Illinois General Assembly - Full Text of HB5088
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Full Text of HB5088  102nd General Assembly

HB5088 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB5088

 

Introduced 1/27/2022, by Rep. William Davis

 

SYNOPSIS AS INTRODUCED:
 
New Act
30 ILCS 105/5.970 new
55 ILCS 5/5-12022 new
65 ILCS 5/11-39-5 new
820 ILCS 115/14  from Ch. 48, par. 39m-14
820 ILCS 115/14.6 new
820 ILCS 115/14.7 new

    Creates the Wage Theft Act. Provides that any employer and their officers who knowingly withhold wages from an employee in the State and refuses to compensate the employee for the wages they earned shall be deemed guilty of a Class A misdemeanor for the first offense and a Class 4 felony for subsequent offenses and shall be listed on the Department of Labor's website. Amends the Counties Code and the Illinois Municipal Code. Provides that in any county or municipality that requires a building permit, a notice with information on workers' rights under the Wage Theft Act and the Wage Payment and Collection Act shall be included with the building permit applicant to post at the construction site. Amends the Illinois Wage Payment and Collection Act. Provides that there shall be created a Wage Theft Enforcement Fund, subject to appropriation, that will allow any employee that has filed a complaint against an employer, that the Department of Labor determines to be insolvent, to be entitled to receive a full a pay period's worth of wages and interest from the Wage Theft Enforcement Fund. Provides that the Department of Labor shall make available to the public on its website a list of the employers and their officers and agents found guilty of violating the Act and the Wage Theft Act. Amends the State Finance Act to create the Wage Theft Enforcement Fund.


LRB102 24708 SPS 33947 b

 

 

A BILL FOR

 

HB5088LRB102 24708 SPS 33947 b

1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the Wage
5Theft Act.
 
6    Section 5. Employee compensation. Any employer and their
7officers who knowingly withhold wages from an employee in this
8State and refuses to compensate the employee for the wages
9they earned shall be deemed guilty of a Class A misdemeanor for
10the first offense and a Class 4 felony for subsequent offenses
11and shall be listed on the Department of Labor's website. It is
12an affirmative defense to prosecution under this Section if
13the employer provides financial statements with sworn
14affidavits that employees have been compensated.
 
15    Section 10. The State Finance Act is amended by adding
16Section 5.970 as follows:
 
17    (30 ILCS 105/5.970 new)
18    Sec. 5.970. The Wage Theft Enforcement Fund.
 
19    Section 15. The Counties Code is amended by adding Section
205-12022 as follows:
 

 

 

HB5088- 2 -LRB102 24708 SPS 33947 b

1    (55 ILCS 5/5-12022 new)
2    Sec. 5-12022. Notice of wage payment. In any county that
3requires a building permit, a notice with information on
4workers' rights under the Wage Theft Act and the Wage Payment
5and Collection Act shall be included with the building permit
6applicant to post at the construction site.
 
7    Section 20. The Illinois Municipal Code is amended by
8adding Section 11-39-5 as follows:
 
9    (65 ILCS 5/11-39-5 new)
10    Sec. 11-39-5. Notice of wage payment. In any municipality
11that requires a building permit, a notice with information on
12workers' rights under the Wage Theft Act and the Wage Payment
13and Collection Act shall be included with the building permit
14applicant to post at the construction site.
 
15    Section 25. The Illinois Wage Payment and Collection Act
16is amended by changing Section 14 and by adding Sections 14.6
17and 14.7 as follows:
 
18    (820 ILCS 115/14)  (from Ch. 48, par. 39m-14)
19    Sec. 14. (a) Any employee not timely paid wages, final
20compensation, or wage supplements by his or her employer as
21required by this Act shall be entitled to recover through a

 

 

