740 ILCS 170

in effect

740 ILCS 170/.01 Short Title

(740 ILCS 170/.01) (from Ch. 48, par. 39.01) Sec. .01. Short Title. This Act shall be known and may be cited as the Illinois Wage Assignment Act. (Source: P.A. 83-867.)

(740 ILCS 170/1) (from Ch. 48, par. 39.1) Sec. 1. No assignment of wages earned or to be earned is valid unless (1) Made in a written instrument (a) signed by the wage-earner in person and (b) bearing the date of its execution, the social security number of the wage-earner, the name of the employer of the wage-earner at the time of its execution, the amount of the money loaned or the price of the articles sold or other consideration given, the rate of interest or time-price differential, if any, to be paid, and the date when such payments are due; (2) Given to secure an existing debt of the wage-earner or one contracted by the wage-earner simultaneously with its execution; (3) An exact copy thereof is furnished to the wage-earner at the time the assignment is executed; (4) The words "Wage Assignment" are printed or written in bold face letters of not less than 1/4 inch in height at the head of the wage assignment and also one inch above or below the line where the wage-earner signs that assignment; (5) Written as a separate instrument complete in itself and not a part of any conditional sales contract or any other instrument. The requirement of the social security number of the wage-earner imposed by this Act applies only as to wage assignments made after January 1, 1966. (Source: Laws 1967, p. 2049.)

740 ILCS 170/2

(740 ILCS 170/2) (from Ch. 48, par. 39.2) Sec. 2. Demand on an employer for the wages of wage-earner by virtue of a wage assignment may not be served on the employer unless: (1) There has been a default of more than 40 days in payment of the indebtedness secured by the assignment and the default has continued to the date of the demand; (2) The demand contains a correct statement as to the amount the wage-earner is in default and the original or a copy of the assignment is exhibited to the employer; and (3) Not less than 20 days before serving the demand, notice required under Section 2.2 has been served upon the employee, and an advice copy sent to the employer, by 2 methods: (i) first class mail; and (ii) registered or certified mail. Service of any demand without complying with this Section has no legal effect. Proof of certified mail is prima facie evidence of service. A demand under this Section applies only to wages due at the time of service of the demand and upon subsequent wages until the total amount due under the assignment is paid, or, if the wage assignment is revocable under federal law, until the employee revokes it. (Source: P.A. 99-903, eff. 1-1-17.)

740 ILCS 170/2.1

(740 ILCS 170/2.1) (from Ch. 48, par. 39.2a) Sec. 2.1. A demand shall be in the following form: "Demand is hereby made upon an assignment of salary, wages, commissions or other compensation for services, executed by .... and delivered to .... on (insert date), to secure a debt contracted on (insert date). The total amount of the debt is $..... Payments in the amount of $.... have been made. The duration of the contract is .... months. There is now due and owing without acceleration the sum of $...., the last payment having been made on (insert date). The employee herein named has been in default in his payments in the amount of $...., of which $.... has been due and owing for more than 40 days. Unless you have received a written notice from the employee herein named revoking the wage assignment, you are required by law to make payment in accordance with such assignment. ...., first being duly sworn, deposes and says that the facts stated in the demand above are true and correct; and further deposes and says that he (or his principal, if he is an agent for the assignee) has not received notice from the debtor that he or she is revoking the wage assignment. Payments must be made until the total amount due under the assignment is paid or until the employee revokes the wage assignment. ........................... Subscribed and sworn to before me on (insert date). ........................... Notary Public". (Source: P.A. 99-903, eff. 1-1-17.)

