Rep. Marcus C. Evans, Jr.

Filed: 3/2/2023

 

 


 

 


 
10300HB3227ham001LRB103 30108 SPS 58019 a

1
AMENDMENT TO HOUSE BILL 3227

2    AMENDMENT NO. ______. Amend House Bill 3227 by replacing
3everything after the enacting clause with the following:
 
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

 

 

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1request of the employee or on motion of the Director of Labor,
2the Department of Labor may make an assignment of such wage
3claim in trust for the assigning employee and may bring any
4legal action necessary to collect such claim, and the employer
5shall be required to pay the costs incurred in collecting such
6claim. Every such action shall be brought within 3 years from
7the date of the underpayment. Such employer shall be liable to
8the Department of Labor for a penalty in an amount of up to 20%
9of the total employer's underpayment where the employer's
10conduct is proven by a preponderance of the evidence to be
11willful, repeated, or with reckless disregard of this Act or
12any rule adopted under this Act. Such employer shall be liable
13to the Department for an additional penalty of $1,500. All
14administrative penalties ordered under this Act shall be paid
15by certified check, money order, or an electronic payment
16system designated by the Department for such purposes and
17shall be made , payable to the Department's Wage Theft
18Enforcement Fund. Such employer shall be additionally liable
19to the employee for damages in the amount of 5% of the amount
20of any such underpayments for each month following the date of
21payment during which such underpayments remain unpaid. These
22penalties and damages may be recovered in a civil action
23brought by the Director of Labor in any circuit court. In any
24such action, the Director of Labor shall be represented by the
25Attorney General.
26    If an employee collects damages of 5% of the amount of

 

 

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

 

 

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

 

 

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1Section 15-501 of the Revised Uniform Unclaimed Property Act.
2    Beginning July 1, 2023, or as soon as is practical, and
3each July 1 thereafter, the Department shall direct the State
4Comptroller and State Treasurer to transfer from the
5Department of Labor Special State Trust Fund the balance of
6the moneys due to employees who cannot be located and that have
7been held by the Department in the Department of Labor Special
8State Trust Fund for 3 or more years and moneys due to
9employees who are deceased as follows: (i) 15% to the Wage
10Theft Enforcement Fund and (ii) 85% to the Unclaimed Property
11Trust Fund.
12    The Department may use moneys in the Wage Theft
13Enforcement Fund for the purposes described in Section 14 of
14the Illinois Wage Payment and Collection Act.
15    (d) The Department may adopt rules to implement and
16administer this Section.
17(Source: P.A. 101-1, eff. 2-19-19.)
 
18    Section 10. The Illinois Wage Payment and Collection Act
19is amended by changing Sections 11.5 and 14 as follows:
 
20    (820 ILCS 115/11.5)
21    Sec. 11.5. Departmental wage recovery; remittance to
22aggrieved employee.
23    (a) Upon the recovery of unpaid wages, wage supplements,
24or final compensation from an employer that has violated this

 

 

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

 

 

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1each July 1 thereafter, the Department shall direct the State
2Comptroller and State Treasurer to transfer from the
3Department of Labor Special State Trust Fund the balance of
4the moneys due to employees who cannot be located and that have
5been held by the Department in the Department of Labor Special
6State Trust Fund for 3 or more years and moneys due to
7employees who are deceased as follows: (i) 15% to the Wage
8Theft Enforcement Fund and (ii) 85% to the Unclaimed Property
9Trust Fund.
10    The Department may use moneys in the Wage Theft
11Enforcement Fund for the purposes described in Section 14 of
12the Illinois Wage Payment and Collection Act.
13    (b) An aggrieved employee may make a request to the
14Department in order to recover unpaid wages, wage supplements,
15or final compensation that has been deposited into the
16Department of Labor Special State Trust Fund. The Department
17shall not require the employee to present a Social Security
18number or proof of United States citizenship. For the purpose
19of paying claims under this Section from the Department of
20Labor Special State Trust Fund to aggrieved employees, the
21Comptroller shall assign a vendor payment number to the
22Department. When an aggrieved employee makes a valid request
23for payment to the Department, the Department shall use the
24vendor payment number to process payment on behalf of the
25aggrieved employee.
26    (c) The Department shall adopt rules for the

 

 

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1administration of this Section.
2(Source: P.A. 99-762, eff. 1-1-17.)
 
