(740 ILCS 170/.01)(from Ch. 48, par. 39.01) Sec. .01. Short Title. This Act shall be known and may be cited as
the Illinois Wage Assignment Act. (Source: P.A. 83‑867.)
(740 ILCS 170/1)(from Ch. 48, par. 39.1) Sec. 1. No assignment of wages earned or to be earned is valid unless (1) Made in a written instrument (a) signed by the wage‑earner in person
and (b) bearing the date of its execution, the social security number of
the wage‑earner, the name of the employer of the wage‑earner at the time of
its execution, the amount of the money loaned or the price of the articles
sold or other consideration given, the rate of interest or time‑price
differential, if any, to be paid, and the date when such payments are due; (2) Given to secure an existing debt of the wage‑earner or one
contracted by the wage‑earner simultaneously with its execution; (3) An exact copy thereof is furnished to the wage‑earner at the time
the assignment is executed; (4) The words "Wage Assignment" are printed or written in bold face
letters of not less than 1/4 inch in height at the head of the wage
assignment and also one inch above or below the line where the wage‑earner
signs that assignment; (5) Written as a separate instrument complete in itself and not a part
of any conditional sales contract or any other instrument. The requirement of the social security number of the wage‑earner imposed
by this Act applies only as to wage assignments made after January 1, 1966. (Source: Laws 1967, p. 2049.)
(740 ILCS 170/2)(from Ch. 48, par. 39.2) Sec. 2. Demand on an employer for the wages of wage‑earner by virtue of a
wage assignment may not be served on the employer unless: (1) There has been a default of more than 40 days in
payment of the indebtedness secured by the assignment and the default has continued to the date of the demand;
(2) The demand contains a correct statement as to
the amount the wage‑earner is in default and the original or a photostatic copy of the assignment is exhibited to the employer; and
(3) Not less than 20 days before serving the demand,
a notice of intention to make the demand has been served upon the employee, and an advice copy sent to the employer, by registered or certified mail.
Service of any demand without complying with this Section has no legal
effect. A demand under this Section applies only to wages due at the time of
service of the demand and upon subsequent wages until the total amount due
under the assignment is paid or until the expiration of the employer's
payroll period ending immediately prior to 84 days after service of
such demand, whichever first occurs. (Source: P.A. 88‑395.)
(740 ILCS 170/2.1)(from Ch. 48, par. 39.2a) Sec. 2.1. A demand shall be in the following form: "Demand is hereby made upon an assignment of salary, wages, commissions
or other compensation for services, executed by .... and delivered to ....
on (insert date), to secure a debt
contracted on (insert date). The total amount of the debt is $..... Payments in the amount of $....
have been made. The duration of the contract is .... months. There is now
due and owing without acceleration the sum of $...., the last payment
having been made on (insert date). The employee herein named has been in default in his payments in the
amount of $...., of which $.... has been due and owing for more than 40
days. Unless you have received within the past 20 days, or do receive within 5
days after the service hereof, a notice of defense from the employee herein
named, you are required by law to make payment in accordance with such
assignment. ...., first being duly sworn, deposes and says that the facts
stated in the demand above are true and correct; and further deposes and
says that he (or his principal, if he is an agent for the assignee) has no
notice of any defenses of the debtor.
...........................
Subscribed and sworn to before me on (insert date).
...........................
Notary Public".
(Source: P.A. 91‑357, eff. 7‑29‑99.)
(740 ILCS 170/2.2)(from Ch. 48, par. 39.2b) Sec. 2.2. The notice to an employee required by Section 2 shall be in the
following form: "NOTICE OF INTENT TO ASSIGN WAGESThis notice is required by the Illinois Wage Assignment Act. The notice
has been sent to tell you that a creditor (name and address listed below)
plans to have your wages assigned. This notice contains important information.
You should read the entire notice carefully. WHY THE CREDITOR WANTS TO ASSIGN YOUR WAGESYou signed a wage assignment on ....... (date) .......
The wage assignment was signed as security if you failed to make payment
on the contract you signed on ......... (date) ..........
A copy of the wage assignment is attached. The creditor's records show
that you have not made a payment since ......... (date) ....... and that
you now owe $........ on the contract. The creditor will send
a demand for wages to your employer 20 days from the date you receive this. WHAT YOU CAN DO TO PREVENT YOUR WAGES FROM BEING ASSIGNEDIf you have a legal defense to the wage assignment you can stop the wage
assignment by filling out the enclosed Notice of Defense Form and (1) sending
it to the creditor by registered or certified mail and (2) giving a copy to
your employer. You must do those 2 things within 20 days of receiving this
notice. You have the right to contact an attorney concerning the wage assignment.
In the event a false defense is made, you will be subject to payment of
attorneys' fees, court costs and other expenses. The creditor's name and address are: ...................... ...................... ......................
......................
(Signed by)"
(Source: P.A. 83‑867.)
(740 ILCS 170/3)(from Ch. 48, par. 39.3) Sec. 3. No assignment of wages shall become invalid by reason of cessation
of employment but shall be valid and collectible against any future
employer of the wage‑earner within a period of 2 years from the date of its
execution. (Source: Laws 1961, p. 1891.)
(740 ILCS 170/4)(from Ch. 48, par. 39.4) Sec. 4. The maximum wages, salary, commissions, and bonuses that may be
collected by an assignee for any work week shall not exceed the lesser of (1)
15% of such gross amount paid for that week or (2) the amount by which
disposable earnings for a week exceed 45 times the Federal Minimum Hourly Wage
prescribed by Section 206(a)(1) of Title 29, U.S.C., as amended, or the minimum hourly wage prescribed by Section 4 of the Minimum Wage Law, whichever is greater, in effect at
the time the amounts are payable. This provision (and no other) applies
irrespective of the place where the compensation was earned or payable and the
State where the employee resides. No amounts required by law to be withheld
may be taken from the amount collected by the creditor. The term "disposable
earnings" means that part of the earnings of any individual remaining after the
deduction from those earnings of any amounts required by law to be withheld.
