HB3227 EngrossedLRB103 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 Minimum Wage Law is amended by changing
5Section 12 as follows:
 
6    (820 ILCS 105/12)  (from Ch. 48, par. 1012)
7    Sec. 12. (a) If any employee is paid by his or her employer
8less than the wage to which he or she is entitled under the
9provisions of this Act, the employee may recover in a civil
10action treble the amount of any such underpayments together
11with costs and such reasonable attorney's fees as may be
12allowed by the Court, and damages of 5% of the amount of any
13such underpayments for each month following the date of
14payment during which such underpayments remain unpaid. Any
15agreement between the employee and the employer to work for
16less than such wage is no defense to such action. At the
17request of the employee or on motion of the Director of Labor,
18the Department of Labor may make an assignment of such wage
19claim in trust for the assigning employee and may bring any
20legal action necessary to collect such claim, and the employer
21shall be required to pay the costs incurred in collecting such
22claim. Every such action shall be brought within 3 years from
23the date of the underpayment. Such employer shall be liable to

 

 

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1the Department of Labor for a penalty in an amount of up to 20%
2of the total employer's underpayment where the employer's
3conduct is proven by a preponderance of the evidence to be
4willful, repeated, or with reckless disregard of this Act or
5any rule adopted under this Act. Such employer shall be liable
6to the Department for an additional penalty of $1,500. All
7administrative penalties ordered under this Act shall be paid
8by certified check, money order, or an electronic payment
9system designated by the Department for such purposes and
10shall be made , payable to the Department's Wage Theft
11Enforcement Fund. Such employer shall be additionally liable
12to the employee for damages in the amount of 5% of the amount
13of any such underpayments for each month following the date of
14payment during which such underpayments remain unpaid. These
15penalties and damages may be recovered in a civil action
16brought by the Director of Labor in any circuit court. In any
17such action, the Director of Labor shall be represented by the
18Attorney General.
19    If an employee collects damages of 5% of the amount of
20underpayments as a result of an action brought by the Director
21of Labor, the employee may not also collect those damages in a
22private action brought by the employee for the same violation.
23If an employee collects damages of 5% of the amount of
24underpayments in a private action brought by the employee, the
25employee may not also collect those damages as a result of an
26action brought by the Director of Labor for the same

 

 

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1violation.
2    (b) If an employee has not collected damages under
3subsection (a) for the same violation, the Director is
4authorized to supervise the payment of the unpaid minimum
5wages and the unpaid overtime compensation owing to any
6employee or employees under Sections 4 and 4a of this Act and
7may bring any legal action necessary to recover the amount of
8the unpaid minimum wages and unpaid overtime compensation and
9an equal additional amount as damages, and the employer shall
10be required to pay the costs incurred in collecting such
11claim. Such employer shall be additionally liable to the
12Department of Labor for up to 20% of the total employer's
13underpayment where the employer's conduct is proven by a
14preponderance of the evidence to be willful, repeated, or with
15reckless disregard of this Act or any rule adopted under this
16Act. Such employer shall be liable to the Department of Labor
17for an additional penalty of $1,500, payable to the
18Department's Wage Theft Enforcement Fund. The action shall be
19brought within 5 years from the date of the failure to pay the
20wages or compensation. Any sums thus recovered by the Director
21on behalf of an employee pursuant to this subsection shall be
22deposited into the Department of Labor Special State Trust
23Fund, from which the Department shall disburse the sums owed
24to the employee or employees. The Department shall conduct a
25good faith search to find all employees for whom it has
26recovered unpaid minimum wages or unpaid overtime

 

 

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1compensation. All disbursements authorized under this Section
2shall be made by certified check, money order, or an
3electronic payment system designated by the Department paid to
4the employee or employees affected. Any sums which, more than
5one year after being thus recovered, the Director is unable to
6pay to an employee shall be deposited into the General Revenue
7Fund.
8    (c) The Department shall hold any moneys due to employees
9that it is unable to locate in the Department of Labor Special
10State Trust Fund for no less than 3 years after the moneys were
11collected.
12    Beginning November 1, 2023, or as soon as is practical,
13and each November 1 thereafter, the Department shall report
14any moneys due to employees who cannot be located and that have
15been held by the Department in the Department of Labor Special
16State Trust Fund for 3 or more years and moneys due to
17employees who are deceased to the State Treasurer as required
18by the Revised Uniform Unclaimed Property Act. The Department
19shall not be required to provide the notice required under
20Section 15-501 of the Revised Uniform Unclaimed Property Act.
21    Beginning July 1, 2023, or as soon as is practical, and
22each July 1 thereafter, the Department shall direct the State
23Comptroller and State Treasurer to transfer from the
24Department of Labor Special State Trust Fund the balance of
25the moneys due to employees who cannot be located and that have
26been held by the Department in the Department of Labor Special

