New Illinois Wage Theft Law

Governor Pat Quinn signed new employment law, which experts say makes Illinois’ wage theft laws among the strongest in the country. A new law gives workers more tools to fight so called “wage theft,” when employers withhold or miscalculate employee payments.

Moreover, starting Jan. 1, 2011, a repeat offense will be considered a felony. Employers who violate wage theft laws will have to pay workers back from the date of nonpayment with interest and a $250 fine. Depending on the violation, the employer may also owe interest to the Illinois Department of Labor.

It means that from now on Labor Department and not Attorney General Office will be in charge of these claims. According to the new bill “wage theft” occurs when businesses knowingly fail to pay workers earned wages or fail to pay in compliance with labor law, which includes not paying for overtime and work done off the clock.

What does it mean for the employers? Several questions still remain unanswered. For example there are very few safeguards available for employers in situations when employees violate employment policies by not providing a proper notice of termination or beeing terminated for a misconduct, such as embezzlement.

The Labor Department will set up a fund solely for dealing with wage theft issues and will likely add more staff, like administrative law judges. Buttom line is that after an employee files a claim, the burden will be on the employer to prove otherwise, which provides another
 leverage mechanism for employees in their disputes with employers.

Click here to for the full version of
Illinois Wage Payment and Collection Act.



0 #2 relationship 2014-07-11 13:25
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+1 #1 Ilona 2011-02-08 19:06

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