2005 Illinois Code - Chapter 820 Employment 820 ILCS 115/ Illinois Wage Payment and Collection Act.
(820 ILCS 115/1) (from Ch. 48, par. 39m‑1)
Sec. 1.
This Act applies to all employers and employees in this State,
including employees of units of local government and school districts,
but excepting employees of the State or Federal governments.
(Source: P.A. 84‑883.)
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(820 ILCS 115/2) (from Ch. 48, par. 39m‑2)
Sec. 2.
For all employees, other than separated employees, "wages"
shall be defined as any compensation owed an employee by an employer pursuant
to an employment contract or agreement between the 2 parties, whether
the amount is determined on a time, task, piece, or any other basis of
calculation. Payments to separated employees shall be termed "final
compensation" and shall be defined as wages, salaries, earned commissions,
earned bonuses, and the monetary equivalent of earned vacation and earned
holidays, and any other compensation owed the employee by the employer pursuant
to an employment contract or agreement between the 2 parties. Where an
employer is legally committed through a collective bargaining agreement
or otherwise to make contributions to an employee benefit, trust or fund on
the basis of a certain amount per hour, day, week or other period of time,
the amount due from the employer to such employee benefit, trust, or fund
shall be defined as "wage supplements", subject to the wage collection
provisions of this Act.
As used in this Act, the term "employer" shall include any individual,
partnership, association, corporation, business trust, employment and
labor placement agencies where wage payments are made
directly or indirectly by the agency or business for work undertaken by
employees under hire to a third party pursuant to a contract between the
business or agency with the third party, or any person or group of
persons acting directly or indirectly in the interest of an employer in
relation to an employee, for which one or more persons is gainfully employed.
As used in this Act, the term "employee" shall include any individual
permitted to work by an employer in an occupation, but shall not include any
individual:
(1) who has been and will continue to be free from | ||
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(2) who performs work which is either outside the | ||
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(3) who is in an independently established trade, | ||
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(Source: P.A. 89‑364, eff. 8‑18‑95; 89‑626, eff. 8‑9‑96.)
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(820 ILCS 115/3) (from Ch. 48, par. 39m‑3)
Sec. 3.
Every employer shall be required, at least semi‑monthly, to pay
every
employee all wages earned during the semi‑monthly pay period. Wages of
executive, administrative and professional employees, as defined in the
Federal Fair Labor Standards Act of 1939, may be paid once a month.
Commissions may be paid once a month.
At the request of a person employed by an employment or labor placement
agency which, in the ordinary course of business, makes daily wage payments to
employees,
the agency shall hold the daily wages and make either weekly or semi‑monthly
payments.
Upon the written request of the employee, the wage shall be paid in a single
check representing the wages earned during the period, either weekly or
semi‑monthly, designated by the employee in accordance with Section 4 of this
Act. Employment and labor placement agencies that make daily wage payments
shall provide written notification to all daily
wage payment employees of the right to request weekly or semi‑monthly checks.
The employer may provide this notice by conspicuously posting the notice at the
location where the wages are received by the daily wage employees.
(Source: P.A. 89‑364, eff. 8‑18‑95.)
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(820 ILCS 115/4) (from Ch. 48, par. 39m‑4)
Sec. 4.
All wages earned by any employee during a semi‑monthly or bi‑weekly
pay period shall be paid to such employee not later than 13 days after
the end of the pay period in which such wages were earned. All wages
earned by any employee during a weekly pay period shall be paid not
later than 7 days after the end of the weekly pay period in which the
wages were earned. All wages paid on a daily basis shall be paid insofar
as possible on the same day as the wages were earned, or not later in
any event than 24 hours after the day on which the wages were earned.
Wages of executive, administrative and professional employees, as
defined in the Federal Fair Labor Standards Act of 1938, may be paid on
or before 21 calendar days after the period during which they are
earned.
The terms of this Section shall not apply, if there exists a valid
collective bargaining agreement which provides for a different date or
for different arrangements for the payment of wages.
Employers shall pay to workers on strike or layoff, no later than the
next regular payday, all wages earned up to the time of such strike or
layoff.
Any employee who is absent at the time fixed for payment, or who for
any other reason is not paid at that time, shall be paid upon demand at
any time within a period of 5 days after the time fixed for payment; and
after the expiration of the 5 day period, payment shall be made upon 5
days demand. Payment to the absent employee shall be made by mail if the
employee so requests in writing.
All wages and final compensation shall be paid in lawful money of the
United States, by check, redeemable upon demand and without discount
at a bank or other financial institution readily available to the
employee, or by deposit of funds in an account in a bank or other financial
institution designated by the employee.