HB5088- 3 -LRB102 24708 SPS 33947 b

1claim filed with the Department of Labor or in a civil action,
2but not both, the amount of any such underpayments and damages
3of 5% of the amount of any such underpayments for each month
4following the date of payment during which such underpayments
5remain unpaid. In a civil action, such employee shall also
6recover costs and all reasonable attorney's fees.
7    (a-5) In addition to the remedies provided in subsections
8(a), (b), and (c) of this Section, any employer or any agent of
9an employer and their officers, who, being able to pay wages,
10final compensation, or wage supplements and being under a duty
11to pay, wilfully refuses to pay as provided in this Act, or
12falsely denies the amount or validity thereof or that the same
13is due, with intent to secure for himself or other person any
14underpayment of such indebtedness or with intent to annoy,
15harass, oppress, hinder, delay or defraud the person to whom
16such indebtedness is due, upon conviction, is guilty of a
17Class A misdemeanor under the Wage Theft Act. :
18        (1) for unpaid wages, final compensation or wage
19    supplements in the amount of $5,000 or less, a Class B
20    misdemeanor; or
21        (2) for unpaid wages, final compensation or wage
22    supplements in the amount of more than $5,000, a Class A
23    misdemeanor.
24    Each day during which any violation of this Act continues
25shall constitute a separate and distinct offense.
26    Any employer or any agent of an employer and their

 

 

HB5088- 4 -LRB102 24708 SPS 33947 b

1officers who violates this Section of the Act a subsequent
2time within 2 years of a prior criminal conviction under this
3Section is guilty, upon conviction, of a Class 4 felony under
4the Wage Theft Act.
5    (b) Any employer who has been demanded or ordered by the
6Department or ordered by the court to pay wages, final
7compensation, or wage supplements due an employee shall be
8required to pay a non-waivable administrative fee to the
9Department of Labor in the amount of $250 if the amount ordered
10by the Department as wages owed is $3,000 or less; $500 if the
11amount ordered by the Department as wages owed is more than
12$3,000, but less than $10,000; and $1,000 if the amount
13ordered by the Department as wages owed is $10,000 or more. Any
14employer who has been so demanded or ordered by the Department
15or ordered by a court to pay such wages, final compensation, or
16wage supplements and who fails to seek timely review of such a
17demand or order as provided for under this Act and who fails to
18comply within 15 calendar days after such demand or within 35
19days of an administrative or court order is entered shall also
20be liable to pay a penalty to the Department of Labor of 20% of
21the amount found owing and a penalty to the employee of 1% per
22calendar day of the amount found owing for each day of delay in
23paying such wages to the employee. All moneys recovered as
24fees and civil penalties under this Act, except those owing to
25the affected employee, shall be deposited into the Wage Theft
26Enforcement Fund, a special fund which is hereby created in

 

 

HB5088- 5 -LRB102 24708 SPS 33947 b

1the State treasury. Moneys in the Fund may be used only for
2enforcement of this Act.
3    (b-5) Penalties and fees under this Section may be
4assessed by the Department and recovered in a civil action
5brought by the Department in any circuit court or in any
6administrative adjudicative proceeding under this Act. In any
7such civil action or administrative adjudicative proceeding
8under this Act, the Department shall be represented by the
9Attorney General.
10    (c) Any employer, or any agent of an employer, who
11discharges or in any other manner discriminates against any
12employee because that employee has made a complaint to his
13employer, to the Director of Labor or his authorized
14representative, in a public hearing, or to a community
15organization that he or she has not been paid in accordance
16with the provisions of this Act, or because that employee has
17caused to be instituted any proceeding under or related to
18this Act, or because that employee has testified or is about to
19testify in an investigation or proceeding under this Act, is
20guilty, upon conviction, of a Class C misdemeanor. An employee
21who has been unlawfully retaliated against shall be entitled
22to recover through a claim filed with the Department of Labor
23or in a civil action, but not both, all legal and equitable
24relief as may be appropriate. In a civil action, such employee
25shall also recover costs and all reasonable attorney's fees.
26(Source: P.A. 102-50, eff. 7-9-21.)
 

 

 

HB5088- 6 -LRB102 24708 SPS 33947 b

1    (820 ILCS 115/14.6 new)
2    Sec. 14.6. Employer website posting. The Department of
3Labor shall make available to the public on its website a list
4of the employers and their officers and agents found guilty of
5violating subsection (a-5) of Section 14 or the Wage Theft
6Act. The Department shall notify employers of this disclosure
7requirement and other penalties in this Act and the Wage Theft
8Act in its correspondence with the employer after an employee
9has filed a complaint.
 
10    (820 ILCS 115/14.7 new)
11    Sec. 14.7. Wage Theft Enforcement Fund. There shall be
12created a Wage Theft Enforcement Fund, subject to
13appropriation, that will allow any employee that has filed a
14complaint against an employer under Section 14 of this Act,
15that the Department of Labor determines to be insolvent, to be
16entitled to receive a full pay period's worth of wages and
17interest from the Wage Theft Enforcement Fund.