Bill Text: IL HB5088 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Creates the Wage Theft Act. Provides that any employer and its officers who knowingly withhold wages from an employee in the State and refuses to compensate the employee for the wages the employee earned shall be deemed guilty of a Class A misdemeanor for the first offense of wage theft and a Class 4 felony for subsequent offenses and shall be listed on the Department of Labor's website. Amends the Counties Code and the Illinois Municipal Code. Provides that in any county or municipality that requires a building permit, a notice with information on workers' rights under the Wage Theft Act and the Illinois Wage Payment and Collection Act shall be included with the building permit applicant to post at the construction site. Amends the Illinois Wage Payment and Collection Act. Provides that, subject to appropriation, there shall be created a Wage Theft Enforcement Fund that will allow any employee who has filed a complaint against an employer that the Department of Labor determines to be insolvent to be entitled to receive a full pay period's worth of wages and interest from the Wage Theft Enforcement Fund. Provides that the Department of Labor shall make available to the public on its website a list of the employers and their officers and agents found guilty of violating the Act and the Wage Theft Act. Amends the State Finance Act to create the Wage Theft Enforcement Fund.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-02-18 - Rule 19(a) / Re-referred to Rules Committee [HB5088 Detail]

Download: Illinois-2021-HB5088-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB5088 Introduced , by Rep. William Davis SYNOPSIS AS INTRODUCED:
New Act
30 ILCS 105/5.970 new
55 ILCS 5/5-12022 new
65 ILCS 5/11-39-5 new
820 ILCS 115/14 from Ch. 48, par. 39m-14
820 ILCS 115/14.6 new
820 ILCS 115/14.7 new
Creates the Wage Theft Act. Provides that any employer and their officers who knowingly withhold wages from an employee in the State and refuses to compensate the employee for the wages they earned shall be deemed guilty of a Class A misdemeanor for the first offense and a Class 4 felony for subsequent offenses and shall be listed on the Department of Labor's website. Amends the Counties Code and the Illinois Municipal Code. Provides that in any county or municipality that requires a building permit, a notice with information on workers' rights under the Wage Theft Act and the Wage Payment and Collection Act shall be included with the building permit applicant to post at the construction site. Amends the Illinois Wage Payment and Collection Act. Provides that there shall be created a Wage Theft Enforcement Fund, subject to appropriation, that will allow any employee that has filed a complaint against an employer, that the Department of Labor determines to be insolvent, to be entitled to receive a full a pay period's worth of wages and interest from the Wage Theft Enforcement Fund. Provides that the Department of Labor shall make available to the public on its website a list of the employers and their officers and agents found guilty of violating the Act and the Wage Theft Act. Amends the State Finance Act to create the Wage Theft Enforcement Fund.
LRB102 24708 SPS 33947 b
A BILL FOR
HB5088 LRB102 24708 SPS 33947 b
AN ACT concerning employment.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the Wage
Theft Act.
Section 5. Employee compensation. Any employer and their
officers who knowingly withhold wages from an employee in this
State and refuses to compensate the employee for the wages
they earned shall be deemed guilty of a Class A misdemeanor for
the first offense and a Class 4 felony for subsequent offenses
and shall be listed on the Department of Labor's website. It is
an affirmative defense to prosecution under this Section if
the employer provides financial statements with sworn
affidavits that employees have been compensated.
Section 10. The State Finance Act is amended by adding
Section 5.970 as follows:
(30 ILCS 105/5.970 new)
Sec. 5.970. The Wage Theft Enforcement Fund.
Section 15. The Counties Code is amended by adding Section
5-12022 as follows:

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(55 ILCS 5/5-12022 new)
Sec. 5-12022. Notice of wage payment. In any county that
requires a building permit, a notice with information on
workers' rights under the Wage Theft Act and the Wage Payment
and Collection Act shall be included with the building permit
applicant to post at the construction site.
Section 20. The Illinois Municipal Code is amended by
adding Section 11-39-5 as follows:
(65 ILCS 5/11-39-5 new)
Sec. 11-39-5. Notice of wage payment. In any municipality
that requires a building permit, a notice with information on
workers' rights under the Wage Theft Act and the Wage Payment
and Collection Act shall be included with the building permit
applicant to post at the construction site.
Section 25. The Illinois Wage Payment and Collection Act
is amended by changing Section 14 and by adding Sections 14.6
and 14.7 as follows:
(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 and their officers, 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 a
Class A misdemeanor under the Wage Theft Act. :
(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 and their

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officers who violates this Section of the Act a subsequent
time within 2 years of a prior criminal conviction under this
Section is guilty, upon conviction, of a Class 4 felony under
the Wage Theft Act.
(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

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the State treasury. Moneys in the Fund may be used only for
enforcement of this Act.
(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
employer, to the Director of Labor or his 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.
(Source: P.A. 102-50, eff. 7-9-21.)

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(820 ILCS 115/14.6 new)
Sec. 14.6. Employer website posting. The Department of
Labor shall make available to the public on its website a list
of the employers and their officers and agents found guilty of
violating subsection (a-5) of Section 14 or the Wage Theft
Act. The Department shall notify employers of this disclosure
requirement and other penalties in this Act and the Wage Theft
Act in its correspondence with the employer after an employee
has filed a complaint.
(820 ILCS 115/14.7 new)
Sec. 14.7. Wage Theft Enforcement Fund. There shall be
created a Wage Theft Enforcement Fund, subject to
appropriation, that will allow any employee that has filed a
complaint against an employer under Section 14 of this Act,
that the Department of Labor determines to be insolvent, to be
entitled to receive a full pay period's worth of wages and
interest from the Wage Theft Enforcement Fund.