HB2351 - Wage Lien Act Summary

• Creates a statutory lien on all employer property (real and personal, including after-acquired property) in Illinois for unpaid wages, penalties, and interest owed to employees.

• Employees must provide written notice to the employer at least 5 days before recording a lien with the county recorder (real property) or filing with the Secretary of State (personal property).

• Lien must be recorded or filed within 3 years of when the employee stopped working or the violation occurred, and enforcement action must be commenced within 180 days of recording the notice.

• Employee may enforce the lien through civil court action or administrative proceedings under existing wage laws, with the lien taking precedence over all other debts, judgments, liens, or mortgages regardless of when they originated.

• Successors to a business become liable for recorded wage liens if they have actual knowledge of the lien or reasonable access to verify it, unless the original employer pays the full amount within 10 days of the sale or transfer.