Illinois 2025-2026 Regular Session

Illinois House Bill HB3774 Compare Versions

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11 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3774 Introduced , by Rep. Eva-Dina Delgado SYNOPSIS AS INTRODUCED: 820 ILCS 115/11 from Ch. 48, par. 39m-11820 ILCS 115/14 from Ch. 48, par. 39m-14820 ILCS 115/20 new Amends the Illinois Wage Payment and Collection Act. Makes changes to administrative fees paid to the Department of Labor. Makes changes in provisions concerning the collection of unpaid wages, penalties, damages, fines, and fees. Effective immediately. LRB104 12259 SPS 22371 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3774 Introduced , by Rep. Eva-Dina Delgado SYNOPSIS AS INTRODUCED: 820 ILCS 115/11 from Ch. 48, par. 39m-11820 ILCS 115/14 from Ch. 48, par. 39m-14820 ILCS 115/20 new 820 ILCS 115/11 from Ch. 48, par. 39m-11 820 ILCS 115/14 from Ch. 48, par. 39m-14 820 ILCS 115/20 new Amends the Illinois Wage Payment and Collection Act. Makes changes to administrative fees paid to the Department of Labor. Makes changes in provisions concerning the collection of unpaid wages, penalties, damages, fines, and fees. Effective immediately. LRB104 12259 SPS 22371 b LRB104 12259 SPS 22371 b A BILL FOR
22 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3774 Introduced , by Rep. Eva-Dina Delgado SYNOPSIS AS INTRODUCED:
33 820 ILCS 115/11 from Ch. 48, par. 39m-11820 ILCS 115/14 from Ch. 48, par. 39m-14820 ILCS 115/20 new 820 ILCS 115/11 from Ch. 48, par. 39m-11 820 ILCS 115/14 from Ch. 48, par. 39m-14 820 ILCS 115/20 new
44 820 ILCS 115/11 from Ch. 48, par. 39m-11
55 820 ILCS 115/14 from Ch. 48, par. 39m-14
66 820 ILCS 115/20 new
77 Amends the Illinois Wage Payment and Collection Act. Makes changes to administrative fees paid to the Department of Labor. Makes changes in provisions concerning the collection of unpaid wages, penalties, damages, fines, and fees. Effective immediately.
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1313 1 AN ACT concerning employment.
1414 2 Be it enacted by the People of the State of Illinois,
1515 3 represented in the General Assembly:
1616 4 Section 5. The Illinois Wage Payment and Collection Act is
1717 5 amended by changing Sections 11 and 14 and by adding Section 20
1818 6 as follows:
1919 7 (820 ILCS 115/11) (from Ch. 48, par. 39m-11)
2020 8 Sec. 11. It shall be the duty of the Department of Labor to
2121 9 inquire diligently for any violations of this Act, and to
2222 10 institute the actions for violations and penalties herein
2323 11 provided, at the request of the employee or on motion of the
2424 12 Director of Labor, and to enforce generally the provisions of
2525 13 this Act.
2626 14 An employee may file a complaint with the Department
2727 15 alleging violations of the Act by submitting a signed,
2828 16 completed wage claim application on the form provided by the
2929 17 Department and by submitting copies of all supporting
3030 18 documentation. Complaints shall be filed within one year after
3131 19 the wages, final compensation, or wage supplements were due.
3232 20 Wage claim applications shall be reviewed by the
3333 21 Department to determine whether there is cause and sufficient
3434 22 resources for investigation.
3535 23 The Department shall have the following powers:
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3939 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3774 Introduced , by Rep. Eva-Dina Delgado SYNOPSIS AS INTRODUCED:
4040 820 ILCS 115/11 from Ch. 48, par. 39m-11820 ILCS 115/14 from Ch. 48, par. 39m-14820 ILCS 115/20 new 820 ILCS 115/11 from Ch. 48, par. 39m-11 820 ILCS 115/14 from Ch. 48, par. 39m-14 820 ILCS 115/20 new
4141 820 ILCS 115/11 from Ch. 48, par. 39m-11
4242 820 ILCS 115/14 from Ch. 48, par. 39m-14
4343 820 ILCS 115/20 new
4444 Amends the Illinois Wage Payment and Collection Act. Makes changes to administrative fees paid to the Department of Labor. Makes changes in provisions concerning the collection of unpaid wages, penalties, damages, fines, and fees. Effective immediately.
