Full Text of SB0840 102nd General Assembly
SB0840sam001 102ND GENERAL ASSEMBLY | Sen. Cristina Castro Filed: 2/22/2022
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| 1 | | AMENDMENT TO SENATE BILL 840
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 840 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Wage Payment and Collection Act | 5 | | is amended by changing Sections 4 and 14.5 and by adding | 6 | | Section 4.2 as follows:
| 7 | | (820 ILCS 115/4) (from Ch. 48, par. 39m-4)
| 8 | | Sec. 4.
All wages earned by any employee during a | 9 | | semi-monthly or bi-weekly
pay period shall be paid to such | 10 | | employee not later than 13 days after
the end of the pay period | 11 | | in which such wages were earned. All wages
earned by any | 12 | | employee during a weekly pay period shall be paid not
later | 13 | | than 7 days after the end of the weekly pay period in which the
| 14 | | wages were earned. All wages paid on a daily basis shall be | 15 | | paid insofar
as possible on the same day as the wages were | 16 | | earned, or not later in
any event than 24 hours after the day |
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| 1 | | on which the wages were earned.
Wages of executive, | 2 | | administrative and professional employees, as
defined in the | 3 | | Federal Fair Labor Standards Act of 1938, may be paid on
or | 4 | | before 21 calendar days after the period during which they are
| 5 | | earned.
| 6 | | The terms of this Section shall not apply, if there exists | 7 | | a valid
collective bargaining agreement which provides for a | 8 | | different date or
for different arrangements for the payment | 9 | | of wages.
| 10 | | Employers shall pay to workers on strike or layoff, no | 11 | | later than the
next regular payday, all wages earned up to the | 12 | | time of such strike or
layoff.
| 13 | | Any employee who is absent at the time fixed for payment, | 14 | | or who for
any other reason is not paid at that time, shall be | 15 | | paid upon demand at
any time within a period of 5 days after | 16 | | the time fixed for payment; and
after the expiration of the 5 | 17 | | day period, payment shall be made upon 5
days demand. Payment | 18 | | to the absent employee shall be made by mail if the
employee so | 19 | | requests in writing.
| 20 | | All wages and final compensation shall be paid in lawful | 21 | | money of the
United States, by check, redeemable upon demand | 22 | | and without discount
at a bank or other financial institution | 23 | | readily available to the
employee, by deposit of funds in an | 24 | | account in a bank or other financial
institution designated by | 25 | | the employee , or by a payroll card that meets the requirements | 26 | | of Section 14.5. An employer may, but is not required to, offer |
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| 1 | | the additional option of wage payment by check, redeemable | 2 | | upon demand and without discount at a bank or other financial | 3 | | institution readily available to the employee.
No employer may | 4 | | designate a particular financial institution, bank, savings
| 5 | | bank, savings and loan, or currency exchange for the exclusive | 6 | | payment or
deposit of a
check for wages. No financial | 7 | | institution, bank, savings bank, savings and
loan, or currency | 8 | | exchange shall refuse to honor a check for wages that
| 9 | | exclusively designates, in violation of this Section, a | 10 | | particular bank,
savings bank,
savings and loan, or currency | 11 | | exchange as the exclusive place of payment or
deposit except | 12 | | to the extent the bank, savings bank, savings and loan, or
| 13 | | currency exchange is otherwise excused from honoring the check | 14 | | under
Section 3-111 of the Uniform Commercial Code because the | 15 | | bank, savings bank,
savings and loan, or currency exchange is | 16 | | not the drawee or the maker of the
check.
| 17 | | (Source: P.A. 98-862, eff. 1-1-15 .)
