Illinois General Assembly - Full Text of SB0508
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Full Text of SB0508  103rd General Assembly

SB0508sam001 103RD GENERAL ASSEMBLY

Sen. Cristina Castro

Filed: 5/1/2023

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 508

2    AMENDMENT NO. ______. Amend Senate Bill 508 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Wage Payment and Collection Act
5is amended by changing Sections 4 and 14.5 and by adding
6Section 4.2 as follows:
 
7    (820 ILCS 115/4)  (from Ch. 48, par. 39m-4)
8    Sec. 4. All wages earned by any employee during a
9semi-monthly or bi-weekly pay period shall be paid to such
10employee not later than 13 days after the end of the pay period
11in which such wages were earned. All wages earned by any
12employee during a weekly pay period shall be paid not later
13than 7 days after the end of the weekly pay period in which the
14wages were earned. All wages paid on a daily basis shall be
15paid insofar as possible on the same day as the wages were
16earned, or not later in any event than 24 hours after the day

 

 

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1on which the wages were earned. Wages of executive,
2administrative and professional employees, as defined in the
3Federal Fair Labor Standards Act of 1938, may be paid on or
4before 21 calendar days after the period during which they are
5earned.
6    The terms of this Section shall not apply, if there exists
7a valid collective bargaining agreement which provides for a
8different date or for different arrangements for the payment
9of wages.
10    Employers shall pay to workers on strike or layoff, no
11later than the next regular payday, all wages earned up to the
12time of such strike or layoff.
13    Any employee who is absent at the time fixed for payment,
14or who for any other reason is not paid at that time, shall be
15paid upon demand at any time within a period of 5 days after
16the time fixed for payment; and after the expiration of the 5
17day period, payment shall be made upon 5 days demand. Payment
18to the absent employee shall be made by mail if the employee so
19requests in writing.
20    All wages and final compensation shall be paid in lawful
21money of the United States, by check, redeemable upon demand
22and without discount at a bank or other financial institution
23readily available to the employee, by deposit of funds in an
24account in a bank or other financial institution designated by
25the employee, or by a payroll card that meets the requirements
26of Section 14.5. No employer may designate a particular

 

 

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1financial institution, bank, savings bank, savings and loan,
2or currency exchange for the exclusive payment or deposit of a
3check for wages. No financial institution, bank, savings bank,
4savings and loan, or currency exchange shall refuse to honor a
5check for wages that exclusively designates, in violation of
6this Section, a particular bank, savings bank, savings and
7loan, or currency exchange as the exclusive place of payment
8or deposit except to the extent the bank, savings bank,
9savings and loan, or currency exchange is otherwise excused
10from honoring the check under Section 3-111 of the Uniform
11Commercial Code because the bank, savings bank, savings and
12loan, or currency exchange is not the drawee or the maker of
13the check.
14(Source: P.A. 98-862, eff. 1-1-15.)
 
15    (820 ILCS 115/4.2 new)
16    Sec. 4.2. Promoting electronic wage payments.
17    (a) An employer may encourage an employee to receive wages
18either by direct deposit or by means of a payroll card that
19meets the requirements of Section 14.5, if the employer does
20all of the following:
21        (1) Provides the employee with a form that allows the
22    employee to elect to receive wages by direct deposit. The
23    form must include a statement notifying the employee that
24    the employee's failure to return the form within 3 days
25    will, by default, result in the employee receiving wages

 

 

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1    by means of a payroll card.
2        (2) Provides the employee with an adequate way to
3    obtain the employee's pay stub electronically or via a
4    paper statement that can be printed on demand at no cost to
5    the employee at the employer worksite if the employee
6    elects to receive an electronic or paper statement by
7    checking a box on the form described in this Section.
8        (3) Provides the employee a manner in which the
9    employee may request payment by check, redeemable upon
10    demand and without discount at a bank or other financial
11    institution, readily available to the employee.
12    (b) The provisions of this Section shall not apply to
13employees covered by a valid collective bargaining agreement
14that provides for different arrangements for the payment of
15wages.
 
