Illinois 2023-2024 Regular Session

Illinois Senate Bill SB3208 Compare Versions

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1-Public Act 103-0953
21 SB3208 EnrolledLRB103 37566 SPS 67692 b SB3208 Enrolled LRB103 37566 SPS 67692 b
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4-AN ACT concerning employment.
5-Be it enacted by the People of the State of Illinois,
6-represented in the General Assembly:
7-Section 5. The Illinois Wage Payment and Collection Act is
8-amended by changing Sections 2, 10, and 14 as follows:
9-(820 ILCS 115/2) (from Ch. 48, par. 39m-2)
10-Sec. 2. Definitions. For all employees, other than
11-separated employees, "wages" shall be defined as any
12-compensation owed an employee by an employer pursuant to an
13-employment contract or agreement between the 2 parties,
14-whether the amount is determined on a time, task, piece, or any
15-other basis of calculation. Payments to separated employees
16-shall be termed "final compensation" and shall be defined as
17-wages, salaries, earned commissions, earned bonuses, and the
18-monetary equivalent of earned vacation and earned holidays,
19-and any other compensation owed the employee by the employer
20-pursuant to an employment contract or agreement between the 2
21-parties. Where an employer is legally committed through a
22-collective bargaining agreement or otherwise to make
23-contributions to an employee benefit, trust or fund on the
24-basis of a certain amount per hour, day, week or other period
25-of time, the amount due from the employer to such employee
26-benefit, trust, or fund shall be defined as "wage
3+1 AN ACT concerning employment.
4+2 Be it enacted by the People of the State of Illinois,
5+3 represented in the General Assembly:
6+4 Section 5. The Illinois Wage Payment and Collection Act is
7+5 amended by changing Sections 2, 10, and 14 as follows:
8+6 (820 ILCS 115/2) (from Ch. 48, par. 39m-2)
9+7 Sec. 2. Definitions. For all employees, other than
10+8 separated employees, "wages" shall be defined as any
11+9 compensation owed an employee by an employer pursuant to an
12+10 employment contract or agreement between the 2 parties,
13+11 whether the amount is determined on a time, task, piece, or any
14+12 other basis of calculation. Payments to separated employees
15+13 shall be termed "final compensation" and shall be defined as
16+14 wages, salaries, earned commissions, earned bonuses, and the
17+15 monetary equivalent of earned vacation and earned holidays,
18+16 and any other compensation owed the employee by the employer
19+17 pursuant to an employment contract or agreement between the 2
20+18 parties. Where an employer is legally committed through a
21+19 collective bargaining agreement or otherwise to make
22+20 contributions to an employee benefit, trust or fund on the
23+21 basis of a certain amount per hour, day, week or other period
24+22 of time, the amount due from the employer to such employee
25+23 benefit, trust, or fund shall be defined as "wage
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33-supplements", subject to the wage collection provisions of
34-this Act.
35-As used in this Act, the term "employer" shall include any
36-individual, partnership, association, corporation, limited
37-liability company, business trust, employment and labor
38-placement agencies where wage payments are made directly or
39-indirectly by the agency or business for work undertaken by
40-employees under hire to a third party pursuant to a contract
41-between the business or agency with the third party, or any
42-person or group of persons acting directly or indirectly in
43-the interest of an employer in relation to an employee, for
44-which one or more persons is gainfully employed.
45-As used in this Act, the term "employee" shall include any
46-individual permitted to work by an employer in an occupation,
47-but shall not include any individual:
48-(1) who has been and will continue to be free from
49-control and direction over the performance of his work,
50-both under his contract of service with his employer and
51-in fact; and
52-(2) who performs work which is either outside the
53-usual course of business or is performed outside all of
54-the places of business of the employer unless the employer
55-is in the business of contracting with third parties for
56-the placement of employees; and
57-(3) who is in an independently established trade,
58-occupation, profession or business.
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34+1 supplements", subject to the wage collection provisions of
35+2 this Act.
36+3 As used in this Act, the term "employer" shall include any
37+4 individual, partnership, association, corporation, limited
38+5 liability company, business trust, employment and labor
39+6 placement agencies where wage payments are made directly or
40+7 indirectly by the agency or business for work undertaken by
41+8 employees under hire to a third party pursuant to a contract
42+9 between the business or agency with the third party, or any
43+10 person or group of persons acting directly or indirectly in
44+11 the interest of an employer in relation to an employee, for
45+12 which one or more persons is gainfully employed.
