Full Text of HB5622 98th General Assembly
HB5622 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB5622 Introduced , by Rep. Arthur Turner SYNOPSIS AS INTRODUCED: |
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820 ILCS 115/2 | from Ch. 48, par. 39m-2 |
820 ILCS 115/4 | from Ch. 48, par. 39m-4 |
820 ILCS 115/14.5 new | |
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Amends the Illinois Wage Payment and Collection Act. Establishes requirements for the use of payroll cards by employers. Provides that receipt of wages by means of a payroll card may not be a condition of employment. Requires certain disclosures to be made to employees before using payroll cards. Requires the offer of an alternative means of payment to be available. Establishes limits on fees. Effective January 1, 2015.
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| | FISCAL NOTE ACT MAY APPLY | | STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
| | A BILL FOR |
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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 and 4 and by adding Section 14.5 | 6 | | as follows:
| 7 | | (820 ILCS 115/2) (from Ch. 48, par. 39m-2)
| 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 | 17 | | by the employer pursuant
to an employment contract or agreement | 18 | | between the 2 parties. Where an
employer is legally committed | 19 | | through a 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 supplements", |
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| 1 | | subject to the wage collection
provisions of this Act.
| 2 | | As used in this Act, the term "employer" shall include any | 3 | | individual,
partnership, association, corporation, limited | 4 | | liability company, business trust, employment and
labor | 5 | | placement agencies where wage payments are made
directly or | 6 | | indirectly by the agency or business for work undertaken by
| 7 | | employees under hire to a third party pursuant to a contract | 8 | | between the
business or agency with the third party, or any | 9 | | person or group of
persons acting directly or indirectly in the | 10 | | interest of an employer in
relation to an employee, for which | 11 | | one or more persons is gainfully employed.
| 12 | | As used in this Act, the term "employee" shall include any | 13 | | individual
permitted to work by an employer in an occupation, | 14 | | but shall not include any
individual:
| 15 | | (1) who has been and will continue to be free from | 16 | | control and direction
over the performance of his work, | 17 | | both under his contract of service with his
employer and in | 18 | | fact; and
| 19 | | (2) who performs work which is either outside the usual | 20 | | course of business
or is performed outside all of the | 21 | | places of business of the employer unless
the employer is | 22 | | in the business of contracting with third parties for the
| 23 | | placement of employees; and
| 24 | | (3) who is in an independently established trade, | 25 | | occupation, profession
or business.
| 26 | | The following terms shall apply to an employer's use of |
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| 1 | | payroll cards to pay wages to an employee under the | 2 | | requirements of this Act: | 3 | | "Payroll card" means a card issued to an employee by an | 4 | | employer or other payroll card issuer as a means of accessing | 5 | | the employee's payroll card account. | 6 | | "Payroll card account" means an account into which an | 7 | | employer directly or indirectly deposits each participating | 8 | | employee's wages on a recurring basis through an electronic | 9 | | fund transfer. | 10 | | "Payroll card issuer" means an employer, bank, financial | 11 | | institution, or other entity that issues a payroll card to an | 12 | | employee under an employer payroll card program. | 13 | | (Source: P.A. 94-1025, eff. 7-14-06.)
| 14 | | (820 ILCS 115/4) (from Ch. 48, par. 39m-4)
| 15 | | Sec. 4.
All wages earned by any employee during a | 16 | | semi-monthly or bi-weekly
pay period shall be paid to such | 17 | | employee not later than 13 days after
the end of the pay period | 18 | | in which such wages were earned. All wages
earned by any | 19 | | employee during a weekly pay period shall be paid not
later | 20 | | than 7 days after the end of the weekly pay period in which the
| 21 | | wages were earned. All wages paid on a daily basis shall be | 22 | | paid insofar
as possible on the same day as the wages were | 23 | | earned, or not later in
any event than 24 hours after the day | 24 | | on which the wages were earned.