No employer may designate a particular financial institution, bank, savings
bank, savings and loan, or currency exchange for the exclusive payment or
deposit of a
check for wages. No financial institution, bank, savings bank, savings and
loan, or currency exchange shall refuse to honor a check for wages that
exclusively designates, in violation of this Section, a particular bank,
savings bank,
savings and loan, or currency exchange as the exclusive place of payment or
deposit except to the extent the bank, savings bank, savings and loan, or
currency exchange is otherwise excused from honoring the check under
Section 3‑111 of the Uniform Commercial Code because the bank, savings bank,
savings and loan, or currency exchange is not the drawee or the maker of the
check.
(Source: P.A. 89‑364, eff. 8‑18‑95.)
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(820 ILCS 115/5) (from Ch. 48, par. 39m‑5)
Sec. 5.
Every employer shall pay the final compensation of separated
employees in full, at the time of separation, if possible, but in no
case later than the next regularly scheduled payday for such employee.
Where such employee requests in writing that his final compensation be
paid by check and mailed to him, the employer shall comply with this
request.
Unless otherwise provided in a collective bargaining agreement, whenever
a contract of employment or employment policy provides for paid vacations,
and an employee resigns or is terminated without having taken all vacation
time earned in accordance with such contract of employment
or employment policy, the monetary equivalent of all earned vacation
shall be paid to him or her as part of his or her final compensation
at his or her final rate of pay and no employment contract or employment
policy shall provide for forfeiture of earned vacation time upon separation.
(Source: P.A. 83‑199.)
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(820 ILCS 115/6) (from Ch. 48, par. 39m‑6)
Sec. 6.
The Director of the Department of Labor, or any other person in the
Department designated by him, shall be authorized to assist any employee
and act on his behalf in the collection of wages or final compensation
due him, provided, however, that the Director, or
his designee, may assist a class of employees and act in their behalf in
a class action; or with respect to all employees of the class with
respect to whom payments are due.
(Source: P.A. 81‑593.)
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(820 ILCS 115/7) (from Ch. 48, par. 39m‑7)
Sec. 7.
The Department of Labor shall be authorized to enter into agreements
with other states to collect unpaid wages from out‑of‑state employers and
to perform reciprocal services for such states in the State of Illinois.
(Source: P.A. 78‑914.)
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(820 ILCS 115/8) (from Ch. 48, par. 39m‑8)
Sec. 8.
Where an employer is legally committed through a collective bargaining
agreement, or otherwise to make contributions to an employee benefit, trust
or fund on the basis of a certain amount per hour, day, week or other
period of time, the amount due from the employer to such employee benefit,
trust or fund shall be treated as wages, subject to the wage payment
provisions of this Act.
(Source: P.A. 78‑914.)
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(820 ILCS 115/9) (from Ch. 48, par. 39m‑9)
Sec. 9.
Except as hereinafter provided, deductions by employers from wages
or final
compensation are prohibited unless such deductions are (1) required by law; (2)
to the benefit of the employee; (3) in response to a valid
wage
assignment or wage deduction order; (4) made with the express written
consent of the employee, given freely at the time the deduction is made;
(5) made by a municipality with a population of 500,000 or more, a county
with a population of 3,000,000 or more, a
community college district in a city with a population of 500,000 or more,
a housing authority in a municipality with
a population of 500,000 or more,
the Chicago Park District, the Metropolitan Transit Authority, the
Chicago Board of Education,
the Cook County Forest Preserve District, or
the Metropolitan Water Reclamation District
to pay a debt owed by the employee to a
municipality
with a population of 500,000 or more, a county with a population of 3,000,000
or more, the Cook County Forest Preserve, the Chicago Park District, the
Metropolitan Water Reclamation District, the Chicago Transit Authority, the
Chicago Board of Education, or a housing authority of a municipality with a
population of 500,000 or more;
provided, however, that the amount deducted from any one salary or wage
payment shall not exceed 25% of the net amount of the payment; or (6) made by
a housing authority in a municipality with
a
population of 500,000 or more
or a municipality with a population of 500,000 or more
to pay a debt owed by the employee to a
housing
authority in a municipality with a population of 500,000 or more; provided,
however, that the amount deducted from any one salary or
wage payment shall not exceed 25% of the net amount of the payment.