46+13 As used in this Act, the term "employee" shall include any
47+14 individual permitted to work by an employer in an occupation,
48+15 but shall not include any individual:
49+16 (1) who has been and will continue to be free from
50+17 control and direction over the performance of his work,
51+18 both under his contract of service with his employer and
52+19 in fact; and
53+20 (2) who performs work which is either outside the
54+21 usual course of business or is performed outside all of
55+22 the places of business of the employer unless the employer
56+23 is in the business of contracting with third parties for
57+24 the placement of employees; and
58+25 (3) who is in an independently established trade,
59+26 occupation, profession or business.
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61-"Pay stub" means an itemized statement or statements
62-reflecting an employee's hours worked, rate of pay, overtime
63-pay and overtime hours worked, gross wages earned, deductions
64-made from the employee's wages, and the total of wages and
65-deductions year to date.
66-The following terms apply to an employer's use of payroll
67-cards to pay wages to an employee under the requirements of
68-this Act:
69-"Payroll card" means a card provided to an employee by an
70-employer or other payroll card issuer as a means of accessing
71-the employee's payroll card account.
72-"Payroll card account" means an account that is directly
73-or indirectly established through an employer and to which
74-deposits of a participating employee's wages are made.
75-"Payroll card issuer" means a bank, financial institution,
76-or other entity that issues a payroll card to an employee under
77-an employer payroll card program.
78-(Source: P.A. 98-862, eff. 1-1-15.)
79-(820 ILCS 115/10) (from Ch. 48, par. 39m-10)
80-Sec. 10.
81-(a) Employers shall notify employees, at the time of
82-hiring, of the rate of pay and of the time and place of
83-payment. Whenever possible, such notification shall be in
84-writing and shall be acknowledged by both parties. Employers
85-shall also notify employees of any changes in the
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88-arrangements, specified above, prior to the time of change.
89-(b) Employers shall keep records of names and addresses of
90-all employees and of wages paid each payday, and shall furnish
91-each employee with a pay stub an itemized statement of
92-deductions made from his wages for each pay period.
93-(c) An employer shall maintain a copy of an employee's pay
94-stub for a period of not less than 3 years after the date of
95-payment, regardless of whether the employee's employment ends
96-during this period, whether the pay stub is furnished
97-electronically or in paper form.
98-(d) In addition to furnishing a pay stub for each pay
99-period as required under subsection (b), an employer shall
100-furnish copies of pay stubs to current and former employees as
101-follows:
102-(1) An employer shall provide an employee with a copy
103-of the employee's pay stubs upon the employee's request.
104-The employer may require that the employee submit the
105-request in writing. The employer shall furnish the copy of
106-the pay stubs to the employee within 21 calendar days of
107-the employee's request. An employer is not required to
108-grant an employee's request for a copy of pay stubs more
109-than twice in a 12-month period.
110-(2) An employer shall provide a former employee with a
111-copy of the former employee's previous pay stubs upon the
112-former employee's request. The employer shall furnish the
113-copy of the pay stubs to the former employee within 21
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116-calendar days of the former employee's request. An
117-employer is not required to grant a former employee's
118-request for a copy of pay stubs more than twice in a
119-12-month period or more than one year after the date of
120-separation. The employer shall provide the copy of the pay
121-stubs in either a physical or electronic format, as chosen
122-by the former employee, including a communication that is
123-transmitted through electronic mail, text message,
124-computer system, or is otherwise sent and stored
125-electronically and is capable of being downloaded or
126-permanently retained by the former employee.
127-(3) An employer who furnishes electronic pay stubs in
128-a manner that a former employee cannot access for at least
129-a full year after separation shall, upon an employee's
130-separation from employment, offer to provide the outgoing
131-employee with a record of all of the outgoing employee's
132-pay stubs from the year preceding the date of separation.
133-The offer shall be made to the outgoing employee by the end
134-of the outgoing employee's final pay period. An employer
135-shall record in writing the date on which this offer was
136-made to the outgoing employee and if and how the outgoing
137-employee responded.
138-(4) A request made by an employee or former employee
139-under this Section shall be made to a person responsible
140-for maintaining the employer's payroll, including the
141-employer's human resources department or payroll
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70+1 "Pay stub" means an itemized statement or statements
71+2 reflecting an employee's hours worked, rate of pay, overtime
72+3 pay and overtime hours worked, gross wages earned, deductions
73+4 made from the employee's wages, and the total of wages and
74+5 deductions year to date.
75+6 The following terms apply to an employer's use of payroll
76+7 cards to pay wages to an employee under the requirements of
77+8 this Act:
78+9 "Payroll card" means a card provided to an employee by an
79+10 employer or other payroll card issuer as a means of accessing
80+11 the employee's payroll card account.
81+12 "Payroll card account" means an account that is directly
82+13 or indirectly established through an employer and to which
83+14 deposits of a participating employee's wages are made.
