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Home - The Management Association
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Recent Amendments to Illinois Wage Payment and Collection Act
by Kelly A. Hayden, JD, Assistant General Counsel
Published Sept 7, 2010
Governor Quinn recently signed legislation that amends the Illinois Wage Payment and Collection Act. Public Act 096-1407, which will take effect on January 1, 2011, will allow the Illinois Department of Labor (IDOL) to directly issue rulings on claims of unpaid wages and increase damages and penalties that employees may recover on successful claims.
Specifically, the IDOL will now have the power to rule directly on claims for unpaid wages up to $3,000 per individual employee. Such rulings can be appealed to state court. Employees will still have the option of bypassing the IDOL entirely and proceeding in state court irrespective of the amount claimed. The amendments provide the IDOL with the authority to issue rules and regulations concerning claims that are ruled on directly by the agency.
The amount of damages and penalties has also increased as a result of the amendments. Successful employees may recover the amount in dispute, in addition to a penalty of two percent of those wages for each month that the wages are not paid. The employer will also be subject to an “administrative fee” of $250 payable directly to the IDOL. (This fee, along with any other penalties payable to the IDOL, will be deposited in a “Wage Theft Enforcement Fund” to be used for enforcement of the Act.) The amendments remove previous language that capped the amount of damages an employer could be subject to under the Act. Thus, if an employer is ordered to pay wages and does not do so (or does not file a timely appeal) financial penalties and liability can continue to accrue until the wages are paid. The new amendments also require that prevailing plaintiffs in civil actions be permitted to recover attorneys’ fees and costs.
Last, the new amendments increase criminal penalties under the Act. Employers who willfully refuse to pay wages or falsely deny the amount or validity of a claim could be found guilty of 1) a Class B misdemeanor (for claims in the amount of $5000 or less) or, 2) a Class A misdemeanor (for claims in the amount of $5000 or more). Multiple claims in a two year period could result in a felony conviction.
To review the amendments to the Illinois Wage Payment and Collection Act, click here.
