Rep. Lisa M. Dugan

Filed: 3/11/2011

 

 


 

 


 
09700HB1513ham001LRB097 10175 AEK 52703 a

1
AMENDMENT TO HOUSE BILL 1513

2    AMENDMENT NO. ______. Amend House Bill 1513 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Wage Payment and Collection Act is
5amended by changing Section 9 as follows:
 
6    (820 ILCS 115/9)  (from Ch. 48, par. 39m-9)
7    Sec. 9. Except as hereinafter provided, deductions by
8employers from wages or final compensation are prohibited
9unless such deductions are (1) required by law; (2) to the
10benefit of the employee; (3) in response to a valid wage
11assignment or wage deduction order; (4) made with the express
12written consent of the employee, given freely at the time the
13deduction is made; (5) made by a municipality with a population
14of 500,000 or more, a county with a population of 3,000,000 or
15more, a community college district in a city with a population
16of 500,000 or more, a housing authority in a municipality with

 

 

09700HB1513ham001- 2 -LRB097 10175 AEK 52703 a

1a population of 500,000 or more, the Chicago Park District, the
2Metropolitan Transit Authority, the Chicago Board of
3Education, the Cook County Forest Preserve District, or the
4Metropolitan Water Reclamation District to pay a debt owed by
5the employee to a municipality with a population of 500,000 or
6more, a county with a population of 3,000,000 or more, the Cook
7County Forest Preserve, the Chicago Park District, the
8Metropolitan Water Reclamation District, the Chicago Transit
9Authority, the Chicago Board of Education, or a housing
10authority of a municipality with a population of 500,000 or
11more; provided, however, that the amount deducted from any one
12salary or wage payment shall not exceed 25% of the net amount
13of the payment; or (6) made by a housing authority in a
14municipality with a population of 500,000 or more or a
15municipality with a population of 500,000 or more to pay a debt
16owed by the employee to a housing authority in a municipality
17with a population of 500,000 or more; provided, however, that
18the amount deducted from any one salary or wage payment shall
19not exceed 25% of the net amount of the payment. Before the
20municipality with a population of 500,000 or more, the
21community college district in a city with a population of
22500,000 or more, the Chicago Park District, the Metropolitan
23Transit Authority, a housing authority in a municipality with a
24population of 500,000 or more, the Chicago Board of Education,
25the county with a population of 3,000,000 or more, the Cook
26County Forest Preserve District, or the Metropolitan Water

 

 

09700HB1513ham001- 3 -LRB097 10175 AEK 52703 a

1Reclamation District deducts any amount from any salary or wage
2of an employee to pay a debt owed to a municipality with a
3population of 500,000 or more, a county with a population of
43,000,000 or more, the Cook County Forest Preserve District,
5the Chicago Park District, the Metropolitan Water Reclamation
6District, the Chicago Transit Authority, the Chicago Board of
7Education, or a housing authority of a municipality with a
8population of 500,000 or more under this Section, the
9municipality, the county, the Cook County Forest Preserve
10District, the Chicago Park District, the Metropolitan Water
11Reclamation District, the Chicago Transit Authority, the
12Chicago Board of Education, or a housing authority of a
13municipality with a population of 500,000 or more shall certify
14that (i) the employee has been afforded an opportunity for a
15hearing to dispute the debt that is due and owing the
16municipality, the county, the Cook County Forest Preserve
17District, the Chicago Park District, the Metropolitan Water
18Reclamation District, the Chicago Transit Authority, the
19Chicago Board of Education, or a housing authority of a
20municipality with a population of 500,000 or more and (ii) the
21employee has received notice of a wage deduction order and has
22been afforded an opportunity for a hearing to object to the
23order. Before a housing authority in a municipality with a
24population of 500,000 or more or a municipality with a
25population of 500,000 or more, a county with a population of
263,000,000 or more, the Cook County Forest Preserve District,

 

 

