Bill Text: IL HB3635 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Illinois Wage Payment and Collection Act. Provides that the definition of "wages" includes any severance, back pay, front pay, or any concomitant relief owed to an employee pursuant to a separation or severance agreement between the 2 parties, policy of the employer, judicial ruling, or administrative ruling. Provides that the definition applies to former, current, or future employees. Makes a conforming change to the definition of "employee".

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2025-03-21 - Rule 19(a) / Re-referred to Rules Committee [HB3635 Detail]

Download: Illinois-2025-HB3635-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3635 Introduced , by Rep. Daniel Didech SYNOPSIS AS INTRODUCED:
820 ILCS 115/2 from Ch. 48, par. 39m-2
Amends the Illinois Wage Payment and Collection Act. Provides that the definition of "wages" includes any severance, back pay, front pay, or any concomitant relief owed to an employee pursuant to a separation or severance agreement between the 2 parties, policy of the employer, judicial ruling, or administrative ruling. Provides that the definition applies to former, current, or future employees. Makes a conforming change to the definition of "employee".
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A BILL FOR
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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 Illinois Wage Payment and Collection Act is
amended by changing Section 2 as follows:
(820 ILCS 115/2) (from Ch. 48, par. 39m-2)
Sec. 2. Definitions. For all employees, other than
separated employees, "wages" shall be defined as any
compensation owed a former, current, or future an employee by
an employer pursuant to an employment contract or agreement
between the 2 parties, whether the amount is determined on a
time, task, piece, or any other basis of calculation, or any
severance, back pay, front pay, or concomitant relief owed to
an employee pursuant to a separation or severance agreement
between the 2 parties, policy of the employer, judicial
ruling, or administrative ruling. Payments to separated
employees shall be termed "final compensation" and shall be
defined as wages, as defined in this Section, salaries, earned
commissions, earned bonuses, and the monetary equivalent of
earned vacation and earned holidays, and any other
compensation owed the employee by the employer pursuant to an
employment contract or agreement between the 2 parties. Where
an employer is legally committed through a collective

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bargaining agreement or otherwise to make contributions to an
employee benefit, trust or fund on the basis of a certain
amount per hour, day, week or other period of time, the amount
due from the employer to such employee benefit, trust, or fund
shall be defined as "wage supplements", subject to the wage
collection provisions of this Act.
As used in this Act, the term "employer" shall include any
individual, partnership, association, corporation, limited
liability company, business trust, employment and labor
placement agencies where wage payments are made directly or
indirectly by the agency or business for work undertaken by
employees under hire to a third party pursuant to a contract
between the business or agency with the third party, or any
person or group of persons acting directly or indirectly in
the interest of an employer in relation to an employee, for
which one or more persons is gainfully employed.
As used in this Act, the term "employee" shall include any
individual permitted to work by an employer in an occupation.
"Employee" also includes any individual to whom an employer
owes any severance, back pay, front pay, or concomitant relief
pursuant to an agreement between the 2 parties, policy of the
employer, judicial ruling, or administrative ruling.
"Employee" , but shall not include any individual:
(1) who has been and will continue to be free from
control and direction over the performance of his work,
both under his contract of service with his employer and

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in fact; and
(2) who performs work which is either outside the
usual course of business or is performed outside all of
the places of business of the employer unless the employer
is in the business of contracting with third parties for
the placement of employees; and
(3) who is in an independently established trade,
occupation, profession or business.
"Pay stub" means an itemized statement or statements
reflecting an employee's hours worked, rate of pay, overtime
pay and overtime hours worked, gross wages earned, deductions
made from the employee's wages, and the total of wages and
deductions year to date.
The following terms apply to an employer's use of payroll
cards to pay wages to an employee under the requirements of
this Act:
"Payroll card" means a card provided to an employee by an
employer or other payroll card issuer as a means of accessing
the employee's payroll card account.
"Payroll card account" means an account that is directly
or indirectly established through an employer and to which
deposits of a participating employee's wages are made.
"Payroll card issuer" means a bank, financial institution,
or other entity that issues a payroll card to an employee under
an employer payroll card program.
(Source: P.A. 103-953, eff. 1-1-25.)