Wage Payment and Collection Act Advisory
March 4, 2011
Department of Labor Implements New Law to Help Illinois Workers Recover Unpaid Wages Quicker
Link to Employer Notice
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Wage Payment and Collection Act Advisory |
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March 4, 2011 |
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Department of Labor Implements New Law to Help Illinois Workers Recover Unpaid Wages Quicker |
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On July 30th 2010, Gov. Quinn signed Senate Bill 3568 (Public Act 96-1407) which amends the Wage Payment and Collection Act (WPCA) to provide the Illinois Department of Labor (Department) with additional tools and resources to enforce the law, including enhanced penalties against employers who refuse to cooperate with the Department’s investigation and enforcement activities. The amendments that became effective on January 1, 2011 will also allow workers to take alleged violations directly to circuit court or to file class action lawsuits against employers to recover unpaid wages. These changes are being actively communicated to affected parties in order to promote greater understanding and compliance with the revised law.
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Public Act 96-1407 establishes a non-waivable administrative fee of $250, payable to the Department, for employers found liable of owing wages to an employee and a 2% penalty on the wages owed for each month of the underpayment, payable to the employee. In addition, the existing criminal penalties for repeat criminal violations increase from a misdemeanor to a felony and in cases over $5,000, the penalties are increased from a Class C misdemeanor to a Class A misdemeanor. The definition of “employer” is also revised and holds officers of a corporation or agents of an employer liable if they knowingly permit the “employer” to violate the law. This revised definition is consistent with the Minimum Wage Law and the federal Fair Labor Standards Act and is necessary in order to hold individuals accountable for intentionally withholding wages from workers.
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The enforcement mechanisms under the existing law have also been strengthened and provide workers with improved avenues for recovering lost wages. Subject to appropriation, the Department has the authority to establish a new adjudicative process for claims or specific categories of claims under $3,000, including instances where an employer fails to respond to a notice issued by the Department. This new process will result in an enforceable order at the Department level, which is intended to expedite resolutions of these types of claims. The Department has filed identical Emergency and Proposed Rules to create this new process (see link below).
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These amendments will help ensure workers receive their wages in a more timely and efficient manner and provide a level playing field for employers that comply with the law. The provisions contained in Public Act 96-1407 will apply to complaints filed with the Department after January 1, 2011 for violations of the Act occurring on or after January 1, 2011.
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Any questions regarding this or other wage issues should be directed to the Illinois Department of Labor at (312) 793-2800. For additional information, please visit our website at: www.state.il.us/agency/idol/.
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Link to Emergency Rules Link to Employer Notice |