If there is more than one assignment demand received by the employer, the
assignees shall collect in the order or priority of service of the demand upon
the employer, but the total of all collections shall not exceed the amount that
could have been collected if there had been one assignment demand. Benefits and refunds payable by pension or retirement funds or systems, any
assets of employees held by those funds or systems, and any moneys an employee
is required to contribute to those funds or systems are exempt and are not
subject to a wage assignment under this Act. A fee of $12 for each wage assignment shall be collected by and paid to the
employer and the amount so paid shall be credited against the amount of the
wage‑earner's outstanding debt. (Source: P.A. 94‑305, eff. 7‑21‑05.)
(740 ILCS 170/4.1)(from Ch. 48, par. 39.4a) Sec. 4.1. Within 20 days after receiving the notice required by Section 2
or within 5 days after service of the demand, the employee may notify his
employer, in writing, of any defense he may have to the wage assignment. A
copy of such notice shall be served upon the creditor by registered or
certified mail. If served upon the creditor prior to the creditor's service
of demand upon the employer, such demand shall not be served by the
creditor. The notice shall be by affidavit and shall be in substantially
the following form: "I, ...., hereby (swear) (affirm) that I have a bona fide defense to the
claim of ...., which claim is based on a debt contracted on (insert date), and for security on which debt a wage
assignment was executed.
..............................
Address for service of summons
..............................
Employee
Subscribed and sworn to before me on (insert date).
............................."
Notary Public
(Source: P.A. 91‑357, eff. 7‑29‑99.)
(740 ILCS 170/4.2)(from Ch. 48, par. 39.4b) Sec. 4.2. If the employee has not given notice of defense as provided in this Act
within 20 days after receiving the notice of intention to make a demand,
the creditor may proceed with his demand, and the employer shall commence
payment to the creditor not sooner than 5 business days after service of
such demand, unless a notice of defense is received within that 5 day
period. If the employee cures the default stated in the demand, the
creditor shall notify the employer and release the demand. No employer
shall be liable for payments made in compliance with this Section. If a notice of defense is received by an employer within the period
specified in Section 4.1, no wages are subject to a demand served by the
creditor described in that notice of defense; unless the employer receives
a copy of a subsequent written agreement between the creditor and employee
authorizing such payments. If such an agreement is not reached, the
creditor may not institute further proceedings on the wage assignment. If a
notice of defense has been given, service of summons in any subsequent
proceeding on the debt for which the wage assignment was given as security
may be made by registered or certified mail. (Source: Laws 1967, p. 2049.)
(740 ILCS 170/4.3)(from Ch. 48, par. 39.4c) Sec. 4.3. If any person wrongfully: (1) serves a notice on an employee
or serves a notice which does not conform with the requirements of Section
2.2, (2) causes a demand to be served for the
wages of an employee, or (3) fails to release a demand, he shall be
liable to the employee and the employer for statutory damages
in the sum of $500 and all actual damages occasioned by such
action including reasonable attorney's fees. (Source: P.A. 83‑867.)
(740 ILCS 170/5)(from Ch. 48, par. 39.5) Sec. 5. A discharge in bankruptcy shall be a valid defense to any suit
brought upon a wage assignment executed by the bankrupt prior to the
adjudication in bankruptcy; no assignment of wages shall be valid after
three years from the date of its execution and shall be void after such
period of three years. (Source: Laws 1935, p. 208.)
(740 ILCS 170/6)(from Ch. 48, par. 39.6) Sec. 6. Any person who wilfully and wrongfully serves a demand as assignee
for wages when no assignment has been made to him or under an assignment
which is invalid as provided by this Act knowing such assignment to be
invalid with intent to obtain for himself or any other person the wages of
an employee, is guilty of a petty offense. (Source: P. A. 77‑2422.)
(740 ILCS 170/7)(from Ch. 48, par. 39.7) Sec. 7. If any of the provisions of this Act are unconstitutional it is the
intent of the General Assembly that so far as possible the remaining
provisions of the Act be given effect. (Source: Laws 1935, p. 208.)
(740 ILCS 170/8)(from Ch. 48, par. 39.8) Sec. 8. Nothing herein contained shall be construed as making invalid
any assignment of wages executed prior to July 1, 1935. (Source: Laws 1935, p. 208.)
(740 ILCS 170/9)(from Ch. 48, par. 39.10) Sec. 9. All wages, salary amounts or other compensation paid
by the State, any unit of local government or school district to any of
its employees are exempt and not subject to collection under a wage assignment. (Source: P.A. 79‑502.)
(740 ILCS 170/10)(from Ch. 48, par. 39.11) Sec. 10. No employer may discharge or suspend any employee by
reason of the fact that his earnings have been subjected to wage demands on his
employer for any indebtedness. Any person violating this Section shall be
guilty of a Class A misdemeanor. (Source: P.A. 79‑502.)
(740 ILCS 170/11)(from Ch. 48, par. 39.12) Sec. 11. The provisions of this Act do not apply to orders for withholding
of income entered by the court under provisions of The Illinois Public Aid
Code, the Illinois Marriage and Dissolution of Marriage Act, the Non‑Support
of Spouse and Children Act, the Non‑Support Punishment Act, the Revised
Uniform Reciprocal Enforcement of Support Act and the Paternity Act for support
of a child or maintenance of a spouse. (Source: P.A. 91‑613, eff. 10‑1‑99.)
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