Bill Text: IL HB3405 | 2019-2020 | 101st General Assembly | Chaptered
Bill Title: Amends the Illinois Wage Payment and Collection Act. Provides that gratuities are the property of employees and that employers shall not keep gratuities. Requires gratuities to be paid to employees within 13 days after the end of the pay period during which the gratuities were earned. Permits the employer to reduce the amount of a gratuity paid by credit card by a proportionate amount of the fee incurred in processing credit card payments.
Spectrum: Moderate Partisan Bill (Democrat 18-3)
Status: (Passed) 2019-08-23 - Public Act . . . . . . . . . 101-0509 [HB3405 Detail]
Download: Illinois-2019-HB3405-Chaptered.html
| ||||
Public Act 101-0509 | ||||
| ||||
| ||||
AN ACT concerning employment.
| ||||
Be it enacted by the People of the State of Illinois,
| ||||
represented in the General Assembly:
| ||||
Section 5. The Illinois Wage Payment and Collection Act is | ||||
amended by changing Section 11 and by adding Section 4.1 as | ||||
follows:
| ||||
(820 ILCS 115/4.1 new) | ||||
Sec. 4.1. Gratuities. | ||||
(a) Gratuities to employees are the property of the
| ||||
employees, and employers shall not keep gratuities. Failure to
| ||||
pay gratuities owed to an employee more than 13 days after the
| ||||
end of the pay period in which such gratuities were earned
| ||||
constitutes a violation of this Act. | ||||
(b) This Section does not prohibit an employer from
| ||||
withholding from gratuities paid by credit card a proportionate
| ||||
amount of any credit card processing fees that the employer
| ||||
must pay in connection with the transaction, provided that the
| ||||
amount withheld does not exceed the proportion of the amount of
| ||||
the tip to the amount of the overall bill, regardless of
| ||||
whether the overall bill was paid using a credit card. This
| ||||
Section does not prohibit tip pooling as permitted by law. This
| ||||
Section does not affect an employer's entitlement to an
| ||||
allowance for gratuities to the extent permitted under
|
subsection (c) of Section 4 of the Minimum Wage Law.
| ||
(820 ILCS 115/11) (from Ch. 48, par. 39m-11)
| ||
Sec. 11. It shall be the duty of the Department of Labor to | ||
inquire diligently
for any violations of this Act, and to | ||
institute the actions for penalties
herein provided, and to | ||
enforce generally the provisions of this Act.
| ||
An employee may file a complaint with the Department | ||
alleging violations of the Act by submitting a signed, | ||
completed wage claim application on the form provided by the | ||
Department and by submitting copies of all supporting | ||
documentation. Complaints shall be filed within one year after | ||
the wages, final compensation, or wage supplements were due. | ||
Applications shall be reviewed by the Department to | ||
determine whether there is cause for investigation.
| ||
The Department shall have the following powers:
| ||
(a) To investigate and attempt equitably to adjust | ||
controversies between
employees and employers in respect | ||
of wage claims arising under this Act
and to that end the | ||
Department through the Director of Labor or any other
| ||
person in the Department of Labor designated by him or her, | ||
shall have the
power to administer oaths, subpoena and | ||
examine witnesses, to issue subpoenas
duces tecum | ||
requiring the production of such books, papers, records and
| ||
documents as may be evidence of any matter under inquiry | ||
and to examine and
inspect the same as may relate to the |
question in dispute. Service of such
subpoenas shall be | ||
made by any sheriff or any person. Any
court in this State, | ||
upon the application of the Department
may compel | ||
attendance of witnesses, the
production of books and | ||
papers, and the giving of testimony before the
Department | ||
by attachment for contempt or in any other way as the | ||
production
of evidence may be compelled before such court.
| ||
(b) To take assignments of wage claims in the name of | ||
the Director of
Labor and his or her successors in office | ||
and prosecute actions for the
collection of wages for | ||
persons financially unable to prosecute such claims when in
| ||
the judgment of the Department such claims are valid and | ||
enforceable in the
courts. No court costs or any fees for | ||
necessary process and
proceedings shall be payable in | ||
advance by the Department for prosecuting
such actions. In | ||
the event there is a judgment rendered against the
| ||
defendant, the court shall assess as part of such judgment | ||
the costs of
such proceeding. Upon collection of such | ||
judgments the Department shall pay
from the proceeds of | ||
such judgment such costs to such person who is by law
| ||
entitled to same. The Department may join in a single | ||
proceeding any number
of wage claims against the same | ||
employer but the court shall have
discretionary power to | ||
order a severance or separate trial for hearings.
| ||
(c) To make complaint in any court of competent | ||
jurisdiction of
violations of this Act.
|
(d) In addition to the aforementioned powers, subject | ||
to appropriation, the Department may establish an | ||
administrative procedure to adjudicate claims and to issue | ||
final and binding administrative decisions on such claims | ||
subject to the Administrative Review Law. To establish such | ||
a procedure, the Director of Labor or her or his authorized | ||
representative may promulgate rules and regulations. The | ||
adoption, amendment or rescission of rules and regulations | ||
for such a procedure shall be in conformity with the | ||
requirements of the Illinois Administrative Procedure Act. | ||
If a final and binding administrative decision issued by | ||
the Department requires an employer or other party to pay | ||
wages, penalties, or other amounts in connection with a | ||
wage claim, and the employer or other party has neither: | ||
(i) made the required payment within 35 days of the | ||
issuance of the final and binding administrative decision; | ||
nor (ii) timely filed a complaint seeking review of the | ||
final and binding administrative decision pursuant to the | ||
Administrative Review Law in a court of competent | ||
jurisdiction, the Department may file a verified petition | ||
against the employer or other party to enforce the final | ||
administrative decision and to collect any amounts due in | ||
connection therewith in the circuit court of any county | ||
where an official office of the Department is located. | ||
Nothing herein shall be construed to prevent any employee | ||
from making
complaint or prosecuting his or her own claim for |
wages. Any employee aggrieved by a violation of this Act or any | ||
rule adopted under this Act may file suit in circuit court of | ||
Illinois, in the county where the alleged violation occurred or | ||
where any employee who is party to the action resides, without | ||
regard to exhaustion of any alternative administrative | ||
remedies provided in this Act. Actions may be brought by one or | ||
more employees for and on behalf of themselves and other | ||
employees similarly situated.
| ||
Nothing herein shall be construed to limit the authority of | ||
the State's
attorney of any county to prosecute actions for | ||
violation of this Act or
to enforce the provisions thereof | ||
independently and without specific direction
of the Department | ||
of Labor.
| ||
(Source: P.A. 98-527, eff. 1-1-14.)
|