Before the municipality with a population of 500,000 or more,
the community college district in a city with a population of 500,000 or
more, the Chicago Park District, the Metropolitan Transit Authority,
a housing authority in a municipality with
a population of 500,000 or more, the Chicago Board of Education,
the county with a population of 3,000,000 or more, the Cook County Forest
Preserve District,
or the Metropolitan Water Reclamation District
deducts any amount from any salary or wage of an
employee
to pay a debt owed to a municipality with a population of 500,000 or more, a
county with a population of 3,000,000 or more, the Cook County Forest Preserve
District,
the Chicago Park District, the Metropolitan Water Reclamation District, the
Chicago Transit Authority, the Chicago Board of Education, or a housing
authority of a municipality with a population of 500,000 or more under this
Section, the municipality, the county, the Cook County Forest Preserve
District, the
Chicago Park District, the Metropolitan Water Reclamation District, the Chicago
Transit Authority, the Chicago Board of Education, or a housing authority of a
municipality with a population of 500,000 or more shall certify that (i)
the
employee has been
afforded an opportunity for a hearing to dispute the debt that is due and owing
the municipality, the county, the Cook County Forest Preserve District, the
Chicago
Park District, the Metropolitan Water Reclamation District, the Chicago Transit
Authority, the Chicago Board of Education, or a housing authority of a
municipality with a population of 500,000 or more and (ii) the employee has
received notice of a wage deduction order and has
been afforded an opportunity for a hearing to object to the order.
Before a housing authority in a
municipality
with a population of 500,000 or more or a municipality with a population of
500,000 or more, a county with a population of 3,000,000 or more, the Cook
County Forest Preserve District, the Chicago Park District, the Metropolitan
Water Reclamation District, the Chicago Transit Authority, the Chicago Board of
Education, or a housing authority of a municipality with a population of
500,000 or more
deducts any amount from any salary or
wage of an employee to pay a debt owed to a
housing authority in a municipality
with a population of 500,000 or more under this Section, the
housing authority shall certify
that (i) the employee has been afforded an opportunity for a hearing to
dispute the debt that is due and owing the housing
authority and (ii) the employee has received notice of a wage
deduction order and has
been afforded an opportunity for a hearing to object to the order.
For purposes of this Section, "net amount" means that part of the salary or
wage payment remaining after the deduction of any amounts required by law to be
deducted and "debt due and owing" means (i) a specified sum of money owed to
the municipality, county, the Cook County Forest Preserve District, the
Chicago Park
District, the Metropolitan Water Reclamation District, the Chicago Transit
Authority, the Chicago Board of Education, or housing authority
for
services, work, or
goods, after the period granted for payment has expired, or (ii) a specified
sum of money owed to the municipality, county, the Cook County Forest
Preserve District, the Chicago Park District, the Metropolitan Water
Reclamation
District, the Chicago Transit Authority, the Chicago Board of Education
or housing authority pursuant
to a
court order or order of an administrative hearing officer after the exhaustion
of, or the failure to exhaust, judicial review. Where the legitimacy of any
deduction from wages is in
dispute, the amount in question may be withheld if the employer notifies
the Department of Labor on the date the payment is due in writing of the
amount that is being withheld and stating the reasons for which the
payment is withheld. Upon such notification the Department of Labor
shall conduct an investigation and render a judgment as promptly as
possible, and shall complete such investigation within 30 days of
receipt of the notification by the employer that wages have been
withheld. The employer shall pay the wages due upon order of the
Department of Labor within 15 calendar days of issuance of a judgment on the
dispute.
The Department shall establish rules to protect the interests of both
parties in cases of disputed deductions from wages. Such rules shall
include reasonable limitations on the amount of deductions beyond those
required by law which may be made during any pay period by any employer.
In case of a dispute over wages, the employer shall pay, without condition
and within the time set by this Act, all wages or parts thereof, conceded
by him to be due, leaving to the employee all remedies to which he may
otherwise be entitled as to any balance claimed. The acceptance by an employee
of a disputed paycheck shall not constitute a release as to the balance of his
claim and any release or restrictive endorsement required by an employer as a
condition to payment shall be a violation of this Act and shall be void.
(Source: P.A. 91‑443, eff. 8‑6‑99; 92‑109, eff. 7‑20‑01.)
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(820 ILCS 115/10) (from Ch. 48, par. 39m‑10)
Sec. 10.
Employers shall notify employees, at the time of hiring, of the rate
of pay and of the time and place of payment.
Whenever possible, such notification shall be in writing and shall be acknowledged
by both parties.
Employers shall also notify employees of any changes in the arrangements,
specified above, prior to
the time of change. Employers shall keep records of names and addresses
of all employees and of wages paid each payday, and shall furnish each
employee with an itemized statement of deductions made from his wages
for each pay period. Every employer shall post and keep posted at each
regular place of business in a position easily accessible to all
employees one or more notices indicating the regular paydays and the
place and time for payment of his employees, and on forms supplied from
time to time by the Department of Labor containing a copy or summary of
the provisions of this Act.
(Source: P.A. 81‑593.)