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7474 1 (a) To investigate and attempt equitably to adjust
7575 2 controversies between employees and employers in respect
7676 3 of wage claims arising under this Act and to that end the
7777 4 Department through the Director of Labor or any other
7878 5 person in the Department of Labor designated by him or
7979 6 her, shall have the power to administer oaths, subpoena
8080 7 and examine witnesses, to issue subpoenas duces tecum
8181 8 requiring the production of such books, papers, records
8282 9 and documents as may be evidence of any matter under
8383 10 inquiry and to examine and inspect the same as may relate
8484 11 to the question in dispute. Service of such subpoenas
8585 12 shall be made by any sheriff or any person. Any court in
8686 13 this State, upon the application of the Department may
8787 14 compel attendance of witnesses, the production of books
8888 15 and papers, and the giving of testimony before the
8989 16 Department by attachment for contempt or in any other way
9090 17 as the production of evidence may be compelled before such
9191 18 court.
9292 19 (b) To take assignments of wage claims in the name of
9393 20 the Director of Labor and his or her successors in office
9494 21 and prosecute actions for the collection of wages for
9595 22 persons financially unable to prosecute such claims when
9696 23 in the judgment of the Department such claims are valid
9797 24 and enforceable in the courts. No court costs or any fees
9898 25 for necessary process and proceedings shall be payable in
9999 26 advance by the Department for prosecuting such actions. In
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110110 1 the event there is a judgment rendered against the
111111 2 defendant, the court shall assess as part of such judgment
112112 3 the costs of such proceeding. Upon collection of such
113113 4 judgments the Department shall pay from the proceeds of
114114 5 such judgment such costs to such person who is by law
115115 6 entitled to same. The Department may join in a single
116116 7 proceeding any number of wage claims against the same
117117 8 employer but the court shall have discretionary power to
118118 9 order a severance or separate trial for hearings.
119119 10 (c) To make complaint in any court of competent
120120 11 jurisdiction of violations of this Act.
121121 12 (d) In addition to the aforementioned powers, subject
122122 13 to appropriation, the Department may establish an
123123 14 administrative procedure to adjudicate claims and to issue
124124 15 final and binding administrative decisions on such claims
125125 16 subject to the Administrative Review Law. To establish
126126 17 such a procedure, the Director of Labor or her or his
127127 18 authorized representative may promulgate rules and
128128 19 regulations. The adoption, amendment or rescission of
129129 20 rules and regulations for such a procedure shall be in
130130 21 conformity with the requirements of the Illinois
131131 22 Administrative Procedure Act. If a final and binding
132132 23 administrative decision issued by the Department requires
133133 24 an employer or other party to pay wages, penalties, or
134134 25 other amounts in connection with a wage claim, and the
135135 26 employer or other party has neither: (i) made the required
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146146 1 payment within 35 days of the issuance of the final and
147147 2 binding administrative decision; nor (ii) timely filed a
148148 3 complaint seeking review of the final and binding
149149 4 administrative decision pursuant to the Administrative
150150 5 Review Law in a court of competent jurisdiction, the final
151151 6 and binding administrative decision is a debt due and owed
152152 7 to the State and may be collected using all remedies
153153 8 available under the law, including, but not limited to,
154154 9 those found in Article XII of the Code of Civil Procedure.
155155 10 The findings, decision, and order of the Department may be
156156 11 enforced in the same manner as any civil judgment entered
157157 12 by a court of competent jurisdiction Department may file a
158158 13 verified petition against the employer or other party to
159159 14 enforce the final administrative decision and to collect
160160 15 any amounts due in connection therewith in the circuit
161161 16 court of any county where an official office of the
162162 17 Department is located.
