lllinois Employers May Still Face Unpaid Wage Claims

Under the Illinois Wage Payment and Collection Act (IWPCA), an employee may file suit for compensation owed “pursuant to an employment contract or agreement.”  820 ILCS 115/2. Courts have taken different approaches regarding what constitutes an agreement under the IWPCA, and prior to October 2024, the Seventh Circuit had not opined as to whether boilerplate disclaimer language in an incentive compensation plan prevents an agreement under the IWPCA from ever being formed. 

But, on October 4, 2024, the U.S. Court of Appeals for the Seventh Circuit weighed in.  As held in Case No. 23-3209 the Court found that “boilerplate disclaimer language” in an incentive compensation plan does not prevent the formation of an “agreement” between an employee and his employer for purposes of a claim under the IWPCA.  Santanu Das v. Tata Consultancy Services Ltd., No. 23-3209(7th Cir. 2024). This decision is significant because it puts Illinois employers on notice that employees may have a claim for unpaid compensation under the IWPCA even if the employer expressly disclaims that it ever agreed to pay such compensation.

To learn more about the decision and how it may affect your company, please read the full article here.