Full Text of HB1513 97th General Assembly
HB1513eng 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning local government.
| 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 Section 9 as follows:
| 6 | | (820 ILCS 115/9) (from Ch. 48, par. 39m-9)
| 7 | | Sec. 9.
Except as hereinafter provided, deductions by | 8 | | employers from wages
or final
compensation are prohibited | 9 | | unless such deductions are (1) required by law; (2)
to the | 10 | | benefit of the employee; (3) in response to a valid
wage
| 11 | | assignment or wage deduction order; (4) made with the express | 12 | | written
consent of the employee, given freely at the time the | 13 | | deduction is made;
(5) made by a municipality with a population | 14 | | of 500,000 or more, a county
with a population of 3,000,000 or | 15 | | more, a
community college district in a city with a population | 16 | | of 500,000 or more,
a housing authority in a municipality with
| 17 | | a population of 500,000 or more,
the Chicago Park District, the | 18 | | Metropolitan Transit Authority, the
Chicago Board of | 19 | | Education,
the Cook County Forest Preserve District, or
the | 20 | | Metropolitan Water Reclamation District
to pay a debt owed by | 21 | | the employee to a
municipality
with a population of 500,000 or | 22 | | more, a county with a population of 3,000,000
or more, the Cook | 23 | | County Forest Preserve, the Chicago Park District, the
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| 1 | | Metropolitan Water Reclamation District, the Chicago Transit | 2 | | Authority, the
Chicago Board of Education, or a housing | 3 | | authority of a municipality with a
population of 500,000 or | 4 | | more;
provided, however, that the amount deducted from any one | 5 | | salary or wage
payment shall not exceed 25% of the net amount | 6 | | of the payment; or (6) made by
a housing authority in a | 7 | | municipality with
a
population of 500,000 or more
or a | 8 | | municipality with a population of 500,000 or more
to pay a debt | 9 | | owed by the employee to a
housing
authority in a municipality | 10 | | with a population of 500,000 or more; provided,
however, that | 11 | | the amount deducted from any one salary or
wage payment shall | 12 | | not exceed 25% of the net amount of the payment.
Before the | 13 | | municipality with a population of 500,000 or more,
the | 14 | | community college district in a city with a population of | 15 | | 500,000 or
more, the Chicago Park District, the Metropolitan | 16 | | Transit Authority,
a housing authority in a municipality with
a | 17 | | population of 500,000 or more, the Chicago Board of Education,
| 18 | | the county with a population of 3,000,000 or more, the Cook | 19 | | County Forest
Preserve District,
or the Metropolitan Water | 20 | | Reclamation District
deducts any amount from any salary or wage | 21 | | of an
employee
to pay a debt owed to a municipality with a | 22 | | population of 500,000 or more, a
county with a population of | 23 | | 3,000,000 or more, the Cook County Forest Preserve
District,
| 24 | | the Chicago Park District, the Metropolitan Water Reclamation | 25 | | District, the
Chicago Transit Authority, the Chicago Board of | 26 | | Education, or a housing
authority of a municipality with a |
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| 1 | | population of 500,000 or more under this
Section, the | 2 | | municipality, the county, the Cook County Forest Preserve
| 3 | | District, the
Chicago Park District, the Metropolitan Water | 4 | | Reclamation District, the Chicago
Transit Authority, the | 5 | | Chicago Board of Education, or a housing authority of a
| 6 | | municipality with a population of 500,000 or more shall certify | 7 | | that (i)
the
employee has been
afforded an opportunity for a | 8 | | hearing to dispute the debt that is due and owing
the | 9 | | municipality, the county, the Cook County Forest Preserve | 10 | | District, the
Chicago
Park District, the Metropolitan Water | 11 | | Reclamation District, the Chicago Transit
Authority, the | 12 | | Chicago Board of Education, or a housing authority of a
| 13 | | municipality with a population of 500,000 or more and (ii) the | 14 | | employee has
received notice of a wage deduction order and has
| 15 | | been afforded an opportunity for a hearing to object to the | 16 | | order.
Before a housing authority in a
municipality
with a | 17 | | population of 500,000 or more or a municipality with a | 18 | | population of
500,000 or more, a county with a population of | 19 | | 3,000,000 or more, the Cook
County Forest Preserve District, | 20 | | the Chicago Park District, the Metropolitan
Water Reclamation | 21 | | District, the Chicago Transit Authority, the Chicago Board of
| 22 | | Education, or a housing authority of a municipality with a | 23 | | population of
500,000 or more
deducts any amount from any | 24 | | salary or
wage of an employee to pay a debt owed to a
housing | 25 | | authority in a municipality
with a population of 500,000 or | 26 | | more under this Section, the
housing authority shall certify
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| 1 | | that (i) the employee has been afforded an opportunity for a | 2 | | hearing to
dispute the debt that is due and owing the housing
| 3 | | authority and (ii) the employee has received notice of a wage
| 4 | | deduction order and has
been afforded an opportunity for a | 5 | | hearing to object to the order.