163163 18 Nothing herein shall be construed to prevent any employee
164164 19 from making complaint or prosecuting his or her own claim for
165165 20 wages. Any employee aggrieved by a violation of this Act or any
166166 21 rule adopted under this Act may file suit in circuit court of
167167 22 Illinois, in the county where the alleged violation occurred
168168 23 or where any employee who is party to the action resides,
169169 24 without regard to exhaustion of any alternative administrative
170170 25 remedies provided in this Act. Actions may be brought by one or
171171 26 more employees for and on behalf of themselves and other
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182182 1 employees similarly situated.
183183 2 Nothing herein shall be construed to limit the authority
184184 3 of the State's Attorney of any county to prosecute actions for
185185 4 violation of this Act or to enforce the provisions thereof
186186 5 independently and without specific direction of the Department
187187 6 of Labor.
188188 7 (Source: P.A. 103-201, eff. 1-1-24.)
189189 8 (820 ILCS 115/14) (from Ch. 48, par. 39m-14)
190190 9 Sec. 14. Penalties.
191191 10 (a) Any employee not timely paid wages, final
192192 11 compensation, or wage supplements by his or her employer as
193193 12 required by this Act shall be entitled to recover through a
194194 13 claim filed with the Department of Labor or in a civil action,
195195 14 but not both, the amount of any such underpayments and damages
196196 15 of 5% of the amount of any such underpayments for each month
197197 16 following the date of payment during which such underpayments
198198 17 remain unpaid. In a claim filed with the Department and
199199 18 adjudicated through an administrative hearing, the damages of
200200 19 5% shall accrue for each month that the underpayments remain
201201 20 unpaid until the date the final order and decision of the
202202 21 Department becomes a debt due and owed to the State. In a civil
203203 22 action, such employee shall also recover costs and all
204204 23 reasonable attorney's fees.
205205 24 (a-5) In addition to the remedies provided in subsections
206206 25 (a), (b), and (c) of this Section, any employer or any agent of
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217217 1 an employer, who, being able to pay wages, final compensation,
218218 2 or wage supplements and being under a duty to pay, willfully
219219 3 refuses to pay as provided in this Act, or falsely denies the
220220 4 amount or validity thereof or that the same is due, with intent
221221 5 to secure for himself or other person any underpayment of such
222222 6 indebtedness or with intent to annoy, harass, oppress, hinder,
223223 7 delay or defraud the person to whom such indebtedness is due,
224224 8 upon conviction, is guilty of:
225225 9 (1) for unpaid wages, final compensation or wage
226226 10 supplements in the amount of $5,000 or less, a Class B
227227 11 misdemeanor; or
228228 12 (2) for unpaid wages, final compensation or wage
229229 13 supplements in the amount of more than $5,000, a Class A
230230 14 misdemeanor.
231231 15 Each day during which any violation of this Act continues
232232 16 shall constitute a separate and distinct offense.
233233 17 Any employer or any agent of an employer who violates this
234234 18 Section of the Act a subsequent time within 2 years of a prior
235235 19 criminal conviction under this Section is guilty, upon
236236 20 conviction, of a Class 4 felony.
237237 21 (b) Any employer who has been demanded or ordered by the
238238 22 Department or ordered by the court to pay wages, final
239239 23 compensation, or wage supplements due an employee shall be
240240 24 required to pay a non-waivable administrative fee to the
241241 25 Department of Labor in the amount of $500 $250 if the amount
242242 26 ordered by the Department as wages owed is $3,000 or less; $750
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253253 1 $500 if the amount ordered by the Department as wages owed is
254254 2 more than $3,000, but less than $10,000; and $1,250 $1,000 if
255255 3 the amount ordered by the Department as wages owed is $10,000
256256 4 or more. Any employer who has been so demanded or ordered by
257257 5 the Department or ordered by a court to pay such wages, final
258258 6 compensation, or wage supplements and who fails to seek timely
259259 7 review of such a demand or order as provided for under this Act
260260 8 and who fails to comply within 15 calendar days after such
261261 9 demand or within 35 days of an administrative or court order is
262262 10 entered shall also be liable to pay a penalty to the Department
263263 11 of Labor of 20% of the amount found owing and a penalty to the
264264 12 employee of 1% per calendar day of the amount found owing for
265265 13 each day of delay in paying such wages to the employee. In a
266266 14 claim filed with the Department and adjudicated through an
267267 15 administrative hearing, the penalty of 1% shall accrue for
268268 16 each calendar day that the underpayments remain unpaid until
269269 17 the date the final order and decision of the Department
270270 18 becomes a debt due and owed to the State. All moneys recovered
271271 19 as fees and civil penalties under this Act, except those owing
272272 20 to the affected employee, shall be deposited into the Wage
273273 21 Theft Enforcement Fund, a special fund which is hereby created
274274 22 in the State treasury. Moneys in the Fund may be used for
275275 23 enforcement of this Act and for outreach and educational
276276 24 activities of the Department related to the recovery of unpaid
277277 25 or underpaid compensation and the disbursement of moneys to
278278 26 affected parties.
