Full Text of HB2584 99th General Assembly
HB2584ham002 99TH GENERAL ASSEMBLY | Rep. Emanuel Chris Welch Filed: 3/20/2015
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| 1 | | AMENDMENT TO HOUSE BILL 2584
| 2 | | AMENDMENT NO. ______. Amend House Bill 2584 on page 35, by | 3 | | replacing lines 5 through 24 with the following:
| 4 | | "Section 10. The Illinois Wage Assignment Act is amended by | 5 | | changing Sections 2, 2.1, 2.2, 4, 4.1, and 4.2 as follows:
| 6 | | (740 ILCS 170/2) (from Ch. 48, par. 39.2)
| 7 | | Sec. 2.
Demand on an employer for the wages of wage-earner | 8 | | by virtue of a
wage assignment may not be served on the | 9 | | employer unless:
| 10 | | (1) There has been a default of more than 40 days in | 11 | | payment of the
indebtedness secured by the assignment and | 12 | | the default has continued to the
date of the demand;
| 13 | | (2) The demand contains a correct statement as to the | 14 | | amount the
wage-earner is in default and the original or a | 15 | | photostatic copy of the
assignment is exhibited to the | 16 | | employer; and
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| 1 | | (3) Not less than 20 days before serving the demand, a | 2 | | notice of
intention to make the demand and a revocation | 3 | | notice form has been served upon the employee, and an
| 4 | | advice copy sent to the employer , by registered or | 5 | | certified mail .
| 6 | | Service of any demand without complying with this Section | 7 | | has no legal
effect.
| 8 | | A demand under this Section applies only to wages due at | 9 | | the time of
service of the demand and upon subsequent wages | 10 | | until the total amount due
under the assignment is paid , until | 11 | | the employee revokes the wage assignment, or until the | 12 | | expiration of the employer's
payroll period ending immediately | 13 | | prior to 84 days after service of
such demand, whichever first | 14 | | occurs.
| 15 | | (Source: P.A. 88-395.)
| 16 | | (740 ILCS 170/2.1) (from Ch. 48, par. 39.2a)
| 17 | | Sec. 2.1. A demand shall be in the following form:
| 18 | | "Demand is hereby made upon an assignment of salary, wages, | 19 | | commissions
or other compensation for services, executed by | 20 | | .... and delivered to ....
on (insert date), to secure a debt
| 21 | | contracted on (insert date).
| 22 | | The total amount of the debt is $..... Payments in the | 23 | | amount of $....
have been made. The duration of the contract is | 24 | | .... months. There is now
due and owing without acceleration | 25 | | the sum of $...., the last payment
having been made on (insert |
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| 1 | | date).
| 2 | | The employee herein named has been in default in his | 3 | | payments in the
amount of $...., of which $.... has been due | 4 | | and owing for more than 40
days.
| 5 | | Unless you have received a notice from the employee herein | 6 | | named that he or she is revoking the wage assignment within the | 7 | | past 20 days, or do receive within 5
days after the service | 8 | | hereof, a notice of defense from the employee herein
named , you | 9 | | are required by law to make payment in accordance with such
| 10 | | assignment. ...., first being duly sworn, deposes and says that | 11 | | the facts
stated in the demand above are true and correct; and | 12 | | further deposes and
says that he (or his principal, if he is an | 13 | | agent for the assignee) has not been notified by the debtor | 14 | | that he or she is revoking the wage assignment no
notice of any | 15 | | defenses of the debtor .
| 16 | | ...........................
| 17 | | Subscribed and sworn to before me on (insert date).
| 18 | | ...........................
| 19 | | Notary Public".
| 20 | | (Source: P.A. 91-357, eff. 7-29-99.)
| 21 | | (740 ILCS 170/2.2) (from Ch. 48, par. 39.2b)
| 22 | | Sec. 2.2. Forms: notice of intent to assign wages; | 23 | | revocation. | 24 | | (a) The notice to an employee required by Section 2 shall | 25 | | be in the
following form:
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| 1 | | "NOTICE OF INTENT TO ASSIGN WAGES
| 2 | | This notice is required by the Illinois Wage Assignment | 3 | | Act. The notice
has been sent to tell you that a creditor (name | 4 | | and address listed below)
plans to have your wages assigned. | 5 | | This notice contains important information.