3    (820 ILCS 115/14)  (from Ch. 48, par. 39m-14)
4    Sec. 14. (a) Any employee not timely paid wages, final
5compensation, or wage supplements by his or her employer as
6required by this Act shall be entitled to recover through a
7claim filed with the Department of Labor or in a civil action,
8but not both, the amount of any such underpayments and damages
9of 5% of the amount of any such underpayments for each month
10following the date of payment during which such underpayments
11remain unpaid. In a civil action, such employee shall also
12recover costs and all reasonable attorney's fees.
13    (a-5) In addition to the remedies provided in subsections
14(a), (b), and (c) of this Section, any employer or any agent of
15an employer, who, being able to pay wages, final compensation,
16or wage supplements and being under a duty to pay, wilfully
17refuses to pay as provided in this Act, or falsely denies the
18amount or validity thereof or that the same is due, with intent
19to secure for himself or other person any underpayment of such
20indebtedness or with intent to annoy, harass, oppress, hinder,
21delay or defraud the person to whom such indebtedness is due,
22upon conviction, is guilty of:
23        (1) for unpaid wages, final compensation or wage
24    supplements in the amount of $5,000 or less, a Class B
25    misdemeanor; or

 

 

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1        (2) for unpaid wages, final compensation or wage
2    supplements in the amount of more than $5,000, a Class A
3    misdemeanor.
4    Each day during which any violation of this Act continues
5shall constitute a separate and distinct offense.
6    Any employer or any agent of an employer who violates this
7Section of the Act a subsequent time within 2 years of a prior
8criminal conviction under this Section is guilty, upon
9conviction, of a Class 4 felony.
10    (b) Any employer who has been demanded or ordered by the
11Department or ordered by the court to pay wages, final
12compensation, or wage supplements due an employee shall be
13required to pay a non-waivable administrative fee to the
14Department of Labor in the amount of $250 if the amount ordered
15by the Department as wages owed is $3,000 or less; $500 if the
16amount ordered by the Department as wages owed is more than
17$3,000, but less than $10,000; and $1,000 if the amount
18ordered by the Department as wages owed is $10,000 or more. Any
19employer who has been so demanded or ordered by the Department
20or ordered by a court to pay such wages, final compensation, or
21wage supplements and who fails to seek timely review of such a
22demand or order as provided for under this Act and who fails to
23comply within 15 calendar days after such demand or within 35
24days of an administrative or court order is entered shall also
25be liable to pay a penalty to the Department of Labor of 20% of
26the amount found owing and a penalty to the employee of 1% per

 

 

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1calendar day of the amount found owing for each day of delay in
2paying such wages to the employee. All moneys recovered as
3fees and civil penalties under this Act, except those owing to
4the affected employee, shall be deposited into the Wage Theft
5Enforcement Fund, a special fund which is hereby created in
6the State treasury. Moneys in the Fund may be used only for
7enforcement of this Act and for outreach and educational
8activities of the Department related to the recovery of unpaid
9or underpaid compensation and the disbursement of moneys to
10affected parties.
11    (b-5) Penalties and fees under this Section may be
12assessed by the Department and recovered in a civil action
13brought by the Department in any circuit court or in any
14administrative adjudicative proceeding under this Act. In any
15such civil action or administrative adjudicative proceeding
16under this Act, the Department shall be represented by the
17Attorney General.
18    (c) Any employer, or any agent of an employer, who
19discharges or in any other manner discriminates against any
20employee because that employee has made a complaint to his or
21her employer, to the Director of Labor or his or her authorized
22representative, in a public hearing, or to a community
23organization that he or she has not been paid in accordance
24with the provisions of this Act, or because that employee has
25caused to be instituted any proceeding under or related to
26this Act, or because that employee has testified or is about to

 

 

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1testify in an investigation or proceeding under this Act, is
2guilty, upon conviction, of a Class C misdemeanor. An employee
3who has been unlawfully retaliated against shall be entitled
4to recover through a claim filed with the Department of Labor
5or in a civil action, but not both, all legal and equitable
6relief as may be appropriate. In a civil action, such employee
7shall also recover costs and all reasonable attorney's fees.
8(Source: P.A. 102-50, eff. 7-9-21.)
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.".