99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB2584

 

Introduced , by Rep. Emanuel Chris Welch

 

SYNOPSIS AS INTRODUCED:
 
735 ILCS 5/2-1303  from Ch. 110, par. 2-1303
735 ILCS 5/2-1402  from Ch. 110, par. 2-1402
735 ILCS 5/12-803  from Ch. 110, par. 12-803
735 ILCS 5/12-805  from Ch. 110, par. 12-805
735 ILCS 5/12-808  from Ch. 110, par. 12-808
735 ILCS 5/12-1001  from Ch. 110, par. 12-1001
735 ILCS 5/12-1001.5 new
740 ILCS 170/1  from Ch. 48, par. 39.1
740 ILCS 170/2 rep.
740 ILCS 170/2.1 rep.
740 ILCS 170/2.2 rep.
740 ILCS 170/3 rep.
740 ILCS 170/4 rep.
740 ILCS 170/4.1 rep.
740 ILCS 170/4.2 rep.
740 ILCS 170/4.3 rep.
740 ILCS 170/5 rep.
740 ILCS 170/6 rep.
740 ILCS 170/7 rep.
740 ILCS 170/8 rep.
740 ILCS 170/9 rep.
740 ILCS 170/10 rep.
740 ILCS 170/11 rep.
820 ILCS 115/9  from Ch. 48, par. 39m-9

    Amends the Code of Civil Procedure. Makes changes in Sections governing: interest on judgments; supplementary proceedings; wages subject to collection; summons and issuance for proceedings relating to wage collection orders; employer duties; and personal property exempt from judgment. Adds a Section providing for the upward adjustment of exempted amounts in specified situations. Amends the Illinois Wage Assignment Act. Provides that no assignment of wages earned or to be earned is valid. Repeals the remainder of the substance of the Act. Makes a corresponding change in the Illinois Wage Payment and Collection Act. Effective immediately.


LRB099 09858 HEP 30070 b

 

 

A BILL FOR

 

HB2584LRB099 09858 HEP 30070 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Code of Civil Procedure is amended by
5changing Sections 2-1303, 2-1402, 12-803, 12-805, 12-808, and
612-1001 and by adding Section 12-1001.5 as follows:
 
7    (735 ILCS 5/2-1303)  (from Ch. 110, par. 2-1303)
8    Sec. 2-1303. Interest on judgment. Judgments recovered in
9any court shall draw interest at a maximum rate of interest
10equal to the weekly average One-Year Constant Maturity Treasury
11Yield, as published by the Board of Governors of the Federal
12Reserve System, for the calendar week preceding the date of
13judgment until satisfied. Except as otherwise provided in this
14Section, no other rate of interest on the judgment is
15permitted. Judgments recovered in any court shall draw interest
16at the rate of the rate of 9% per annum from the date of the
17judgment until satisfied or 6% per annum when the judgment
18debtor is a unit of local government, as defined in Section 1
19of Article VII of the Constitution, a school district, a
20community college district, or any other governmental entity.
21When judgment is entered upon any award, report or verdict,
22interest shall be computed at the above rate, from the time
23when made or rendered to the time of entering judgment upon the

 

 

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1same, and included in the judgment. Interest shall be computed
2and charged only on the unsatisfied portion of the judgment as
3it exists from time to time. The judgment debtor may by tender
4of payment of judgment, costs and interest accrued to the date
5of tender, stop the further accrual of interest on such
6judgment notwithstanding the prosecution of an appeal, or other
7steps to reverse, vacate or modify the judgment. The provisions
8of this Section are not waivable by contract.
9(Source: P.A. 85-907.)
 
10    (735 ILCS 5/2-1402)  (from Ch. 110, par. 2-1402)
11    Sec. 2-1402. Supplementary proceedings.
12    (a) A judgment creditor, or his or her successor in
13interest when that interest is made to appear of record, is
14entitled to prosecute supplementary proceedings for the
15purposes of examining the judgment debtor or any other person
16to discover assets or income of the debtor not exempt from the
17enforcement of the judgment, a deduction order or garnishment,
18and of compelling the application of non-exempt assets or
19income discovered toward the payment of the amount due under
20the judgment. A supplementary proceeding shall be commenced by
21the service of a citation issued by the clerk. The procedure
22for conducting supplementary proceedings shall be prescribed
23by rules. It is not a prerequisite to the commencement of a
24supplementary proceeding that a certified copy of the judgment
25has been returned wholly or partly unsatisfied. All citations

 

 

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1issued by the clerk shall have the following language, or
2language substantially similar thereto, stated prominently on
3the front, in capital letters: "IF YOU FAIL TO APPEAR IN COURT
4AS DIRECTED IN THIS NOTICE, YOU MAY BE ARRESTED AND BROUGHT
5BEFORE THE COURT TO ANSWER TO A CHARGE OF CONTEMPT OF COURT,
6WHICH MAY BE PUNISHABLE BY IMPRISONMENT IN THE COUNTY JAIL."
7The court shall not grant a continuance of the supplementary
8proceeding except upon good cause shown.
9    (b) Any citation served upon a judgment debtor or any other
10person shall include a certification by the attorney for the
11judgment creditor or the judgment creditor setting forth the
12amount of the judgment, the date of the judgment, or its
13revival date, the balance due thereon, the name of the court,
14and the number of the case, and a copy of the citation notice
15required by this subsection. Whenever a citation is served upon
16a person or party other than the judgment debtor, the officer
17or person serving the citation shall send to the judgment
18debtor, within three business days of the service upon the
19cited party, a copy of the citation and the citation notice,
20which may be sent by regular first-class mail to the judgment
21debtor's last known address. In no event shall a citation
22hearing be held sooner than five business days after the
23mailing of the citation and citation notice to the judgment
24debtor, except by agreement of the parties. The citation notice
25need not be mailed to a corporation, partnership, or
26association. The citation notice shall be in substantially the

 

 

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1following form:
2
"CITATION NOTICE
3        (Name and address of Court)
4        Name of Case: (Name of Judgment Creditor),
5            Judgment Creditor v.
6            (Name of Judgment Debtor),
7            Judgment Debtor.
8        Address of Judgment Debtor: (Insert last known
9            address)
10        Name and address of Attorney for Judgment
11            Creditor or of Judgment Creditor (If no
12            attorney is listed): (Insert name and address)
13        Amount of Judgment: $ (Insert amount)
14        Name of Person Receiving Citation: (Insert name)
15        Court Date and Time: (Insert return date and time
16            specified in citation)
17    NOTICE: The court has issued a citation against the person
18named above. The citation directs that person to appear in
19court to be examined for the purpose of allowing the judgment
20creditor to discover income and assets belonging to the
21judgment debtor or in which the judgment debtor has an
22interest. The citation was issued on the basis of a judgment
23against the judgment debtor in favor of the judgment creditor
24in the amount stated above. On or after the court date stated
25above, the court may compel the application of any discovered
26income or assets toward payment on the judgment.