 

 

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1State Trust Fund for 3 or more years and moneys due to
2employees who are deceased as follows: (i) 15% to the Wage
3Theft Enforcement Fund and (ii) 85% to the Unclaimed Property
4Trust Fund.
5    The Department may use moneys in the Wage Theft
6Enforcement Fund for the purposes described in Section 14 of
7the Illinois Wage Payment and Collection Act.
8    (d) The Department may adopt rules to implement and
9administer this Section.
10(Source: P.A. 101-1, eff. 2-19-19.)
 
11    Section 10. The Illinois Wage Payment and Collection Act
12is amended by changing Sections 11.5 and 14 as follows:
 
13    (820 ILCS 115/11.5)
14    Sec. 11.5. Departmental wage recovery; remittance to
15aggrieved employee.
16    (a) Upon the recovery of unpaid wages, wage supplements,
17or final compensation from an employer that has violated this
18Act, the Department shall conduct a good faith search to find
19the aggrieved employee. If, after conducting a good faith
20search for the aggrieved employee, the Department is unable to
21find the aggrieved employee, the Department shall deposit the
22amount recovered into the Department of Labor Special State
23Trust Fund, from which the Department shall disburse the sums
24owed to the employee or employees. The Department shall

 

 

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1conduct a good faith search to find all employees for whom it
2has recovered unpaid wages, wage supplements, or final
3compensation. All disbursements authorized under this Section
4shall be made by certified check, money order, or an
5electronic payment system designated by the Department.
6    (a-5) The Department shall hold any moneys due to
7employees that it is unable to locate in the Department of
8Labor Special State Trust Fund for no less than 3 years after
9the moneys were collected.
10    Beginning November 1, 2023, or as soon as is practical,
11and each November 1 thereafter, the Department shall report
12any moneys due to employees who cannot be located and that have
13been held by the Department in the Department of Labor Special
14State Trust Fund for 3 or more years and moneys due to
15employees who are deceased to the State Treasurer as required
16by the Revised Uniform Unclaimed Property Act. The Department
17shall not be required to provide the notice required under
18Section 15-501 of the Revised Uniform Unclaimed Property Act.
19    Beginning July 1, 2023, or as soon as is practical, and
20each July 1 thereafter, the Department shall direct the State
21Comptroller and State Treasurer to transfer from the
22Department of Labor Special State Trust Fund the balance of
23the moneys due to employees who cannot be located and that have
24been held by the Department in the Department of Labor Special
25State Trust Fund for 3 or more years and moneys due to
26employees who are deceased as follows: (i) 15% to the Wage

 

 

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1Theft Enforcement Fund and (ii) 85% to the Unclaimed Property
2Trust Fund.
3    The Department may use moneys in the Wage Theft
4Enforcement Fund for the purposes described in Section 14 of
5the Illinois Wage Payment and Collection Act.
6    (b) An aggrieved employee may make a request to the
7Department in order to recover unpaid wages, wage supplements,
8or final compensation that has been deposited into the
9Department of Labor Special State Trust Fund. The Department
10shall not require the employee to present a Social Security
11number or proof of United States citizenship. For the purpose
12of paying claims under this Section from the Department of
13Labor Special State Trust Fund to aggrieved employees, the
14Comptroller shall assign a vendor payment number to the
15Department. When an aggrieved employee makes a valid request
16for payment to the Department, the Department shall use the
17vendor payment number to process payment on behalf of the
18aggrieved employee.
19    (c) The Department shall adopt rules for the
20administration of this Section.
21(Source: P.A. 99-762, eff. 1-1-17.)
 