Wages of executive, | 25 | | administrative and professional employees, as
defined in the |
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| 1 | | Federal Fair Labor Standards Act of 1938, may be paid on
or | 2 | | before 21 calendar days after the period during which they are
| 3 | | earned.
| 4 | | The terms of this Section shall not apply, if there exists | 5 | | a valid
collective bargaining agreement which provides for a | 6 | | different date or
for different arrangements for the payment of | 7 | | wages.
| 8 | | Employers shall pay to workers on strike or layoff, no | 9 | | later than the
next regular payday, all wages earned up to the | 10 | | time of such strike or
layoff.
| 11 | | Any employee who is absent at the time fixed for payment, | 12 | | or who for
any other reason is not paid at that time, shall be | 13 | | paid upon demand at
any time within a period of 5 days after | 14 | | the time fixed for payment; and
after the expiration of the 5 | 15 | | day period, payment shall be made upon 5
days demand. Payment | 16 | | to the absent employee shall be made by mail if the
employee so | 17 | | requests in writing.
| 18 | | All wages and final compensation shall be paid in lawful | 19 | | money of the
United States, by check, redeemable upon demand | 20 | | and without discount
at a bank or other financial institution | 21 | | readily available to the
employee, or by deposit of funds in an | 22 | | account in a bank or other financial
institution designated by | 23 | | the employee , or by a payroll card that meets the requirements | 24 | | of Section 14.5 .
No employer may designate a particular | 25 | | financial institution, bank, savings
bank, savings and loan, or | 26 | | currency exchange for the exclusive payment or
deposit of a
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| 1 | | check for wages. No financial institution, bank, savings bank, | 2 | | savings and
loan, or currency exchange shall refuse to honor a | 3 | | check for wages that
exclusively designates, in violation of | 4 | | this Section, a particular bank,
savings bank,
savings and | 5 | | loan, or currency exchange as the exclusive place of payment or
| 6 | | deposit except to the extent the bank, savings bank, savings | 7 | | and loan, or
currency exchange is otherwise excused from | 8 | | honoring the check under
Section 3-111 of the Uniform | 9 | | Commercial Code because the bank, savings bank,
savings and | 10 | | loan, or currency exchange is not the drawee or the maker of | 11 | | the
check.
| 12 | | (Source: P.A. 89-364, eff. 8-18-95.)
| 13 | | (820 ILCS 115/14.5 new) | 14 | | Sec. 14.5. Payroll cards. An employer using a payroll card | 15 | | to pay an employee's wages shall meet the following | 16 | | requirements: | 17 | | (1) The employer shall not make receipt of wages by | 18 | | payroll card a condition of employment for any employee. | 19 | | (2) The employer shall not initiate payment of wages to | 20 | | the employee by electronic fund transfer to a payroll card | 21 | | account unless: | 22 | | (A) the employer provides the employee with a | 23 | | written disclosure, in plain language, explaining the | 24 | | terms and conditions of the payroll card account | 25 | | option, including: |
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| 1 | | (i) an itemized list of all fees that may be | 2 | | deducted from the employee's payroll card account | 3 | | by the employer or payroll card issuer; and | 4 | | (ii) a notice that third parties may assess | 5 | | transaction fees in addition to the fees assessed | 6 | | by the employee's payroll card issuer; | 7 | | (B) the employer also offers the employee the | 8 | | options of payment by paper check or direct deposit to | 9 | | a depository account designated by the employee; and | 10 | | (C) the employer obtains the employee's voluntary | 11 | | written consent to receive the wages by payroll card. | 12 | | (3) A payroll card program offered by the employer | 13 | | shall provide the employee with: | 14 | | (A) at least one ATM withdrawal per pay period at | 15 | | no cost to the employee and at a location within a | 16 | | reasonable distance of the employee's place of | 17 | | employment; | 18 | | (B) at least one method of withdrawing the entire | 19 | | balance on the card for each pay period without | 20 | | incurring a fee; | 21 | | (C) at the employee's request, one transaction | 22 | | history each month that includes all deposits, | 23 | | withdrawals, deductions, or charges by any entity from | 24 | | or to the employee's payroll card account at no cost to | 25 | | the employee; and | 26 | | (D) a reasonable method for the employee to obtain |
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| 1 | | the payroll card account balance on the payroll card at | 2 | | any time without incurring a fee. | 3 | | (4) An employer may not use a payroll card program that | 4 | | includes fees for account inactivity, declined | 5 | | transactions, point of sale transactions, or an | 6 | | application, initiation, loading, participation, or any | 7 | | other fee to receive wages or to hold the payroll card. | 8 | | (5) The payroll card or payroll card account may not be | 9 | | linked to any form of credit including, but not limited to, | 10 | | a loan against future pay or a cash advance on future pay. | 11 | | (6) An employee paid wages by payroll card may request | 12 | | to be paid wages by any other method set forth in Section | 13 | | 4. Following the request, the employer shall, within 2 pay | 14 | | periods, begin payment to the employee by the allowable | 15 | | method requested by the employee.
| 16 | | Section 99. Effective date. This Act takes effect January | 17 | | 1, 2015.
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