You should read the | 6 | | entire notice carefully.
| 7 | | WHY THE CREDITOR WANTS TO ASSIGN YOUR WAGES
| 8 | | You signed a wage assignment on ....... (date) .......
The | 9 | | wage assignment was signed as security if you failed to make | 10 | | payment
on the contract you signed on ......... (date) | 11 | | ..........
A copy of the wage assignment is attached. The | 12 | | creditor's records show
that you have not made a payment since | 13 | | ......... (date) ....... and that
you now owe $........ on the | 14 | | contract. The creditor will send
a demand for wages to your | 15 | | employer 20 days from the date you receive this.
| 16 | | WHAT YOU CAN DO TO PREVENT YOUR WAGES FROM BEING ASSIGNED
| 17 | | You If you have a legal defense to the wage assignment you | 18 | | can stop the wage
assignment at any time by filling out the | 19 | | enclosed Revocation Notice of Defense Form or by writing a | 20 | | letter stating that you are revoking the wage assignment and | 21 | | (1) sending
it to the creditor by registered or certified mail | 22 | | and (2) giving a copy to
your employer. You must do those 2 | 23 | | things within 20 days of receiving this
notice. You have the | 24 | | right to contact an attorney concerning the wage assignment.
In | 25 | | the event a false defense is made, you will be subject to | 26 | | payment of
attorneys' fees, court costs and other expenses.
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| 1 | | The creditor's name and address are:
| 2 | | ......................
| 3 | | ......................
| 4 | | ......................
| 5 | | ......................
| 6 | | (Signed by)"
| 7 | | (b) The Notice of Intent to Assign Wages to an employee | 8 | | required by Section 2 of this Act shall be accompanied by the | 9 | | following Revocation Notice Form, with the relevant | 10 | | information inserted by the creditor: | 11 | | "REVOCATION NOTICE | 12 | | The employee's name and address are: | 13 | | ...................... | 14 | | ...................... | 15 | | ...................... | 16 | | ...................... | 17 | | The creditor's name and address are: | 18 | | ...................... | 19 | | ...................... | 20 | | ...................... | 21 | | ...................... | 22 | | Re: (insert account number) | 23 | | I, (insert name), hereby revoke your right to use the wage | 24 | | assignment I signed on (insert date the wage assignment was | 25 | | signed). You no longer have my permission to use this wage | 26 | | assignment. |
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| 1 | | ...................... | 2 | | (Signed by)" | 3 | | (Source: P.A. 83-867.)
| 4 | | (740 ILCS 170/4) (from Ch. 48, par. 39.4)
| 5 | | Sec. 4. The maximum wages, salary, commissions, and bonuses | 6 | | that may be
collected by an assignee for any work week shall | 7 | | not exceed the lesser of (1)
15% of such gross amount paid for | 8 | | that week or (2) the amount by which
disposable earnings for a | 9 | | week exceed 45 times the Federal Minimum Hourly Wage
prescribed | 10 | | by Section 206(a)(1) of Title 29, U.S.C., as amended, or the | 11 | | minimum hourly wage prescribed by Section 4 of the Minimum Wage | 12 | | Law, or local minimum wage law, whichever is greater, in effect | 13 | | at
the time the amounts are payable. This provision (and no | 14 | | other) applies
irrespective of the place where the compensation | 15 | | was earned or payable and the
State where the employee resides. | 16 | | No amounts required by law to be withheld
may be taken from the | 17 | | amount collected by the creditor. The term "disposable
| 18 | | earnings" means that part of the earnings of any individual | 19 | | remaining after the
deduction from those earnings of any | 20 | | amounts required by law to be withheld.
