Illinois General Assembly - Full Text of HB5622
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Full Text of HB5622  98th General Assembly


Rep. Arthur Turner

Filed: 4/8/2014





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2    AMENDMENT NO. ______. Amend House Bill 5622 by replacing
3everything after the enacting clause with the following:
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



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1by the employer pursuant to an employment contract or agreement
2between the 2 parties. Where an employer is legally committed
3through a collective bargaining agreement or otherwise to make
4contributions to an employee benefit, trust or fund on the
5basis of a certain amount per hour, day, week or other period
6of time, the amount due from the employer to such employee
7benefit, trust, or fund shall be defined as "wage supplements",
8subject to the wage collection provisions of this Act.
9    As used in this Act, the term "employer" shall include any
10individual, partnership, association, corporation, limited
11liability company, business trust, employment and labor
12placement agencies where wage payments are made directly or
13indirectly by the agency or business for work undertaken by
14employees under hire to a third party pursuant to a contract
15between the business or agency with the third party, or any
16person or group of persons acting directly or indirectly in the
17interest of an employer in relation to an employee, for which
18one or more persons is gainfully employed.
19    As used in this Act, the term "employee" shall include any
20individual permitted to work by an employer in an occupation,
21but shall not include any individual:
22        (1) who has been and will continue to be free from
23    control and direction over the performance of his work,
24    both under his contract of service with his employer and in
25    fact; and
26        (2) who performs work which is either outside the usual



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1    course of business or is performed outside all of the
2    places of business of the employer unless the employer is
3    in the business of contracting with third parties for the
4    placement of employees; and
5        (3) who is in an independently established trade,
6    occupation, profession or business.
7    The following terms shall apply to an employer's use of
8payroll cards to pay wages to an employee under the
9requirements of this Act:
10    "Payroll card" means a card provided to an employee by an
11employer or other payroll card issuer as a means of accessing
12the employee's payroll card account.
13    "Payroll card account" means an account that is directly or
14indirectly established through an employer and to which
15deposits of a participating employee's wages are made.
16    "Payroll card issuer" means a bank, financial institution,
17or other entity that issues a payroll card to an employee under
18an employer payroll card program.
19(Source: P.A. 94-1025, eff. 7-14-06.)
20    (820 ILCS 115/4)  (from Ch. 48, par. 39m-4)
21    Sec. 4. All wages earned by any employee during a
22semi-monthly or bi-weekly pay period shall be paid to such
23employee not later than 13 days after the end of the pay period
24in which such wages were earned. All wages earned by any
25employee during a weekly pay period shall be paid not later



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1than 7 days after the end of the weekly pay period in which the
2wages were earned. All wages paid on a daily basis shall be
3paid insofar as possible on the same day as the wages were
4earned, or not later in any event than 24 hours after the day
5on which the wages were earned. Wages of executive,
6administrative and professional employees, as defined in the
7Federal Fair Labor Standards Act of 1938, may be paid on or
8before 21 calendar days after the period during which they are
10    The terms of this Section shall not apply, if there exists
11a valid collective bargaining agreement which provides for a
12different date or for different arrangements for the payment of
14    Employers shall pay to workers on strike or layoff, no
15later than the next regular payday, all wages earned up to the
16time of such strike or layoff.
17    Any employee who is absent at the time fixed for payment,
18or who for any other reason is not paid at that time, shall be
19paid upon demand at any time within a period of 5 days after
20the time fixed for payment; and after the expiration of the 5
21day period, payment shall be made upon 5 days demand. Payment
22to the absent employee shall be made by mail if the employee so
23requests in writing.
24    All wages and final compensation shall be paid in lawful
25money of the United States, by check, redeemable upon demand
26and without discount at a bank or other financial institution



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1readily available to the employee, or by deposit of funds in an
2account in a bank or other financial institution designated by
3the employee, or by a payroll card that meets the requirements
4of Section 14.5. No employer may designate a particular
5financial institution, bank, savings bank, savings and loan, or
6currency exchange for the exclusive payment or deposit of a
7check for wages. No financial institution, bank, savings bank,
8savings and loan, or currency exchange shall refuse to honor a
9check for wages that exclusively designates, in violation of
10this Section, a particular bank, savings bank, savings and
11loan, or currency exchange as the exclusive place of payment or
12deposit except to the extent the bank, savings bank, savings
13and loan, or currency exchange is otherwise excused from
14honoring the check under Section 3-111 of the Uniform
15Commercial Code because the bank, savings bank, savings and
16loan, or currency exchange is not the drawee or the maker of
17the check.
18(Source: P.A. 89-364, eff. 8-18-95.)
19    (820 ILCS 115/14.5 new)
20    Sec. 14.5. Payroll cards. An employer using a payroll card
21to pay an employee's wages shall meet the following
23        (1) The employer shall not make receipt of wages by
24    payroll card a condition of employment for any employee.
25        (2) The employer shall not initiate payment of wages to



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1    the employee by electronic fund transfer to a payroll card
2    account unless:
3            (A) the employer provides the employee with a clear
4        and conspicuous written disclosure explaining the
5        terms and conditions of the payroll card account
6        option, including:
7                (i) an itemized list of all fees that may be
8            deducted from the employee's payroll card account
9            by the employer or payroll card issuer; and
10                (ii) a notice that third parties may assess
11            transaction fees in addition to the fees assessed
12            by the employee's payroll card issuer;
13            (B) the employer also offers the employee other
14        methods of payment in compliance with Section 4; and
15            (C) the employer obtains the employee's voluntary
16        consent to receive the wages by payroll card.
17        (3) A payroll card program offered by the employer
18    shall provide the employee with:
19            (A) at least one method of withdrawing the
20        employee's full net wages from the payroll card every 2
21        weeks, at no cost to the employee, at a location
22        readily available to the employee;
23            (B) at the employee's request, one transaction
24        history, which the employee may request to receive in
25        paper or electronic form, each month that includes all
26        deposits, withdrawals, deductions, or charges by any



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1        entity from or to the employee's payroll card account
2        at no cost to the employee; and
3            (C) at least one of the following options for the
4        employee to obtain the payroll card account balance on
5        the payroll card at any time without incurring a fee:
6        online, by telephone, by text message, or at an ATM
7        location.
8        (4) An employer may not use a payroll card program that
9    includes fees for declined transactions, point of sale
10    transactions, or the application, initiation, loading of
11    wages by the employer, or participation in the payroll card
12    program. Fees for account inactivity may be assessed
13    following one year of inactivity.
14        (5) The payroll card or payroll card account may not be
15    linked to any form of credit including, but not limited to,
16    overdraft fees or overdraft service fees, a loan against
17    future pay, or a cash advance on future pay or work not yet
18    performed.
19        (6) An employee paid wages by payroll card may request
20    to be paid wages by other methods of payment provided by
21    the employer in accordance with Section 4. Following the
22    request, the employer shall, within 2 pay periods, begin
23    payment to the employee by the allowable method requested
24    by the employee.
25        (7) A payroll card program offered by an employer shall
26    provide the employee with protections from unauthorized



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1    use of the payroll card in accordance with State and
2    federal law concerning electronic fund transfers.
3    Section 99. Effective date. This Act takes effect January
41, 2015.".