Full Text of SB3208 103rd General Assembly
SB3208enr 103RD GENERAL ASSEMBLY | | | SB3208 Enrolled | | LRB103 37566 SPS 67692 b |
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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 Illinois Wage Payment and Collection Act is | 5 | | amended by changing Sections 2, 10, and 14 as follows: | 6 | | (820 ILCS 115/2) (from Ch. 48, par. 39m-2) | 7 | | Sec. 2. Definitions. For all employees, other than | 8 | | separated employees, "wages" shall be defined as any | 9 | | compensation owed an employee by an employer pursuant to an | 10 | | employment contract or agreement between the 2 parties, | 11 | | whether the amount is determined on a time, task, piece, or any | 12 | | other basis of calculation. Payments to separated employees | 13 | | shall be termed "final compensation" and shall be defined as | 14 | | wages, salaries, earned commissions, earned bonuses, and the | 15 | | monetary equivalent of earned vacation and earned holidays, | 16 | | and any other compensation owed the employee by the employer | 17 | | pursuant to an employment contract or agreement between the 2 | 18 | | parties. Where an employer is legally committed through a | 19 | | collective bargaining agreement or otherwise to make | 20 | | contributions to an employee benefit, trust or fund on the | 21 | | basis of a certain amount per hour, day, week or other period | 22 | | of time, the amount due from the employer to such employee | 23 | | benefit, trust, or fund shall be defined as "wage |
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| 1 | | supplements", subject to the wage collection provisions of | 2 | | this Act. | 3 | | As used in this Act, the term "employer" shall include any | 4 | | individual, partnership, association, corporation, limited | 5 | | liability company, business trust, employment and labor | 6 | | placement agencies where wage payments are made directly or | 7 | | indirectly by the agency or business for work undertaken by | 8 | | employees under hire to a third party pursuant to a contract | 9 | | between the business or agency with the third party, or any | 10 | | person or group of persons acting directly or indirectly in | 11 | | the interest of an employer in relation to an employee, for | 12 | | which one or more persons is gainfully employed. | 13 | | As used in this Act, the term "employee" shall include any | 14 | | individual permitted to work by an employer in an occupation, | 15 | | but shall not include any individual: | 16 | | (1) who has been and will continue to be free from | 17 | | control and direction over the performance of his work, | 18 | | both under his contract of service with his employer and | 19 | | in fact; and | 20 | | (2) who performs work which is either outside the | 21 | | usual course of business or is performed outside all of | 22 | | the places of business of the employer unless the employer | 23 | | is in the business of contracting with third parties for | 24 | | the placement of employees; and | 25 | | (3) who is in an independently established trade, | 26 | | occupation, profession or business. |
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| 1 | | "Pay stub" means an itemized statement or statements | 2 | | reflecting an employee's hours worked, rate of pay, overtime | 3 | | pay and overtime hours worked, gross wages earned, deductions | 4 | | made from the employee's wages, and the total of wages and | 5 | | deductions year to date. | 6 | | The following terms apply to an employer's use of payroll | 7 | | cards to pay wages to an employee under the requirements of | 8 | | this Act: | 9 | | "Payroll card" means a card provided to an employee by an | 10 | | employer or other payroll card issuer as a means of accessing | 11 | | the employee's payroll card account. | 12 | | "Payroll card account" means an account that is directly | 13 | | or indirectly established through an employer and to which | 14 | | deposits of a participating employee's wages are made. | 15 | | "Payroll card issuer" means a bank, financial institution, | 16 | | or other entity that issues a payroll card to an employee under | 17 | | an employer payroll card program. | 18 | | (Source: P.A. 98-862, eff. 1-1-15 .) | 19 | | (820 ILCS 115/10) (from Ch. 48, par. 39m-10) | 20 | | Sec. 10. | 21 | | (a) Employers shall notify employees, at the time of | 22 | | hiring, of the rate of pay and of the time and place of | 23 | | payment. Whenever possible, such notification shall be in | 24 | | writing and shall be acknowledged by both parties. Employers | 25 | | shall also notify employees of any changes in the |
