Public Act 097-0120
 
HB1513 EnrolledLRB097 10175 KMW 50365 b

    AN ACT concerning local government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Wage Payment and Collection Act is
amended by changing Section 9 as follows:
 
    (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;
(7) the result of an excess payment made due to, but not
limited to, a typographical or mathematical error made by a
municipality with a population of less than 500,000 or to
collect a debt owed to a municipality with a population of less
than 500,000 after notice to the employee and an opportunity to
be heard; provided, however, that the amount deducted from any
one salary or wage payment shall not exceed 15% of the net
amount of the payment. Before the municipality deducts any
amount from any salary or wage of an employee to pay a debt
owed to the municipality, the municipality shall certify that
(i) the employee has been afforded an opportunity for a
hearing, conducted by the municipality, to dispute the debt
that is due and owing the municipality, and (ii) the employee
has received notice of a wage deduction order and has been
afforded an opportunity for a hearing, conducted by the
municipality, 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 for services,
work, or goods, after the period granted for payment has
expired, or (ii) a specified sum of money owed to the
municipality 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.)