Complete Labor Law Poster for $24.95
from www.LaborLawCenter.com, includes
State, Federal, & OSHA posting requirements

Announcement

Collapse
No announcement yet.

Direct Deposit Fees Illinois

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Direct Deposit Fees Illinois

    Is it against the law for an employer to charge direct deposit fees to employees in the State of Illinois?

  • #2
    I am having some problem copying the content of the cite for some reason, but go to the following and look for the "What can be deducted from my check?" question.

    https://www.state.il.us/agency/idol/faq/qawage.htm
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)

    Comment


    • #3
      Originally posted by shellmann View Post
      Is it against the employment laws for an employer to charge direct deposit fees to employees in the State of Illinois?
      Thank you Daw for answering my question. I meant to write if it's against any labor laws but from reading the act that you referenced, it is against employment law/labor laws for employers to charge direct deposit fees to employees since the deduction is not required by law and doesn't benefit the employee.

      (820 ILCS 115/9) (from Ch. 48, par. 39m-9)
      Sec. 9. Except as hereinafter provided, deductions by employers from wages or final compensation are prohibited unless such deductions are (1) required by law; (2) to the benefit of the employee; (3) in response to a valid wage assignment or wage deduction order; (4) made with the express written consent of the employee, given freely at the time the deduction is made; etc.......

      Comment


      • #4
        There are people on this website who know more about IL state law then I do, but that is how I would read the cite.
        "Reality is that which, when you stop believing in it, doesn't go away".
        Philip K. **** (1928-1982)

        Comment


        • #5
          Originally posted by DAW View Post
          There are people on this website who know more about IL state law then I do, but that is how I would read the cite.
          I agree with you. I called the Illinois Department of Labor and the person I spoke to said in a round-about-way, that, no, an employer can't charge the fees to the employees and he referred me to the act you referenced.

          Comment


          • #6
            I have a ref. that says this fed. law would also apply to DD (no fees can be charged) -

            http://ecfr.gpoaccess.gov/cgi/t/text...1.1.21.3.92.11

            29-§ 531.35 “Free and clear” payment; “kickbacks.”
            Whether in cash or in facilities, “wages” cannot be considered to have been paid by the employer and received by the employee unless they are paid finally and unconditionally or “free and clear.” The wage requirements of the Act will not be met where the employee “kicks-back” directly or indirectly to the employer or to another person for the employer's benefit the whole or part of the wage delivered to the employee. This is true whether the “kick-back” is made in cash or in other than cash. For example, if it is a requirement of the employer that the employee must provide tools of the trade which will be used in or are specifically required for the performance of the employer's particular work, there would be a violation of the Act in any workweek when the cost of such tools purchased by the employee cuts into the minimum or overtime wages required to be paid him under the Act.

            What do you think, DAW - does that sound right to you --- the info is in a loose leaf binder I have with employment law info including info on DD. Il. DD law I have is as posted in posts above.
            Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

            Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

            Comment


            • #7
              I am familar with the "free and clear" rule but under federal law (FLSA) that rule is specific to minimum wage and overtime. Lets say that Bob normally makes $10/hr and works 50 hours this work week. That would normally mean $550 gross wages, $400 in regular wages and $150 in overtime wages. HOWEVER, FLSA does not protect the entire $550. The $150 in overtime is protected and minimum wage of 40 hours times $7.25/hr ($290) is protected (both under the "free and clear" rule), but the remaining $2.75/hr @ 40 hours ($110) is not protected under federal law. The feds are not only fine with direct deposit fees coming out of that, they are fine with the boss taking her car payments out of that portion of Bob's wages.

              Now FLSA is one law, not all laws. Which is why I cited the IL rule, which is a lot more favorable to the employee then FLSA would be. Past that, the old common law would have problems with paying a less then promised wage. Arguably with prior notice, common law would not necessarily have a problem with the direct deposit fee.

              So given the OP's situation, generic IL statutory labor law on deductions is the best I can do for the OP.
              "Reality is that which, when you stop believing in it, doesn't go away".
              Philip K. **** (1928-1982)

              Comment


              • #8
                DAW, thanks for your comments. Agree, Il. is as above & what I have re Il. I was just wondering about the fed. law posted that my ref. said applied to DD fees. (I wasn't positive it did because of the mention of min. wage/OT.)
                Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

                Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

                Comment


                • #9
                  It could apply to direct deposit fees. If the employer tries to take the fee out of the MW/OT portion, then it applies. If the employer takes the fee out of the non MW/OT portion then it does not apply.
                  "Reality is that which, when you stop believing in it, doesn't go away".
                  Philip K. **** (1928-1982)

                  Comment


                  • #10
                    Agree with that - actually in my last post I meant to add that it should apply then. (when min wage/ot involved) Thanks.
                    Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

                    Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

                    Comment

                    The LaborLawTalk.com forum is intended for informational use only and should not be relied upon and is not a substitute for legal advice. The information contained on LaborLawTalk.com are opinions and suggestions of members and is not a representation of the opinions of LaborLawTalk.com. LaborLawTalk.com does not warrant or vouch for the accuracy, completeness or usefulness of any postings or the qualifications of any person responding. Please consult a legal expert or seek the services of an attorney in your area for more accuracy on your specific situation.
                    Working...
                    X