If there is more than | 21 | | one assignment demand received by the employer, the
assignees | 22 | | shall collect in the order or priority of service of the demand | 23 | | upon
the employer, but the total of all collections shall not | 24 | | exceed the amount that
could have been collected if there had |
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| 1 | | been one assignment demand.
| 2 | | Benefits and refunds payable by pension or retirement funds | 3 | | or systems, any
assets of employees held by those funds or | 4 | | systems, and any moneys an employee
is required to contribute | 5 | | to those funds or systems are exempt and are not
subject to a | 6 | | wage assignment under this Act.
| 7 | | A fee of $12 for each wage assignment shall be collected by | 8 | | and paid to the
employer and the amount so paid shall be | 9 | | credited against the amount of the
wage-earner's outstanding | 10 | | debt.
| 11 | | (Source: P.A. 94-305, eff. 7-21-05.)
| 12 | | (740 ILCS 170/4.1) (from Ch. 48, par. 39.4a)
| 13 | | Sec. 4.1. Revocation of wage assignment. The employee may | 14 | | revoke the wage assignment at any time by submitting the | 15 | | revocation notice as provided in subsection (b) of Section 2.2 | 16 | | of this Act or otherwise providing written notice that he or | 17 | | she is revoking the wage assignment to the creditor. The | 18 | | employee may submit a copy of the notice to his or her employer | 19 | | if the employee so chooses. If the revocation notice is served | 20 | | upon the creditor prior to the creditor's service
of demand | 21 | | upon the employer, the demand shall not be served by the
| 22 | | creditor. Within 20 days after receiving the notice required by | 23 | | Section 2
or within 5 days after service of the demand, the | 24 | | employee may notify his
employer, in writing, of any defense he | 25 | | may have to the wage assignment. A
copy of such notice shall be |
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| 1 | | served upon the creditor by registered or
certified mail. If | 2 | | served upon the creditor prior to the creditor's service
of | 3 | | demand upon the employer, such demand shall not be served by | 4 | | the
creditor. The notice shall be by affidavit and shall be in | 5 | | substantially
the following form:
| 6 | | "I, ...., hereby (swear) (affirm) that I have a bona fide | 7 | | defense to the
claim of ...., which claim is based on a debt | 8 | | contracted on (insert date), and for security on which debt a | 9 | | wage
assignment was executed.
| 10 | | ..............................
| 11 | | Address for service of summons
| 12 | | ..............................
| 13 | | Employee
| 14 | | Subscribed and sworn to before me on (insert date).
| 15 | | ............................."
| 16 | | Notary Public
| 17 | | (Source: P.A. 91-357, eff. 7-29-99.)
| 18 | | (740 ILCS 170/4.2) (from Ch. 48, par. 39.4b)
| 19 | | Sec. 4.2.
| 20 | | If the employee has not given a revocation notice as | 21 | | provided in subsection (b) of Section 2.2 of this Act or has | 22 | | not otherwise provided the creditor with written notice that he | 23 | | or she is revoking the wage assignment notice of defense as | 24 | | provided in this Act
within 20 days after receiving the notice | 25 | | of intention to make a demand,
the creditor may proceed with |
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| 1 | | his demand, and the employer shall commence
payment to the | 2 | | creditor not sooner than 5 business days after service of
such | 3 | | demand, unless a revocation notice as set forth in subsection | 4 | | (b) of Section 2.2 of this Act or other written notice from the | 5 | | employee revoking the wage assignment is received notice of | 6 | | defense is received within that 5 day
period . If the employee | 7 | | cures the default stated in the demand or revokes the wage | 8 | | assignment , the
creditor shall notify the employer and release | 9 | | the demand. No employer
shall be liable for payments made in | 10 | | compliance with this Section.
| 11 | | If a revocation notice as set forth in subsection (b) of | 12 | | Section 2.2 of this Act or other written notice from the | 13 | | employee revoking the wage assignment is received by an | 14 | | employer, If a notice of defense is received by an employer | 15 | | within the period
specified in Section 4.1, no wages are | 16 | | subject to a demand served by the
creditor described in that | 17 | | revocation notice of defense; unless the employer receives
a | 18 | | copy of a subsequent written agreement between the creditor and | 19 | | employee
authorizing such payments. If such an agreement is not | 20 | | reached, the
creditor may not institute further proceedings on | 21 | | the wage assignment. If a revocation
notice of defense has been | 22 | | given, service of summons in any subsequent
proceeding on the | 23 | | debt for which the wage assignment was given as security
may be | 24 | | made by registered or certified mail.
| 25 | | (Source: Laws 1967, p. 2049.)"; and
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| 1 | | by deleting pages 36 through 41; and | 2 | | on page 42, by deleting lines 1 through 22.
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