Illinois 2023-2024 Regular Session

Illinois Senate Bill SB0105 Compare Versions

Only one version of the bill is available at this time.

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1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0105 Introduced 1/24/2023, by Sen. Cristina Castro SYNOPSIS AS INTRODUCED: 820 ILCS 115/4 from Ch. 48, par. 39m-4 820 ILCS 115/4.2 new820 ILCS 115/14.5 Amends the Illinois Wage Payment and Collection Act. Provides that an employer may require an employee to receive wages either by direct deposit or by means of a payroll card if the employer satisfies specified requirements. In provisions concerning payroll cards: (i) provides that an employer shall not make receipt of wages by payroll card a condition of employment or a condition for the receipt of any benefit or other form of remuneration for any employee without the additional option of direct deposit, at the employee's election (rather than the employer must obtain the employee's voluntary written or electronic consent to receive the wages by payroll card); and (ii) the payroll card or payroll card account may not be linked to any form of credit, except that early payment of wages verified to have been already earned in the current pay period is permitted. Makes other changes. LRB103 24853 SPS 51186 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0105 Introduced 1/24/2023, by Sen. Cristina Castro SYNOPSIS AS INTRODUCED: 820 ILCS 115/4 from Ch. 48, par. 39m-4 820 ILCS 115/4.2 new820 ILCS 115/14.5 820 ILCS 115/4 from Ch. 48, par. 39m-4 820 ILCS 115/4.2 new 820 ILCS 115/14.5 Amends the Illinois Wage Payment and Collection Act. Provides that an employer may require an employee to receive wages either by direct deposit or by means of a payroll card if the employer satisfies specified requirements. In provisions concerning payroll cards: (i) provides that an employer shall not make receipt of wages by payroll card a condition of employment or a condition for the receipt of any benefit or other form of remuneration for any employee without the additional option of direct deposit, at the employee's election (rather than the employer must obtain the employee's voluntary written or electronic consent to receive the wages by payroll card); and (ii) the payroll card or payroll card account may not be linked to any form of credit, except that early payment of wages verified to have been already earned in the current pay period is permitted. Makes other changes. LRB103 24853 SPS 51186 b LRB103 24853 SPS 51186 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0105 Introduced 1/24/2023, by Sen. Cristina Castro SYNOPSIS AS INTRODUCED:
3	3	820 ILCS 115/4 from Ch. 48, par. 39m-4 820 ILCS 115/4.2 new820 ILCS 115/14.5 820 ILCS 115/4 from Ch. 48, par. 39m-4 820 ILCS 115/4.2 new 820 ILCS 115/14.5
4	4	820 ILCS 115/4 from Ch. 48, par. 39m-4
5	5	820 ILCS 115/4.2 new
6	6	820 ILCS 115/14.5
7	7	Amends the Illinois Wage Payment and Collection Act. Provides that an employer may require an employee to receive wages either by direct deposit or by means of a payroll card if the employer satisfies specified requirements. In provisions concerning payroll cards: (i) provides that an employer shall not make receipt of wages by payroll card a condition of employment or a condition for the receipt of any benefit or other form of remuneration for any employee without the additional option of direct deposit, at the employee's election (rather than the employer must obtain the employee's voluntary written or electronic consent to receive the wages by payroll card); and (ii) the payroll card or payroll card account may not be linked to any form of credit, except that early payment of wages verified to have been already earned in the current pay period is permitted. Makes other changes.
8	8	LRB103 24853 SPS 51186 b LRB103 24853 SPS 51186 b
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10	10	A BILL FOR
11	11	SB0105LRB103 24853 SPS 51186 b SB0105 LRB103 24853 SPS 51186 b
12	12	SB0105 LRB103 24853 SPS 51186 b
13	13	1 AN ACT concerning employment.
14	14	2 Be it enacted by the People of the State of Illinois,
15	15	3 represented in the General Assembly:
16	16	4 Section 5. The Illinois Wage Payment and Collection Act is
17	17	5 amended by changing Sections 4 and 14.5 and by adding Section
18	18	6 4.2 as follows:
19	19	7 (820 ILCS 115/4) (from Ch. 48, par. 39m-4)
20	20	8 Sec. 4. All wages earned by any employee during a
21	21	9 semi-monthly or bi-weekly pay period shall be paid to such
22	22	10 employee not later than 13 days after the end of the pay period
23	23	11 in which such wages were earned. All wages earned by any
24	24	12 employee during a weekly pay period shall be paid not later
25	25	13 than 7 days after the end of the weekly pay period in which the
26	26	14 wages were earned. All wages paid on a daily basis shall be
27	27	15 paid insofar as possible on the same day as the wages were
28	28	16 earned, or not later in any event than 24 hours after the day
29	29	17 on which the wages were earned. Wages of executive,
30	30	18 administrative and professional employees, as defined in the
31	31	19 Federal Fair Labor Standards Act of 1938, may be paid on or
32	32	20 before 21 calendar days after the period during which they are
33	33	21 earned.