 

 

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1    The amount of income or assets that may be applied toward
2the judgment is limited by federal and Illinois law. The
3JUDGMENT DEBTOR HAS THE RIGHT TO ASSERT STATUTORY EXEMPTIONS
4AGAINST CERTAIN INCOME OR ASSETS OF THE JUDGMENT DEBTOR WHICH
5MAY NOT BE USED TO SATISFY THE JUDGMENT IN THE AMOUNT STATED
6ABOVE:
7        (1) Under Illinois or federal law, the exemptions of
8    personal property owned by the debtor include the debtor's
9    equity interest, not to exceed $4,000 in value, in any
10    personal property as chosen by the debtor; Social Security
11    and SSI benefits; public assistance benefits; unemployment
12    compensation benefits; worker's compensation benefits;
13    veteran's benefits; circuit breaker property tax relief
14    benefits; the debtor's equity interest, not to exceed
15    $2,400 in value, in any one motor vehicle, and the debtor's
16    equity interest, not to exceed $1,500 in value, in any
17    implements, professional books, or tools of the trade of
18    the debtor.
19        (2) Under Illinois law, every person is entitled to an
20    estate in homestead, when it is owned and occupied as a
21    residence, to the extent in value of $15,000, which
22    homestead is exempt from judgment.
23        (3) Under Illinois law, the amount of wages that may be
24    applied toward a judgment is limited to the lesser of (i)
25    10% 15% of gross weekly wages or (ii) the amount by which
26    disposable earnings for a week exceed the total of 50 45

 

 

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1    times the federal minimum hourly wage or, under a wage
2    deduction summons served on or after January 1, 2006, the
3    Illinois minimum hourly wage or the local minimum hourly
4    wage law to which the debtor's employer is subject,
5    whichever is greater.
6        (4) Under federal law, the amount of wages that may be
7    applied toward a judgment is limited to the lesser of (i)
8    25% of disposable earnings for a week or (ii) the amount by
9    which disposable earnings for a week exceed 30 times the
10    federal minimum hourly wage.
11        (5) Pension and retirement benefits and refunds may be
12    claimed as exempt under Illinois law.
13    The judgment debtor may have other possible exemptions
14under the law.
15    THE JUDGMENT DEBTOR HAS THE RIGHT AT THE CITATION HEARING
16TO DECLARE EXEMPT CERTAIN INCOME OR ASSETS OR BOTH. The
17judgment debtor also has the right to seek a declaration at an
18earlier date, by notifying the clerk in writing at (insert
19address of clerk). When so notified, the Clerk of the Court
20will obtain a prompt hearing date from the court and will
21provide the necessary forms that must be prepared by the
22judgment debtor or the attorney for the judgment debtor and
23sent to the judgment creditor and the judgment creditor's
24attorney regarding the time and location of the hearing. This
25notice may be sent by regular first class mail."
26    (b-1) Any citation served upon a judgment debtor who is a

 

 

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1natural person shall be served by personal service or abode
2service as provided in Supreme Court Rule 105 and shall include
3a copy of the Income and Asset Form set forth in subsection
4(b-5).
5    (b-5) The Income and Asset Form required to be served by
6the judgment creditor in subsection (b-1) shall be in
7substantially the following form:
 
8
INCOME AND ASSET FORM
9        To Judgment Debtor: Please complete this form and bring
10    it with you to the hearing referenced in the enclosed
11    citation notice. You should also bring to the hearing any
12    documents you have to support the information you provide
13    in this form, such as pay stubs and account statements. The
14    information you provide will help the court determine
15    whether you have any property or income that can be used to
16    satisfy the judgment entered against you in this matter.
17    The information you provide must be accurate to the best of
18    your knowledge.
19        If you fail to appear at this hearing, you could be
20    held in contempt of court and possibly arrested.
21        In answer to the citation and supplemental proceedings
22    served upon the judgment debtor, he or she answers as
23    follows:
 
24        Name:.....................

 

 

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1        Home Phone Number:.................
2        Home Address:....................
3        Date of Birth:......................
4        Marital Status:.....................
5        I have.........dependents.
6        Do you have a job? YES NO
7        Company's name I work for:......................
8        Company's address:..............................
 
9        Job:
10            I earn $....... per.......
11            If self employed, list here your business name and
12        address:
13            .............................................
14            Income from self employment is $......... per
15        year.
16            I have the following benefits with my employer:
17            .............................................
18        I do not have a job, but I support myself through:
19            Government Assistance $........ per month
20            Unemployment $........ per month
21            Social Security $........ per month
22            SSI $........ per month
23            Pension $........ per month
24            Other $........ per month
25        Real Estate:

 

 

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1        Do you own any real estate? YES NO
2        I own real estate at.........., with names of other
3    owners
4        .................................................
5        Additional real estate I own:....................
6        I have a beneficial interest in a land trust. The name
7    and address of the trustee is:............. The beneficial
8    interest is listed in my name and........................
9        There is a mortgage on my real estate. State the
10    mortgage company's name and address for each parcel of real
11    estate owned:
12        .................................................
13        An assignment of beneficial interest in the land trust
14    was signed to secure a loan from.........................
15        I have the following accounts:
16            Checking account at ..........;
17              account balance $......
18            Savings account at ..........;
19              account balance $......
20            Money market or certificate of deposit at....
21            Safe deposit box at..........................
22            Other accounts (please identify):............
23        I own:
24            A vehicle (state year, make, model, and VIN):.
25            Jewelry (please specify):....................
26        Other property described as:......................

 

 

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1            Stocks/Bonds.....................
2            Personal computer................
3            DVD player.......................
4            Television.......................
5            Stove.......................
6            Microwave.......................
7            Work tools.......................
8            Business equipment.......................
9            Farm equipment.......................
10            Other property (please specify):
11            .............................................
12        Signature:....................
13    (b-10) Any action properly initiated under this Section may
14proceed notwithstanding an absent or incomplete Income and
15Asset Form, and a judgment debtor may be examined for the
16purpose of allowing the judgment creditor to discover income
17and assets belonging to the judgment debtor or in which the
18judgment debtor has an interest.
19    (c) When assets or income of the judgment debtor not exempt
20from the satisfaction of a judgment, a deduction order or
21garnishment are discovered, the court may, by appropriate order
22or judgment:
23        (1) Compel the judgment debtor to deliver up, to be
24    applied in satisfaction of the judgment, in whole or in
25    part, money, choses in action, property or effects in his
26    or her possession or control, so discovered, capable of

 

 

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1    delivery and to which his or her title or right of
2    possession is not substantially disputed.
3        (2) Compel the judgment debtor to pay to the judgment
4    creditor or apply on the judgment, in installments, a
5    portion of his or her income, however or whenever earned or
6    acquired, as the court may deem proper, having due regard
7    for the reasonable requirements of the judgment debtor and
8    his or her family, if dependent upon him or her, as well as
9    any payments required to be made by prior order of court or
10    under wage assignments outstanding; provided that the
11    judgment debtor shall not be compelled to pay income which
12    would be considered exempt as wages under the Wage
13    Deduction Statute. The court may modify an order for
14    installment payments, from time to time, upon application
15    of either party upon notice to the other.
16        (3) Compel any person cited, other than the judgment
17    debtor, to deliver up any assets so discovered, to be
18    applied in satisfaction of the judgment, in whole or in
19    part, when those assets are held under such circumstances
20    that in an action by the judgment debtor he or she could
21    recover them in specie or obtain a judgment for the
22    proceeds or value thereof as for conversion or
23    embezzlement. A judgment creditor may recover a corporate
24    judgment debtor's property on behalf of the judgment debtor
25    for use of the judgment creditor by filing an appropriate
26    petition within the citation proceedings.

