103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3227

 

Introduced 2/17/2023, by Rep. Marcus C. Evans, Jr.

 

SYNOPSIS AS INTRODUCED:
 
765 ILCS 1026/15-201
820 ILCS 105/12  from Ch. 48, par. 1012
820 ILCS 115/11.5
820 ILCS 115/14  from Ch. 48, par. 39m-14

    Amends the Minimum Wage Law and the Illinois Wage Payment and Collection Act. Provides that wages recovered by the Department of Labor shall be deposited into the Department of Labor Special State Trust Fund, from which the Department shall disburse the sums owed to the employee or employees. Provides that the Department shall conduct a good faith search to find all employees for whom it has recovered unpaid minimum wages or unpaid overtime compensation. Provides that beginning July 1, 2023, or as soon as is practical, and each July 1 thereafter, the Department may direct the State Comptroller and State Treasurer to transfer up to 15% of the balance of the moneys due to employees who cannot be located and that have been held by the Department in the Department of Labor Special State Trust Fund for 3 or more years from the Department of Labor Special State Trust Fund to the Wage Theft Enforcement Fund. Makes other changes. Amends the Revised Uniform Unclaimed Property Act to make conforming changes. Effective immediately.


LRB103 30108 SPS 56532 b

 

 

A BILL FOR

 

HB3227LRB103 30108 SPS 56532 b

1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Revised Uniform Unclaimed Property Act is
5amended by changing Section 15-201 of the Act as follows:
 
6    (765 ILCS 1026/15-201)
7    Sec. 15-201. When property presumed abandoned. Subject to
8Section 15-210, the following property is presumed abandoned
9if it is unclaimed by the apparent owner during the period
10specified below:
11        (1) a traveler's check, 15 years after issuance;
12        (2) a money order, 5 years after issuance;
13        (3) any instrument on which a financial organization
14    or business association is directly liable, other than a
15    money order, 3 years after issuance;
16        (4) a state or municipal bond, bearer bond, or
17    original-issue-discount bond, 3 years after the earliest
18    of the date the bond matures or is called or the obligation
19    to pay the principal of the bond arises;
20        (5) a debt of a business association, 3 years after
21    the obligation to pay arises;
22        (6) financial organization deposits as follows:
23            (i) a demand deposit, 3 years after the date of the

 

 

HB3227- 2 -LRB103 30108 SPS 56532 b

1        last indication of interest in the property by the
2        apparent owner;
3            (ii) a savings deposit, 3 years after the date of
4        last indication of interest in the property by the
5        apparent owner;
6            (iii) a time deposit for which the owner has not
7        consented to automatic renewal of the time deposit, 3
8        years after the later of maturity or the date of the
9        last indication of interest in the property by the
10        apparent owner;
11            (iv) an automatically renewable time deposit for
12        which the owner consented to the automatic renewal in
13        a record on file with the holder, 3 years after the
14        date of last indication of interest in the property by
15        the apparent owner, following the completion of the
16        initial term of the time deposit and one automatic
17        renewal term of the time deposit;
18        (6.5) virtual currency, 5 years after the last
19    indication of interest in the property;
20        (7) money or a credit owed to a customer as a result of
21    a retail business transaction, other than in-store credit
22    for returned merchandise, 3 years after the obligation
23    arose;
24        (8) an amount owed by an insurance company on a life or
25    endowment insurance policy or an annuity contract that has
26    matured or terminated, 3 years after the obligation to pay

 

 

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1    arose under the terms of the policy or contract or, if a
2    policy or contract for which an amount is owed on proof of
3    death has not matured by proof of the death of the insured
4    or annuitant, as follows:
5            (A) with respect to an amount owed on a life or
6        endowment insurance policy, the earlier of:
7                (i) 3 years after the death of the insured; or
8                (ii) 2 years after the insured has attained,
9            or would have attained if living, the limiting age
10            under the mortality table on which the reserve for
11            the policy is based; and
12            (B) with respect to an amount owed on an annuity
13        contract, 3 years after the death of the annuitant.
14        (9) funds on deposit or held in trust pursuant to the
15    Illinois Funeral or Burial Funds Act, the earliest of:
16            (A) 2 years after the date of death of the
17        beneficiary;
18            (B) one year after the date the beneficiary has
19        attained, or would have attained if living, the age of
20        105 where the holder does not know whether the
21        beneficiary is deceased;
22            (C) 40 years after the contract for prepayment was
23        executed, unless the apparent owner has indicated an
24        interest in the property more than 40 years after the
25        contract for prepayment was executed, in which case, 3
26        years after the last indication of interest in the

 

 