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289289 1 (b-5) Penalties and fees under this Section may be
290290 2 assessed by the Department and recovered in a civil action
291291 3 brought by the Department in any circuit court or in any
292292 4 administrative adjudicative proceeding under this Act. In any
293293 5 such civil action or administrative adjudicative proceeding
294294 6 under this Act, the Department shall be represented by the
295295 7 Attorney General.
296296 8 (c) Any employer, or any agent of an employer, who
297297 9 discharges or in any other manner discriminates against any
298298 10 employee because that employee has made a complaint to his or
299299 11 her employer, to the Director of Labor or his or her authorized
300300 12 representative, in a public hearing, or to a community
301301 13 organization that he or she has not been paid in accordance
302302 14 with the provisions of this Act, or because that employee has
303303 15 caused to be instituted any proceeding under or related to
304304 16 this Act, or because that employee has testified or is about to
305305 17 testify in an investigation or proceeding under this Act, is
306306 18 guilty, upon conviction, of a Class C misdemeanor. An employee
307307 19 who has been unlawfully retaliated against shall be entitled
308308 20 to recover through a claim filed with the Department of Labor
309309 21 or in a civil action, but not both, all legal and equitable
310310 22 relief as may be appropriate. In a civil action, such employee
311311 23 shall also recover costs and all reasonable attorney's fees.
312312 24 (d) Except as provided under subsections (a), (b), and
313313 25 (c), an employer who fails to furnish an employee or former
314314 26 employee with a pay stub as required by this Act or commits any
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325325 1 other violation of this Act shall be subject to a civil penalty
326326 2 of up to $500 per violation payable to the Department. In
327327 3 determining the amount of the penalty under this subsection,
328328 4 the Department shall consider the appropriateness of the
329329 5 penalty to the size of the business of the employer charged and
330330 6 the gravity of the violation.
331331 7 (e) Any unpaid wages, penalties, damages, fines, or fees
332332 8 remaining unpaid after the judicial review of the Department's
333333 9 final decision, or the failure to pursue judicial review
334334 10 procedures under the Administrative Review Law, is a debt due
335335 11 and owed to the State and may be collected using all remedies
336336 12 available under the law.
337337 13 (f) After the expiration of the period in which judicial
338338 14 review under the Administrative Review Law may be sought for a
339339 15 final administrative decision, unless stayed by a court of
340340 16 competent jurisdiction, the findings, decision, and order of
341341 17 the Department may be enforced in the same manner as a judgment
342342 18 entered by a court of competent jurisdiction.
343343 19 (Source: P.A. 102-50, eff. 7-9-21; 103-182, eff. 6-30-23;
344344 20 103-953, eff. 1-1-25.)
345345 21 (820 ILCS 115/20 new)
346346 22 Sec. 20. Procedural changes from prior law. In accordance
347347 23 with Section 4 of the Statute on Statutes, any procedural
348348 24 change as compared to prior law affected by this amendatory
349349 25 Act of the 104th General Assembly shall be applied
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360360 1 retroactively. Any substantive change as compared to prior law
361361 2 affected by this amendatory Act of the 104th General Assembly
362362 3 shall be applied prospectively only. Any changes to the
363363 4 remedies available to redress a legal violation are procedural
364364 5 in nature.
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