| 18 | | (820 ILCS 115/4.2 new) | 19 | | Sec. 4.2. Requiring direct deposit or payroll card. | 20 | | Employers may require employees to receive wages by either | 21 | | direct deposit or by a payroll card that meets the | 22 | | requirements of Section 14.5 if the employer has done all of | 23 | | the following: | 24 | | (1) provide the employee a form that allows the | 25 | | employee the option to receive wages by direct deposit or |
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| 1 | | payroll card and includes a statement on the form | 2 | | indicating that failure to return the form within 3 days | 3 | | will default to receiving their wages through payroll | 4 | | card; and | 5 | | (2) provide employees with an adequate way to obtain | 6 | | their pay stub electronically or via paper statement that | 7 | | can be printed at the employer worksite if they opt in | 8 | | through the form described in this Section. | 9 | | (820 ILCS 115/14.5) | 10 | | Sec. 14.5. Payroll cards. An employer using a payroll card | 11 | | to pay an employee's wages shall meet the following | 12 | | requirements: | 13 | | (1) The employer shall not make receipt of wages by | 14 | | payroll card a condition of employment or a condition for | 15 | | the receipt of any benefit or other form of remuneration | 16 | | for any employee without the additional option of direct | 17 | | deposit, at the employee's election . | 18 | | (2) The employer shall not initiate payment of wages | 19 | | to the employee by electronic fund transfer to a payroll | 20 | | card account unless: | 21 | | (A) the employer provides the employee with a | 22 | | clear and conspicuous written disclosure notifying the | 23 | | employee that payment by payroll card is voluntary, | 24 | | listing the other method or methods of payment offered | 25 | | by the employer in accordance with Section 4, and |
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| 1 | | explaining the terms and conditions of the payroll | 2 | | card account option, including: | 3 | | (i) an itemized list of all fees that may be | 4 | | deducted from the employee's payroll card account | 5 | | by the employer or payroll card issuer; | 6 | | (ii) a notice that third parties may assess | 7 | | transaction fees in addition to the fees assessed | 8 | | by the employee's payroll card issuer; and | 9 | | (iii) an explanation of how the employee may | 10 | | obtain, at no cost, the employee's net wages, | 11 | | check the account balance, and request to receive | 12 | | paper or electronic transaction histories, as | 13 | | provided in item (3); | 14 | | (B) the employer also offers the employee another | 15 | | method or methods of payment in compliance with | 16 | | Section 4; and | 17 | | (C) (blank). the employer obtains the employee's | 18 | | voluntary written or electronic consent to receive the | 19 | | wages by payroll card. | 20 | | (3) A payroll card program offered by the employer | 21 | | shall provide the employee with: | 22 | | (A) at least one method of withdrawing the | 23 | | employee's full net wages from the payroll card once | 24 | | per pay period, but not less than twice per month, at | 25 | | no cost to the employee, at a location readily | 26 | | available to the employee; |
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| 1 | | (B) at the employee's request, one transaction | 2 | | history, which the employee may request to receive in | 3 | | paper or electronic form, each month that includes all | 4 | | deposits, withdrawals, deductions, or charges by any | 5 | | entity from or to the employee's payroll card account | 6 | | at no cost to the employee; and | 7 | | (C) unlimited telephone access to obtain the | 8 | | payroll card account balance on the payroll card at | 9 | | any time without incurring a fee. | 10 | | (4) An employer may not use a payroll card program | 11 | | that charges fees for point of sale transactions, the | 12 | | application, initiation, loading of wages by the employer, | 13 | | or participation in the payroll card program. Fees for | 14 | | account inactivity may be assessed following one year of | 15 | | inactivity. The payroll card program must offer the | 16 | | employee a declined transaction, at no cost to the | 17 | | employee, twice per month. Commercially reasonable fees, | 18 | | limited to cover the costs to process declined | 19 | | transactions, may be assessed on subsequent declined | 20 | | transactions within that particular month. | 21 | | (5) The payroll card or payroll card account may not | 22 | | be linked to any form of credit including, but not limited | 23 | | to, overdraft fees or overdraft service fees, a loan | 24 | | against future pay, or a cash advance on future pay or work | 25 | | not yet performed , except that early payment of wages | 26 | | verified to have been already earned in the current pay |
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| 1 | | period is permitted . | 2 | | (6) An employee paid wages by payroll card may request | 3 | | to be paid wages by another method of payment provided by | 4 | | the employer in accordance with Sections Section 4 and | 5 | | 4.2 . Following the request, the employer shall, within 2 | 6 | | pay periods, begin payment to the employee by the | 7 | | allowable method requested by the employee. | 8 | | (7) A payroll card program offered by an employer | 9 | | shall provide the employee with protections from | 10 | | unauthorized use of the payroll card in accordance with | 11 | | State and federal law concerning electronic fund | 12 | | transfers. | 13 | | (8) The employer's obligations under this Section | 14 | | shall cease 60 days after the employer-employee | 15 | | relationship has ended and the employee has been paid the | 16 | | employee's full and final wages. | 17 | | (9) Within 30 days of the termination of the | 18 | | employer-employee relationship, the employer shall notify | 19 | | the employee that the terms and conditions of the account | 20 | | may change if the employee chooses to continue a | 21 | | relationship with the payroll card issuer.
| 22 | | (Source: P.A. 98-862, eff. 1-1-15 .)".
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