Bill Amendment: IL SB0508 | 2023-2024 | 103rd General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

---

Bill Title: EMPLOYMENT-TECH

Status: 2024-08-09 - Public Act . . . . . . . . . 103-0879 [SB0508 Detail]

Download: Illinois-2023-SB0508-Senate_Amendment_001.html

---

Sen. Cristina Castro

Filed: 5/1/2023

10300SB0508sam001 LRB103 02960 SPS 61108 a
AMENDMENT TO SENATE BILL 508
AMENDMENT NO. ______. Amend Senate Bill 508 by replacing
everything after the enacting clause with the following:
"Section 5. The Illinois Wage Payment and Collection Act
is amended by changing Sections 4 and 14.5 and by adding
Section 4.2 as follows:
(820 ILCS 115/4) (from Ch. 48, par. 39m-4)
Sec. 4. All wages earned by any employee during a
semi-monthly or bi-weekly pay period shall be paid to such
employee not later than 13 days after the end of the pay period
in which such wages were earned. All wages earned by any
employee during a weekly pay period shall be paid not later
than 7 days after the end of the weekly pay period in which the
wages were earned. All wages paid on a daily basis shall be
paid insofar as possible on the same day as the wages were
earned, or not later in any event than 24 hours after the day

10300SB0508sam001 - 2 - LRB103 02960 SPS 61108 a
on which the wages were earned. Wages of executive,
administrative and professional employees, as defined in the
Federal Fair Labor Standards Act of 1938, may be paid on or
before 21 calendar days after the period during which they are
earned.
The terms of this Section shall not apply, if there exists
a valid collective bargaining agreement which provides for a
different date or for different arrangements for the payment
of wages.
Employers shall pay to workers on strike or layoff, no
later than the next regular payday, all wages earned up to the
time of such strike or layoff.
Any employee who is absent at the time fixed for payment,
or who for any other reason is not paid at that time, shall be
paid upon demand at any time within a period of 5 days after
the time fixed for payment; and after the expiration of the 5
day period, payment shall be made upon 5 days demand. Payment
to the absent employee shall be made by mail if the employee so
requests in writing.
All wages and final compensation shall be paid in lawful
money of the United States, by check, redeemable upon demand
and without discount at a bank or other financial institution
readily available to the employee, by deposit of funds in an
account in a bank or other financial institution designated by
the employee, or by a payroll card that meets the requirements
of Section 14.5. No employer may designate a particular

10300SB0508sam001 - 3 - LRB103 02960 SPS 61108 a
financial institution, bank, savings bank, savings and loan,
or currency exchange for the exclusive payment or deposit of a
check for wages. No financial institution, bank, savings bank,
savings and loan, or currency exchange shall refuse to honor a
check for wages that exclusively designates, in violation of
this Section, a particular bank, savings bank, savings and
loan, or currency exchange as the exclusive place of payment
or deposit except to the extent the bank, savings bank,
savings and loan, or currency exchange is otherwise excused
from honoring the check under Section 3-111 of the Uniform
Commercial Code because the bank, savings bank, savings and
loan, or currency exchange is not the drawee or the maker of
the check.
(Source: P.A. 98-862, eff. 1-1-15.)
(820 ILCS 115/4.2 new)
Sec. 4.2. Promoting electronic wage payments.
(a) An employer may encourage an employee to receive wages
either by direct deposit or by means of a payroll card that
meets the requirements of Section 14.5, if the employer does
all of the following:
(1) Provides the employee with a form that allows the
employee to elect to receive wages by direct deposit. The
form must include a statement notifying the employee that
the employee's failure to return the form within 3 days
will, by default, result in the employee receiving wages