 

 

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1        (4) Enter any order upon or judgment against the person
2    cited that could be entered in any garnishment proceeding.
3        (5) Compel any person cited to execute an assignment of
4    any chose in action or a conveyance of title to real or
5    personal property or resign memberships in exchanges,
6    clubs, or other entities in the same manner and to the same
7    extent as a court could do in any proceeding by a judgment
8    creditor to enforce payment of a judgment or in aid of the
9    enforcement of a judgment.
10        (6) Authorize the judgment creditor to maintain an
11    action against any person or corporation that, it appears
12    upon proof satisfactory to the court, is indebted to the
13    judgment debtor, for the recovery of the debt, forbid the
14    transfer or other disposition of the debt until an action
15    can be commenced and prosecuted to judgment, direct that
16    the papers or proof in the possession or control of the
17    debtor and necessary in the prosecution of the action be
18    delivered to the creditor or impounded in court, and
19    provide for the disposition of any moneys in excess of the
20    sum required to pay the judgment creditor's judgment and
21    costs allowed by the court.
22    (c-5) If a citation is directed to a judgment debtor who is
23a natural person, no payment order shall be entered under
24subsection (c) unless the Income and Asset Form was served upon
25the judgment debtor as required by subsection (b-1), the
26judgment debtor has had an opportunity to assert exemptions,

 

 

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1and the payments are from non-exempt sources.
2    (d) No order or judgment shall be entered under subsection
3(c) in favor of the judgment creditor unless there appears of
4record a certification of mailing showing that a copy of the
5citation and a copy of the citation notice was mailed to the
6judgment debtor as required by subsection (b).
7    (d-5) If upon examination the court determines that the
8judgment debtor does not possess any non-exempt income or
9assets, then the citation shall be dismissed.
10    (e) All property ordered to be delivered up shall, except
11as otherwise provided in this Section, be delivered to the
12sheriff to be collected by the sheriff or sold at public sale
13and the proceeds thereof applied towards the payment of costs
14and the satisfaction of the judgment. If the judgment debtor's
15property is of such a nature that it is not readily delivered
16up to the sheriff for public sale or if another method of sale
17is more appropriate to liquidate the property or enhance its
18value at sale, the court may order the sale of such property by
19the debtor, third party respondent, or by a selling agent other
20than the sheriff upon such terms as are just and equitable. The
21proceeds of sale, after deducting reasonable and necessary
22expenses, are to be turned over to the creditor and applied to
23the balance due on the judgment.
24    (f)(1) The citation may prohibit the party to whom it is
25directed from making or allowing any transfer or other
26disposition of, or interfering with, any property not exempt

 

 

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1from the enforcement of a judgment therefrom, a deduction order
2or garnishment, belonging to the judgment debtor or to which he
3or she may be entitled or which may thereafter be acquired by
4or become due to him or her, and from paying over or otherwise
5disposing of any moneys not so exempt which are due or to
6become due to the judgment debtor, until the further order of
7the court or the termination of the proceeding, whichever
8occurs first. The third party may not be obliged to withhold
9the payment of any moneys beyond double the amount of the
10balance due sought to be enforced by the judgment creditor. The
11court may punish any party who violates the restraining
12provision of a citation as and for a contempt, or if the party
13is a third party may enter judgment against him or her in the
14amount of the unpaid portion of the judgment and costs
15allowable under this Section, or in the amount of the value of
16the property transferred, whichever is lesser.
17    (2) The court may enjoin any person, whether or not a party
18to the supplementary proceeding, from making or allowing any
19transfer or other disposition of, or interference with, the
20property of the judgment debtor not exempt from the enforcement
21of a judgment, a deduction order or garnishment, or the
22property or debt not so exempt concerning which any person is
23required to attend and be examined until further direction in
24the premises. The injunction order shall remain in effect until
25vacated by the court or until the proceeding is terminated,
26whichever first occurs.

 

 

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1    (g) If it appears that any property, chose in action,
2credit or effect discovered, or any interest therein, is
3claimed by any person, the court shall, as in garnishment
4proceedings, permit or require the claimant to appear and
5maintain his or her right. The rights of the person cited and
6the rights of any adverse claimant shall be asserted and
7determined pursuant to the law relating to garnishment
8proceedings.
9    (h) Costs in proceedings authorized by this Section shall
10be allowed, assessed and paid in accordance with rules,
11provided that if the court determines, in its discretion, that
12costs incurred by the judgment creditor were improperly
13incurred, those costs shall be paid by the judgment creditor.
14    (i) This Section is in addition to and does not affect
15enforcement of judgments or proceedings supplementary thereto,
16by any other methods now or hereafter provided by law.
17    (j) This Section does not grant the power to any court to
18order installment or other payments from, or compel the sale,
19delivery, surrender, assignment or conveyance of any property
20exempt by statute from the enforcement of a judgment thereon, a
21deduction order, garnishment, attachment, sequestration,
22process or other levy or seizure.
23    (k) (Blank).
24    (k-3) The court may enter any order upon or judgment
25against the respondent cited that could be entered in any
26garnishment proceeding under Part 7 of Article XII of this

 

 

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1Code. This subsection (k-3) shall be construed as being
2declarative of existing law and not as a new enactment.
3    (k-5) If the court determines that any property held by a
4third party respondent is wages pursuant to Section 12-801, the
5court shall proceed as if a wage deduction proceeding had been
6filed and proceed to enter such necessary and proper orders as
7would have been entered in a wage deduction proceeding
8including but not limited to the granting of the statutory
9exemptions allowed by Section 12-803 and all other remedies
10allowed plaintiff and defendant pursuant to Part 8 of Article
1112 of this Act.
12    (k-10) If a creditor discovers personal property of the
13judgment debtor that is subject to the lien of a citation to
14discover assets, the creditor may have the court impress a lien
15against a specific item of personal property, including a
16beneficial interest in a land trust. The lien survives the
17termination of the citation proceedings and remains as a lien
18against the personal property in the same manner that a
19judgment lien recorded against real property pursuant to
20Section 12-101 remains a lien on real property. If the judgment
21is revived before dormancy, the lien shall remain. A lien
22against personal property may, but need not, be recorded in the
23office of the recorder or filed as an informational filing
24pursuant to the Uniform Commercial Code.
25    (l) At any citation hearing at which the judgment debtor
26appears and seeks a declaration that certain of his or her

