Opinion

Bitner v. City of Pekin

  • 2025 IL 131039
Court
Illinois Supreme Court
Filed
Sep 18, 2025
Status
Published
Cited by
0 cases
Authority
More cited than 39.3%

The opinion

2025 IL 131039

IN THE

SUPREME COURT

OF

THE STATE OF ILLINOIS

(Docket No. 131039)

CHRISTOPHER BITNER et al., Appellants, v. THE CITY OF PEKIN, Appellee.

Opinion filed September 18, 2025.

JUSTICE CUNNINGHAM delivered the judgment of the court, with opinion.

Chief Justice Theis and Justices Neville, Overstreet, Holder White, Rochford,

and O’Brien concurred in the judgment and opinion.

OPINION

¶1 At issue in this appeal is whether section 1(b) of the Illinois Public Employee

Disability Act (Disability Act) (5 ILCS 345/1(b) (West 2018)) prohibits a public

employer from withholding employment taxes from payments made to an injured

employee under that provision. The appellate court concluded that it does not. 2024

IL App (4th) 230718. For the reasons that follow, we affirm the judgment of the

appellate court.

¶2 BACKGROUND

¶3 The plaintiffs, Christopher Bitner and John Brooks, were injured in the line of

duty in separate incidents while working as police officers for the defendant, the

City of Pekin. Following their injuries, both Bitner and Brooks received payments

from the defendant pursuant to section 1(b) of the Disability Act (5 ILCS 345/1(b)

(West 2018)). That provision states:

“Whenever an eligible employee suffers any injury in the line of duty which

causes him to be unable to perform his duties, he shall continue to be paid by

the employing public entity on the same basis as he was paid before the injury,

with no deduction from his sick leave credits, compensatory time for overtime

accumulations or vacation, or service credits in a public employee pension fund

during the time he is unable to perform his duties due to the result of the injury,

but not longer than one year in relation to the same injury.” Id.

¶4 During the time the plaintiffs were injured and unable to perform their duties,

the defendant continued to pay the plaintiffs’ salaries in the same manner it did

before the injuries occurred. This meant that the defendant continued to withhold

the plaintiffs’ employment taxes, including federal and state income taxes, Social

Security taxes, and Medicare taxes.

¶5 On November 13, 2018, the plaintiffs filed a two-count, class-action complaint

against the defendant in the circuit court of Tazewell County on behalf of

themselves and other similarly situated employees of the defendant. 1 Count I of the

complaint alleged that the defendant violated the Illinois Wage Payment and

Collection Act (Wage Act) (820 ILCS 115/1 et seq. (West 2018)) when it withheld

employment taxes from the payments made to the plaintiffs under section 1(b) of

1

Each of the complaints filed by the plaintiffs in the circuit court was styled as a class

action. However, the plaintiffs never sought to certify the class at any point, and the circuit

court never made any rulings with respect to the issue of class certification. We therefore

treat this case as a lawsuit brought solely by the individual plaintiffs, Bitner and Brooks.

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the Disability Act. Count II alleged that the defendant improperly required the

plaintiffs to use previously accrued sick, vacation, or compensatory time while they

were injured and off duty and that this action also violated the Wage Act.

¶6 The trial court dismissed the plaintiffs’ complaint, finding that relief was

unavailable under the Wage Act because the payments received by the plaintiffs

under section 1(b) of the Disability Act did not qualify as wages or compensation

within the meaning of the Wage Act. The plaintiffs subsequently filed an amended

complaint, which again alleged violations of the Wage Act. That complaint was

also dismissed.

¶7 On September 4, 2020, the plaintiffs filed a second amended complaint. In that

complaint, which is the subject of this appeal, the plaintiffs removed all references

to the Wage Act. Instead, the plaintiffs sought a declaratory judgment (see 735

ILCS 5/2-701 (West 2018)) that the defendant violated section 1(b) of the Disability

Act when it withheld employment taxes from the plaintiffs’ disability payments and

deducted from the plaintiffs’ accrued sick, vacation, or compensatory time.