16    (820 ILCS 115/14.5)
17    Sec. 14.5. Payroll cards. An employer using a payroll card
18to pay an employee's wages shall meet the following
19requirements:
20        (1) The employer shall not make receipt of wages by
21    payroll card a condition of employment or a condition for
22    the receipt of any benefit or other form of remuneration
23    for any employee without the additional option of direct
24    deposit, at the employee's election.
25        (2) The employer shall not initiate payment of wages

 

 

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1    to the employee by electronic fund transfer to a payroll
2    card account unless:
3            (A) the employer provides the employee with a
4        clear and conspicuous written disclosure notifying the
5        employee that payment by payroll card is voluntary,
6        listing the other method or methods of payment offered
7        by the employer in accordance with Section 4, and
8        explaining the terms and conditions of the payroll
9        card account option, including:
10                (i) an itemized list of all fees that may be
11            deducted from the employee's payroll card account
12            by the employer or payroll card issuer;
13                (ii) a notice that third parties may assess
14            transaction fees in addition to the fees assessed
15            by the employee's payroll card issuer; and
16                (iii) an explanation of how the employee may
17            obtain, at no cost, the employee's net wages,
18            check the account balance, and request to receive
19            paper or electronic transaction histories, as
20            provided in item (3);
21            (B) the employer also offers the employee another
22        method or methods of payment in compliance with
23        Section 4; and
24            (C) (blank). the employer obtains the employee's
25        voluntary written or electronic consent to receive the
26        wages by payroll card.

 

 

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1        (3) A payroll card program offered by the employer
2    shall provide the employee with:
3            (A) at least one method of withdrawing the
4        employee's full net wages from the payroll card once
5        per pay period, but not less than twice per month, at
6        no cost to the employee, at a location readily
7        available to the employee;
8            (B) at the employee's request, one transaction
9        history, which the employee may request to receive in
10        paper or electronic form, each month that includes all
11        deposits, withdrawals, deductions, or charges by any
12        entity from or to the employee's payroll card account
13        at no cost to the employee; and
14            (C) unlimited telephone access in English and
15        Spanish to obtain the payroll card account balance on
16        the payroll card at any time without incurring a fee.
17        (4) An employer may not use a payroll card program
18    that charges fees for point of sale transactions, the
19    application, initiation, loading of wages by the employer,
20    or participation in the payroll card program. Fees for
21    account inactivity may be assessed following one year of
22    inactivity. The payroll card program must offer the
23    employee a declined transaction, at no cost to the
24    employee, twice per month. Commercially reasonable fees,
25    limited to cover the costs to process declined
26    transactions, may be assessed on subsequent declined

 

 

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1    transactions within that particular month.
2        (5) The payroll card or payroll card account may not
3    be linked to any form of credit including, but not limited
4    to, overdraft fees or overdraft service fees, a loan
5    against future pay, or a cash advance on future pay or work
6    not yet performed, except that early payment of wages
7    verified to have been already earned in the current pay
8    period is permitted.
9        (6) An employee paid wages by payroll card may request
10    to be paid wages by another method of payment provided by
11    the employer in accordance with Sections Section 4 and
12    4.2. Following the request, the employer shall, within 2
13    pay periods, begin payment to the employee by the
14    allowable method requested by the employee.
15        (7) A payroll card program offered by an employer
16    shall provide the employee with protections from
17    unauthorized use of the payroll card in accordance with
18    State and federal law concerning electronic fund
19    transfers.
20        (8) The employer's obligations under this Section
21    shall cease 60 days after the employer-employee
22    relationship has ended and the employee has been paid the
23    employee's full and final wages.
24        (9) Within 30 days of the termination of the
25    employer-employee relationship, the employer shall notify
26    the employee that the terms and conditions of the account

 

 

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1    may change if the employee chooses to continue a
2    relationship with the payroll card issuer.
3(Source: P.A. 98-862, eff. 1-1-15.)".