84+15 "Payroll card issuer" means a bank, financial institution,
85+16 or other entity that issues a payroll card to an employee under
86+17 an employer payroll card program.
87+18 (Source: P.A. 98-862, eff. 1-1-15.)
88+19 (820 ILCS 115/10) (from Ch. 48, par. 39m-10)
89+20 Sec. 10.
90+21 (a) Employers shall notify employees, at the time of
91+22 hiring, of the rate of pay and of the time and place of
92+23 payment. Whenever possible, such notification shall be in
93+24 writing and shall be acknowledged by both parties. Employers
94+25 shall also notify employees of any changes in the
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144-department, the employee's supervisor or department
145-manager, or an individual designated in the employer's
146-written policy.
147-(e) Every employer shall post and keep posted at each
148-regular place of business in a position easily accessible to
149-all employees one or more notices indicating the regular
150-paydays and the place and time for payment of his employees,
151-and on forms supplied from time to time by the Department of
152-Labor containing a copy or summary of the provisions of this
153-Act.
154-(Source: P.A. 81-593.)
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105+1 arrangements, specified above, prior to the time of change.
106+2 (b) Employers shall keep records of names and addresses of
107+3 all employees and of wages paid each payday, and shall furnish
108+4 each employee with a pay stub an itemized statement of
109+5 deductions made from his wages for each pay period.
110+6 (c) An employer shall maintain a copy of an employee's pay
111+7 stub for a period of not less than 3 years after the date of
112+8 payment, regardless of whether the employee's employment ends
113+9 during this period, whether the pay stub is furnished
114+10 electronically or in paper form.
115+11 (d) In addition to furnishing a pay stub for each pay
116+12 period as required under subsection (b), an employer shall
117+13 furnish copies of pay stubs to current and former employees as
118+14 follows:
119+15 (1) An employer shall provide an employee with a copy
120+16 of the employee's pay stubs upon the employee's request.
121+17 The employer may require that the employee submit the
122+18 request in writing. The employer shall furnish the copy of
123+19 the pay stubs to the employee within 21 calendar days of
124+20 the employee's request. An employer is not required to
125+21 grant an employee's request for a copy of pay stubs more
126+22 than twice in a 12-month period.
127+23 (2) An employer shall provide a former employee with a
128+24 copy of the former employee's previous pay stubs upon the
129+25 former employee's request. The employer shall furnish the
130+26 copy of the pay stubs to the former employee within 21
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141+1 calendar days of the former employee's request. An
142+2 employer is not required to grant a former employee's
143+3 request for a copy of pay stubs more than twice in a
144+4 12-month period or more than one year after the date of
145+5 separation. The employer shall provide the copy of the pay
146+6 stubs in either a physical or electronic format, as chosen
147+7 by the former employee, including a communication that is
148+8 transmitted through electronic mail, text message,
149+9 computer system, or is otherwise sent and stored
150+10 electronically and is capable of being downloaded or
151+11 permanently retained by the former employee.
152+12 (3) An employer who furnishes electronic pay stubs in
153+13 a manner that a former employee cannot access for at least
154+14 a full year after separation shall, upon an employee's
155+15 separation from employment, offer to provide the outgoing
156+16 employee with a record of all of the outgoing employee's
157+17 pay stubs from the year preceding the date of separation.
158+18 The offer shall be made to the outgoing employee by the end
159+19 of the outgoing employee's final pay period. An employer
160+20 shall record in writing the date on which this offer was
161+21 made to the outgoing employee and if and how the outgoing
162+22 employee responded.
163+23 (4) A request made by an employee or former employee
164+24 under this Section shall be made to a person responsible
165+25 for maintaining the employer's payroll, including the
166+26 employer's human resources department or payroll
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177+1 department, the employee's supervisor or department
178+2 manager, or an individual designated in the employer's
179+3 written policy.
180+4 (e) Every employer shall post and keep posted at each
181+5 regular place of business in a position easily accessible to
182+6 all employees one or more notices indicating the regular
183+7 paydays and the place and time for payment of his employees,
184+8 and on forms supplied from time to time by the Department of
185+9 Labor containing a copy or summary of the provisions of this
186+10 Act.
187+11 (Source: P.A. 81-593.)
188+12 (820 ILCS 115/14) (from Ch. 48, par. 39m-14)
189+13 Sec. 14. Penalties.
190+14 (a) Any employee not timely paid wages, final
191+15 compensation, or wage supplements by his or her employer as
192+16 required by this Act shall be entitled to recover through a
193+17 claim filed with the Department of Labor or in a civil action,
194+18 but not both, the amount of any such underpayments and damages
195+19 of 5% of the amount of any such underpayments for each month
196+20 following the date of payment during which such underpayments
197+21 remain unpaid. In a civil action, such employee shall also
198+22 recover costs and all reasonable attorney's fees.
