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91_HB4344
LRB9111967RCpk
1 AN ACT to establish a food service employee incentive
2 program.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 1. Short title. This Act may be cited as
6 the Food Service Employee Incentive Program Act.
7 Section 5. Program established.
8 (a) Applicability. To provide both an incentive for new
9 employees and restaurant or food service operations,
10 employers who are engaged as restaurant or food service
11 operators in this State may choose to participate in the Food
12 Service Employee Incentive Program and to be subject to the
13 provisions of this Act.
14 (b) Eligible person. An individual who a participating
15 restaurant employer finds to be qualified for existing job
16 vacancies, including a person on public assistance, may be
17 hired for a training period as set forth in Section 10,
18 provided the employee works a minimum of 20 hours per week.
19 (c) Training. An employee must receive the usual and
20 customary training commensurate with the position for which
21 he or she was hired. Any training costs incurred for the
22 employee are the responsibility of the employer.
23 (d) Employee Incentive Account. An amount equal to the
24 difference between the minimum wage and the entry level wage
25 for the position shall be credited on behalf of the training
26 employee in an account named an Employee Incentive Account,
27 which shall be maintained by a participating employer.
28 (e) Disposition of deposits made. Deposits made under
29 subsection (d) shall be credited to the Employee Incentive
30 Account until the employee's training period is completed
31 unless the employee is promoted before the conclusion of the
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1 training period. At the conclusion of the training period or
2 sooner, in the event of the employee's promotion before the
3 conclusion of the training period, the employer must pay the
4 employee the normal entry level wage plus an amount equal to
5 the amount credited to the employee's name in the Employee
6 Incentive Account divided by the number of weeks, or part of
7 a week, the employee was in the training period.
8 (f) Maintenance of accounts. All funds deposited in an
9 employer's Employee Incentive Account shall be maintained by
10 generally acceptable accounting principles and shall be
11 escrowed in the aggregate. The employer must maintain
12 complete and detailed payroll records at the place of
13 employment or at the employer's headquarters offices. An
14 Employee Incentive Account is nontransferable and
15 nonassignable from one employer to another. All funds in the
16 Employee Incentive Account shall be the property of the
17 employer until such time required payments are made to the
18 employee under this Act.
19 (g) Forfeiture of funds. All moneys credited in an
20 employee's name in the employer's Employee Incentive Account
21 shall be immediately forfeited by the employee when:
22 (1) the employee voluntarily terminates employment
23 with the employer before completion of the training
24 period specified in Section 10; or
25 (2) the employee is terminated by the employer for
26 misconduct as defined in Section 602 of the Unemployment
27 Insurance Act before the completion of the training
28 period specified in Section 10.
29 (h) Employer responsibilities. In addition to the
30 employer's other responsibilities under this Section,
31 employers must begin payment to the employee of all funds
32 credited in the employee's name in the employer's Employee
33 Incentive Account at the conclusion of the employee's
34 training period. Payment must be made in equal installments
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1 over a period of time equal to the length of the training
2 period. This payment shall be in addition to the entry level
3 wage for the position, which shall be paid upon successful
4 completion of the training period. In addition, before the
5 commencement of training under this Act, an employer must
6 notify the employee, in a manner specified by the Department
7 of Labor, of the entry level wage that will be the basis for
8 the provisions of this Act.
9 Section 10. Recommended training periods. Under this
10 Act, the recommended periods shall be at least, but not
11 longer than, the following:
12 Job Title Training Period
13 Dishwashers 2 weeks to 4 weeks
14 Bus Persons 2 weeks to 4 weeks
15 Servers 2 weeks to 12 weeks
16 Sales Staff 2 weeks to 6 weeks
17 Cooks 4 weeks to 12 weeks
18 Hostess/Host/Cashier 4 weeks to 12 weeks
19 Section 15. Jurisdiction. Any claims arising under this
20 Act shall be brought under the the Illinois Wage Payment and
21 Collection Act.
22 Section 20. Duties of Department of Labor. The
23 Department of Labor must:
24 (1) adopt rules to enforce and carry out the
25 provisions of this Act; and
26 (2) maintain records on a calendar year basis
27 specifying the number of applicable employers who
28 participate under this Act.
29 Section 105. The Illinois Wage Payment and Collection
30 Act is amended by changing Section 2 as follows:
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1 (820 ILCS 115/2) (from Ch. 48, par. 39m-2)
2 Sec. 2. For all employees, other than separated
3 employees, "wages" shall be defined as any compensation owed
4 an employee by an employer pursuant to an employment contract
5 or agreement between the 2 parties, whether the amount is
6 determined on a time, task, piece, or any other basis of
7 calculation. "Wages" includes payments made to an employee
8 participant in the Food Service Employee Incentive Program
9 under the Food Service Employee Incentive Program Act.
10 Payments to separated employees shall be termed "final
11 compensation" and shall be defined as wages, salaries, earned
12 commissions, earned bonuses, and the monetary equivalent of
13 earned vacation and earned holidays, and any other
14 compensation owed the employee by the employer pursuant to an
15 employment contract or agreement between the 2 parties or
16 under the Food Service Employee Incentive Program Act. Where
17 an employer is legally committed through a collective
18 bargaining agreement or otherwise to make contributions to an
19 employee benefit, trust or fund on the basis of a certain
20 amount per hour, day, week or other period of time, the
21 amount due from the employer to such employee benefit, trust,
22 or fund shall be defined as "wage supplements", subject to
23 the wage collection provisions of this Act.
24 As used in this Act, the term "employer" shall include
25 any individual, partnership, association, corporation,
26 business trust, employment and labor placement agencies where
27 wage payments are made directly or indirectly by the agency
28 or business for work undertaken by employees under hire to a
29 third party pursuant to a contract between the business or
30 agency with the third party, or any person or group of
31 persons acting directly or indirectly in the interest of an
32 employer in relation to an employee, for which one or more
33 persons is gainfully employed.
34 As used in this Act, the term "employee" shall include
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1 any individual permitted to work by an employer in an
2 occupation, but shall not include any individual:
3 (1) who has been and will continue to be free from
4 control and direction over the performance of his work,
5 both under his contract of service with his employer and
6 in fact; and
7 (2) who performs work which is either outside the
8 usual course of business or is performed outside all of
9 the places of business of the employer unless the
10 employer is in the business of contracting with third
11 parties for the placement of employees; and
12 (3) who is in an independently established trade,
13 occupation, profession or business.
14 (Source: P.A. 89-364, eff. 8-18-95; 89-626, eff. 8-9-96.)