 

 

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1income or assets are exempt, the court shall proceed to
2determine whether the property which the judgment debtor
3declares to be exempt is exempt from judgment. At any time
4before the return date specified on the citation, the judgment
5debtor may request, in writing, a hearing to declare exempt
6certain income and assets by notifying the clerk of the court
7before that time, using forms as may be provided by the clerk
8of the court. The clerk of the court will obtain a prompt
9hearing date from the court and will provide the necessary
10forms that must be prepared by the judgment debtor or the
11attorney for the judgment debtor and sent to the judgment
12creditor, or the judgment creditor's attorney, regarding the
13time and location of the hearing. This notice may be sent by
14regular first class mail. At the hearing, the court shall
15immediately, unless for good cause shown that the hearing is to
16be continued, shall proceed to determine whether the property
17which the judgment debtor declares to be exempt is exempt from
18judgment. The restraining provisions of subsection (f) shall
19not apply to any property determined by the court to be exempt.
20    (m) The judgment or balance due on the judgment becomes a
21lien when a citation is served in accordance with subsection
22(a) of this Section. The lien binds nonexempt personal
23property, including money, choses in action, and effects of the
24judgment debtor as follows:
25        (1) When the citation is directed against the judgment
26    debtor, upon all personal property belonging to the

 

 

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1    judgment debtor in the possession or control of the
2    judgment debtor or which may thereafter be acquired or come
3    due to the judgment debtor to the time of the disposition
4    of the citation.
5        (2) When the citation is directed against a third
6    party, upon all personal property belonging to the judgment
7    debtor in the possession or control of the third party or
8    which thereafter may be acquired or come due the judgment
9    debtor and comes into the possession or control of the
10    third party to the time of the disposition of the citation.
11    The lien established under this Section does not affect the
12rights of citation respondents in property prior to the service
13of the citation upon them and does not affect the rights of
14bona fide purchasers or lenders without notice of the citation.
15The lien is effective for the period specified by Supreme Court
16Rule.
17    This subsection (m), as added by Public Act 88-48, is a
18declaration of existing law.
19    (n) If any provision of this Act or its application to any
20person or circumstance is held invalid, the invalidity of that
21provision or application does not affect the provisions or
22applications of the Act that can be given effect without the
23invalid provision or application.
24    (o) The changes to this Section made by this amendatory Act
25of the 97th General Assembly apply only to supplementary
26proceedings commenced under this Section on or after the

 

 

HB2584- 19 -LRB099 09858 HEP 30070 b

1effective date of this amendatory Act of the 97th General
2Assembly. The requirements or limitations set forth in
3subsections (b-1), (b-5), (b-10), (c-5), and (d-5) do not apply
4to the enforcement of any order or judgment resulting from an
5adjudication of a municipal ordinance violation that is subject
6to Supreme Court Rules 570 through 579, or from an
7administrative adjudication of such an ordinance violation.
8(Source: P.A. 97-350, eff. 1-1-12; 97-848, eff. 7-25-12;
998-557, eff. 1-1-14.)
 
10    (735 ILCS 5/12-803)  (from Ch. 110, par. 12-803)
11    Sec. 12-803. Wages subject to collection. The wages,
12salary, commissions and bonuses subject to collection under a
13deduction order, for any work week shall be the lesser of (1)
1410% 15% of such gross amount paid for that week or (2) the
15amount by which disposable earnings for a week exceed 50 45
16times the Federal Minimum Hourly Wage prescribed by Section
17206(a)(1) of Title 29 of the United States Code, as amended,
18or, under a wage deduction summons served on or after January
191, 2006, the minimum hourly wage prescribed by Section 4 of the
20Minimum Wage Law or the local minimum hourly wage law to which
21the debtor's employer is subject, whichever is greater, in
22effect at the time the amounts are payable. This provision (and
23no other) applies irrespective of the place where the
24compensation was earned or payable and the State where the
25employee resides. No amounts required by law to be withheld may

 

 

HB2584- 20 -LRB099 09858 HEP 30070 b

1be taken from the amount collected by the creditor. The term
2"disposable earnings" means that part of the earnings of any
3individual remaining after the deduction from those earnings of
4any amounts required by law to be withheld.
5(Source: P.A. 94-306, eff. 1-1-06; 95-661, eff. 1-1-08.)
 
6    (735 ILCS 5/12-805)  (from Ch. 110, par. 12-805)
7    Sec. 12-805. Summons; Issuance.
8    (a) Upon the filing by a judgment creditor, its attorney or
9other designee of (1) an affidavit that the affiant believes
10any person is indebted to the judgment debtor for wages due or
11to become due, as provided in Part 8 of Article XII of this
12Act, and includes the last address of the judgment debtor known
13to the affiant as well as the name of the judgment debtor, and
14a certification by the judgment creditor or his attorney that,
15before filing the affidavit, the wage deduction notice has been
16mailed to the judgment debtor by first class mail at the
17judgment debtor's last known address, and (2) written
18interrogatories to be answered by the employer with respect to
19the indebtedness, the clerk of the court in which the judgment
20was entered shall issue summons against the person named in the
21affidavit as employer commanding the employer to appear in the
22court and answer the interrogatories in writing under oath. The
23interrogatories shall elicit all the information necessary to
24determine the proper amount of non-exempt wages. The
25interrogatories shall require that the employer certify that a

 

 

HB2584- 21 -LRB099 09858 HEP 30070 b

1copy of the completed interrogatories as specified in
2subsection (c) of Section 12-808 has been mailed or hand
3delivered to the judgment debtor and shall be in a form
4consistent with local court rules. The summons shall further
5command federal agency employers, upon effective service of
6summons pursuant to 5 USC 5520a, to commence to pay over
7deducted wages in accordance with Section 12-808. The summons
8shall be in a form consistent with local court rules. The
9summons shall be accompanied by a copy of the underlying
10judgment or a certification by the clerk of the court that
11entered the judgment, or by the attorney for the judgment
12creditor, setting forth the date and amount of the judgment,
13allowable costs expended, interest accumulated, credits paid
14by or on behalf of the judgment debtor and the balance due the
15judgment creditor, and one copy of a wage deduction notice in
16substantially the following form:
17
"WAGE DEDUCTION NOTICE
18    (Name and address of Court)
19    Name of Case:  (Name of Judgment Creditor),
20        Judgment Creditor v.
21        (Name of Judgment Debtor),
22        Judgment Debtor.
23    Address of Judgment Debtor:  (Insert last known address)
24    Name and Address of Attorney for Judgment
25    Creditor or of Judgment Creditor (if no
26    attorney is listed):  (Insert name and address)

