Sen. Cristina Castro
Filed: 2/22/2022
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1 | AMENDMENT TO SENATE BILL 840
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2 | AMENDMENT NO. ______. Amend Senate Bill 840 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Illinois Wage Payment and Collection Act | ||||||
5 | is amended by changing Sections 4 and 14.5 and by adding | ||||||
6 | Section 4.2 as follows:
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7 | (820 ILCS 115/4) (from Ch. 48, par. 39m-4)
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8 | Sec. 4.
All wages earned by any employee during a | ||||||
9 | semi-monthly or bi-weekly
pay period shall be paid to such | ||||||
10 | employee not later than 13 days after
the end of the pay period | ||||||
11 | in which such wages were earned. All wages
earned by any | ||||||
12 | employee during a weekly pay period shall be paid not
later | ||||||
13 | than 7 days after the end of the weekly pay period in which the
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14 | wages were earned. All wages paid on a daily basis shall be | ||||||
15 | paid insofar
as possible on the same day as the wages were | ||||||
16 | earned, or not later in
any event than 24 hours after the day |
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1 | on which the wages were earned.
Wages of executive, | ||||||
2 | administrative and professional employees, as
defined in the | ||||||
3 | Federal Fair Labor Standards Act of 1938, may be paid on
or | ||||||
4 | before 21 calendar days after the period during which they are
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5 | earned.
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6 | The terms of this Section shall not apply, if there exists | ||||||
7 | a valid
collective bargaining agreement which provides for a | ||||||
8 | different date or
for different arrangements for the payment | ||||||
9 | of wages.
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10 | Employers shall pay to workers on strike or layoff, no | ||||||
11 | later than the
next regular payday, all wages earned up to the | ||||||
12 | time of such strike or
layoff.
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13 | Any employee who is absent at the time fixed for payment, | ||||||
14 | or who for
any other reason is not paid at that time, shall be | ||||||
15 | paid upon demand at
any time within a period of 5 days after | ||||||
16 | the time fixed for payment; and
after the expiration of the 5 | ||||||
17 | day period, payment shall be made upon 5
days demand. Payment | ||||||
18 | to the absent employee shall be made by mail if the
employee so | ||||||
19 | requests in writing.
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20 | All wages and final compensation shall be paid in lawful | ||||||
21 | money of the
United States, by check, redeemable upon demand | ||||||
22 | and without discount
at a bank or other financial institution | ||||||
23 | readily available to the
employee, by deposit of funds in an | ||||||
24 | account in a bank or other financial
institution designated by | ||||||
25 | the employee , or by a payroll card that meets the requirements | ||||||
26 | of Section 14.5. An employer may, but is not required to, offer |
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1 | the additional option of wage payment by check, redeemable | ||||||
2 | upon demand and without discount at a bank or other financial | ||||||
3 | institution readily available to the employee.
No employer may | ||||||
4 | designate a particular financial institution, bank, savings
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5 | bank, savings and loan, or currency exchange for the exclusive | ||||||
6 | payment or
deposit of a
check for wages. No financial | ||||||
7 | institution, bank, savings bank, savings and
loan, or currency | ||||||
8 | exchange shall refuse to honor a check for wages that
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9 | exclusively designates, in violation of this Section, a | ||||||
10 | particular bank,
savings bank,
savings and loan, or currency | ||||||
11 | exchange as the exclusive place of payment or
deposit except | ||||||
12 | to the extent the bank, savings bank, savings and loan, or
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13 | currency exchange is otherwise excused from honoring the check | ||||||
14 | under
Section 3-111 of the Uniform Commercial Code because the | ||||||
15 | bank, savings bank,
savings and loan, or currency exchange is | ||||||
16 | not the drawee or the maker of the
check.
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17 | (Source: P.A. 98-862, eff. 1-1-15 .)