199+23 (a-5) In addition to the remedies provided in subsections
200+24 (a), (b), and (c) of this Section, any employer or any agent of
201+25 an employer, who, being able to pay wages, final compensation,
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212+1 or wage supplements and being under a duty to pay, willfully
213+2 wilfully refuses to pay as provided in this Act, or falsely
214+3 denies the amount or validity thereof or that the same is due,
215+4 with intent to secure for himself or other person any
216+5 underpayment of such indebtedness or with intent to annoy,
217+6 harass, oppress, hinder, delay or defraud the person to whom
218+7 such indebtedness is due, upon conviction, is guilty of:
219+8 (1) for unpaid wages, final compensation or wage
220+9 supplements in the amount of $5,000 or less, a Class B
221+10 misdemeanor; or
222+11 (2) for unpaid wages, final compensation or wage
223+12 supplements in the amount of more than $5,000, a Class A
224+13 misdemeanor.
225+14 Each day during which any violation of this Act continues
226+15 shall constitute a separate and distinct offense.
227+16 Any employer or any agent of an employer who violates this
228+17 Section of the Act a subsequent time within 2 years of a prior
229+18 criminal conviction under this Section is guilty, upon
230+19 conviction, of a Class 4 felony.
231+20 (b) Any employer who has been demanded or ordered by the
232+21 Department or ordered by the court to pay wages, final
233+22 compensation, or wage supplements due an employee shall be
234+23 required to pay a non-waivable administrative fee to the
235+24 Department of Labor in the amount of $250 if the amount ordered
236+25 by the Department as wages owed is $3,000 or less; $500 if the
237+26 amount ordered by the Department as wages owed is more than
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248+1 $3,000, but less than $10,000; and $1,000 if the amount
249+2 ordered by the Department as wages owed is $10,000 or more. Any
250+3 employer who has been so demanded or ordered by the Department
251+4 or ordered by a court to pay such wages, final compensation, or
252+5 wage supplements and who fails to seek timely review of such a
253+6 demand or order as provided for under this Act and who fails to
254+7 comply within 15 calendar days after such demand or within 35
255+8 days of an administrative or court order is entered shall also
256+9 be liable to pay a penalty to the Department of Labor of 20% of
257+10 the amount found owing and a penalty to the employee of 1% per
258+11 calendar day of the amount found owing for each day of delay in
259+12 paying such wages to the employee. All moneys recovered as
260+13 fees and civil penalties under this Act, except those owing to
261+14 the affected employee, shall be deposited into the Wage Theft
262+15 Enforcement Fund, a special fund which is hereby created in
263+16 the State treasury. Moneys in the Fund may be used for
264+17 enforcement of this Act and for outreach and educational
265+18 activities of the Department related to the recovery of unpaid
266+19 or underpaid compensation and the disbursement of moneys to
267+20 affected parties.
268+21 (b-5) Penalties and fees under this Section may be
269+22 assessed by the Department and recovered in a civil action
270+23 brought by the Department in any circuit court or in any
271+24 administrative adjudicative proceeding under this Act. In any
272+25 such civil action or administrative adjudicative proceeding
273+26 under this Act, the Department shall be represented by the
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284+1 Attorney General.
285+2 (c) Any employer, or any agent of an employer, who
286+3 discharges or in any other manner discriminates against any
287+4 employee because that employee has made a complaint to his or
288+5 her employer, to the Director of Labor or his or her authorized
289+6 representative, in a public hearing, or to a community
290+7 organization that he or she has not been paid in accordance
291+8 with the provisions of this Act, or because that employee has
292+9 caused to be instituted any proceeding under or related to
293+10 this Act, or because that employee has testified or is about to
294+11 testify in an investigation or proceeding under this Act, is
295+12 guilty, upon conviction, of a Class C misdemeanor. An employee
296+13 who has been unlawfully retaliated against shall be entitled
297+14 to recover through a claim filed with the Department of Labor
298+15 or in a civil action, but not both, all legal and equitable
299+16 relief as may be appropriate. In a civil action, such employee
300+17 shall also recover costs and all reasonable attorney's fees.
301+18 (d) Except as provided under subsections (a), (b), and
302+19 (c), an employer who fails to furnish an employee or former
303+20 employee with a pay stub as required by this Act or commits any
304+21 other violation of this Act shall be subject to a civil penalty
305+22 of up to $500 per violation payable to the Department. In
306+23 determining the amount of the penalty under this subsection,
307+24 the Department shall consider the appropriateness of the
308+25 penalty to the size of the business of the employer charged and
309+26 the gravity of the violation.
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