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(820 ILCS 115/11) (from Ch. 48, par. 39m‑11)
Sec. 11.
It shall be the duty of the Department of Labor to inquire diligently
for any violations of this Act, and to institute the actions for penalties
herein provided, and to enforce generally the provisions of this Act.
The department shall have the following powers:
(a) To investigate and attempt equitably to adjust controversies between
employees and employers in respect of wage claims arising under this Act
and to that end the department through the Director of Labor or any other
person in the Department of Labor designated by him or her, shall have the
power to administer oaths, subpoena and examine witnesses, to issue subpoenas
duces tecum requiring the production of such books, papers, records and
documents as may be evidence of any matter under inquiry and to examine and
inspect the same as may relate to the question in dispute. Service of such
subpoenas shall be made by any sheriff or any person. Any
court in this State, upon the application of the department
may compel attendance of witnesses, the
production of books and papers, and the giving of testimony before the
department by attachment for contempt or in any other way as the production
of evidence may be compelled before such court.
(b) To take assignments of wage claims in the name of the Director of
Labor and his or her successors in office and prosecute actions for the
collection of wages for persons financially unable to prosecute such claims when in
the judgment of the department such claims are valid and enforceable in the
courts. No court costs or any fees for necessary process and
proceedings shall be payable in advance by the department for prosecuting
such actions. In the event there is a judgment rendered against the
defendant, the court shall assess as part of such judgment the costs of
such proceeding. Upon collection of such judgments the department shall pay
from the proceeds of such judgment such costs to such person who is by law
entitled to same. The department may join in a single proceeding any number
of wage claims against the same employer but the court shall have
discretionary power to order a severance or separate trial for hearings.
(c) To make complaint in any court of competent jurisdiction of
violations of this Act.
Nothing herein shall be construed to prevent any employee from making
complaint or prosecuting his or her own claim for wages.
Nothing herein shall be construed to limit the authority of the State's
attorney of any county to prosecute actions for violation of this Act or
to enforce the provisions thereof independently and without specific direction
of the Department of Labor.
(Source: P.A. 83‑1362.)
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(820 ILCS 115/12) (from Ch. 48, par. 39m‑12)
Sec. 12.
The Director of Labor or his authorized representatives shall
administer and enforce the provisions of this Act. In order to accomplish the
objectives of this Act and to carry out the duties prescribed by this Act,
the Director of Labor or his authorized representative shall, within one
year from the effective date of this amendatory Act of 1991, promulgate
rules and regulations necessary to administer and enforce the provisions of
this Act including the procedures that shall be followed for hearings under
Section 6 of this Act. The adoption, amendment or rescission of rules and
regulations shall be in conformity with the requirements of the Illinois
Administrative Procedure Act.
(Source: P.A. 87‑349.)
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(820 ILCS 115/13) (from Ch. 48, par. 39m‑13)
Sec. 13.
Any officers of a corporation or agents of an employer who knowingly
permit such employer to violate the provisions of this Act shall be deemed
to be the employers of the employees of the corporation.
(Source: P.A. 78‑914.)
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(820 ILCS 115/14) (from Ch. 48, par. 39m‑14)
Sec. 14.
(a) Any employer or any agent of an employer, who, being able to pay wages,
final compensation, or wage supplements and being under a duty to pay,
wilfully refuses to pay as provided in this Act, or falsely denies the
amount or validity thereof or that the same is due, with intent to secure
for himself or other person any underpayment of such indebtedness or with
intent to annoy, harass, oppress, hinder, delay or defraud the person to
whom such indebtedness is due, upon conviction, is guilty of a Class C
misdemeanor. Each day during which any violation of this Act continues
shall constitute a separate and distinct offense.
(b) Any employer who has been ordered by the Director of Labor or the court
to pay wages due an employee and who shall fail to do so within 15 days
after such order is entered shall be liable to pay a penalty of 1% per
calendar day to the employee for each day of delay in paying such wages to
the employee up to an amount equal to twice the sum of unpaid wages due the
employee.
(c) Any employer, or any agent of an employer, who knowingly discharges
or in any other manner knowingly discriminates against any employee because
that employee
has made a complaint to his employer, or to the Director of Labor or his
authorized representative, that he or she has not been paid in accordance
with the provisions of this Act, or because that employee has caused to
be instituted any proceeding under or related to this Act, or because that
employee has testified or is about to testify in an investigation or proceeding
under this Act, is guilty, upon conviction, of a Class C misdemeanor.
(Source: P.A. 83‑202.)
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(820 ILCS 115/15) (from Ch. 48, par. 39m‑15)
Sec. 15.
This Act shall be known and may be cited as the Illinois Wage Payment and Collection Act.
(Source: P.A. 78‑914.)
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