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On May 25, 2021, both houses of the Illinois General Assembly approved an amendment to the State’s Wage Payment and Collection Act (“the Act”). The change would require employers who violate the Act to pay damages of 5% of the amount of any underpayment of wages, compensation, or wage supplements for each month following the date of payment during which the amount(s) owed remain unpaid. This represents a 150% increase to the penalty, as the statutory rate before this amendment was 2%. The measure will take effect immediately upon signature by Governor J.B. Pritzker.
The Act
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