Sen. Kwame Raoul

Filed: 5/9/2014





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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 apply to an employer's use of payroll
8cards to pay wages to an employee under the requirements of
9this 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 or a condition for
25    the receipt of any benefit or other form of remuneration



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1    for any employee.
2        (2) The employer shall not initiate payment of wages to
3    the employee by electronic fund transfer to a payroll card
4    account unless:
5            (A) the employer provides the employee with a clear
6        and conspicuous written disclosure notifying the
7        employee that payment by payroll card is voluntary,
8        listing the other method or methods of payment offered
9        by the employer in accordance with Section 4, and
10        explaining the terms and conditions of the payroll card
11        account option, including:
12                (i) an itemized list of all fees that may be
13            deducted from the employee's payroll card account
14            by the employer or payroll card issuer;
15                (ii) a notice that third parties may assess
16            transaction fees in addition to the fees assessed
17            by the employee's payroll card issuer; and
18                (iii) an explanation of how the employee may
19            obtain, at no cost, the employee's net wages, check
20            the account balance, and request to receive paper
21            or electronic transaction histories, as provided
22            in item (3);
23            (B) the employer also offers the employee another
24        method or methods of payment in compliance with Section
25        4; and
26            (C) the employer obtains the employee's voluntary



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1        written or electronic consent to receive the wages by
2        payroll card.
3        (3) A payroll card program offered by the employer
4    shall provide the employee with:
5            (A) at least one method of withdrawing the
6        employee's full net wages from the payroll card once
7        per pay period, but not less than twice per month, at
8        no cost to the employee, at a location readily
9        available to the employee;
10            (B) at the employee's request, one transaction
11        history, which the employee may request to receive in
12        paper or electronic form, each month that includes all
13        deposits, withdrawals, deductions, or charges by any
14        entity from or to the employee's payroll card account
15        at no cost to the employee; and
16            (C) at least one of the following options for the
17        employee to obtain the payroll card account balance on
18        the payroll card at any time without incurring a fee:
19        online, by telephone, by text message, or at an ATM
20        location.
21        (4) An employer may not use a payroll card program that
22    charges fees for declined transactions, point of sale
23    transactions, or the application, initiation, loading of
24    wages by the employer, or participation in the payroll card
25    program. Fees for account inactivity may be assessed
26    following one year of inactivity.



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1        (5) The payroll card or payroll card account may not be
2    linked to any form of credit including, but not limited to,
3    overdraft fees or overdraft service fees, a loan against
4    future pay, or a cash advance on future pay or work not yet
5    performed.
6        (6) An employee paid wages by payroll card may request
7    to be paid wages by another method of payment provided by
8    the employer in accordance with Section 4. Following the
9    request, the employer shall, within 2 pay periods, begin
10    payment to the employee by the allowable method requested
11    by the employee.
12        (7) A payroll card program offered by an employer shall
13    provide the employee with protections from unauthorized
14    use of the payroll card in accordance with State and
15    federal law concerning electronic fund transfers.
16        (8) The employer's obligations under this Section
17    shall cease 180 days after the employer-employee
18    relationship has ended and the employee has been paid the
19    employee's full and final wages.
20        (9) Within 30 days of the termination of the
21    employer-employee relationship, the employer shall:
22            (A) notify the employee that the terms and
23        conditions of the account may change if the employee
24        chooses to continue a relationship with the payroll
25        card issuer; and
26            (B) provide the employee with contact information



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1        for the payroll card issuer.
2    Section 99. Effective date. This Act takes effect January
31, 2015.".