 

 

HB2584- 22 -LRB099 09858 HEP 30070 b

1    Amount of Judgment:  $..........
2    Employer:  (Name of Employer)
3    Return Date:  (Insert return date specified in summons)
4NOTICE: The court shall be asked to issue a wage deduction
5summons against the employer named above for wages due or about
6to become due to you. The wage deduction summons may be issued
7on the basis of a judgment against you in favor of the judgment
8creditor in the amount stated above.
9    The amount of wages that may be deducted is limited by
10federal and Illinois law.
11        (1) Under Illinois law, the amount of wages that may be
12    deducted is limited to the lesser of (i) 10% 15% of gross
13    weekly wages or (ii) the amount by which disposable
14    earnings for a week exceed the total of 50 45 times the
15    federal minimum hourly wage or, under a wage deduction
16    summons served on or after January 1, 2006, the minimum
17    hourly wage prescribed by Section 4 of the Minimum Wage Law
18    or the local minimum hourly wage law to which the debtor's
19    employer is subject, whichever is greater.
20        (2) Under federal law, the amount of wages that may be
21    deducted is limited to the lesser of (i) 25% of disposable
22    earnings for a week or (ii) the amount by which disposable
23    earnings for a week exceed 30 times the federal minimum
24    hourly wage.
25        (3) Pension and retirement benefits and refunds may be
26    claimed as exempt from wage deduction under Illinois law.

 

 

HB2584- 23 -LRB099 09858 HEP 30070 b

1    You have the right to request a hearing before the court to
2dispute the wage deduction because the wages are exempt. To
3obtain a hearing in counties with a population of 1,000,000 or
4more, you must notify the Clerk of the Court in person and in
5writing at (insert address of Clerk) before the Return Date
6specified above or appear in court on the date and time on that
7Return Date. To obtain a hearing in counties with a population
8of less than 1,000,000, you must notify the Clerk of the Court
9in writing at (insert address of clerk) on or before the Return
10Date specified above. The Clerk of the Court will provide a
11hearing date and the necessary forms that must be prepared by
12you or your attorney and sent to the judgment creditor and the
13employer, or their attorney, regarding the time and location of
14the hearing. This notice may be sent by regular first class
15mail."
16    (b) In a county with a population of less than 1,000,000,
17unless otherwise provided by circuit court rule, at the request
18of the judgment creditor or his or her attorney and instead of
19personal service, service of a summons for a wage deduction may
20be made as follows:
21        (1) For each employer to be served, the judgment
22    creditor or his or her attorney shall pay to the clerk of
23    the court a fee of $2, plus the cost of mailing, and
24    furnish to the clerk an original and one copy of a summons,
25    an original and one copy of the interrogatories and an
26    affidavit setting forth the employer's mailing address, an

 

 

HB2584- 24 -LRB099 09858 HEP 30070 b

1    original and one copy of the wage deduction notice required
2    by subsection (a) of this Section, and a copy of the
3    judgment or certification described in subsection (a) of
4    this Section. The original judgment shall be retained by
5    the clerk.
6        (2) The clerk shall mail to the employer, at the
7    address appearing in the affidavit, the copy of the
8    judgment or certification described in subsection (a) of
9    this Section, the summons, the interrogatories, and the
10    wage deduction notice required by subsection (a) of this
11    Section, by certified or registered mail, return receipt
12    requested, showing to whom delivered and the date and
13    address of delivery. This Mailing shall be mailed on a
14    "restricted delivery" basis when service is directed to a
15    natural person. The envelope and return receipt shall bear
16    the return address of the clerk, and the return receipt
17    shall be stamped with the docket number of the case. The
18    receipt for certified or registered mail shall state the
19    name and address of the addressee, the date of the mailing,
20    shall identify the documents mailed, and shall be attached
21    to the original summons.
22        (3) The return receipt must be attached to the original
23    summons and, if it shows delivery at least 3 days before
24    the return date, shall constitute proof of service of any
25    documents identified on the return receipt as having been
26    mailed.

 

 

HB2584- 25 -LRB099 09858 HEP 30070 b

1        (4) The clerk shall note the fact of service in a
2    permanent record.
3    (c) Instead of personal service, a summons for a wage
4deduction may be served and returned in the manner provided by
5Supreme Court rule for service, otherwise than by publication,
6of a notice for additional relief upon a party in default.
7(Source: P.A. 94-306, eff. 1-1-06.)
 
8    (735 ILCS 5/12-808)  (from Ch. 110, par. 12-808)
9    Sec. 12-808. Duty of employer.
10    (a) An employer served as herein provided shall pay the
11employee the amount of his or her exempt wages.
12    (b) To the extent of the amount due upon the judgment and
13costs, the employer shall hold, subject to order of court, any
14non-exempt wages due or which subsequently come due. The
15judgment or balance due thereon is a lien on wages due at the
16time of the service of summons, and such lien shall continue as
17to subsequent earnings until the total amount due upon the
18judgment and costs is paid, except that such lien on subsequent
19earnings shall terminate sooner if the employment relationship
20is terminated or if the underlying judgment is vacated or
21modified.
22    (b-5) If the employer is a federal agency employer and the
23creditor is represented by an attorney, then the employer, upon
24service of summons and to the extent of the amount due upon the
25judgment and costs, shall commence to pay over to the attorney

 

 

HB2584- 26 -LRB099 09858 HEP 30070 b

1for the judgment creditor any non-exempt wages due or that
2subsequently come due. The attorney for the judgment creditor
3shall thereafter hold the deducted wages subject to further
4order of the court and shall make answer to the court regarding
5amounts received from the federal agency employer. The federal
6agency employer's periodic payments shall be considered a
7sufficient answer to the interrogatories.
8    (c) Except as provided in subsection (b-5), the employer
9shall file, on or before the return date or within the further
10time that the court for cause may allow, a written answer under
11oath to the interrogatories, setting forth the amount due as
12wages to the judgment debtor for the payroll periods ending
13immediately prior to the service of the summons and a summary
14of the computation used to determine the amount of non-exempt
15wages. Except as provided in subsection (b-5), the employer
16shall mail by first class mail or hand deliver a copy of the
17answer to the judgment debtor at the address specified in the
18affidavit filed under Section 12-805 of this Act, or at any
19other address or location of the judgment debtor known to the
20employer.
21    A lien obtained hereunder shall have priority over any
22subsequent lien obtained hereunder, except that liens for the
23support of a spouse or dependent children shall have priority
24over all other liens obtained hereunder. Subsequent summonses
25shall be effective in the order in which they are served.
26    (d) The Illinois Supreme Court may by rule allow an