09700HB1513ham001- 4 -LRB097 10175 AEK 52703 a

1the Chicago Park District, the Metropolitan Water Reclamation
2District, the Chicago Transit Authority, the Chicago Board of
3Education, or a housing authority of a municipality with a
4population of 500,000 or more deducts any amount from any
5salary or wage of an employee to pay a debt owed to a housing
6authority in a municipality with a population of 500,000 or
7more under this Section, the housing authority shall certify
8that (i) the employee has been afforded an opportunity for a
9hearing to dispute the debt that is due and owing the housing
10authority and (ii) the employee has received notice of a wage
11deduction order and has been afforded an opportunity for a
12hearing to object to the order. For purposes of this Section,
13"net amount" means that part of the salary or wage payment
14remaining after the deduction of any amounts required by law to
15be deducted and "debt due and owing" means (i) a specified sum
16of money owed to the municipality, county, the Cook County
17Forest Preserve District, the Chicago Park District, the
18Metropolitan Water Reclamation District, the Chicago Transit
19Authority, the Chicago Board of Education, or housing authority
20for services, work, or goods, after the period granted for
21payment has expired, or (ii) a specified sum of money owed to
22the municipality, county, the Cook County Forest Preserve
23District, the Chicago Park District, the Metropolitan Water
24Reclamation District, the Chicago Transit Authority, the
25Chicago Board of Education or housing authority pursuant to a
26court order or order of an administrative hearing officer after

 

 

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1the exhaustion of, or the failure to exhaust, judicial review;
2(7) the result of an excess payment made due to, but not
3limited to, a typographical or mathematical error made by a
4municipality with a population of less than 500,000 or to
5collect a debt owed to a municipality with a population of less
6than 500,000 after notice to the employee and an opportunity to
7be heard; provided, however, that the amount deducted from any
8one salary or wage payment shall not exceed 15% of the net
9amount of the payment. Before the municipality deducts any
10amount from any salary or wage of an employee to pay a debt
11owed to the municipality, the municipality shall certify that
12(i) the employee has been afforded an opportunity for a
13hearing, conducted by the municipality, to dispute the debt
14that is due and owing the municipality, and (ii) the employee
15has received notice of a wage deduction order and has been
16afforded an opportunity for a hearing, conducted by the
17municipality, to object to the order. For purposes of this
18Section, "net amount" means that part of the salary or wage
19payment remaining after the deduction of any amounts required
20by law to be deducted and "debt due and owing" means (i) a
21specified sum of money owed to the municipality for services,
22work, or goods, after the period granted for payment has
23expired, or (ii) a specified sum of money owed to the
24municipality pursuant to a court order or order of an
25administrative hearing officer after the exhaustion of, or the
26failure to exhaust, judicial review. Where the legitimacy of

 

 

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1any deduction from wages is in dispute, the amount in question
2may be withheld if the employer notifies the Department of
3Labor on the date the payment is due in writing of the amount
4that is being withheld and stating the reasons for which the
5payment is withheld. Upon such notification the Department of
6Labor shall conduct an investigation and render a judgment as
7promptly as possible, and shall complete such investigation
8within 30 days of receipt of the notification by the employer
9that wages have been withheld. The employer shall pay the wages
10due upon order of the Department of Labor within 15 calendar
11days of issuance of a judgment on the dispute.
12    The Department shall establish rules to protect the
13interests of both parties in cases of disputed deductions from
14wages. Such rules shall include reasonable limitations on the
15amount of deductions beyond those required by law which may be
16made during any pay period by any employer.
17    In case of a dispute over wages, the employer shall pay,
18without condition and within the time set by this Act, all
19wages or parts thereof, conceded by him to be due, leaving to
20the employee all remedies to which he may otherwise be entitled
21as to any balance claimed. The acceptance by an employee of a
22disputed paycheck shall not constitute a release as to the
23balance of his claim and any release or restrictive endorsement
24required by an employer as a condition to payment shall be a
25violation of this Act and shall be void.
26(Source: P.A. 91-443, eff. 8-6-99; 92-109, eff. 7-20-01.)".