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 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 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 LRB104 12259 SPS 22371 b A BILL FOR HB3774LRB104 12259 SPS 22371 b HB3774 LRB104 12259 SPS 22371 b HB3774 LRB104 12259 SPS 22371 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 Sections 11 and 14 and by adding Section 20 6 as follows: 7 (820 ILCS 115/11) (from Ch. 48, par. 39m-11) 8 Sec. 11. It shall be the duty of the Department of Labor to 9 inquire diligently for any violations of this Act, and to 10 institute the actions for violations and penalties herein 11 provided, at the request of the employee or on motion of the 12 Director of Labor, and to enforce generally the provisions of 13 this Act. 14 An employee may file a complaint with the Department 15 alleging violations of the Act by submitting a signed, 16 completed wage claim application on the form provided by the 17 Department and by submitting copies of all supporting 18 documentation. Complaints shall be filed within one year after 19 the wages, final compensation, or wage supplements were due. 20 Wage claim applications shall be reviewed by the 21 Department to determine whether there is cause and sufficient 22 resources for investigation. 23 The Department shall have the following powers: 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 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 LRB104 12259 SPS 22371 b A BILL FOR 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 LRB104 12259 SPS 22371 b HB3774 LRB104 12259 SPS 22371 b HB3774- 2 -LRB104 12259 SPS 22371 b HB3774 - 2 - LRB104 12259 SPS 22371 b HB3774 - 2 - LRB104 12259 SPS 22371 b 1 (a) To investigate and attempt equitably to adjust 2 controversies between employees and employers in respect 3 of wage claims arising under this Act and to that end the 4 Department through the Director of Labor or any other 5 person in the Department of Labor designated by him or 6 her, shall have the power to administer oaths, subpoena 7 and examine witnesses, to issue subpoenas duces tecum 8 requiring the production of such books, papers, records 9 and documents as may be evidence of any matter under 10 inquiry and to examine and inspect the same as may relate 11 to the question in dispute. Service of such subpoenas 12 shall be made by any sheriff or any person. Any court in 13 this State, upon the application of the Department may 14 compel attendance of witnesses, the production of books 15 and papers, and the giving of testimony before the 16 Department by attachment for contempt or in any other way 17 as the production of evidence may be compelled before such 18 court. 19 (b) To take assignments of wage claims in the name of 20 the Director of Labor and his or her successors in office 21 and prosecute actions for the collection of wages for 22 persons financially unable to prosecute such claims when 23 in the judgment of the Department such claims are valid 24 and enforceable in the courts. No court costs or any fees 25 for necessary process and proceedings shall be payable in 26 advance by the Department for prosecuting such actions. In HB3774 - 2 - LRB104 12259 SPS 22371 b HB3774- 3 -LRB104 12259 SPS 22371 b HB3774 - 3 - LRB104 12259 SPS 22371 b HB3774 - 3 - LRB104 12259 SPS 22371 b 1 the event there is a judgment rendered against the 2 defendant, the court shall assess as part of such judgment 3 the costs of such proceeding. Upon collection of such 4 judgments the Department shall pay from the proceeds of 5 such judgment such costs to such person who is by law 6 entitled to same. The Department may join in a single 7 proceeding any number of wage claims against the same 8 employer but the court shall have discretionary power to 9 order a severance or separate trial for hearings. 10 (c) To make complaint in any court of competent 11 jurisdiction of violations of this Act. 12 (d) In addition to the aforementioned powers, subject 13 to appropriation, the Department may establish an 14 administrative procedure to adjudicate claims and to issue 15 final and binding administrative decisions on such claims 16 subject to the Administrative Review Law. To establish 17 such a procedure, the Director of Labor or her or his 18 authorized representative may promulgate rules and 19 regulations. The adoption, amendment or rescission of 20 rules and regulations for such a procedure shall be in 21 conformity with the requirements of the Illinois 22 Administrative Procedure Act. If a final and binding 23 administrative decision issued by the Department requires 24 an employer or other party to pay wages, penalties, or 25 other amounts in connection with a wage claim, and the 26 employer or other party has neither: (i) made the required HB3774 - 3 - LRB104 12259 SPS 22371 b HB3774- 4 -LRB104 12259 SPS 22371 b HB3774 - 4 - LRB104 12259 SPS 22371 b HB3774 - 4 - LRB104 12259 SPS 22371 b 1 payment within 35 days of the issuance of the final and 2 binding administrative decision; nor (ii) timely filed a 3 complaint seeking review of the final and binding 4 administrative decision pursuant to the Administrative 5 Review Law in a court of competent jurisdiction, the final 6 and binding administrative decision is a debt due and owed 7 to the State and may be collected using all remedies 8 available under the law, including, but not limited to, 9 those found in Article XII of the Code of Civil Procedure. 