Illinois 2023 2023-2024 Regular Session

Illinois Senate Bill SB3208 Engrossed / Bill

Filed 04/11/2024

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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 Sections 2, 10, and 14 as follows:
6  (820 ILCS 115/2) (from Ch. 48, par. 39m-2)
7  Sec. 2. Definitions. For all employees, other than
8  separated employees, "wages" shall be defined as any
9  compensation owed an employee by an employer pursuant to an
10  employment contract or agreement between the 2 parties,
11  whether the amount is determined on a time, task, piece, or any
12  other basis of calculation. Payments to separated employees
13  shall be termed "final compensation" and shall be defined as
14  wages, salaries, earned commissions, earned bonuses, and the
15  monetary equivalent of earned vacation and earned holidays,
16  and any other compensation owed the employee by the employer
17  pursuant to an employment contract or agreement between the 2
18  parties. Where an employer is legally committed through a
19  collective bargaining agreement or otherwise to make
20  contributions to an employee benefit, trust or fund on the
21  basis of a certain amount per hour, day, week or other period
22  of time, the amount due from the employer to such employee
23  benefit, trust, or fund shall be defined as "wage

 

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1  supplements", subject to the wage collection provisions of
2  this Act.
3  As used in this Act, the term "employer" shall include any
4  individual, partnership, association, corporation, limited
5  liability company, business trust, employment and labor
6  placement agencies where wage payments are made directly or
7  indirectly by the agency or business for work undertaken by
8  employees under hire to a third party pursuant to a contract
9  between the business or agency with the third party, or any
10  person or group of persons acting directly or indirectly in
11  the interest of an employer in relation to an employee, for
12  which one or more persons is gainfully employed.
13  As used in this Act, the term "employee" shall include any
14  individual permitted to work by an employer in an occupation,
15  but shall not include any individual:
16  (1) who has been and will continue to be free from
17  control and direction over the performance of his work,
18  both under his contract of service with his employer and
19  in fact; and
20  (2) who performs work which is either outside the
21  usual course of business or is performed outside all of
22  the places of business of the employer unless the employer
23  is in the business of contracting with third parties for
24  the placement of employees; and
25  (3) who is in an independently established trade,
26  occupation, profession or business.

 

 

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1  "Pay stub" means an itemized statement or statements
2  reflecting an employee's hours worked, rate of pay, overtime
3  pay and overtime hours worked, gross wages earned, deductions
4  made from the employee's wages, and the total of wages and
5  deductions year to date.
6  The following terms apply to an employer's use of payroll
7  cards to pay wages to an employee under the requirements of
8  this Act:
9  "Payroll card" means a card provided to an employee by an
10  employer or other payroll card issuer as a means of accessing
11  the employee's payroll card account.
12  "Payroll card account" means an account that is directly
13  or indirectly established through an employer and to which
14  deposits of a participating employee's wages are made.
15  "Payroll card issuer" means a bank, financial institution,
16  or other entity that issues a payroll card to an employee under
17  an employer payroll card program.
18  (Source: P.A. 98-862, eff. 1-1-15.)
19  (820 ILCS 115/10) (from Ch. 48, par. 39m-10)
20  Sec. 10.
21  (a) Employers shall notify employees, at the time of
22  hiring, of the rate of pay and of the time and place of
23  payment. Whenever possible, such notification shall be in
24  writing and shall be acknowledged by both parties. Employers
25  shall also notify employees of any changes in the

 

 

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1  arrangements, specified above, prior to the time of change.
2  (b) Employers shall keep records of names and addresses of
3  all employees and of wages paid each payday, and shall furnish
4  each employee with a pay stub an itemized statement of
5  deductions made from his wages for each pay period.
6  (c) An employer shall maintain a copy of an employee's pay
7  stub for a period of not less than 3 years after the date of
8  payment, regardless of whether the employee's employment ends
9  during this period, whether the pay stub is furnished
10  electronically or in paper form.
11  (d) In addition to furnishing a pay stub for each pay
12  period as required under subsection (b), an employer shall
13  furnish copies of pay stubs to current and former employees as
14  follows:
15  (1) An employer shall provide an employee with a copy
16  of the employee's pay stubs upon the employee's request.
17  The employer may require that the employee submit the
18  request in writing. The employer shall furnish the copy of
19  the pay stubs to the employee by the end of the next pay
20  period following the employee's request. An employer is
21  not required to grant an employee's request for a copy of
22  pay stubs more than twice in a 12-month period.
23  (2) An employer shall provide a former employee with a
24  copy of the former employee's previous pay stubs upon the
25  former employee's request. The employer shall furnish the
26  copy of the pay stubs to the former employee by the end of

 

 