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1        property by the apparent owner;
2        (10) property distributable by a business association
3    in the course of dissolution or distributions from the
4    termination of a retirement plan, one year after the
5    property becomes distributable;
6        (11) property held by a court, including property
7    received as proceeds of a class action, 3 years after the
8    property becomes distributable;
9        (12) property held by a government or governmental
10    subdivision, agency, or instrumentality, including
11    municipal bond interest and unredeemed principal under the
12    administration of a paying agent or indenture trustee, 3
13    years after the property becomes distributable;
14        (13) wages, commissions, bonuses, or reimbursements to
15    which an employee is entitled, or other compensation for
16    personal services, including amounts held on a payroll
17    card, one year after the amount becomes payable, except as
18    provided in the Minimum Wage Law and the Illinois Wage
19    Payment and Collection Act;
20        (14) a deposit or refund owed to a subscriber by a
21    utility, one year after the deposit or refund becomes
22    payable, except that any capital credits or patronage
23    capital retired, returned, refunded or tendered to a
24    member of an electric cooperative, as defined in Section
25    3.4 of the Electric Supplier Act, or a telephone or
26    telecommunications cooperative, as defined in Section

 

 

HB3227- 5 -LRB103 30108 SPS 56532 b

1    13-212 of the Public Utilities Act, that has remained
2    unclaimed by the person appearing on the records of the
3    entitled cooperative for more than 2 years, shall not be
4    subject to, or governed by, any other provisions of this
5    Act, but rather shall be used by the cooperative for the
6    benefit of the general membership of the cooperative; and
7        (15) property not specified in this Section or
8    Sections 15-202 through 15-208, the earlier of 3 years
9    after the owner first has a right to demand the property or
10    the obligation to pay or distribute the property arises.
11    Notwithstanding anything to the contrary in this Section
1215-201, and subject to Section 15-210, a deceased owner cannot
13indicate interest in his or her property. If the owner is
14deceased and the abandonment period for the owner's property
15specified in this Section 15-201 is greater than 2 years, then
16the property, other than an amount owed by an insurance
17company on a life or endowment insurance policy or an annuity
18contract that has matured or terminated, shall instead be
19presumed abandoned 2 years from the date of the owner's last
20indication of interest in the property.
21(Source: P.A. 101-552, eff. 1-1-20; 102-288, eff. 8-6-21.)
 
22    Section 10. The Minimum Wage Law is amended by changing
23Section 12 as follows:
 
24    (820 ILCS 105/12)  (from Ch. 48, par. 1012)

 

 

HB3227- 6 -LRB103 30108 SPS 56532 b

1    Sec. 12. (a) If any employee is paid by his or her employer
2less than the wage to which he or she is entitled under the
3provisions of this Act, the employee may recover in a civil
4action treble the amount of any such underpayments together
5with costs and such reasonable attorney's fees as may be
6allowed by the Court, and damages of 5% of the amount of any
7such underpayments for each month following the date of
8payment during which such underpayments remain unpaid. Any
9agreement between the employee and the employer to work for
10less than such wage is no defense to such action. At the
11request of the employee or on motion of the Director of Labor,
12the Department of Labor may make an assignment of such wage
13claim in trust for the assigning employee and may bring any
14legal action necessary to collect such claim, and the employer
15shall be required to pay the costs incurred in collecting such
16claim. Every such action shall be brought within 3 years from
17the date of the underpayment. Such employer shall be liable to
18the Department of Labor for a penalty in an amount of up to 20%
19of the total employer's underpayment where the employer's
20conduct is proven by a preponderance of the evidence to be
21willful, repeated, or with reckless disregard of this Act or
22any rule adopted under this Act. Such employer shall be liable
23to the Department for an additional penalty of $1,500. All
24administrative penalties ordered under this Act shall be paid
25by certified check, money order, or an electronic payment
26system designated by the Department for such purposes and

 

 

HB3227- 7 -LRB103 30108 SPS 56532 b

1shall be made , payable to the Department's Wage Theft
2Enforcement Fund. Such employer shall be additionally liable
3to the employee for damages in the amount of 5% of the amount
4of any such underpayments for each month following the date of
5payment during which such underpayments remain unpaid. These
6penalties and damages may be recovered in a civil action
7brought by the Director of Labor in any circuit court. In any
8such action, the Director of Labor shall be represented by the
9Attorney General.
10    If an employee collects damages of 5% of the amount of
11underpayments as a result of an action brought by the Director
12of Labor, the employee may not also collect those damages in a
13private action brought by the employee for the same violation.
14If an employee collects damages of 5% of the amount of
15underpayments in a private action brought by the employee, the
16employee may not also collect those damages as a result of an
17action brought by the Director of Labor for the same
18violation.
19    (b) If an employee has not collected damages under
20subsection (a) for the same violation, the Director is
21authorized to supervise the payment of the unpaid minimum
22wages and the unpaid overtime compensation owing to any
23employee or employees under Sections 4 and 4a of this Act and
24may bring any legal action necessary to recover the amount of
25the unpaid minimum wages and unpaid overtime compensation and
26an equal additional amount as damages, and the employer shall

