Illinois General Assembly - Full Text of HB5622
Illinois General Assembly

Previous General Assemblies

Full Text of HB5622  98th General Assembly




HB5622 EngrossedLRB098 19212 JLS 54364 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 5. The Illinois Wage Payment and Collection Act is
5amended by changing Sections 2 and 4 and by adding Section 14.5
6as 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
10by an employer pursuant to an employment contract or agreement
11between the 2 parties, whether the amount is determined on a
12time, task, piece, or any other basis of calculation. Payments
13to separated employees shall be termed "final compensation" and
14shall be defined as wages, salaries, earned commissions, earned
15bonuses, and the monetary equivalent of earned vacation and
16earned holidays, and any other compensation owed the employee
17by the employer pursuant to an employment contract or agreement
18between the 2 parties. Where an employer is legally committed
19through a collective bargaining agreement or otherwise to make
20contributions to an employee benefit, trust or fund on the
21basis of a certain amount per hour, day, week or other period
22of time, the amount due from the employer to such employee
23benefit, trust, or fund shall be defined as "wage supplements",



HB5622 Engrossed- 2 -LRB098 19212 JLS 54364 b

1subject to the wage collection provisions of this Act.
2    As used in this Act, the term "employer" shall include any
3individual, partnership, association, corporation, limited
4liability company, business trust, employment and labor
5placement agencies where wage payments are made directly or
6indirectly by the agency or business for work undertaken by
7employees under hire to a third party pursuant to a contract
8between the business or agency with the third party, or any
9person or group of persons acting directly or indirectly in the
10interest of an employer in relation to an employee, for which
11one or more persons is gainfully employed.
12    As used in this Act, the term "employee" shall include any
13individual permitted to work by an employer in an occupation,
14but 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



HB5622 Engrossed- 3 -LRB098 19212 JLS 54364 b

1payroll cards to pay wages to an employee under the
2requirements of this Act:
3    "Payroll card" means a card provided to an employee by an
4employer or other payroll card issuer as a means of accessing
5the employee's payroll card account.
6    "Payroll card account" means an account that is directly or
7indirectly established through an employer and to which
8deposits of a participating employee's wages are made.
9    "Payroll card issuer" means a bank, financial institution,
10or other entity that issues a payroll card to an employee under
11an employer payroll card program.
12(Source: P.A. 94-1025, eff. 7-14-06.)
13    (820 ILCS 115/4)  (from Ch. 48, par. 39m-4)
14    Sec. 4. All wages earned by any employee during a
15semi-monthly or bi-weekly pay period shall be paid to such
16employee not later than 13 days after the end of the pay period
17in which such wages were earned. All wages earned by any
18employee during a weekly pay period shall be paid not later
19than 7 days after the end of the weekly pay period in which the
20wages were earned. All wages paid on a daily basis shall be
21paid insofar as possible on the same day as the wages were
22earned, or not later in any event than 24 hours after the day
23on which the wages were earned. Wages of executive,
24administrative and professional employees, as defined in the
25Federal Fair Labor Standards Act of 1938, may be paid on or



HB5622 Engrossed- 4 -LRB098 19212 JLS 54364 b

1before 21 calendar days after the period during which they are
3    The terms of this Section shall not apply, if there exists
4a valid collective bargaining agreement which provides for a
5different date or for different arrangements for the payment of
7    Employers shall pay to workers on strike or layoff, no
8later than the next regular payday, all wages earned up to the
9time of such strike or layoff.
10    Any employee who is absent at the time fixed for payment,
11or who for any other reason is not paid at that time, shall be
12paid upon demand at any time within a period of 5 days after
13the time fixed for payment; and after the expiration of the 5
14day period, payment shall be made upon 5 days demand. Payment
15to the absent employee shall be made by mail if the employee so
16requests in writing.
17    All wages and final compensation shall be paid in lawful
18money of the United States, by check, redeemable upon demand
19and without discount at a bank or other financial institution
20readily available to the employee, or by deposit of funds in an
21account in a bank or other financial institution designated by
22the employee, or by a payroll card that meets the requirements
23of Section 14.5. No employer may designate a particular
24financial institution, bank, savings bank, savings and loan, or
25currency exchange for the exclusive payment or deposit of a
26check for wages. No financial institution, bank, savings bank,



HB5622 Engrossed- 5 -LRB098 19212 JLS 54364 b

1savings and loan, or currency exchange shall refuse to honor a
2check for wages that exclusively designates, in violation of
3this Section, a particular bank, savings bank, savings and
4loan, or currency exchange as the exclusive place of payment or
5deposit except to the extent the bank, savings bank, savings
6and loan, or currency exchange is otherwise excused from
7honoring the check under Section 3-111 of the Uniform
8Commercial Code because the bank, savings bank, savings and
9loan, or currency exchange is not the drawee or the maker of
10the check.
11(Source: P.A. 89-364, eff. 8-18-95.)
12    (820 ILCS 115/14.5 new)
13    Sec. 14.5. Payroll cards. An employer using a payroll card
14to pay an employee's wages shall meet the following
16        (1) The employer shall not make receipt of wages by
17    payroll card a condition of employment for any employee.
18        (2) The employer shall not initiate payment of wages to
19    the employee by electronic fund transfer to a payroll card
20    account unless:
21            (A) the employer provides the employee with a clear
22        and conspicuous written disclosure explaining the
23        terms and conditions of the payroll card account
24        option, including:
25                (i) an itemized list of all fees that may be



HB5622 Engrossed- 6 -LRB098 19212 JLS 54364 b

1            deducted from the employee's payroll card account
2            by the employer or payroll card issuer; and
3                (ii) a notice that third parties may assess
4            transaction fees in addition to the fees assessed
5            by the employee's payroll card issuer;
6            (B) the employer also offers the employee other
7        methods of payment in compliance with Section 4; and
8            (C) the employer obtains the employee's voluntary
9        consent to receive the wages by payroll card.
10        (3) A payroll card program offered by the employer
11    shall provide the employee with:
12            (A) at least one method of withdrawing the
13        employee's full net wages from the payroll card every 2
14        weeks, at no cost to the employee, at a location
15        readily available to the employee;
16            (B) at the employee's request, one transaction
17        history, which the employee may request to receive in
18        paper or electronic form, each month that includes all
19        deposits, withdrawals, deductions, or charges by any
20        entity from or to the employee's payroll card account
21        at no cost to the employee; and
22            (C) at least one of the following options for the
23        employee to obtain the payroll card account balance on
24        the payroll card at any time without incurring a fee:
25        online, by telephone, by text message, or at an ATM
26        location.



HB5622 Engrossed- 7 -LRB098 19212 JLS 54364 b

1        (4) An employer may not use a payroll card program that
2    includes fees for declined transactions, point of sale
3    transactions, or the application, initiation, loading of
4    wages by the employer, or participation in the payroll card
5    program. Fees for account inactivity may be assessed
6    following one year of inactivity.
7        (5) The payroll card or payroll card account may not be
8    linked to any form of credit including, but not limited to,
9    overdraft fees or overdraft service fees, a loan against
10    future pay, or a cash advance on future pay or work not yet
11    performed.
12        (6) An employee paid wages by payroll card may request
13    to be paid wages by other methods of payment provided by
14    the employer in accordance with Section 4. Following the
15    request, the employer shall, within 2 pay periods, begin
16    payment to the employee by the allowable method requested
17    by the employee.
18        (7) A payroll card program offered by an employer shall
19    provide the employee with protections from unauthorized
20    use of the payroll card in accordance with State and
21    federal law concerning electronic fund transfers.
22    Section 99. Effective date. This Act takes effect January
231, 2015.