34	34	22 The terms of this Section shall not apply, if there exists
35	35	23 a valid collective bargaining agreement which provides for a
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39	39	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0105 Introduced 1/24/2023, by Sen. Cristina Castro SYNOPSIS AS INTRODUCED:
40	40	820 ILCS 115/4 from Ch. 48, par. 39m-4 820 ILCS 115/4.2 new820 ILCS 115/14.5 820 ILCS 115/4 from Ch. 48, par. 39m-4 820 ILCS 115/4.2 new 820 ILCS 115/14.5
41	41	820 ILCS 115/4 from Ch. 48, par. 39m-4
42	42	820 ILCS 115/4.2 new
43	43	820 ILCS 115/14.5
44	44	Amends the Illinois Wage Payment and Collection Act. Provides that an employer may require an employee to receive wages either by direct deposit or by means of a payroll card if the employer satisfies specified requirements. In provisions concerning payroll cards: (i) provides that an employer shall not make receipt of wages by payroll card a condition of employment or a condition for the receipt of any benefit or other form of remuneration for any employee without the additional option of direct deposit, at the employee's election (rather than the employer must obtain the employee's voluntary written or electronic consent to receive the wages by payroll card); and (ii) the payroll card or payroll card account may not be linked to any form of credit, except that early payment of wages verified to have been already earned in the current pay period is permitted. Makes other changes.
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46	46	LRB103 24853 SPS 51186 b
47	47	A BILL FOR
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53	53	820 ILCS 115/4 from Ch. 48, par. 39m-4
54	54	820 ILCS 115/4.2 new
55	55	820 ILCS 115/14.5
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74	74	1 different date or for different arrangements for the payment
75	75	2 of wages.
76	76	3 Employers shall pay to workers on strike or layoff, no
77	77	4 later than the next regular payday, all wages earned up to the
78	78	5 time of such strike or layoff.
79	79	6 Any employee who is absent at the time fixed for payment,
80	80	7 or who for any other reason is not paid at that time, shall be
81	81	8 paid upon demand at any time within a period of 5 days after
82	82	9 the time fixed for payment; and after the expiration of the 5
83	83	10 day period, payment shall be made upon 5 days demand. Payment
84	84	11 to the absent employee shall be made by mail if the employee so
85	85	12 requests in writing.
86	86	13 All wages and final compensation shall be paid in lawful
87	87	14 money of the United States, by check, redeemable upon demand
88	88	15 and without discount at a bank or other financial institution
89	89	16 readily available to the employee, by deposit of funds in an
90	90	17 account in a bank or other financial institution designated by
91	91	18 the employee, or by a payroll card that meets the requirements
92	92	19 of Section 14.5. An employer may, but is not required to, offer
93	93	20 the additional option of wage payment by check, redeemable
94	94	21 upon demand and without discount at a bank or other financial
95	95	22 institution readily available to the employee. No employer may
96	96	23 designate a particular financial institution, bank, savings
97	97	24 bank, savings and loan, or currency exchange for the exclusive
98	98	25 payment or deposit of a check for wages. No financial
99	99	26 institution, bank, savings bank, savings and loan, or currency
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110	110	1 exchange shall refuse to honor a check for wages that
111	111	2 exclusively designates, in violation of this Section, a
112	112	3 particular bank, savings bank, savings and loan, or currency
113	113	4 exchange as the exclusive place of payment or deposit except
114	114	5 to the extent the bank, savings bank, savings and loan, or
115	115	6 currency exchange is otherwise excused from honoring the check
116	116	7 under Section 3-111 of the Uniform Commercial Code because the
117	117	8 bank, savings bank, savings and loan, or currency exchange is
118	118	9 not the drawee or the maker of the check.
119	119	10 (Source: P.A. 98-862, eff. 1-1-15.)
120	120	11 (820 ILCS 115/4.2 new)
121	121	12 Sec. 4.2. Requiring direct deposit or payroll card.
122	122	13 (a) An employer may require an employee to receive wages
123	123	14 either by direct deposit or by means of a payroll card that
124	124	15 meets the requirements of Section 14.5, if the employer does
125	125	16 all of the following:
126	126	17 (1) Provides the employee with a form that allows the
127	127	18 employee to elect to receive wages by direct deposit. The
128	128	19 form must include a statement notifying the employee that
129	129	20 the employee's failure to return the form within 3 days
130	130	21 will, by default, result in the employee receiving wages
131	131	22 by means of a payroll card.
132	132	23 (2) Provides the employee with an adequate way to
133	133	24 obtain the employee's pay stub electronically or via a
134	134	25 paper statement that can be printed at the employer
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145	145	1 worksite if the employee elects to receive an electronic
146	146	2 or paper statement by checking a box on the form described
147	147	3 in this Section.