 

 

HB2584- 27 -LRB099 09858 HEP 30070 b

1employer to file answers to interrogatories by facsimile
2transmission.
3    (e) Pursuant to answer under oath to the interrogatories by
4the employer, an order shall be entered compelling the employer
5to deduct from wages of the judgment debtor subject to
6collection under a deduction order an amount which is the
7lesser of (i) 10% 15% of the gross amount of the wages or (ii)
8the amount by which disposable earnings for a week exceed 50 45
9times the Federal Minimum Hourly Wage prescribed by Section
10206(a)(1) of Title 29 of the United States Code, as amended, in
11effect at the time the amounts are payable, for each pay period
12in which statutory exemptions under Section 12-804 and child
13support garnishments, if any, leave funds to be remitted or,
14under a wage deduction summons served on or after January 1,
152006, the minimum hourly wage prescribed by Section 4 of the
16Minimum Wage Law or the local minimum hourly wage law to which
17the debtor's employer is subject, whichever is greater. The
18order shall further provide that deducted wages shall be
19remitted to the creditor or creditor's attorney on a monthly
20basis.
21    (f) If after the entry of a deduction order, the employer
22ceases to remit funds to the plaintiff pursuant to the order
23without a lawful excuse (which would terminate the employer's
24obligation under the deduction order such as the debtor having
25filed a bankruptcy, the debtor having left employment or the
26employer having received service of a support order against the

 

 

HB2584- 28 -LRB099 09858 HEP 30070 b

1judgment debtor having priority over the wage deduction
2proceedings), the court shall, upon plaintiff's motion, enter a
3conditional judgment against the employer for the balance due
4on the judgment. The plaintiff may then issue a Summons After
5Conditional Judgment. After service of the Summons After
6Conditional Judgment, the employer may show cause why the
7conditional judgment, or some portion thereof should not be
8made a final judgment. If the employer shall fail to respond or
9show cause why the conditional judgment or some portion thereof
10should not be made final, the court shall confirm the
11conditional judgment and make it final as to the employer plus
12additional court costs.
13(Source: P.A. 94-306, eff. 1-1-06; 95-661, eff. 1-1-08.)
 
14    (735 ILCS 5/12-1001)   (from Ch. 110, par. 12-1001)
15    Sec. 12-1001. Personal property exempt. Subject to Section
1612-1001.5, the The following personal property, owned by the
17debtor, is exempt from judgment, attachment, or distress for
18rent:
19        (a) The necessary wearing apparel, bible, school
20    books, and family pictures of the debtor and the debtor's
21    dependents;
22        (b) The debtor's equity interest, not to exceed $4,000
23    in value, in any other property;
24        (c) The debtor's interest, not to exceed $2,400 in
25    value, in any one motor vehicle;

 

 

HB2584- 29 -LRB099 09858 HEP 30070 b

1        (d) The debtor's equity interest, not to exceed $1,500
2    in value, in any implements, professional books, or tools
3    of the trade of the debtor;
4        (e) Professionally prescribed health aids for the
5    debtor or a dependent of the debtor;
6        (f) All proceeds payable because of the death of the
7    insured and the aggregate net cash value of any or all life
8    insurance and endowment policies and annuity contracts
9    payable to a wife or husband of the insured, or to a child,
10    parent, or other person dependent upon the insured, or to a
11    revocable or irrevocable trust which names the wife or
12    husband of the insured or which names a child, parent, or
13    other person dependent upon the insured as the primary
14    beneficiary of the trust, whether the power to change the
15    beneficiary is reserved to the insured or not and whether
16    the insured or the insured's estate is a contingent
17    beneficiary or not;
18        (g) The debtor's right to receive:
19            (1) a social security benefit, unemployment
20        compensation, or public assistance benefit;
21            (2) a veteran's benefit;
22            (3) a disability, illness, or unemployment
23        benefit; and
24            (4) alimony, support, or separate maintenance, to
25        the extent reasonably necessary for the support of the
26        debtor and any dependent of the debtor.

 

 

HB2584- 30 -LRB099 09858 HEP 30070 b

1        (h) The debtor's right to receive, or property that is
2    traceable to:
3            (1) an award under a crime victim's reparation law;
4            (2) a payment on account of the wrongful death of
5        an individual of whom the debtor was a dependent, to
6        the extent reasonably necessary for the support of the
7        debtor;
8            (3) a payment under a life insurance contract that
9        insured the life of an individual of whom the debtor
10        was a dependent, to the extent reasonably necessary for
11        the support of the debtor or a dependent of the debtor;
12            (4) a payment, not to exceed $15,000 in value, on
13        account of personal bodily injury of the debtor or an
14        individual of whom the debtor was a dependent; and
15            (5) any restitution payments made to persons
16        pursuant to the federal Civil Liberties Act of 1988 and
17        the Aleutian and Pribilof Island Restitution Act, P.L.
18        100-383.
19        For purposes of this subsection (h), a debtor's right
20    to receive an award or payment shall be exempt for a
21    maximum of 2 years after the debtor's right to receive the
22    award or payment accrues; property traceable to an award or
23    payment shall be exempt for a maximum of 5 years after the
24    award or payment accrues; and an award or payment and
25    property traceable to an award or payment shall be exempt
26    only to the extent of the amount of the award or payment,

 

 

HB2584- 31 -LRB099 09858 HEP 30070 b

1    without interest or appreciation from the date of the award
2    or payment.
3        (i) The debtor's right to receive an award under Part
4    20 of Article II of this Code relating to crime victims'
5    awards.
6        (j) Moneys held in educational expense accounts and
7    similar types of educational savings accounts, including,
8    but not limited to, an account invested in the Illinois
9    College Savings Pool of which the debtor is a participant
10    or donor, funds invested in an ABLE Account as defined by
11    Section 529 of the Internal Revenue Code, and funds
12    invested in a 529 Plan as defined by Section 529 of the
13    Internal Revenue Code, except the following non-exempt
14    contributions:
15            (1) any contribution to such account by the debtor
16        as participant or donor that is made with the actual
17        intent to hinder, delay, or defraud any creditor of the
18        debtor;
19            (2) any contributions to such account by the debtor
20        as participant during the 365 day period prior to the
21        date of filing of the debtor's petition for bankruptcy
22        that, in the aggregate during such period, exceed the
23        amount of the annual gift tax exclusion under Section
24        2503(b) of the Internal Revenue Code of 1986, as
25        amended, in effect at the time of contribution; or
26            (3) any contributions to such account by the debtor

 

 

HB2584- 32 -LRB099 09858 HEP 30070 b

1        as participant during the period commencing 730 days
2        prior to and ending 366 days prior to the date of
3        filing of the debtor's petition for bankruptcy that, in
4        the aggregate during such period, exceed the amount of
5        the annual gift tax exclusion under Section 2503(b) of
6        the Internal Revenue Code of 1986, as amended, in
7        effect at the time of contribution.
8        For purposes of this subsection (j), "account"
9    includes all accounts for a particular designated
10    beneficiary, of which the debtor is a participant or donor.
11        (k) An amount not to exceed $6,000, held by the debtor
12    in the form of cash, a bank account, accrued interest,
13    dividends, the loan or redemption value of a life insurance
14    policy, or other type of account. A financial institution
15    shall not freeze the debtor's access to or turn over to the
16    judgment creditor the amount in the debtor's account that
17    is $6,000 or less, but shall inform the court and the
18    judgment creditor of the exempt amount. The judgment
19    creditor may, upon notice to the financial institution and
20    the debtor, petition the court for a hearing to establish
21    that the funds in the account are not exempt.
22    Money due the debtor from the sale of any personal property
23that was exempt from judgment, attachment, or distress for rent
24at the time of the sale is exempt from attachment and
25garnishment to the same extent that the property would be
26exempt had the same not been sold by the debtor.