740 ILCS 170/2.2

(740 ILCS 170/2.2) (from Ch. 48, par. 39.2b) Sec. 2.2. Forms; notice of intent to assign wages; revocation. (a) The notice to an employee required by Section 2 shall be in the following form: "NOTICE OF INTENT TO ASSIGN WAGES This notice is required by the Illinois Wage Assignment Act. The notice has been sent to tell you that a creditor (name and address listed below) plans to have your wages assigned. A wage assignment is a document you signed at the time you signed the contract for your debt. It authorizes your creditor to receive a portion of your wages directly from your employer, in order to pay your debt. This notice contains important information about the debt and what your options are. You should read the entire notice carefully. WHY THE CREDITOR WANTS TO ASSIGN YOUR WAGES You signed a wage assignment on ....... (date) ....... The wage assignment was signed as security if you failed to make payment on the contract you signed on ......... (date) .......... A copy of the wage assignment is attached. The creditor's records show that you have not made a payment since ......... (date) ....... and that you now owe $........ on the contract. The creditor will send a demand for wages to your employer 20 days from the date you receive this. The creditor's name, address, and phone number are: ...................... ...................... ...................... ...................... (Signed by)" (b) If the wage assignment is revocable under federal law, the notice required under subsection (a) shall also include the following: UNDERSTANDING YOUR CHOICES UNDER THE ILLINOIS WAGE ASSIGNMENT ACT There are options available to you in this process. You should consider your options and determine the one that is best for you. You have the right to contact an attorney at any point concerning the wage assignment, or to help you determine your best option. Your options include: (1) You can stop the wage assignment at any time, which will stop your wages from being deducted. It will not eliminate your debt, and interest may continue to accrue. You may contact your creditor for more information about the interest rate on your contract, and to determine how much interest might accrue if you stop the wage assignment. Your creditor will still be able to pursue other means of collecting any debt you may owe, including filing a lawsuit against you for the full amount owed under the contract and any interest that might accrue. A lawsuit might result in you owing legal fees and other costs. You can stop the wage assignment by filling out the enclosed Revocation Notice Form, or by writing a letter stating that you are revoking the wage assignment. Send the Revocation Notice Form or letter by registered or certified mail to the creditor, at the address listed above. It is highly recommended that you give a copy of the Revocation Notice Form or letter to your employer so your employer can stop any pending payments. If you choose to write a letter, it should be addressed to the creditor, and should include: (i) your name; (ii) the account number; and (iii) a statement that you are revoking the wage assignment, such as, "I am revoking the wage assignment." Even if the wage assignment has already begun, you can still stop it now or at any point in the future. (2) You can do nothing, and allow the wage assignment process to proceed. Starting in 20 days, part of your wages will be sent directly to the creditor to pay off your debt. This will reduce your take-home pay every pay period until the total amount of the debt is repaid. Up to 15% of your wages will be sent to the creditor every pay period. Once the total amount is repaid, the creditor will send a notice to you and to your employer that includes the creditor's name, your name, and the account number, stating that the wage assignment is closed and no further wages should be assigned. (3) You can contact your creditor to repay the debt, or to explore other options, including a repayment plan or refinancing, if available. You can contact your creditor at the address and phone number listed above. If you agree on another repayment option with your creditor, the creditor will send a notice to your employer stating that your wages should not be assigned. (c) If the wage assignment is revocable under federal law, the notice required under subsection (b) shall be accompanied by the following Revocation Notice Form, with the relevant information inserted by the creditor: "REVOCATION NOTICE The employee's name and address are: ...................... ...................... ...................... ...................... The creditor's name and address are: ...................... ...................... ...................... ...................... Re: (insert account number) I, (insert name), hereby revoke the wage assignment I signed on (insert date the wage assignment was signed). You no longer have my permission to use this wage assignment. ...................... ...................... (Signed by) (Date)" (Source: P.A. 99-903, eff. 1-1-17.)

740 ILCS 170/3

(740 ILCS 170/3) (from Ch. 48, par. 39.3) Sec. 3. No assignment of wages shall become invalid by reason of cessation of employment but shall be valid and collectible against any future employer of the wage-earner within a period of 2 years from the date of its execution. (Source: Laws 1961, p. 1891.)

740 ILCS 170/4

(740 ILCS 170/4) (from Ch. 48, par. 39.4) Sec. 4. The maximum wages, salary, commissions, and bonuses that may be collected by an assignee for any work week shall not exceed the lesser of (1) 15% of such gross amount paid for that week or (2) the amount by which disposable earnings for a week exceed 45 times the Federal Minimum Hourly Wage prescribed by Section 206(a)(1) of Title 29, U.S.C., as amended, or the minimum hourly wage prescribed by Section 4 of the Minimum Wage Law, whichever is greater, in effect at the time the amounts are payable. This provision (and no other) applies irrespective of the place where the compensation was earned or payable and the State where the employee resides. No amounts required by law to be withheld may be taken from the amount collected by the creditor. The term "disposable earnings" means that part of the earnings of any individual remaining after the deduction from those earnings of any amounts required by law to be withheld. If there is more than one assignment demand received by the employer, the assignees shall collect in the order or priority of service of the demand upon the employer, but the total of all collections shall not exceed the amount that could have been collected if there had been one assignment demand. Benefits and refunds payable by pension or retirement funds or systems, any assets of employees held by those funds or systems, and any moneys an employee is required to contribute to those funds or systems are exempt and are not subject to a wage assignment under this Act. A fee of $12 for each wage assignment shall be collected by and paid to the employer and the amount so paid shall be credited against the amount of the wage-earner's outstanding debt. (Source: P.A. 94-305, eff. 7-21-05.)

