Wage and Hour Defense Blog

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

During the Covid-19 pandemic, companies should focus in the first instance on health and safety issues for workers, customers, and the public at large during a pandemic, but they cannot lose sight of the wage and hour risks that are lurking in these challenging times.

For a staggering number of U.S. businesses over the past several weeks, the early and middle part of 2020 will look something like this:

Reduced customer demand or government-ordered site closures lead to furloughs or layoffs of a significant part of the workforce. Where feasible, employees work from home. As local ...