¶8 The defendant filed an answer to the second amended complaint in which it

admitted that it withheld employment taxes from the plaintiffs’ Disability Act

payments but denied that it required the plaintiffs to use any of their accrued sick,

vacation, or compensatory time while they were injured and off duty. The defendant

also raised two affirmative defenses related specifically to Bitner. First, the

defendant argued that Bitner was subject to the terms of a collective bargaining

agreement and that he had failed to exhaust his contractual remedies under the

agreement’s grievance procedure before filing his complaint. Second, the defendant

argued that claims brought under the Disability Act fall within the five-year statute

of limitations set forth in section 13-205 of the Code of Civil Procedure (735 ILCS

13/205 (West 2018)), which applies to “all civil actions not otherwise provided

for.” The defendant noted that Bitner was injured in 2011 and had missed short

periods of work over the following several years. The defendant maintained that

any of Bitner’s claims that accrued before November 2013, or five years before his

initial complaint was filed, were untimely.

¶9 In April 2023, the plaintiffs filed a motion for summary judgment in which they

maintained they were entitled to judgment as a matter of law on their claims that

the defendant violated section 1(b) of the Disability Act. Attached to the motion

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were supporting affidavits from both Bitner and Brooks. In his affidavit, Bitner

stated that he was injured on the job in 2011 and that he was unable to work 112

hours in 2011, 40 hours in 2012, 40 hours in 2013, and 20.67 hours in 2017. Bitner

also stated that the defendant withheld $1,105.45 in employment taxes from the

payments made to him while he was injured and off work and that the defendant’s

“mandated use of vacation and compensatory time totaled $2,160.38.”

¶ 10 Brooks stated in his affidavit that he was injured on the job in 2016 and that he

was unable to work 80 hours. He also stated that the defendant withheld $767.20 in

employment taxes. Brooks did not state that the defendant deducted any of his sick,

vacation, or compensatory time. 2

¶ 11 In their motion for summary judgment, the plaintiffs argued that section 1(b) of

the Disability Act prohibits the withholding of employment taxes and, in support,

pointed primarily to federal law. The plaintiffs noted that, under section 104(a)(1)

of the Internal Revenue Code of 1986 (26 U.S.C. § 104(a)(1) (2018)), amounts

received as compensation for personal injuries or sickness under workers’

compensation acts do not constitute gross income. The plaintiffs acknowledged that

the Disability Act is not a workers’ compensation act but noted that, under federal

regulations, the Internal Revenue Service (IRS) excludes from gross income

payments received under statutes that are “in the nature of” workers’ compensation

acts. See 26 C.F.R. § 31.3121(a)(2)-1(d)(1) (2017). According to the plaintiffs, the

Disability Act was “in the nature of” a workers’ compensation act and, therefore, it

followed that payments received under section 1(b) are not income subject to

federal withholding.

¶ 12 In their motion, the plaintiffs did not cite any IRS ruling that holds specifically

that payments received under section 1(b) of the Disability Act are excluded from

gross income. Nor did the plaintiffs identify any federal law or regulation that

prohibits public employers from withholding employment taxes from disability

payments made under section 1(b). Nevertheless, the plaintiffs maintained that, to

be consistent with federal law, section 1(b) had to be read as prohibiting the

withholding of employment taxes and that section 1(b)’s requirement that injured

Following the submission of Brooks’s affidavit, only Bitner pursued the claim that the

2

defendant improperly deducted sick, vacation, or compensatory time.

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employees be paid “on the same basis” as they were before being injured had to

mean that the employees receive their pay without any withholding.

¶ 13 Bitner also asserted in the motion for summary judgment that it was undisputed

that the defendant deducted from his accrued sick, vacation, or compensatory time.

Further, according to Bitner, he was not obligated to follow the grievance procedure

in his collective bargaining agreement because the dispute in this case centered on

the meaning and application of section 1(b), not the agreement. Finally, Bitner

argued that the relevant statute of limitations was the 10-year statute of limitations

for claims on written contracts set forth in section 13-206 of the Code of Civil

Procedure (735 ILCS 5/13-206 (West 2018)). Bitner maintained that this was so

because the defendant breached the collective bargaining agreement when it failed

to comply with section 1(b) of the Disability Act.