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| 1 | | arrangements, specified above, prior to the time of change. | 2 | | (b) Employers shall keep records of names and addresses of | 3 | | all employees and of wages paid each payday, and shall furnish | 4 | | each employee with a pay stub an itemized statement of | 5 | | deductions made from his wages for each pay period. | 6 | | (c) An employer shall maintain a copy of an employee's pay | 7 | | stub for a period of not less than 3 years after the date of | 8 | | payment, regardless of whether the employee's employment ends | 9 | | during this period, whether the pay stub is furnished | 10 | | electronically or in paper form. | 11 | | (d) In addition to furnishing a pay stub for each pay | 12 | | period as required under subsection (b), an employer shall | 13 | | furnish copies of pay stubs to current and former employees as | 14 | | follows: | 15 | | (1) An employer shall provide an employee with a copy | 16 | | of the employee's pay stubs upon the employee's request. | 17 | | The employer may require that the employee submit the | 18 | | request in writing. The employer shall furnish the copy of | 19 | | the pay stubs to the employee within 21 calendar days of | 20 | | the employee's request. An employer is not required to | 21 | | grant an employee's request for a copy of pay stubs more | 22 | | than twice in a 12-month period. | 23 | | (2) An employer shall provide a former employee with a | 24 | | copy of the former employee's previous pay stubs upon the | 25 | | former employee's request. The employer shall furnish the | 26 | | copy of the pay stubs to the former employee within 21 |
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| 1 | | calendar days of the former employee's request. An | 2 | | employer is not required to grant a former employee's | 3 | | request for a copy of pay stubs more than twice in a | 4 | | 12-month period or more than one year after the date of | 5 | | separation. The employer shall provide the copy of the pay | 6 | | stubs in either a physical or electronic format, as chosen | 7 | | by the former employee, including a communication that is | 8 | | transmitted through electronic mail, text message, | 9 | | computer system, or is otherwise sent and stored | 10 | | electronically and is capable of being downloaded or | 11 | | permanently retained by the former employee. | 12 | | (3) An employer who furnishes electronic pay stubs in | 13 | | a manner that a former employee cannot access for at least | 14 | | a full year after separation shall, upon an employee's | 15 | | separation from employment, offer to provide the outgoing | 16 | | employee with a record of all of the outgoing employee's | 17 | | pay stubs from the year preceding the date of separation. | 18 | | The offer shall be made to the outgoing employee by the end | 19 | | of the outgoing employee's final pay period. An employer | 20 | | shall record in writing the date on which this offer was | 21 | | made to the outgoing employee and if and how the outgoing | 22 | | employee responded. | 23 | | (4) A request made by an employee or former employee | 24 | | under this Section shall be made to a person responsible | 25 | | for maintaining the employer's payroll, including the | 26 | | employer's human resources department or payroll |
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| 1 | | department, the employee's supervisor or department | 2 | | manager, or an individual designated in the employer's | 3 | | written policy. | 4 | | (e) Every employer shall post and keep posted at each | 5 | | regular place of business in a position easily accessible to | 6 | | all employees one or more notices indicating the regular | 7 | | paydays and the place and time for payment of his employees, | 8 | | and on forms supplied from time to time by the Department of | 9 | | Labor containing a copy or summary of the provisions of this | 10 | | Act. | 11 | | (Source: P.A. 81-593.) | 12 | | (820 ILCS 115/14) (from Ch. 48, par. 39m-14) | 13 | | Sec. 14. Penalties. | 14 | | (a) Any employee not timely paid wages, final | 15 | | compensation, or wage supplements by his or her employer as | 16 | | required by this Act shall be entitled to recover through a | 17 | | claim filed with the Department of Labor or in a civil action, | 18 | | but not both, the amount of any such underpayments and damages | 19 | | of 5% of the amount of any such underpayments for each month | 20 | | following the date of payment during which such underpayments | 21 | | remain unpaid. In a civil action, such employee shall also | 22 | | recover costs and all reasonable attorney's fees. | 23 | | (a-5) In addition to the remedies provided in subsections | 24 | | (a), (b), and (c) of this Section, any employer or any agent of | 25 | | an employer, who, being able to pay wages, final compensation, |
