Bill Text: IL HB3227 | 2023-2024 | 103rd General Assembly | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Reinserts the provisions of the introduced bill with the following changes: Amends the Minimum Wage Law and the Illinois Wage Payment and Collection Act. Provides that beginning November 1, 2023, or as soon as is practical, and each November 1 thereafter, the Department of Labor shall report any moneys due to employees who cannot be located and that have been held by the Department in the Department of Labor Special State Trust Fund for 3 or more years, and moneys due to employees who are deceased, to the State Treasurer as required by the Revised Uniform Unclaimed Property Act. Removes provisions amending the Revised Uniform Unclaimed Property Act. Makes other changes. Effective immediately.

Spectrum: Partisan Bill (Democrat 12-0)

Status: (Passed) 2023-06-30 - Public Act . . . . . . . . . 103-0182 [HB3227 Detail]

Download: Illinois-2023-HB3227-Engrossed.html

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AN ACT concerning employment.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Minimum Wage Law is amended by changing
Section 12 as follows:
(820 ILCS 105/12) (from Ch. 48, par. 1012)
Sec. 12. (a) If any employee is paid by his or her employer
less than the wage to which he or she is entitled under the
provisions of this Act, the employee may recover in a civil
action treble the amount of any such underpayments together
with costs and such reasonable attorney's fees as may be
allowed by the Court, and damages of 5% of the amount of any
such underpayments for each month following the date of
payment during which such underpayments remain unpaid. Any
agreement between the employee and the employer to work for
less than such wage is no defense to such action. At the
request of the employee or on motion of the Director of Labor,
the Department of Labor may make an assignment of such wage
claim in trust for the assigning employee and may bring any
legal action necessary to collect such claim, and the employer
shall be required to pay the costs incurred in collecting such
claim. Every such action shall be brought within 3 years from
the date of the underpayment. Such employer shall be liable to

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

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

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

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

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

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

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

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

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

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(Source: P.A. 102-50, eff. 7-9-21.)