The Illinois Fighting Wage Theft Act passed out of the Senate this afternoon, 30-22, on party lines. Many, many thanks to Senator Daniel Biss for sponsoring and shepherding the bill through the labor committee and the Senate floor, and thanks to Senators Cristina Castro and Emile Jones, plus a big shout-out to Senator Linda Holmes for sticking up for the bill (and us!) earlier in committee and again today on the floor.

SB1720 does two things to combat wage theft:

  • Slightly increases penalties on businesses that refuse to pay wage theft judgments.
  • Bars businesses that have repeat or willful wage theft violations from being awarded state contracts.

You might think that getting businesses to pay wage theft judgments wouldn’t be a problem, but it is. In California, for example,only 12% of workers get the money they’re owed. So this bill provides a greater incentive to pay up.

As for the state contract provision, we feel the state should demonstrate leadership by not spending taxpayer money on unethical employers. Residents want their taxes to go to ethical employers, because that means more money gets to workers, who then spend their earnings on other Illinois businesses.

When workers get paid for all their work, they spend money on other Illinois businesses, stimulating the economy. They’re less likely to need public assistance, another boon to taxpayers. And ethical businesses can compete the way they prefer, by providing their customers with great products and services.

Now, on to the House.