148	148	4 (b) The provisions of this Section shall not apply to
149	149	5 employees covered by a valid collective bargaining agreement
150	150	6 that provides for different arrangements for the payment of
151	151	7 wages.
152	152	8 (820 ILCS 115/14.5)
153	153	9 Sec. 14.5. Payroll cards. An employer using a payroll card
154	154	10 to pay an employee's wages shall meet the following
155	155	11 requirements:
156	156	12 (1) The employer shall not make receipt of wages by
157	157	13 payroll card a condition of employment or a condition for
158	158	14 the receipt of any benefit or other form of remuneration
159	159	15 for any employee without the additional option of direct
160	160	16 deposit, at the employee's election.
161	161	17 (2) The employer shall not initiate payment of wages
162	162	18 to the employee by electronic fund transfer to a payroll
163	163	19 card account unless:
164	164	20 (A) the employer provides the employee with a
165	165	21 clear and conspicuous written disclosure notifying the
166	166	22 employee that payment by payroll card is voluntary,
167	167	23 listing the other method or methods of payment offered
168	168	24 by the employer in accordance with Section 4, and
169	169	25 explaining the terms and conditions of the payroll
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180	180	1 card account option, including:
181	181	2 (i) an itemized list of all fees that may be
182	182	3 deducted from the employee's payroll card account
183	183	4 by the employer or payroll card issuer;
184	184	5 (ii) a notice that third parties may assess
185	185	6 transaction fees in addition to the fees assessed
186	186	7 by the employee's payroll card issuer; and
187	187	8 (iii) an explanation of how the employee may
188	188	9 obtain, at no cost, the employee's net wages,
189	189	10 check the account balance, and request to receive
190	190	11 paper or electronic transaction histories, as
191	191	12 provided in item (3);
192	192	13 (B) the employer also offers the employee another
193	193	14 method or methods of payment in compliance with
194	194	15 Section 4; and
195	195	16 (C) (blank). the employer obtains the employee's
196	196	17 voluntary written or electronic consent to receive the
197	197	18 wages by payroll card.
198	198	19 (3) A payroll card program offered by the employer
199	199	20 shall provide the employee with:
200	200	21 (A) at least one method of withdrawing the
201	201	22 employee's full net wages from the payroll card once
202	202	23 per pay period, but not less than twice per month, at
203	203	24 no cost to the employee, at a location readily
204	204	25 available to the employee;
205	205	26 (B) at the employee's request, one transaction
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216	216	1 history, which the employee may request to receive in
217	217	2 paper or electronic form, each month that includes all
218	218	3 deposits, withdrawals, deductions, or charges by any
219	219	4 entity from or to the employee's payroll card account
220	220	5 at no cost to the employee; and
221	221	6 (C) unlimited telephone access to obtain the
222	222	7 payroll card account balance on the payroll card at
223	223	8 any time without incurring a fee.
224	224	9 (4) An employer may not use a payroll card program
225	225	10 that charges fees for point of sale transactions, the
226	226	11 application, initiation, loading of wages by the employer,
227	227	12 or participation in the payroll card program. Fees for
228	228	13 account inactivity may be assessed following one year of
229	229	14 inactivity. The payroll card program must offer the
230	230	15 employee a declined transaction, at no cost to the
231	231	16 employee, twice per month. Commercially reasonable fees,
232	232	17 limited to cover the costs to process declined
233	233	18 transactions, may be assessed on subsequent declined
234	234	19 transactions within that particular month.
235	235	20 (5) The payroll card or payroll card account may not
236	236	21 be linked to any form of credit including, but not limited
237	237	22 to, overdraft fees or overdraft service fees, a loan
238	238	23 against future pay, or a cash advance on future pay or work
239	239	24 not yet performed, except that early payment of wages
240	240	25 verified to have been already earned in the current pay
241	241	26 period is permitted.
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252	252	1 (6) An employee paid wages by payroll card may request
253	253	2 to be paid wages by another method of payment provided by
254	254	3 the employer in accordance with Sections Section 4 and
255	255	4 4.2. Following the request, the employer shall, within 2
256	256	5 pay periods, begin payment to the employee by the
257	257	6 allowable method requested by the employee.
258	258	7 (7) A payroll card program offered by an employer
259	259	8 shall provide the employee with protections from
260	260	9 unauthorized use of the payroll card in accordance with
261	261	10 State and federal law concerning electronic fund
262	262	11 transfers.
263	263	12 (8) The employer's obligations under this Section
264	264	13 shall cease 60 days after the employer-employee
265	265	14 relationship has ended and the employee has been paid the
266	266	15 employee's full and final wages.
267	267	16 (9) Within 30 days of the termination of the
268	268	17 employer-employee relationship, the employer shall notify
269	269	18 the employee that the terms and conditions of the account
270	270	19 may change if the employee chooses to continue a
271	271	20 relationship with the payroll card issuer.
272	272	21 (Source: P.A. 98-862, eff. 1-1-15.)
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