10300SB0508sam001 - 4 - LRB103 02960 SPS 61108 a
by means of a payroll card.
(2) Provides the employee with an adequate way to
obtain the employee's pay stub electronically or via a
paper statement that can be printed on demand at no cost to
the employee at the employer worksite if the employee
elects to receive an electronic or paper statement by
checking a box on the form described in this Section.
(3) Provides the employee a manner in which the
employee may request payment by check, redeemable upon
demand and without discount at a bank or other financial
institution, readily available to the employee.
(b) The provisions of this Section shall not apply to
employees covered by a valid collective bargaining agreement
that provides for different arrangements for the payment of
wages.
(820 ILCS 115/14.5)
Sec. 14.5. Payroll cards. An employer using a payroll card
to pay an employee's wages shall meet the following
requirements:
(1) The employer shall not make receipt of wages by
payroll card a condition of employment or a condition for
the receipt of any benefit or other form of remuneration
for any employee without the additional option of direct
deposit, at the employee's election.
(2) The employer shall not initiate payment of wages

10300SB0508sam001 - 5 - LRB103 02960 SPS 61108 a
to the employee by electronic fund transfer to a payroll
card account unless:
(A) the employer provides the employee with a
clear and conspicuous written disclosure notifying the
employee that payment by payroll card is voluntary,
listing the other method or methods of payment offered
by the employer in accordance with Section 4, and
explaining the terms and conditions of the payroll
card account option, including:
(i) an itemized list of all fees that may be
deducted from the employee's payroll card account
by the employer or payroll card issuer;
(ii) a notice that third parties may assess
transaction fees in addition to the fees assessed
by the employee's payroll card issuer; and
(iii) an explanation of how the employee may
obtain, at no cost, the employee's net wages,
check the account balance, and request to receive
paper or electronic transaction histories, as
provided in item (3);
(B) the employer also offers the employee another
method or methods of payment in compliance with
Section 4; and
(C) (blank). the employer obtains the employee's
voluntary written or electronic consent to receive the
wages by payroll card.

10300SB0508sam001 - 6 - LRB103 02960 SPS 61108 a
(3) A payroll card program offered by the employer
shall provide the employee with:
(A) at least one method of withdrawing the
employee's full net wages from the payroll card once
per pay period, but not less than twice per month, at
no cost to the employee, at a location readily
available to the employee;
(B) at the employee's request, one transaction
history, which the employee may request to receive in
paper or electronic form, each month that includes all
deposits, withdrawals, deductions, or charges by any
entity from or to the employee's payroll card account
at no cost to the employee; and
(C) unlimited telephone access in English and
Spanish to obtain the payroll card account balance on
the payroll card at any time without incurring a fee.
(4) An employer may not use a payroll card program
that charges fees for point of sale transactions, the
application, initiation, loading of wages by the employer,
or participation in the payroll card program. Fees for
account inactivity may be assessed following one year of
inactivity. The payroll card program must offer the
employee a declined transaction, at no cost to the
employee, twice per month. Commercially reasonable fees,
limited to cover the costs to process declined
transactions, may be assessed on subsequent declined

10300SB0508sam001 - 7 - LRB103 02960 SPS 61108 a
transactions within that particular month.
(5) The payroll card or payroll card account may not
be linked to any form of credit including, but not limited
to, overdraft fees or overdraft service fees, a loan
against future pay, or a cash advance on future pay or work
not yet performed, except that early payment of wages
verified to have been already earned in the current pay
period is permitted.
(6) An employee paid wages by payroll card may request
to be paid wages by another method of payment provided by
the employer in accordance with Sections Section 4 and
4.2. Following the request, the employer shall, within 2
pay periods, begin payment to the employee by the
allowable method requested by the employee.
(7) A payroll card program offered by an employer
shall provide the employee with protections from
unauthorized use of the payroll card in accordance with
State and federal law concerning electronic fund
transfers.
(8) The employer's obligations under this Section
shall cease 60 days after the employer-employee
relationship has ended and the employee has been paid the
employee's full and final wages.
(9) Within 30 days of the termination of the
employer-employee relationship, the employer shall notify
the employee that the terms and conditions of the account

10300SB0508sam001 - 8 - LRB103 02960 SPS 61108 a
may change if the employee chooses to continue a
relationship with the payroll card issuer.
(Source: P.A. 98-862, eff. 1-1-15.)".