 

 

HB2584- 33 -LRB099 09858 HEP 30070 b

1    If a debtor owns property exempt under this Section and he
2or she purchased that property with the intent of converting
3nonexempt property into exempt property or in fraud of his or
4her creditors, that property shall not be exempt from judgment,
5attachment, or distress for rent. Property acquired within 6
6months of the filing of the petition for bankruptcy shall be
7presumed to have been acquired in contemplation of bankruptcy.
8    The personal property exemptions set forth in this Section
9shall apply only to individuals and only to personal property
10that is used for personal rather than business purposes. The
11personal property exemptions set forth in this Section shall
12not apply to or be allowed against any money, salary, or wages
13due or to become due to the debtor that are required to be
14withheld in a wage deduction proceeding under Part 8 of this
15Article XII.
16(Source: P.A. 97-1030, eff. 8-17-12.)
 
17    (735 ILCS 5/12-1001.5 new)
18    Sec. 12-1001.5. Adjustment of exempted amounts.
19    (a) The dollar amounts in Section 12-1001 of this Code
20shall change periodically, as provided in this Section,
21according to and to the extent of changes in the Consumer Price
22Index for Urban Wage Earners and Clerical Workers: U.S. City
23Average, All Items, compiled by the Bureau of Labor Statistics
24of the United States Department of Labor and referred to in
25this Section as the index. The index for December 2015 is the

 

 

HB2584- 34 -LRB099 09858 HEP 30070 b

1reference base index.
2    (b) The dollar amounts in Section 12-1001 shall change on
3July 1 of each even-numbered year if the percentage of change,
4calculated to the nearest whole percentage point, between the
5index for December of the preceding year and the reference base
6index is 10% or more. The portion of the percentage change in
7the index in excess of a multiple of 10% shall be disregarded
8and the dollar amounts shall change only in multiples of 10% of
9the amounts stated in Section 12-1001 of this Code. Changes in
10dollar amounts are to be rounded to the nearest whole dollar.
11    (c) If the index is revised, the percentage of change
12pursuant to this Section shall be calculated on the basis of
13the revised index. If a revision of the index changes the
14reference base index, a revised reference base index is
15determined by multiplying the reference base index applicable
16by the rebasing factor furnished by the Bureau of Labor
17Statistics. If the index is superseded, the index referred to
18in this Section is the one represented by the Bureau of Labor
19Statistics as reflecting most accurately changes in the
20purchasing power of the dollar for consumers.
21    (d) The Illinois Commerce Commission shall:
22        (1) announce and publish, on or before July 1 of each
23    year in which dollar amounts are to change, the changes in
24    dollar amounts required by subsection (b); and
25        (2) announce and publish changes in the index required
26    by subsection (c) promptly after the changes occur,

 

 

HB2584- 35 -LRB099 09858 HEP 30070 b

1    including, if applicable, the numerical equivalent of the
2    reference base index under a revised reference base index
3    and the designation or title of any index superseding the
4    index.
 
5    Section 10. The Illinois Wage Assignment Act is amended by
6changing Section 1 as follows:
 
7    (740 ILCS 170/1)  (from Ch. 48, par. 39.1)
8    Sec. 1. Assignment of wages.
9    (a) No assignment of wages earned or to be earned is valid.
10unless
11    (b) The changes made by this amendatory Act of the 99th
12General Assembly do not apply to assignments of wages in effect
13before the effective date of this amendatory Act of the 99th
14General Assembly.
15    (1) Made in a written instrument (a) signed by the
16wage-earner in person and (b) bearing the date of its
17execution, the social security number of the wage-earner, the
18name of the employer of the wage-earner at the time of its
19execution, the amount of the money loaned or the price of the
20articles sold or other consideration given, the rate of
21interest or time-price differential, if any, to be paid, and
22the date when such payments are due;
23    (2) Given to secure an existing debt of the wage-earner or
24one contracted by the wage-earner simultaneously with its

 

 

HB2584- 36 -LRB099 09858 HEP 30070 b

1execution;
2    (3) An exact copy thereof is furnished to the wage-earner
3at the time the assignment is executed;
4    (4) The words "Wage Assignment" are printed or written in
5bold face letters of not less than 1/4 inch in height at the
6head of the wage assignment and also one inch above or below
7the line where the wage-earner signs that assignment;
8    (5) Written as a separate instrument complete in itself and
9not a part of any conditional sales contract or any other
10instrument.
11    The requirement of the social security number of the
12wage-earner imposed by this Act applies only as to wage
13assignments made after January 1, 1966.
14(Source: Laws 1967, p. 2049.)
 
15    (740 ILCS 170/2 rep.)
16    (740 ILCS 170/2.1 rep.)
17    (740 ILCS 170/2.2 rep.)
18    (740 ILCS 170/3 rep.)
19    (740 ILCS 170/4 rep.)
20    (740 ILCS 170/4.1 rep.)
21    (740 ILCS 170/4.2 rep.)
22    (740 ILCS 170/4.3 rep.)
23    (740 ILCS 170/5 rep.)
24    (740 ILCS 170/6 rep.)
25    (740 ILCS 170/7 rep.)

 

 

HB2584- 37 -LRB099 09858 HEP 30070 b

1    (740 ILCS 170/8 rep.)
2    (740 ILCS 170/9 rep.)
3    (740 ILCS 170/10 rep.)
4    (740 ILCS 170/11 rep.)
5    Section 15. The Illinois Wage Assignment Act is amended by
6repealing Sections 2, 2.1, 2.2, 3, 4, 4.1, 4.2, 4.3, 5, 6, 7,
78, 9, 10, and 11.
 
