
    former employee's request. The employer shall furnish the 
    copy of the pay stubs to the former employee within 21 
    calendar days of the former employee's request. An 
    employer is not required to grant a former employee's 
    request for a copy of pay stubs more than twice in a 
    12-month period or more than one year after the date of 
    separation. The employer shall provide the copy of the pay 
    stubs in either a physical or electronic format, as chosen 
    by the former employee, including a communication that is 
    transmitted through electronic mail, text message, 
    computer system, or is otherwise sent and stored 
    electronically and is capable of being downloaded or 
    permanently retained by the former employee.
        (3) An employer who furnishes electronic pay stubs in 
    a manner that a former employee cannot access for at least 
    a full year after separation shall, upon an employee's 
    separation from employment, offer to provide the outgoing 
    employee with a record of all of the outgoing employee's 
    pay stubs from the year preceding the date of separation. 
    The offer shall be made to the outgoing employee by the end 
    of the outgoing employee's final pay period. An employer 
    shall record in writing the date on which this offer was 
    made to the outgoing employee and if and how the outgoing 
    employee responded.
        (4) A request made by an employee or former employee 
    under this Section shall be made to a person responsible 
    for maintaining the employer's payroll, including the 
    employer's human resources department or payroll 
    department, the employee's supervisor or department 
    manager, or an individual designated in the employer's 
    written policy. 
    (e) Every employer shall post and keep posted at each 
regular place of business in a position easily accessible to 
all employees one or more notices indicating the regular 
paydays and the place and time for payment of his employees, 
and on forms supplied from time to time by the Department of 
Labor containing a copy or summary of the provisions of this 
Act.
(Source: P.A. 81-593.)
 
    (820 ILCS 115/14)  (from Ch. 48, par. 39m-14)
    Sec. 14. Penalties.
    (a) Any employee not timely paid wages, final 
compensation, or wage supplements by his or her employer as 
required by this Act shall be entitled to recover through a 
claim filed with the Department of Labor or in a civil action, 
but not both, the amount of any such underpayments and damages 
of 5% of the amount of any such underpayments for each month 
following the date of payment during which such underpayments 
remain unpaid. In a civil action, such employee shall also 
recover costs and all reasonable attorney's fees.
    (a-5) In addition to the remedies provided in subsections 
(a), (b), and (c) of this Section, any employer or any agent of 
an employer, who, being able to pay wages, final compensation, 
or wage supplements and being under a duty to pay, willfully 
wilfully refuses to pay as provided in this Act, or falsely 
denies the amount or validity thereof or that the same is due, 
with intent to secure for himself or other person any 
underpayment of such indebtedness or with intent to annoy, 
harass, oppress, hinder, delay or defraud the person to whom 
such indebtedness is due, upon conviction, is guilty of:
        (1) for unpaid wages, final compensation or wage 
    supplements in the amount of $5,000 or less, a Class B 
    misdemeanor; or
        (2) for unpaid wages, final compensation or wage 
    supplements in the amount of more than $5,000, a Class A 
    misdemeanor. 
    Each day during which any violation of this Act continues 
shall constitute a separate and distinct offense.
    Any employer or any agent of an employer who violates this 
Section of the Act a subsequent time within 2 years of a prior 
criminal conviction under this Section is guilty, upon 
conviction, of a Class 4 felony.
    (b) Any employer who has been demanded or ordered by the 
Department or ordered by the court to pay wages, final 
compensation, or wage supplements due an employee shall be 
required to pay a non-waivable administrative fee to the 
Department of Labor in the amount of $250 if the amount ordered 
by the Department as wages owed is $3,000 or less; $500 if the 
amount ordered by the Department as wages owed is more than 
$3,000, but less than $10,000; and $1,000 if the amount 
ordered by the Department as wages owed is $10,000 or more. Any 
employer who has been so demanded or ordered by the Department 
or ordered by a court to pay such wages, final compensation, or 
wage supplements and who fails to seek timely review of such a 
demand or order as provided for under this Act and who fails to 
comply within 15 calendar days after such demand or within 35 
days of an administrative or court order is entered shall also 
be liable to pay a penalty to the Department of Labor of 20% of 
the amount found owing and a penalty to the employee of 1% per 
calendar day of the amount found owing for each day of delay in 
paying such wages to the employee. All moneys recovered as 
fees and civil penalties under this Act, except those owing to 
the affected employee, shall be deposited into the Wage Theft 
Enforcement Fund, a special fund which is hereby created in 
the State treasury. Moneys in the Fund may be used for 
enforcement of this Act and for outreach and educational 
activities of the Department related to the recovery of unpaid 
or underpaid compensation and the disbursement of moneys to 
affected parties.
    (b-5) Penalties and fees under this Section may be 
assessed by the Department and recovered in a civil action 
brought by the Department in any circuit court or in any 
administrative adjudicative proceeding under this Act. In any 
such civil action or administrative adjudicative proceeding 
under this Act, the Department shall be represented by the 
Attorney General. 
    (c) Any employer, or any agent of an employer, who 
discharges or in any other manner discriminates against any 
employee because that employee has made a complaint to his or 
her employer, to the Director of Labor or his or her authorized 
representative, in a public hearing, or to a community 
organization that he or she has not been paid in accordance 
with the provisions of this Act, or because that employee has 
caused to be instituted any proceeding under or related to 
this Act, or because that employee has testified or is about to 
testify in an investigation or proceeding under this Act, is 
guilty, upon conviction, of a Class C misdemeanor. An employee 
who has been unlawfully retaliated against shall be entitled 
to recover through a claim filed with the Department of Labor 
or in a civil action, but not both, all legal and equitable 
relief as may be appropriate. In a civil action, such employee 
shall also recover costs and all reasonable attorney's fees. 
    (d) Except as provided under subsections (a), (b), and 
(c), an employer who fails to furnish an employee or former 
employee with a pay stub as required by this Act or commits any 
other violation of this Act shall be subject to a civil penalty 
of up to $500 per violation payable to the Department. In 
determining the amount of the penalty under this subsection, 
the Department shall consider the appropriateness of the 
penalty to the size of the business of the employer charged and 
the gravity of the violation.
(Source: P.A. 102-50, eff. 7-9-21; 103-182, eff. 6-30-23.)

Effective Date:  1/1/2025