 

 

HB3227- 8 -LRB103 30108 SPS 56532 b

1be required to pay the costs incurred in collecting such
2claim. Such employer shall be additionally liable to the
3Department of Labor for up to 20% of the total employer's
4underpayment where the employer's conduct is proven by a
5preponderance of the evidence to be willful, repeated, or with
6reckless disregard of this Act or any rule adopted under this
7Act. Such employer shall be liable to the Department of Labor
8for an additional penalty of $1,500, payable to the
9Department's Wage Theft Enforcement Fund. The action shall be
10brought within 5 years from the date of the failure to pay the
11wages or compensation. Any sums thus recovered by the Director
12on behalf of an employee pursuant to this subsection shall be
13deposited into the Department of Labor Special State Trust
14Fund, from which the Department shall disburse the sums owed
15to the employee or employees. The Department shall conduct a
16good faith search to find all employees for whom it has
17recovered unpaid minimum wages or unpaid overtime
18compensation. All disbursements authorized under this Section
19shall be made by certified check, money order, or an
20electronic payment system designated by the Department paid to
21the employee or employees affected. Any sums which, more than
22one year after being thus recovered, the Director is unable to
23pay to an employee shall be deposited into the General Revenue
24Fund.
25    (c) The Department shall hold any moneys due to employees
26that it is unable to locate in the Department of Labor Special

 

 

HB3227- 9 -LRB103 30108 SPS 56532 b

1State Trust Fund for no less than 3 years after the moneys were
2collected.
3    Beginning July 1, 2023, or as soon as is practical, and
4each July 1 thereafter, the Department may direct the State
5Comptroller and State Treasurer to transfer up to 15% of the
6balance of the moneys due to employees who cannot be located
7and that have been held by the Department in the Department of
8Labor Special State Trust Fund for 3 or more years from the
9Department of Labor Special State Trust Fund to the Wage Theft
10Enforcement Fund. The Department may use moneys in the Wage
11Theft Enforcement Fund for the purposes described in Section
1214 of the Illinois Wage Payment and Collection Act.
13    (d) The Department may adopt rules to implement and
14administer this Section.
15(Source: P.A. 101-1, eff. 2-19-19.)
 
16    Section 15. The Illinois Wage Payment and Collection Act
17is amended by changing Sections 11.5 and 14 as follows:
 
18    (820 ILCS 115/11.5)
19    Sec. 11.5. Departmental wage recovery; remittance to
20aggrieved employee.
21    (a) Upon the recovery of unpaid wages, wage supplements,
22or final compensation from an employer that has violated this
23Act, the Department shall conduct a good faith search to find
24the aggrieved employee. If, after conducting a good faith

 

 

HB3227- 10 -LRB103 30108 SPS 56532 b

1search for the aggrieved employee, the Department is unable to
2find the aggrieved employee, the Department shall deposit the
3amount recovered into the Department of Labor Special State
4Trust Fund, from which the Department shall disburse the sums
5owed to the employee or employees. The Department shall
6conduct a good faith search to find all employees for whom it
7has recovered unpaid wages, wage supplements, or final
8compensation. All disbursements authorized under this Section
9shall be made by certified check, money order, or an
10electronic payment system designated by the Department.
11    (a-5) The Department shall hold any moneys due to
12employees that it is unable to locate in the Department of
13Labor Special State Trust Fund for no less than 3 years after
14the moneys were collected.
15    Beginning July 1, 2023, or as soon as is practical, and
16each July 1 thereafter, the Department may direct the State
17Comptroller and State Treasurer to transfer up to 15% of the
18balance of the moneys due to employees who cannot be located
19and that have been held by the Department in the Department of
20Labor Special State Trust Fund for 3 or more years from the
21Department of Labor Special State Trust Fund to the Wage Theft
22Enforcement Fund. The Department may use moneys in the Wage
23Theft Enforcement Fund for the purposes described in Section
2414 of the Illinois Wage Payment and Collection Act.
25    (b) An aggrieved employee may make a request to the
26Department in order to recover unpaid wages, wage supplements,

 

 

HB3227- 11 -LRB103 30108 SPS 56532 b

1or final compensation that has been deposited into the
2Department of Labor Special State Trust Fund. The Department
3shall not require the employee to present a Social Security
4number or proof of United States citizenship. For the purpose
5of paying claims under this Section from the Department of
6Labor Special State Trust Fund to aggrieved employees, the
7Comptroller shall assign a vendor payment number to the
8Department. When an aggrieved employee makes a valid request
9for payment to the Department, the Department shall use the
10vendor payment number to process payment on behalf of the
11aggrieved employee.
12    (c) The Department shall adopt rules for the
13administration of this Section.
14(Source: P.A. 99-762, eff. 1-1-17.)
 