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1  the following pay period following the former employee's
2  request. An employer is not required to grant a former
3  employee's request for a copy of pay stubs more than twice
4  in a 12-month period or more than one year after the date
5  of separation. The employer shall provide the copy of the
6  pay stubs in either a physical or electronic format, as
7  chosen by the former employee, including a communication
8  that is transmitted through electronic mail, text message,
9  computer system, or is otherwise sent and stored
10  electronically and is capable of being downloaded or
11  permanently retained by the former employee.
12  (3) An employer who furnishes electronic pay stubs in
13  a manner that a former employee cannot access for at least
14  a full year after separation shall, upon an employee's
15  separation from employment, offer to provide the outgoing
16  employee with a record of all of the outgoing employee's
17  pay stubs from the year preceding the date of separation.
18  The offer shall be made to the outgoing employee by the end
19  of the outgoing employee's final pay period. An employer
20  shall record in writing the date on which this offer was
21  made to the outgoing employee and if and how the outgoing
22  employee responded.
23  (e) Every employer shall post and keep posted at each
24  regular place of business in a position easily accessible to
25  all employees one or more notices indicating the regular
26  paydays and the place and time for payment of his employees,

 

 

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1  and on forms supplied from time to time by the Department of
2  Labor containing a copy or summary of the provisions of this
3  Act.
4  (Source: P.A. 81-593.)
5  (820 ILCS 115/14) (from Ch. 48, par. 39m-14)
6  Sec. 14. Penalties.
7  (a) Any employee not timely paid wages, final
8  compensation, or wage supplements by his or her employer as
9  required by this Act shall be entitled to recover through a
10  claim filed with the Department of Labor or in a civil action,
11  but not both, the amount of any such underpayments and damages
12  of 5% of the amount of any such underpayments for each month
13  following the date of payment during which such underpayments
14  remain unpaid. In a civil action, such employee shall also
15  recover costs and all reasonable attorney's fees.
16  (a-5) In addition to the remedies provided in subsections
17  (a), (b), and (c) of this Section, any employer or any agent of
18  an employer, who, being able to pay wages, final compensation,
19  or wage supplements and being under a duty to pay, willfully
20  wilfully refuses to pay as provided in this Act, or falsely
21  denies the amount or validity thereof or that the same is due,
22  with intent to secure for himself or other person any
23  underpayment of such indebtedness or with intent to annoy,
24  harass, oppress, hinder, delay or defraud the person to whom
25  such indebtedness is due, upon conviction, is guilty of:

 

 

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1  (1) for unpaid wages, final compensation or wage
2  supplements in the amount of $5,000 or less, a Class B
3  misdemeanor; or
4  (2) for unpaid wages, final compensation or wage
5  supplements in the amount of more than $5,000, a Class A
6  misdemeanor.
7  Each day during which any violation of this Act continues
8  shall constitute a separate and distinct offense.
9  Any employer or any agent of an employer who violates this
10  Section of the Act a subsequent time within 2 years of a prior
11  criminal conviction under this Section is guilty, upon
12  conviction, of a Class 4 felony.
13  (b) Any employer who has been demanded or ordered by the
14  Department or ordered by the court to pay wages, final
15  compensation, or wage supplements due an employee shall be
16  required to pay a non-waivable administrative fee to the
17  Department of Labor in the amount of $250 if the amount ordered
18  by the Department as wages owed is $3,000 or less; $500 if the
19  amount ordered by the Department as wages owed is more than
20  $3,000, but less than $10,000; and $1,000 if the amount
21  ordered by the Department as wages owed is $10,000 or more. Any
22  employer who has been so demanded or ordered by the Department
23  or ordered by a court to pay such wages, final compensation, or
24  wage supplements and who fails to seek timely review of such a
25  demand or order as provided for under this Act and who fails to
26  comply within 15 calendar days after such demand or within 35

 

 

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1  days of an administrative or court order is entered shall also
2  be liable to pay a penalty to the Department of Labor of 20% of
3  the amount found owing and a penalty to the employee of 1% per
4  calendar day of the amount found owing for each day of delay in
5  paying such wages to the employee. All moneys recovered as
6  fees and civil penalties under this Act, except those owing to
7  the affected employee, shall be deposited into the Wage Theft
8  Enforcement Fund, a special fund which is hereby created in
9  the State treasury. Moneys in the Fund may be used for
10  enforcement of this Act and for outreach and educational
11  activities of the Department related to the recovery of unpaid
12  or underpaid compensation and the disbursement of moneys to
13  affected parties.
14  (b-5) Penalties and fees under this Section may be
15  assessed by the Department and recovered in a civil action
16  brought by the Department in any circuit court or in any
17  administrative adjudicative proceeding under this Act. In any
18  such civil action or administrative adjudicative proceeding
19  under this Act, the Department shall be represented by the
20  Attorney General.
21  (c) Any employer, or any agent of an employer, who
22  discharges or in any other manner discriminates against any
23  employee because that employee has made a complaint to his or
24  her employer, to the Director of Labor or his or her authorized
25  representative, in a public hearing, or to a community
26  organization that he or she has not been paid in accordance

 

 

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