¶ 14 The defendant filed a response to the plaintiffs’ motion for summary judgment

and filed a cross-motion for summary judgment. In these documents, the defendant

argued that there is nothing in the plain language of section 1(b) that prohibits the

withholding of employment taxes from disability payments. The defendant further

argued that the phrase “on the same basis” in section 1(b) simply means that the

injured employee continues to be paid and employment taxes continue to be

withheld, just as they were before the disabling injury occurred.

¶ 15 The defendant also raised an additional argument regarding the plaintiffs’

ability to recover any amounts withheld by the defendant. The defendant

maintained that, even if it wrongfully withheld employment taxes in violation of

section 1(b), the plaintiffs’ sole remedy was to seek a refund of the improperly

withheld taxes from the IRS. The defendant noted that, under section 7422(a) of

the Internal Revenue Code of 1986 (26 U.S.C. § 7422(a) (2018)), no suit or

proceeding can be maintained in any court for the recovery of any internal revenue

tax alleged to have been erroneously or illegally assessed or collected, until a claim

for refund or credit has been duly filed. In this case, the plaintiffs never sought a

refund from the IRS, and thus, according to the defendant, the plaintiffs were barred

from seeking relief from the defendant.

¶ 16 The defendant also repeated the arguments that Bitner’s claims failed because

he did not file a grievance as required by the collective bargaining agreement and

that the applicable statute of limitations was 5 years, not 10. Finally, the defendant

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submitted an affidavit from John V. Dossey, the defendant’s chief of police. In that

affidavit, Dossey averred that “[the defendant] has no record that any employee or

officer of the city notified or instructed Bitner that his time off for his duty related

injury would be deducted from his accrued vacation, sick, or compensatory time.”

¶ 17 On July 13, 2023, the circuit court held a brief hearing on the parties’ cross-

motions for summary judgment. At the conclusion of the hearing, the court

instructed the attorneys to draft orders and then stated that it would “enter the order

which I think is most appropriate.” Thereafter, the circuit court adopted the

plaintiffs’ proposed order, granting them summary judgment on July 20, 2023.

¶ 18 In its order, the circuit court concluded that section 1(b) of the Disability Act

prohibits a public employer from withholding employment taxes. The court found

that, under federal law, payments made under section 1(b) “are not income subject

to withholding.” The circuit court then concluded that section 1(b)’s requirement

that an injured employee be paid “on the same basis” as he was before the injury

meant that he must receive his “gross pay” because “[c]ommon sense so dictates.”

¶ 19 Without making any reference to Dossey’s affidavit, the circuit court also found

that the defendant had “concede[d]” it should not have deducted Bitner’s vacation

or compensatory time. The circuit court further concluded that Bitner was not

required to file a grievance pursuant to the collective bargaining agreement because

“[t]he issue at hand is not a dispute involving the meaning, interpretation, or

application” of the collective bargaining agreement but “[i]t is a dispute as to the

meaning, interpretation and application of [the Disability Act]—a state statute.”

The circuit court then went on, however, to deem Bitner’s action a breach of

contract claim, subject to the 10-year statute of limitations, because the defendant

failed to comply with the collective bargaining agreement when it violated section

1(b) of the Disability Act. The court therefore concluded that none of Bitner’s

claims were untimely.

¶ 20 Finally, the circuit court found that any amounts withheld by the defendant were

not taxes, even if the defendant had treated them as such and had remitted those

amounts to the IRS. Thus, according to the court, the plaintiffs were not required to

seek a refund or recovery from the IRS. The circuit court entered judgment for

Bitner in the amount of $3,211.92 and for Brooks in the amount of $767.20. The

court also awarded the plaintiffs prejudgment interest, costs, and attorney fees.

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¶ 21 On appeal, the appellate court reversed and remanded the case to the circuit

court. 2024 IL App (4th) 230718, ¶ 2. The appellate court noted that section 1(b)

specifically prohibits public employers from deducting sick, vacation, and

compensatory time but that the statute says nothing about taxes and nothing about

prohibiting the withholding of employment taxes. Id. ¶ 18. The appellate court also

rejected the plaintiffs’ reliance on various federal laws and regulations, stating that

it would be improper for the court to refer to those authorities, because doing so

would require the court to go outside the text of section 1(b) in order to interpret it.