740 ILCS 170/4.1

(740 ILCS 170/4.1) (from Ch. 48, par. 39.4a) Sec. 4.1. Revocation of wage assignment. If the wage assignment is revocable under federal law, the employee may revoke the wage assignment at any time by submitting the Revocation Notice Form as provided in subsection (c) of Section 2.2 of this Act or otherwise providing written notice of revocation to the creditor. Revocation is effective regardless of how the creditor receives it. Failure to use the sample language provided in the notice described in Section 2.2 does not affect the validity of the written notice of revocation. The employee may submit a copy of the notice to his or her employer. If the written notice of revocation is served upon the creditor prior to the creditor's service of demand upon the employer, the demand shall not be served. (Source: P.A. 99-903, eff. 1-1-17.)

740 ILCS 170/4.2

(740 ILCS 170/4.2) (from Ch. 48, par. 39.4b) Sec. 4.2. If the employee has not served a Revocation Notice Form as provided in Section 4.1 of this Act or has not otherwise served the creditor with a written notice of revocation (if the wage assignment is revocable under federal law) as provided in this Act within 20 days after receiving the notice of intention to make a demand, the creditor may proceed with his demand, and the employer shall commence payment to the creditor not sooner than 5 business days after service of such demand, if no revocation notice has been received by the employer. If the employee cures the default stated in the demand or revokes the wage assignment, the creditor shall notify the employer and release the demand. No employer shall be liable for payments made in compliance with this Section. If a Revocation Notice Form as set forth in Section 4.1 of this Act or other written notice of revocation from the employee is received by an employer, no wages are subject to a demand served by the creditor for that wage assignment and the employer shall cease any deduction of wages currently taking place for that wage assignment, unless the employer receives a copy of a subsequent written agreement between the creditor and employee authorizing such payments. If such an agreement is not reached, the creditor may not institute further proceedings on the wage assignment. (Source: P.A. 99-903, eff. 1-1-17.)

740 ILCS 170/4.3

(740 ILCS 170/4.3) (from Ch. 48, par. 39.4c) Sec. 4.3. If any person wrongfully: (1) serves a notice on an employee or serves a notice which does not conform with the requirements of Section 2.2, (2) causes a demand to be served for the wages of an employee, or (3) fails to release a demand, he shall be liable to the employee and the employer for statutory damages in the sum of $500 and all actual damages occasioned by such action including reasonable attorney's fees. (Source: P.A. 83-867.)

740 ILCS 170/5

(740 ILCS 170/5) (from Ch. 48, par. 39.5) Sec. 5. A discharge in bankruptcy shall be a valid defense to any suit brought upon a wage assignment executed by the bankrupt prior to the adjudication in bankruptcy; no assignment of wages shall be valid after three years from the date of its execution and shall be void after such period of three years. (Source: Laws 1935, p. 208.)

740 ILCS 170/6

(740 ILCS 170/6) (from Ch. 48, par. 39.6) Sec. 6. Any person who wilfully and wrongfully serves a demand as assignee for wages when no assignment has been made to him or under an assignment which is invalid as provided by this Act knowing such assignment to be invalid with intent to obtain for himself or any other person the wages of an employee, is guilty of a petty offense. (Source: P.A. 77-2422.)

740 ILCS 170/7

(740 ILCS 170/7) (from Ch. 48, par. 39.7) Sec. 7. If any of the provisions of this Act are unconstitutional it is the intent of the General Assembly that so far as possible the remaining provisions of the Act be given effect. (Source: Laws 1935, p. 208.)

740 ILCS 170/8

(740 ILCS 170/8) (from Ch. 48, par. 39.8) Sec. 8. Nothing herein contained shall be construed as making invalid any assignment of wages executed prior to July 1, 1935. (Source: Laws 1935, p. 208.)

740 ILCS 170/9

(740 ILCS 170/9) (from Ch. 48, par. 39.10) Sec. 9. All wages, salary amounts or other compensation paid by the State, any unit of local government or school district to any of its employees are exempt and not subject to collection under a wage assignment. (Source: P.A. 79-502.)

740 ILCS 170/10

(740 ILCS 170/10) (from Ch. 48, par. 39.11) Sec. 10. No employer may discharge or suspend any employee by reason of the fact that his earnings have been subjected to wage demands on his employer for any indebtedness. Any person violating this Section shall be guilty of a Class A misdemeanor. (Source: P.A. 79-502.)

740 ILCS 170/11

(740 ILCS 170/11) (from Ch. 48, par. 39.12) Sec. 11. The provisions of this Act do not apply to orders for withholding of income entered by the court under provisions of The Illinois Public Aid Code, the Illinois Marriage and Dissolution of Marriage Act, the Non-Support of Spouse and Children Act, the Non-Support Punishment Act, the Revised Uniform Reciprocal Enforcement of Support Act, the Illinois Parentage Act of 1984, and the Illinois Parentage Act of 2015 for support of a child or maintenance of a spouse. (Source: P.A. 99-85, eff. 1-1-16.)

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.ilga.gov/legislation/ilcs/ilcs.aspFetched: 10/17/2026