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| Public Act 103-0182
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| HB3227 Enrolled | LRB103 30108 SPS 56532 b |
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AN ACT concerning employment.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Minimum Wage Law is amended by changing |
Section 12 as follows:
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(820 ILCS 105/12) (from Ch. 48, par. 1012)
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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
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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
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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
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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
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such action, the Director of Labor shall be represented by the |
Attorney
General.
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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.
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(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.
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(Source: P.A. 101-1, eff. 2-19-19.)
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Section 10. The Illinois Wage Payment and Collection Act |
is amended by changing Sections 11.5 and 14 as follows:
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(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.
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(Source: P.A. 99-762, eff. 1-1-17.)
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(820 ILCS 115/14) (from Ch. 48, par. 39m-14)
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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
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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
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shall constitute a separate and distinct offense.
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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.
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(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.
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(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
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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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