8    Section 20. The Illinois Wage Payment and Collection Act is
9amended by changing Section 9 as follows:
 
10    (820 ILCS 115/9)  (from Ch. 48, par. 39m-9)
11    Sec. 9. Except as hereinafter provided, deductions by
12employers from wages or final compensation are prohibited
13unless such deductions are (1) required by law; (2) to the
14benefit of the employee; (3) in response to a valid wage
15assignment or wage deduction order; (4) made with the express
16written consent of the employee, given freely at the time the
17deduction is made; (5) made by a municipality with a population
18of 500,000 or more, a county with a population of 3,000,000 or
19more, a community college district in a city with a population
20of 500,000 or more, a housing authority in a municipality with
21a population of 500,000 or more, the Chicago Park District, the
22Metropolitan Transit Authority, the Chicago Board of
23Education, the Cook County Forest Preserve District, or the
24Metropolitan Water Reclamation District to pay a debt owed by

 

 

HB2584- 38 -LRB099 09858 HEP 30070 b

1the employee to a municipality with a population of 500,000 or
2more, a county with a population of 3,000,000 or more, the Cook
3County Forest Preserve, the Chicago Park District, the
4Metropolitan Water Reclamation District, the Chicago Transit
5Authority, the Chicago Board of Education, or a housing
6authority of a municipality with a population of 500,000 or
7more; provided, however, that the amount deducted from any one
8salary or wage payment shall not exceed 25% of the net amount
9of the payment; or (6) made by a housing authority in a
10municipality with a population of 500,000 or more or a
11municipality with a population of 500,000 or more to pay a debt
12owed by the employee to a housing authority in a municipality
13with a population of 500,000 or more; provided, however, that
14the amount deducted from any one salary or wage payment shall
15not exceed 25% of the net amount of the payment. Before the
16municipality with a population of 500,000 or more, the
17community college district in a city with a population of
18500,000 or more, the Chicago Park District, the Metropolitan
19Transit Authority, a housing authority in a municipality with a
20population of 500,000 or more, the Chicago Board of Education,
21the county with a population of 3,000,000 or more, the Cook
22County Forest Preserve District, or the Metropolitan Water
23Reclamation District deducts any amount from any salary or wage
24of an employee to pay a debt owed to 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 under this Section, the
5municipality, the county, the Cook County Forest Preserve
6District, the Chicago Park District, the Metropolitan Water
7Reclamation District, the Chicago Transit Authority, the
8Chicago Board of Education, or a housing authority of a
9municipality with a population of 500,000 or more shall certify
10that (i) the employee has been afforded an opportunity for a
11hearing to dispute the debt that is due and owing the
12municipality, the county, the Cook County Forest Preserve
13District, the Chicago Park District, the Metropolitan Water
14Reclamation District, the Chicago Transit Authority, the
15Chicago Board of Education, or a housing authority of a
16municipality with a population of 500,000 or more and (ii) the
17employee has received notice of a wage deduction order and has
18been afforded an opportunity for a hearing to object to the
19order. Before a housing authority in a municipality with a
20population of 500,000 or more or a municipality with a
21population of 500,000 or more, a county with a population of
223,000,000 or more, the Cook County Forest Preserve District,
23the Chicago Park District, the Metropolitan Water Reclamation
24District, the Chicago Transit Authority, the Chicago Board of
25Education, or a housing authority of a municipality with a
26population of 500,000 or more deducts any amount from any

 

 

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1salary or wage of an employee to pay a debt owed to a housing
2authority in a municipality with a population of 500,000 or
3more under this Section, the housing authority shall certify
4that (i) the employee has been afforded an opportunity for a
5hearing to dispute the debt that is due and owing the housing
6authority and (ii) the employee has received notice of a wage
7deduction order and has been afforded an opportunity for a
8hearing to object to the order. For purposes of this Section,
9"net amount" means that part of the salary or wage payment
10remaining after the deduction of any amounts required by law to
11be deducted and "debt due and owing" means (i) a specified sum
12of money owed to the municipality, county, the Cook County
13Forest Preserve District, the Chicago Park District, the
14Metropolitan Water Reclamation District, the Chicago Transit
15Authority, the Chicago Board of Education, or housing authority
16for services, work, or goods, after the period granted for
17payment has expired, or (ii) a specified sum of money owed to
18the municipality, county, the Cook County Forest Preserve
19District, the Chicago Park District, the Metropolitan Water
20Reclamation District, the Chicago Transit Authority, the
21Chicago Board of Education or housing authority pursuant to a
22court order or order of an administrative hearing officer after
23the exhaustion of, or the failure to exhaust, judicial review;
24(7) the result of an excess payment made due to, but not
25limited to, a typographical or mathematical error made by a
26municipality with a population of less than 500,000 or to

 

 

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1collect a debt owed to a municipality with a population of less
2than 500,000 after notice to the employee and an opportunity to
3be heard; provided, however, that the amount deducted from any
4one salary or wage payment shall not exceed 15% of the net
5amount of the payment. Before the municipality deducts any
6amount from any salary or wage of an employee to pay a debt
7owed to the municipality, the municipality shall certify that
8(i) the employee has been afforded an opportunity for a
9hearing, conducted by the municipality, to dispute the debt
10that is due and owing the municipality, and (ii) the employee
11has received notice of a wage deduction order and has been
12afforded an opportunity for a hearing, conducted by the
13municipality, to object to the order. For purposes of this
14Section, "net amount" means that part of the salary or wage
15payment remaining after the deduction of any amounts required
16by law to be deducted and "debt due and owing" means (i) a
17specified sum of money owed to the municipality for services,
18work, or goods, after the period granted for payment has
19expired, or (ii) a specified sum of money owed to the
20municipality pursuant to a court order or order of an
21administrative hearing officer after the exhaustion of, or the
22failure to exhaust, judicial review. Where the legitimacy of
23any deduction from wages is in dispute, the amount in question
24may be withheld if the employer notifies the Department of
25Labor on the date the payment is due in writing of the amount
26that is being withheld and stating the reasons for which the

 

 

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1payment is withheld. Upon such notification the Department of
2Labor shall conduct an investigation and render a judgment as
3promptly as possible, and shall complete such investigation
4within 30 days of receipt of the notification by the employer
5that wages have been withheld. The employer shall pay the wages
6due upon order of the Department of Labor within 15 calendar
7days of issuance of a judgment on the dispute.
8    The Department shall establish rules to protect the
9interests of both parties in cases of disputed deductions from
10wages. Such rules shall include reasonable limitations on the
11amount of deductions beyond those required by law which may be
12made during any pay period by any employer.
13    In case of a dispute over wages, the employer shall pay,
14without condition and within the time set by this Act, all
15wages or parts thereof, conceded by him to be due, leaving to
16the employee all remedies to which he may otherwise be entitled
17as to any balance claimed. The acceptance by an employee of a
18disputed paycheck shall not constitute a release as to the
19balance of his claim and any release or restrictive endorsement
20required by an employer as a condition to payment shall be a
21violation of this Act and shall be void.
22(Source: P.A. 97-120, eff. 1-1-12.)
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.