103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1505 Introduced 2/7/2023, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED: 820 ILCS 115/2 from Ch. 48, par. 39m-2 Amends the Illinois Wage Payment and Collection Act. Provides that the definition of "employee" does not include an employer or any individual who has an ownership interest in the partnership, association, corporation (other than ownership of shares of a publicly traded corporation), limited liability company, business trust, or employment placement agency. LRB103 28784 SPS 55169 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1505 Introduced 2/7/2023, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED: 820 ILCS 115/2 from Ch. 48, par. 39m-2 820 ILCS 115/2 from Ch. 48, par. 39m-2 Amends the Illinois Wage Payment and Collection Act. Provides that the definition of "employee" does not include an employer or any individual who has an ownership interest in the partnership, association, corporation (other than ownership of shares of a publicly traded corporation), limited liability company, business trust, or employment placement agency. LRB103 28784 SPS 55169 b LRB103 28784 SPS 55169 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1505 Introduced 2/7/2023, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED: 820 ILCS 115/2 from Ch. 48, par. 39m-2 820 ILCS 115/2 from Ch. 48, par. 39m-2 820 ILCS 115/2 from Ch. 48, par. 39m-2 Amends the Illinois Wage Payment and Collection Act. Provides that the definition of "employee" does not include an employer or any individual who has an ownership interest in the partnership, association, corporation (other than ownership of shares of a publicly traded corporation), limited liability company, business trust, or employment placement agency. LRB103 28784 SPS 55169 b LRB103 28784 SPS 55169 b LRB103 28784 SPS 55169 b A BILL FOR SB1505LRB103 28784 SPS 55169 b SB1505 LRB103 28784 SPS 55169 b SB1505 LRB103 28784 SPS 55169 b 1 AN ACT concerning employment. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Wage Payment and Collection Act is 5 amended by changing Section 2 as follows: 6 (820 ILCS 115/2) (from Ch. 48, par. 39m-2) 7 Sec. 2. For all employees, other than separated employees, 8 "wages" shall be defined as any compensation owed an employee 9 by an employer pursuant to an employment contract or agreement 10 between the 2 parties, whether the amount is determined on a 11 time, task, piece, or any other basis of calculation. Payments 12 to separated employees shall be termed "final compensation" 13 and shall be defined as wages, salaries, earned commissions, 14 earned bonuses, and the monetary equivalent of earned vacation 15 and earned holidays, and any other compensation owed the 16 employee by the employer pursuant to an employment contract or 17 agreement between the 2 parties. Where an employer is legally 18 committed through a collective bargaining agreement or 19 otherwise to make contributions to an employee benefit, trust 20 or fund on the basis of a certain amount per hour, day, week or 21 other period of time, the amount due from the employer to such 22 employee benefit, trust, or fund shall be defined as "wage 23 supplements", subject to the wage collection provisions of 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1505 Introduced 2/7/2023, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED: 820 ILCS 115/2 from Ch. 48, par. 39m-2 820 ILCS 115/2 from Ch. 48, par. 39m-2 820 ILCS 115/2 from Ch. 48, par. 39m-2 Amends the Illinois Wage Payment and Collection Act. Provides that the definition of "employee" does not include an employer or any individual who has an ownership interest in the partnership, association, corporation (other than ownership of shares of a publicly traded corporation), limited liability company, business trust, or employment placement agency. LRB103 28784 SPS 55169 b LRB103 28784 SPS 55169 b LRB103 28784 SPS 55169 b A BILL FOR 820 ILCS 115/2 from Ch. 48, par. 39m-2 LRB103 28784 SPS 55169 b SB1505 LRB103 28784 SPS 55169 b SB1505- 2 -LRB103 28784 SPS 55169 b SB1505 - 2 - LRB103 28784 SPS 55169 b SB1505 - 2 - LRB103 28784 SPS 55169 b 1 this Act. 2 As used in this Act, the term "employer" shall include any 3 individual, partnership, association, corporation, limited 4 liability company, business trust, employment and labor 5 placement agencies where wage payments are made directly or 6 indirectly by the agency or business for work undertaken by 7 employees under hire to a third party pursuant to a contract 8 between the business or agency with the third party, or any 9 person or group of persons acting directly or indirectly in 10 the interest of an employer in relation to an employee, for 11 which one or more persons is gainfully employed. 12 As used in this Act, the term "employee" shall include any 13 individual permitted to work by an employer in an occupation, 14 but shall not include any individual: 15 (1) who has been and will continue to be free from 16 control and direction over the performance of his work, 17 both under his contract of service with his employer and 18 in fact; and 19 (2) who performs work which is either outside the 20 usual course of business or is performed outside all of 21 the places of business of the employer unless the employer 22 is in the business of contracting with third parties for 23 the placement of employees; and 24 (3) who is in an independently established trade, 25 occupation, profession or business. 26 "Employee" also does not include an employer or any SB1505 - 2 - LRB103 28784 SPS 55169 b SB1505- 3 -LRB103 28784 SPS 55169 b SB1505 - 3 - LRB103 28784 SPS 55169 b SB1505 - 3 - LRB103 28784 SPS 55169 b 1 individual who has an ownership interest in the partnership, 2 association, corporation (other than ownership of shares of a 3 publicly traded corporation), limited liability company, 4 business trust, or employment placement agency. 5 The following terms apply to an employer's use of payroll 6 cards to pay wages to an employee under the requirements of 7 this Act: 8 "Payroll card" means a card provided to an employee by an 9 employer or other payroll card issuer as a means of accessing 10 the employee's payroll card account. 11 "Payroll card account" means an account that is directly 12 or indirectly established through an employer and to which 13 deposits of a participating employee's wages are made. 14 "Payroll card issuer" means a bank, financial institution, 15 or other entity that issues a payroll card to an employee under 16 an employer payroll card program. 17 (Source: P.A. 98-862, eff. 1-1-15.) SB1505 - 3 - LRB103 28784 SPS 55169 b