15    (820 ILCS 115/14)  (from Ch. 48, par. 39m-14)
16    Sec. 14. (a) Any employee not timely paid wages, final
17compensation, or wage supplements by his or her employer as
18required by this Act shall be entitled to recover through a
19claim filed with the Department of Labor or in a civil action,
20but not both, the amount of any such underpayments and damages
21of 5% of the amount of any such underpayments for each month
22following the date of payment during which such underpayments
23remain unpaid. In a civil action, such employee shall also
24recover costs and all reasonable attorney's fees.
25    (a-5) In addition to the remedies provided in subsections

 

 

HB3227- 12 -LRB103 30108 SPS 56532 b

1(a), (b), and (c) of this Section, any employer or any agent of
2an employer, who, being able to pay wages, final compensation,
3or wage supplements and being under a duty to pay, wilfully
4refuses to pay as provided in this Act, or falsely denies the
5amount or validity thereof or that the same is due, with intent
6to secure for himself or other person any underpayment of such
7indebtedness or with intent to annoy, harass, oppress, hinder,
8delay or defraud the person to whom such indebtedness is due,
9upon conviction, is guilty of:
10        (1) for unpaid wages, final compensation or wage
11    supplements in the amount of $5,000 or less, a Class B
12    misdemeanor; or
13        (2) for unpaid wages, final compensation or wage
14    supplements in the amount of more than $5,000, a Class A
15    misdemeanor.
16    Each day during which any violation of this Act continues
17shall constitute a separate and distinct offense.
18    Any employer or any agent of an employer who violates this
19Section of the Act a subsequent time within 2 years of a prior
20criminal conviction under this Section is guilty, upon
21conviction, of a Class 4 felony.
22    (b) Any employer who has been demanded or ordered by the
23Department or ordered by the court to pay wages, final
24compensation, or wage supplements due an employee shall be
25required to pay a non-waivable administrative fee to the
26Department of Labor in the amount of $250 if the amount ordered

 

 

HB3227- 13 -LRB103 30108 SPS 56532 b

1by the Department as wages owed is $3,000 or less; $500 if the
2amount ordered by the Department as wages owed is more than
3$3,000, but less than $10,000; and $1,000 if the amount
4ordered by the Department as wages owed is $10,000 or more. Any
5employer who has been so demanded or ordered by the Department
6or ordered by a court to pay such wages, final compensation, or
7wage supplements and who fails to seek timely review of such a
8demand or order as provided for under this Act and who fails to
9comply within 15 calendar days after such demand or within 35
10days of an administrative or court order is entered shall also
11be liable to pay a penalty to the Department of Labor of 20% of
12the amount found owing and a penalty to the employee of 1% per
13calendar day of the amount found owing for each day of delay in
14paying such wages to the employee. All moneys recovered as
15fees and civil penalties under this Act, except those owing to
16the affected employee, shall be deposited into the Wage Theft
17Enforcement Fund, a special fund which is hereby created in
18the State treasury. Moneys in the Fund may be used only for
19enforcement of this Act and for outreach and educational
20activities of the Department related to the recovery of unpaid
21or underpaid compensation and the disbursement of moneys to
22affected parties.
23    (b-5) Penalties and fees under this Section may be
24assessed by the Department and recovered in a civil action
25brought by the Department in any circuit court or in any
26administrative adjudicative proceeding under this Act. In any

 

 

HB3227- 14 -LRB103 30108 SPS 56532 b

1such civil action or administrative adjudicative proceeding
2under this Act, the Department shall be represented by the
3Attorney General.
4    (c) Any employer, or any agent of an employer, who
5discharges or in any other manner discriminates against any
6employee because that employee has made a complaint to his or
7her employer, to the Director of Labor or his or her authorized
8representative, in a public hearing, or to a community
9organization that he or she has not been paid in accordance
10with the provisions of this Act, or because that employee has
11caused to be instituted any proceeding under or related to
12this Act, or because that employee has testified or is about to
13testify in an investigation or proceeding under this Act, is
14guilty, upon conviction, of a Class C misdemeanor. An employee
15who has been unlawfully retaliated against shall be entitled
16to recover through a claim filed with the Department of Labor
17or in a civil action, but not both, all legal and equitable
18relief as may be appropriate. In a civil action, such employee
19shall also recover costs and all reasonable attorney's fees.
20(Source: P.A. 102-50, eff. 7-9-21.)
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.