(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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control and direction over the performance
of his work, both under his contract of service
with his employer and in fact; and
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(2)
who performs work which is either outside the
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usual course of business or is performed
outside all of the places of business of the
employer unless the employer is in the business
of contracting with third parties for the placement
of employees; and
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(3)
who is in an independently established trade,
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occupation,
profession or business.
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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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