10 The findings, decision, and order of the Department may be 11 enforced in the same manner as any civil judgment entered 12 by a court of competent jurisdiction Department may file a 13 verified petition against the employer or other party to 14 enforce the final administrative decision and to collect 15 any amounts due in connection therewith in the circuit 16 court of any county where an official office of the 17 Department is located. 18 Nothing herein shall be construed to prevent any employee 19 from making complaint or prosecuting his or her own claim for 20 wages. Any employee aggrieved by a violation of this Act or any 21 rule adopted under this Act may file suit in circuit court of 22 Illinois, in the county where the alleged violation occurred 23 or where any employee who is party to the action resides, 24 without regard to exhaustion of any alternative administrative 25 remedies provided in this Act. Actions may be brought by one or 26 more employees for and on behalf of themselves and other HB3774 - 4 - LRB104 12259 SPS 22371 b HB3774- 5 -LRB104 12259 SPS 22371 b HB3774 - 5 - LRB104 12259 SPS 22371 b HB3774 - 5 - LRB104 12259 SPS 22371 b 1 employees similarly situated. 2 Nothing herein shall be construed to limit the authority 3 of the State's Attorney of any county to prosecute actions for 4 violation of this Act or to enforce the provisions thereof 5 independently and without specific direction of the Department 6 of Labor. 7 (Source: P.A. 103-201, eff. 1-1-24.) 8 (820 ILCS 115/14) (from Ch. 48, par. 39m-14) 9 Sec. 14. Penalties. 10 (a) Any employee not timely paid wages, final 11 compensation, or wage supplements by his or her employer as 12 required by this Act shall be entitled to recover through a 13 claim filed with the Department of Labor or in a civil action, 14 but not both, the amount of any such underpayments and damages 15 of 5% of the amount of any such underpayments for each month 16 following the date of payment during which such underpayments 17 remain unpaid. In a claim filed with the Department and 18 adjudicated through an administrative hearing, the damages of 19 5% shall accrue for each month that the underpayments remain 20 unpaid until the date the final order and decision of the 21 Department becomes a debt due and owed to the State. In a civil 22 action, such employee shall also recover costs and all 23 reasonable attorney's fees. 24 (a-5) In addition to the remedies provided in subsections 25 (a), (b), and (c) of this Section, any employer or any agent of HB3774 - 5 - LRB104 12259 SPS 22371 b HB3774- 6 -LRB104 12259 SPS 22371 b HB3774 - 6 - LRB104 12259 SPS 22371 b HB3774 - 6 - LRB104 12259 SPS 22371 b 1 an employer, who, being able to pay wages, final compensation, 2 or wage supplements and being under a duty to pay, willfully 3 refuses to pay as provided in this Act, or falsely denies the 4 amount or validity thereof or that the same is due, with intent 5 to secure for himself or other person any underpayment of such 6 indebtedness or with intent to annoy, harass, oppress, hinder, 7 delay or defraud the person to whom such indebtedness is due, 8 upon conviction, is guilty of: 9 (1) for unpaid wages, final compensation or wage 10 supplements in the amount of $5,000 or less, a Class B 11 misdemeanor; or 12 (2) for unpaid wages, final compensation or wage 13 supplements in the amount of more than $5,000, a Class A 14 misdemeanor. 15 Each day during which any violation of this Act continues 16 shall constitute a separate and distinct offense. 17 Any employer or any agent of an employer who violates this 18 Section of the Act a subsequent time within 2 years of a prior 19 criminal conviction under this Section is guilty, upon 20 conviction, of a Class 4 felony. 21 (b) Any employer who has been demanded or ordered by the 22 Department or ordered by the court to pay wages, final 23 compensation, or wage supplements due an employee shall be 24 required to pay a non-waivable administrative fee to the 25 Department of Labor in the amount of $500 $250 if the amount 26 ordered by the Department as wages owed is $3,000 or less; $750 HB3774 - 6 - LRB104 12259 SPS 22371 b HB3774- 7 -LRB104 12259 SPS 22371 b HB3774 - 7 - LRB104 12259 SPS 22371 b HB3774 - 7 - LRB104 12259 SPS 22371 b 1 $500 if the amount ordered by the Department as wages owed is 2 more than $3,000, but less than $10,000; and $1,250 $1,000 if 3 the amount ordered by the Department as wages owed is $10,000 4 or more. Any employer who has been so demanded or ordered by 5 the Department or ordered by a court to pay such wages, final 6 