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18 | (820 ILCS 115/4.2 new) | ||||||
19 | Sec. 4.2. Requiring direct deposit or payroll card. | ||||||
20 | Employers may require employees to receive wages by either | ||||||
21 | direct deposit or by a payroll card that meets the | ||||||
22 | requirements of Section 14.5 if the employer has done all of | ||||||
23 | the following: | ||||||
24 | (1) provide the employee a form that allows the | ||||||
25 | employee the option to receive wages by direct deposit or |
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1 | payroll card and includes a statement on the form | ||||||
2 | indicating that failure to return the form within 3 days | ||||||
3 | will default to receiving their wages through payroll | ||||||
4 | card; and | ||||||
5 | (2) provide employees with an adequate way to obtain | ||||||
6 | their pay stub electronically or via paper statement that | ||||||
7 | can be printed at the employer worksite if they opt in | ||||||
8 | through the form described in this Section. | ||||||
9 | (820 ILCS 115/14.5) | ||||||
10 | Sec. 14.5. Payroll cards. An employer using a payroll card | ||||||
11 | to pay an employee's wages shall meet the following | ||||||
12 | requirements: | ||||||
13 | (1) The employer shall not make receipt of wages by | ||||||
14 | payroll card a condition of employment or a condition for | ||||||
15 | the receipt of any benefit or other form of remuneration | ||||||
16 | for any employee without the additional option of direct | ||||||
17 | deposit, at the employee's election . | ||||||
18 | (2) The employer shall not initiate payment of wages | ||||||
19 | to the employee by electronic fund transfer to a payroll | ||||||
20 | card account unless: | ||||||
21 | (A) the employer provides the employee with a | ||||||
22 | clear and conspicuous written disclosure notifying the | ||||||
23 | employee that payment by payroll card is voluntary, | ||||||
24 | listing the other method or methods of payment offered | ||||||
25 | by the employer in accordance with Section 4, and |
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1 | explaining the terms and conditions of the payroll | ||||||
2 | card account option, including: | ||||||
3 | (i) an itemized list of all fees that may be | ||||||
4 | deducted from the employee's payroll card account | ||||||
5 | by the employer or payroll card issuer; | ||||||
6 | (ii) a notice that third parties may assess | ||||||
7 | transaction fees in addition to the fees assessed | ||||||
8 | by the employee's payroll card issuer; and | ||||||
9 | (iii) an explanation of how the employee may | ||||||
10 | obtain, at no cost, the employee's net wages, | ||||||
11 | check the account balance, and request to receive | ||||||
12 | paper or electronic transaction histories, as | ||||||
13 | provided in item (3); | ||||||
14 | (B) the employer also offers the employee another | ||||||
15 | method or methods of payment in compliance with | ||||||
16 | Section 4; and | ||||||
17 | (C) (blank). the employer obtains the employee's | ||||||
18 | voluntary written or electronic consent to receive the | ||||||
19 | wages by payroll card. | ||||||
20 | (3) A payroll card program offered by the employer | ||||||
21 | shall provide the employee with: | ||||||
22 | (A) at least one method of withdrawing the | ||||||
23 | employee's full net wages from the payroll card once | ||||||
24 | per pay period, but not less than twice per month, at | ||||||
25 | no cost to the employee, at a location readily | ||||||
26 | available to the employee; |
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1 | (B) at the employee's request, one transaction | ||||||
2 | history, which the employee may request to receive in | ||||||
3 | paper or electronic form, each month that includes all | ||||||
4 | deposits, withdrawals, deductions, or charges by any | ||||||
5 | entity from or to the employee's payroll card account | ||||||
6 | at no cost to the employee; and | ||||||
7 | (C) unlimited telephone access to obtain the | ||||||
8 | payroll card account balance on the payroll card at | ||||||
9 | any time without incurring a fee. | ||||||
10 | (4) An employer may not use a payroll card program | ||||||
11 | that charges fees for point of sale transactions, the | ||||||
12 | application, initiation, loading of wages by the employer, | ||||||
13 | or participation in the payroll card program. Fees for | ||||||
14 | account inactivity may be assessed following one year of | ||||||
15 | inactivity. The payroll card program must offer the | ||||||
16 | employee a declined transaction, at no cost to the | ||||||
17 | employee, twice per month. Commercially reasonable fees, | ||||||
18 | limited to cover the costs to process declined | ||||||
19 | transactions, may be assessed on subsequent declined | ||||||
20 | transactions within that particular month. | ||||||
21 | (5) The payroll card or payroll card account may not | ||||||
22 | be linked to any form of credit including, but not limited | ||||||
23 | to, overdraft fees or overdraft service fees, a loan | ||||||
24 | against future pay, or a cash advance on future pay or work | ||||||
25 | not yet performed , except that early payment of wages | ||||||
26 | verified to have been already earned in the current pay |
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1 | period is permitted . | ||||||
2 | (6) An employee paid wages by payroll card may request | ||||||
3 | to be paid wages by another method of payment provided by | ||||||
4 | the employer in accordance with Sections Section 4 and | ||||||
5 | 4.2 . Following the request, the employer shall, within 2 | ||||||
6 | pay periods, begin payment to the employee by the | ||||||
7 | allowable method requested by the employee. | ||||||
8 | (7) A payroll card program offered by an employer | ||||||
9 | shall provide the employee with protections from | ||||||
10 | unauthorized use of the payroll card in accordance with | ||||||
11 | State and federal law concerning electronic fund | ||||||
12 | transfers. | ||||||
13 | (8) The employer's obligations under this Section | ||||||
14 | shall cease 60 days after the employer-employee | ||||||
15 | relationship has ended and the employee has been paid the | ||||||
16 | employee's full and final wages. | ||||||
17 | (9) Within 30 days of the termination of the | ||||||
18 | employer-employee relationship, the employer shall notify | ||||||
19 | the employee that the terms and conditions of the account | ||||||
20 | may change if the employee chooses to continue a | ||||||
21 | relationship with the payroll card issuer.
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22 | (Source: P.A. 98-862, eff. 1-1-15 .)".
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