For purposes of this Section, | 6 | | "net amount" means that part of the salary or
wage payment | 7 | | remaining after the deduction of any amounts required by law to | 8 | | be
deducted and "debt due and owing" means (i) a specified sum | 9 | | of money owed to
the municipality, county, the Cook County | 10 | | Forest Preserve District, the
Chicago Park
District, the | 11 | | Metropolitan Water Reclamation District, the Chicago Transit
| 12 | | Authority, the Chicago Board of Education, or housing authority
| 13 | | for
services, work, or
goods, after the period granted for | 14 | | payment has expired, or (ii) a specified
sum of money owed to | 15 | | the municipality, county, the Cook County Forest
Preserve | 16 | | District, the Chicago Park District, the Metropolitan Water
| 17 | | Reclamation
District, the Chicago Transit Authority, the | 18 | | Chicago Board of Education
or housing authority pursuant
to a
| 19 | | court order or order of an administrative hearing officer after | 20 | | the exhaustion
of, or the failure to exhaust, judicial review ; | 21 | | (7) the result of an excess payment made due to, but not | 22 | | limited to, a typographical or mathematical error made by a | 23 | | municipality with a population of less than 500,000 or to | 24 | | collect a debt owed to a municipality with a population of less | 25 | | than 500,000 after notice to the employee and an opportunity to | 26 | | be heard; provided, however, that the amount deducted from any |
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| 1 | | one salary or wage payment shall not exceed 15% of the net | 2 | | amount of the payment. Before the municipality deducts any | 3 | | amount from any salary or wage of an employee to pay a debt | 4 | | owed to the municipality, the municipality shall certify that | 5 | | (i) the employee has been afforded an opportunity for a | 6 | | hearing, conducted by the municipality, to dispute the debt | 7 | | that is due and owing the municipality, and (ii) the employee | 8 | | has received notice of a wage deduction order and has been | 9 | | afforded an opportunity for a hearing, conducted by the | 10 | | municipality, to object to the order. For purposes of this | 11 | | Section, "net amount" means that part of the salary or wage | 12 | | payment remaining after the deduction of any amounts required | 13 | | by law to be deducted and "debt due and owing" means (i) a | 14 | | specified sum of money owed to the municipality for services, | 15 | | work, or goods, after the period granted for payment has | 16 | | expired, or (ii) a specified sum of money owed to the | 17 | | municipality pursuant to a court order or order of an | 18 | | administrative hearing officer after the exhaustion of, or the | 19 | | failure to exhaust, judicial review . Where the legitimacy of | 20 | | any
deduction from wages is in
dispute, the amount in question | 21 | | may be withheld if the employer notifies
the Department of | 22 | | Labor on the date the payment is due in writing of the
amount | 23 | | that is being withheld and stating the reasons for which the
| 24 | | payment is withheld. Upon such notification the Department of | 25 | | Labor
shall conduct an investigation and render a judgment as | 26 | | promptly as
possible, and shall complete such investigation |
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| 1 | | within 30 days of
receipt of the notification by the employer | 2 | | that wages have been
withheld. The employer shall pay the wages | 3 | | due upon order of the
Department of Labor within 15 calendar | 4 | | days of issuance of a judgment on the
dispute.
| 5 | | The Department shall establish rules to protect the | 6 | | interests of both
parties in cases of disputed deductions from | 7 | | wages. Such rules shall
include reasonable limitations on the | 8 | | amount of deductions beyond those
required by law which may be | 9 | | made during any pay period by any employer.
| 10 | | In case of a dispute over wages, the employer shall pay, | 11 | | without condition
and within the time set by this Act, all | 12 | | wages or parts thereof, conceded
by him to be due, leaving to | 13 | | the employee all remedies to which he may
otherwise be entitled | 14 | | as to any balance claimed. The acceptance by an employee
of a | 15 | | disputed paycheck shall not constitute a release as to the | 16 | | balance of his
claim and any release or restrictive endorsement | 17 | | required by an employer as a
condition to payment shall be a | 18 | | violation of this Act and shall be void.
| 19 | | (Source: P.A. 91-443, eff. 8-6-99; 92-109, eff. 7-20-01.)
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