Bill Text: IL SB3644 | 2009-2010 | 96th General Assembly | Engrossed

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Bill Title: Amends the Illinois Wage Payment and Collection Act. Provides that if an employer fails to include all commissions earned by a separated employee in the final compensation paid to the separated employee within the time limit set forth in the Act, the employer shall, in addition to any other penalties, pay the employee an amount equal to 3 times the amount of the commissions that were not paid, as well as the employee's court costs, attorney's fees, and any other associated costs incurred in successfully pursuing a legal action against the employer. Effective immediately.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Engrossed - Dead) 2011-01-10 - Third Reading - Short Debate - Passed 064-049-002 [SB3644 Detail]

Download: Illinois-2009-SB3644-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 Illinois Wage Payment and Collection Act is
amended by changing Sections 2 and 14 as follows:
(820 ILCS 115/2) (from Ch. 48, par. 39m-2)
Sec. 2. For all employees, other than separated employees,
"wages" shall be defined as any compensation owed 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. Payments
to separated employees shall be termed "final compensation" and
shall be defined as wages, 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 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.

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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,
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 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.
For purposes of this Act, the term "employee" does not
include a licensee under the Real Estate License Act of 2000

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when performing licensed activities.
(Source: P.A. 94-1025, eff. 7-14-06.)
(820 ILCS 115/14) (from Ch. 48, par. 39m-14)
Sec. 14. (a) 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 a Class C misdemeanor. Each day
during which any violation of this Act continues shall
constitute a separate and distinct offense.
(a-5) If an employer fails to include all commissions
earned by a separated employee in the final compensation paid
to the separated employee within the time limit set forth in
Section 5, the employer shall, in addition to any other
penalties, pay the employee an amount equal to 3 times the
amount of the commissions that were not paid, as well as the
employee's court costs, attorney's fees, and any other
associated costs incurred in successfully pursuing a legal
action against the employer.
(b) Any employer who has been demanded by the Director of
Labor or ordered by the court to pay wages due an employee and

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who shall fail to do so within 15 days after such demand or
order is entered shall be liable to pay a penalty of 1% per
calendar day to the employee for each day of delay in paying
such wages to the employee up to an amount equal to twice the
sum of unpaid wages due the employee. Such employer shall also
be liable to the Department of Labor for 20% of such unpaid
wages.
(b-5) Penalties under this Section may be recovered in a
civil action brought by the Director in any circuit court. In
this litigation, the Director of Labor shall be represented by
the Attorney General.
(c) Any employer, or any agent of an employer, who
knowingly discharges or in any other manner knowingly
discriminates against any employee because that employee has
made a complaint to his employer, or to the Director of Labor
or his authorized representative, 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.
(Source: P.A. 94-1025, eff. 7-14-06; 95-209, eff. 8-16-07.)
Section 99. Effective date. This Act takes effect upon
becoming law.