Illinois HB5461 prohibits employment contracts that require employees to pay debts upon termination.
Illinois HB5461 amends the Illinois Wage Payment and Collection Act to prohibit including in employment contracts any requirement for employees to pay debts to employers, training providers, or debt collectors upon termination. It also bans contracts that authorize resumption of debt collection or impose penalties, fees, or costs upon termination. Contracts violating these provisions are void and unenforceable. The Act takes effect immediately upon becoming law.
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- Legal Framework
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