22    (820 ILCS 115/14)  (from Ch. 48, par. 39m-14)
23    Sec. 14. (a) Any employee not timely paid wages, final
24compensation, or wage supplements by his or her employer as
25required by this Act shall be entitled to recover through a

 

 

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1claim filed with the Department of Labor or in a civil action,
2but not both, the amount of any such underpayments and damages
3of 5% of the amount of any such underpayments for each month
4following the date of payment during which such underpayments
5remain unpaid. In a civil action, such employee shall also
6recover costs and all reasonable attorney's fees.
7    (a-5) In addition to the remedies provided in subsections
8(a), (b), and (c) of this Section, any employer or any agent of
9an employer, who, being able to pay wages, final compensation,
10or wage supplements and being under a duty to pay, wilfully
11refuses to pay as provided in this Act, or falsely denies the
12amount or validity thereof or that the same is due, with intent
13to secure for himself or other person any underpayment of such
14indebtedness or with intent to annoy, harass, oppress, hinder,
15delay or defraud the person to whom such indebtedness is due,
16upon conviction, is guilty of:
17        (1) for unpaid wages, final compensation or wage
18    supplements in the amount of $5,000 or less, a Class B
19    misdemeanor; or
20        (2) for unpaid wages, final compensation or wage
21    supplements in the amount of more than $5,000, a Class A
22    misdemeanor.
23    Each day during which any violation of this Act continues
24shall constitute a separate and distinct offense.
25    Any employer or any agent of an employer who violates this
26Section of the Act a subsequent time within 2 years of a prior

 

 

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1criminal conviction under this Section is guilty, upon
2conviction, of a Class 4 felony.
3    (b) Any employer who has been demanded or ordered by the
4Department or ordered by the court to pay wages, final
5compensation, or wage supplements due an employee shall be
6required to pay a non-waivable administrative fee to the
7Department of Labor in the amount of $250 if the amount ordered
8by the Department as wages owed is $3,000 or less; $500 if the
9amount ordered by the Department as wages owed is more than
10$3,000, but less than $10,000; and $1,000 if the amount
11ordered by the Department as wages owed is $10,000 or more. Any
12employer who has been so demanded or ordered by the Department
13or ordered by a court to pay such wages, final compensation, or
14wage supplements and who fails to seek timely review of such a
15demand or order as provided for under this Act and who fails to
16comply within 15 calendar days after such demand or within 35
17days of an administrative or court order is entered shall also
18be liable to pay a penalty to the Department of Labor of 20% of
19the amount found owing and a penalty to the employee of 1% per
20calendar day of the amount found owing for each day of delay in
21paying such wages to the employee. All moneys recovered as
22fees and civil penalties under this Act, except those owing to
23the affected employee, shall be deposited into the Wage Theft
24Enforcement Fund, a special fund which is hereby created in
25the State treasury. Moneys in the Fund may be used only for
26enforcement of this Act and for outreach and educational

 

 

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1activities of the Department related to the recovery of unpaid
2or underpaid compensation and the disbursement of moneys to
3affected parties.
4    (b-5) Penalties and fees under this Section may be
5assessed by the Department and recovered in a civil action
6brought by the Department in any circuit court or in any
7administrative adjudicative proceeding under this Act. In any
8such civil action or administrative adjudicative proceeding
9under this Act, the Department shall be represented by the
10Attorney General.
11    (c) Any employer, or any agent of an employer, who
12discharges or in any other manner discriminates against any
13employee because that employee has made a complaint to his or
14her employer, to the Director of Labor or his or her authorized
15representative, in a public hearing, or to a community
16organization that he or she has not been paid in accordance
17with the provisions of this Act, or because that employee has
18caused to be instituted any proceeding under or related to
19this Act, or because that employee has testified or is about to
20testify in an investigation or proceeding under this Act, is
21guilty, upon conviction, of a Class C misdemeanor. An employee
22who has been unlawfully retaliated against shall be entitled
23to recover through a claim filed with the Department of Labor
24or in a civil action, but not both, all legal and equitable
25relief as may be appropriate. In a civil action, such employee
26shall also recover costs and all reasonable attorney's fees.

 

 

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1(Source: P.A. 102-50, eff. 7-9-21.)
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.