Illinois General Assembly - Full Text of HB4324
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Full Text of HB4324  100th General Assembly


Rep. Jay Hoffman

Filed: 4/23/2018





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2    AMENDMENT NO. ______. Amend House Bill 4324 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 11 and 14 and by adding Section
611.3 as follows:
7    (820 ILCS 115/11)  (from Ch. 48, par. 39m-11)
8    Sec. 11. It shall be the duty of the Department of Labor to
9inquire diligently for any violations of this Act, and to
10institute the actions for penalties herein provided, and to
11enforce generally the provisions of this Act.
12    An employee may file a complaint with the Department
13alleging violations of the Act by submitting a signed,
14completed wage claim application on the form provided by the
15Department and by submitting copies of all supporting
16documentation. Complaints shall be filed within one year after



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1the wages, final compensation, or wage supplements were due.
2    Applications shall be reviewed by the Department to
3determine whether there is cause for investigation.
4    The Department shall have the following powers:
5        (a) To investigate and attempt equitably to adjust
6    controversies between employees and employers in respect
7    of wage claims arising under this Act and to that end the
8    Department through the Director of Labor or any other
9    person in the Department of Labor designated by him or her,
10    shall have the power to administer oaths, subpoena and
11    examine witnesses, to issue subpoenas duces tecum
12    requiring the production of such books, papers, records and
13    documents as may be evidence of any matter under inquiry
14    and to examine and inspect the same as may relate to the
15    question in dispute. Service of such subpoenas shall be
16    made by any sheriff or any person. Any court in this State,
17    upon the application of the Department may compel
18    attendance of witnesses, the production of books and
19    papers, and the giving of testimony before the Department
20    by attachment for contempt or in any other way as the
21    production of evidence may be compelled before such court.
22        (b) To take assignments of wage claims in the name of
23    the Director of Labor and his or her successors in office
24    and prosecute actions for the collection of wages for
25    persons financially unable to prosecute such claims when in
26    the judgment of the Department such claims are valid and



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1    enforceable in the courts. No court costs or any fees for
2    necessary process and proceedings shall be payable in
3    advance by the Department for prosecuting such actions. In
4    the event there is a judgment rendered against the
5    defendant, the court shall assess as part of such judgment
6    the costs of such proceeding. Upon collection of such
7    judgments the Department shall pay from the proceeds of
8    such judgment such costs to such person who is by law
9    entitled to same. The Department may join in a single
10    proceeding any number of wage claims against the same
11    employer but the court shall have discretionary power to
12    order a severance or separate trial for hearings.
13        (c) To make complaint in any court of competent
14    jurisdiction of violations of this Act.
15        (d) In addition to the aforementioned powers, subject
16    to appropriation, the Department shall may establish an
17    administrative procedure to adjudicate claims and to issue
18    final and binding administrative decisions on such claims
19    subject to the Administrative Review Law within 30 days of
20    the claim. Any claim brought under this Section shall be
21    adjudicated within 30 days after it is filed unless
22    otherwise agreed by the parties. To establish such a
23    procedure, the Director of Labor or her or his authorized
24    representative may promulgate rules and regulations. The
25    adoption, amendment or rescission of rules and regulations
26    for such a procedure shall be in conformity with the



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1    requirements of the Illinois Administrative Procedure Act.
2    Nothing herein shall be construed to prevent any employee
3from making complaint or prosecuting his or her own claim for
4wages. Any employee aggrieved by a violation of this Act or any
5rule adopted under this Act may file suit in circuit court of
6Illinois, in the county where the alleged violation occurred or
7where any employee who is party to the action resides, without
8regard to exhaustion of any alternative administrative
9remedies provided in this Act. Actions may be brought by one or
10more employees for and on behalf of themselves and other
11employees similarly situated.
12    Nothing herein shall be construed to limit the authority of
13the State's attorney of any county to prosecute actions for
14violation of this Act or to enforce the provisions thereof
15independently and without specific direction of the Department
16of Labor.
17(Source: P.A. 98-527, eff. 1-1-14.)
18    (820 ILCS 115/11.3 new)
19    Sec. 11.3. Wage claim escrow. If, pursuant to Section 11,
20the Department of Labor determines there is cause for
21investigation, the Department shall request that no more than
2210% of the disputed wage claim be submitted by the employer to
23the Department and placed in an escrow account administered by
24the Department. Upon receiving the moneys, the Department shall
25provide written verification of the escrow amount received to