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| 1 | | or wage supplements and being under a duty to pay, willfully | 2 | | wilfully refuses to pay as provided in this Act, or falsely | 3 | | denies the amount or validity thereof or that the same is due, | 4 | | with intent to secure for himself or other person any | 5 | | underpayment of such indebtedness or with intent to annoy, | 6 | | harass, oppress, hinder, delay or defraud the person to whom | 7 | | such indebtedness is due, upon conviction, is guilty of: | 8 | | (1) for unpaid wages, final compensation or wage | 9 | | supplements in the amount of $5,000 or less, a Class B | 10 | | misdemeanor; or | 11 | | (2) for unpaid wages, final compensation or wage | 12 | | supplements in the amount of more than $5,000, a Class A | 13 | | misdemeanor. | 14 | | Each day during which any violation of this Act continues | 15 | | shall constitute a separate and distinct offense. | 16 | | Any employer or any agent of an employer who violates this | 17 | | Section of the Act a subsequent time within 2 years of a prior | 18 | | criminal conviction under this Section is guilty, upon | 19 | | conviction, of a Class 4 felony. | 20 | | (b) Any employer who has been demanded or ordered by the | 21 | | Department or ordered by the court to pay wages, final | 22 | | compensation, or wage supplements due an employee shall be | 23 | | required to pay a non-waivable administrative fee to the | 24 | | Department of Labor in the amount of $250 if the amount ordered | 25 | | by the Department as wages owed is $3,000 or less; $500 if the | 26 | | amount ordered by the Department as wages owed is more than |
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| 1 | | $3,000, but less than $10,000; and $1,000 if the amount | 2 | | ordered by the Department as wages owed is $10,000 or more. Any | 3 | | employer who has been so demanded or ordered by the Department | 4 | | or ordered by a court to pay such wages, final compensation, or | 5 | | wage supplements and who fails to seek timely review of such a | 6 | | demand or order as provided for under this Act and who fails to | 7 | | comply within 15 calendar days after such demand or within 35 | 8 | | days of an administrative or court order is entered shall also | 9 | | be liable to pay a penalty to the Department of Labor of 20% of | 10 | | the amount found owing and a penalty to the employee of 1% per | 11 | | calendar day of the amount found owing for each day of delay in | 12 | | paying such wages to the employee. All moneys recovered as | 13 | | fees and civil penalties under this Act, except those owing to | 14 | | the affected employee, shall be deposited into the Wage Theft | 15 | | Enforcement Fund, a special fund which is hereby created in | 16 | | the State treasury. Moneys in the Fund may be used for | 17 | | enforcement of this Act and for outreach and educational | 18 | | activities of the Department related to the recovery of unpaid | 19 | | or underpaid compensation and the disbursement of moneys to | 20 | | affected parties. | 21 | | (b-5) Penalties and fees under this Section may be | 22 | | assessed by the Department and recovered in a civil action | 23 | | brought by the Department in any circuit court or in any | 24 | | administrative adjudicative proceeding under this Act. In any | 25 | | such civil action or administrative adjudicative proceeding | 26 | | under this Act, the Department shall be represented by the |
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| 1 | | Attorney General. | 2 | | (c) Any employer, or any agent of an employer, who | 3 | | discharges or in any other manner discriminates against any | 4 | | employee because that employee has made a complaint to his or | 5 | | her employer, to the Director of Labor or his or her authorized | 6 | | representative, in a public hearing, or to a community | 7 | | organization that he or she has not been paid in accordance | 8 | | with the provisions of this Act, or because that employee has | 9 | | caused to be instituted any proceeding under or related to | 10 | | this Act, or because that employee has testified or is about to | 11 | | testify in an investigation or proceeding under this Act, is | 12 | | guilty, upon conviction, of a Class C misdemeanor. An employee | 13 | | who has been unlawfully retaliated against shall be entitled | 14 | | to recover through a claim filed with the Department of Labor | 15 | | or in a civil action, but not both, all legal and equitable | 16 | | relief as may be appropriate. In a civil action, such employee | 17 | | shall also recover costs and all reasonable attorney's fees. | 18 | | (d) Except as provided under subsections (a), (b), and | 19 | | (c), an employer who fails to furnish an employee or former | 20 | | employee with a pay stub as required by this Act or commits any | 21 | | other violation of this Act shall be subject to a civil penalty | 22 | | of up to $500 per violation payable to the Department. In | 23 | | determining the amount of the penalty under this subsection, | 24 | | the Department shall consider the appropriateness of the | 25 | | penalty to the size of the business of the employer charged and | 26 | | the gravity of the violation. |
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| 1 | | (Source: P.A. 102-50, eff. 7-9-21; 103-182, eff. 6-30-23.) |
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