On July 30, Governor Quinn signed the Wage Theft Enforcement Act, S.B. 3568. The new law heightens criminal penalties for violations of the Wage Payment and Collection Act, making willful failure to pay wages due under the Act a class B misdemeanor for amounts of $5,000 or less, and a class A misdemeanor for larger amounts. Repeat offenses within two years of prior criminal conviction under the Act are now a class 4 felony.
The new law also provides new civil enforcement mechanisms. Employees may now pursue wage claims in court directly as individual or class actions without filing a complaint with the Department of Labor. Employees who prevail on a wage claim can now recover attorneys' fees and costs, as well as damages at rate of 2% of the amount of any unpaid wages for each month that the wages remain unpaid. Further, the new law allows the Department of Labor to set up a system for directly adjudicating small wage claims of up to $3,000.
If an employer is demanded or ordered by the Department of Labor or a court to pay wages, it must pay a non-waivable administrative fee of $250. Additionally, if the employer fails to comply with or file a timely appeal of a wage payment demand or order, the employer must pay a penalty of 20% of the amount of the order to the Department of Labor, plus an additional 1% of the amount owing per calendar day to the employee. Fees and penalties collected by the Department of Labor under this provision are to be placed in a Wage Theft Enforcement Fund, for use in enforcing the Wage Payment and Collection Act.
Under the new law, employees who claim they have been subjected to retaliation for complaining about nonpayment of wages may also file a complaint with the Department of Labor or a civil lawsuit, and may recover costs and attorneys' fees.
www.franczek.comThe content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