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1both the employer and the claimant.
2    These moneys shall be held in escrow until the Department
3adjudicates the claim, but no longer than 45 days. If, upon the
4final and binding administrative decision or by the default of
5an employer for failing to respond to the complaint, the
6Department finds the employer is guilty of wage theft, the
7Department shall release the moneys to the claimant, and the
8employer shall be liable for the remainder of the claim as
9adjudicated by the Department. If, upon the final and binding
10administrative decision, the Department finds the employer is
11not guilty of wage theft, the Department shall release the
12moneys to the employer.
13    The Department shall adopt rules for the administration of
14this Section.
15    (820 ILCS 115/14)  (from Ch. 48, par. 39m-14)
16    Sec. 14. (a) Any employee not timely paid wages, final
17compensation, or wage supplements by his or her employer as
18required by this Act shall be entitled to recover through a
19claim filed with the Department of Labor or in a civil action,
20but not both, the amount of any such underpayments and damages
21of 2% of the amount of any such underpayments for each month
22following the date of payment during which such underpayments
23remain unpaid. In a civil action, such employee shall also
24recover costs and all reasonable attorney's fees.
25    (a-5) In addition to the remedies provided in subsections



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1(a), (b), and (c) of this Section, any employer or any agent of
2an employer, who, being able to pay wages, final compensation,
3or wage supplements and being under a duty to pay, wilfully
4refuses to pay as provided in this Act, or falsely denies the
5amount or validity thereof or that the same is due, with intent
6to secure for himself or other person any underpayment of such
7indebtedness or with intent to annoy, harass, oppress, hinder,
8delay or defraud the person to whom such indebtedness is due,
9upon conviction, is guilty of:
10        (1) for unpaid wages, final compensation or wage
11    supplements in the amount of $5,000 or less, a Class B
12    misdemeanor; or
13        (2) for unpaid wages, final compensation or wage
14    supplements in the amount of more than $5,000, a Class A
15    misdemeanor.
16    Each day during which any violation of this Act continues
17shall constitute a separate and distinct offense.
18    Any employer or any agent of an employer who violates this
19Section of the Act a subsequent time within 2 years of a prior
20criminal conviction under this Section is guilty, upon
21conviction, of a Class 4 felony.
22    (b) Any employer who has been demanded or ordered by the
23Department or ordered by the court to pay wages, final
24compensation, or wage supplements due an employee shall be
25required to pay a non-waivable administrative fee to the
26Department of Labor in the amount of $500 $250 if the amount



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1ordered by the Department as wages owed is $3,000 or less;
2$1,000 $500 if the amount ordered by the Department as wages
3owed is more than $3,000, but less than $10,000; and $2,000
4$1,000 if the amount ordered by the Department as wages owed is
5$10,000 or more. Any employer who has been so demanded or
6ordered by the Department or ordered by a court to pay such
7wages, final compensation, or wage supplements and who fails to
8seek timely review of such a demand or order as provided for
9under this Act and who fails to comply within 15 calendar days
10after such demand or within 35 days of an administrative or
11court order is entered may be subject to a judgment lien placed
12on the employer's real estate pursuant to Section 12-101 of the
13Code of Civil Procedure, may be subject to a citation or
14supplementary proceeding to discover assets pursuant to
15Section 2-1402 of the Code of Civil Procedure, and shall also
16be liable to pay a penalty to the Department of Labor of 20% of
17the amount found owing and a penalty to the employee of 1% per
18calendar day of the amount found owing for each day of delay in
19paying such wages to the employee. All moneys recovered as fees
20and civil penalties under this Act, except those owing to the
21affected employee, shall be deposited into the Wage Theft
22Enforcement Fund, a special fund which is hereby created in the
23State treasury. Moneys in the Fund may be used only for
24enforcement of this Act.
25    (b-5) Penalties and fees under this Section may be assessed
26by the Department and recovered in a civil action brought by



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1the Department in any circuit court or in any administrative
2adjudicative proceeding under this Act. In any such civil
3action or administrative adjudicative proceeding under this
4Act, the Department shall be represented by the Attorney
6    (c) Any employer, or any agent of an employer, who
7discharges or in any other manner discriminates against any
8employee because that employee has made a complaint to his
9employer, to the Director of Labor or his authorized
10representative, in a public hearing, or to a community
11organization that he or she has not been paid in accordance
12with the provisions of this Act, or because that employee has
13caused to be instituted any proceeding under or related to this
14Act, or because that employee has testified or is about to
15testify in an investigation or proceeding under this Act, is
16guilty, upon conviction, of a Class C misdemeanor. An employee
17who has been unlawfully retaliated against shall be entitled to
18recover through a claim filed with the Department of Labor or
19in a civil action, but not both, all legal and equitable relief
20as may be appropriate. In a civil action, such employee shall
21also recover costs and all reasonable attorney's fees.
22(Source: P.A. 98-527, eff. 1-1-14.)".