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

 
 
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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 
 
 
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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, 
 
 
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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.)".