compensation, or wage supplements and who fails to seek timely 7 review of such a demand or order as provided for under this Act 8 and who fails to comply within 15 calendar days after such 9 demand or within 35 days of an administrative or court order is 10 entered shall also be liable to pay a penalty to the Department 11 of Labor of 20% of the amount found owing and a penalty to the 12 employee of 1% per calendar day of the amount found owing for 13 each day of delay in paying such wages to the employee. In a 14 claim filed with the Department and adjudicated through an 15 administrative hearing, the penalty of 1% shall accrue for 16 each calendar day that the underpayments remain unpaid until 17 the date the final order and decision of the Department 18 becomes a debt due and owed to the State. All moneys recovered 19 as fees and civil penalties under this Act, except those owing 20 to the affected employee, shall be deposited into the Wage 21 Theft Enforcement Fund, a special fund which is hereby created 22 in the State treasury. Moneys in the Fund may be used for 23 enforcement of this Act and for outreach and educational 24 activities of the Department related to the recovery of unpaid 25 or underpaid compensation and the disbursement of moneys to 26 affected parties. HB3774 - 7 - LRB104 12259 SPS 22371 b HB3774- 8 -LRB104 12259 SPS 22371 b HB3774 - 8 - LRB104 12259 SPS 22371 b HB3774 - 8 - LRB104 12259 SPS 22371 b 1 (b-5) Penalties and fees under this Section may be 2 assessed by the Department and recovered in a civil action 3 brought by the Department in any circuit court or in any 4 administrative adjudicative proceeding under this Act. In any 5 such civil action or administrative adjudicative proceeding 6 under this Act, the Department shall be represented by the 7 Attorney General. 8 (c) Any employer, or any agent of an employer, who 9 discharges or in any other manner discriminates against any 10 employee because that employee has made a complaint to his or 11 her employer, to the Director of Labor or his or her authorized 12 representative, in a public hearing, or to a community 13 organization that he or she has not been paid in accordance 14 with the provisions of this Act, or because that employee has 15 caused to be instituted any proceeding under or related to 16 this Act, or because that employee has testified or is about to 17 testify in an investigation or proceeding under this Act, is 18 guilty, upon conviction, of a Class C misdemeanor. An employee 19 who has been unlawfully retaliated against shall be entitled 20 to recover through a claim filed with the Department of Labor 21 or in a civil action, but not both, all legal and equitable 22 relief as may be appropriate. In a civil action, such employee 23 shall also recover costs and all reasonable attorney's fees. 24 (d) Except as provided under subsections (a), (b), and 25 (c), an employer who fails to furnish an employee or former 26 employee with a pay stub as required by this Act or commits any HB3774 - 8 - LRB104 12259 SPS 22371 b HB3774- 9 -LRB104 12259 SPS 22371 b HB3774 - 9 - LRB104 12259 SPS 22371 b HB3774 - 9 - LRB104 12259 SPS 22371 b 1 other violation of this Act shall be subject to a civil penalty 2 of up to $500 per violation payable to the Department. In 3 determining the amount of the penalty under this subsection, 4 the Department shall consider the appropriateness of the 5 penalty to the size of the business of the employer charged and 6 the gravity of the violation. 7 (e) Any unpaid wages, penalties, damages, fines, or fees 8 remaining unpaid after the judicial review of the Department's 9 final decision, or the failure to pursue judicial review 10 procedures under the Administrative Review Law, is a debt due 11 and owed to the State and may be collected using all remedies 12 available under the law. 13 (f) After the expiration of the period in which judicial 14 review under the Administrative Review Law may be sought for a 15 final administrative decision, unless stayed by a court of 16 competent jurisdiction, the findings, decision, and order of 17 the Department may be enforced in the same manner as a judgment 18 entered by a court of competent jurisdiction. 19 (Source: P.A. 102-50, eff. 7-9-21; 103-182, eff. 6-30-23; 20 103-953, eff. 1-1-25.) 21 (820 ILCS 115/20 new) 22 Sec. 20. Procedural changes from prior law. In accordance 23 with Section 4 of the Statute on Statutes, any procedural 24 change as compared to prior law affected by this amendatory 25 Act of the 104th General Assembly shall be applied HB3774 - 9 - LRB104 12259 SPS 22371 b HB3774- 10 -LRB104 12259 SPS 22371 b HB3774 - 10 - LRB104 12259 SPS 22371 b HB3774 - 10 - LRB104 12259 SPS 22371 b 1 retroactively. Any substantive change as compared to prior law 2 affected by this amendatory Act of the 104th General Assembly 3 shall be applied prospectively only. Any changes to the 4 remedies available to redress a legal violation are procedural 5 in nature. HB3774 - 10 - LRB104 12259 SPS 22371 b