Id. ¶ 19. The appellate court determined that, based on the plain language of the

statute, section 1(b) does not prohibit the withholding of employment taxes. Id.

Based on this reading of section 1(b), the appellate court concluded that the circuit

court erred in granting summary judgment in favor of the plaintiffs on their claim

that the defendant improperly withheld employment taxes. Id. ¶ 20. Because the

appellate court reversed the judgment of the circuit court on this basis, the appellate

court did not reach the defendant’s additional argument that, even if its withholding

of employment taxes violated section 1(b), the plaintiffs’ only remedy was to seek

a refund of the improperly withheld taxes from the IRS.

¶ 22 With respect to the applicable statute of limitations, the appellate court noted

the “dissonance” between, on the one hand, Bitner’s claim that he was not required

to file a grievance because the issue in this case concerned the meaning of a statute

and, on the other hand, his claim that the 10-year statute of limitations for breach

of contracts applied because the defendant violated the collective bargaining

agreement. Id. ¶ 24. The appellate court observed that these positions could not

both be true and held that, because this case centered on the meaning and

application of section 1(b), the five-year statute of limitations contained in section

13-205 of the Code (735 ILCS 5/13-205 (West 2018)) applied. 2024 IL App (4th)

230718, ¶ 25. Because this case did not involve a breach of contract claim under

the collective bargaining agreement, the appellate court also concluded that Bitner

was not required to file a grievance. Id.

¶ 23 Lastly, the appellate court found there was a genuine issue of material fact as to

whether the defendant deducted any of Bitner’s sick, vacation, or compensatory

time because Bitner’s and Dossey’s affidavits gave conflicting accounts on the

question. Id. ¶ 28. Accordingly, the appellate court held that the circuit court erred

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in granting summary judgment in favor of Bitner on his claim and remanded the

cause to the circuit court for further proceedings. Id. ¶¶ 29-31.

¶ 24 We granted the plaintiffs’ petition for leave to appeal. Ill. S. Ct. R. 315 (eff.

Dec. 7, 2023). We allowed the Illinois Municipal League to file an amicus curiae

brief in support of the defendant’s position. Ill. S. Ct. R. 345 (eff. Sept. 20, 2010).

¶ 25 ANALYSIS

¶ 26 Before this court, the plaintiffs do not challenge the appellate court’s conclusion

that the five-year statute of limitations applies to their claims. Nor does Bitner

contest the appellate court’s holding that there is a disputed question of material

fact as to whether the defendant deducted any of Bitner’s sick, vacation, or

compensatory time. Instead, in this appeal, the plaintiffs argue only that the

appellate court erred in its interpretation of section 1(b).

¶ 27 The plaintiffs point to a general statement, taken from Gibbs v. Madison County

Sheriff’s Department, 326 Ill. App. 3d 473, 477 (2001), that section 1(b) provides

for the “continuation of full pay.” The plaintiffs then contend that the phrase “full

pay”—which does not appear in section 1(b)—is ambiguous. According to the

plaintiffs, “full pay” could mean one of three different things: gross pay (the same

pay the employee received while working, but with no withholding or deductions

of any sort); net pay (the same pay the employee received while working, with the

same withholding and deductions); or what the plaintiffs refer to as “gross pay less

required deductions” (where “required deductions” refers to such things as union

dues, pension contributions, and insurance premiums, but not the withholding of

employment taxes). The plaintiffs maintain the phrase “full pay” means “gross pay

minus required deductions” and, therefore, that the defendant violated section 1(b)

when it withheld employment taxes. We disagree.

¶ 28 Determining the meaning of section 1(b) presents an issue of statutory

construction. The primary rule of statutory construction is to ascertain and give

effect to the intent of the legislature. Mercado v. S&C Electric Co., 2025 IL 129526,

¶ 20. “When determining legislative intent, the starting point always is the language

of the statute, which is the most reliable indicator of the legislature’s objectives in

enacting the particular law.” In re D.D., 196 Ill. 2d 405, 419 (2001). We therefore

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begin our analysis not with the term “full pay,” which appears nowhere in section

1(b), but with the language of the statute itself.

¶ 29 Section 1(b) states, in relevant part, that an eligible employee who has suffered

an injury in the line of duty that renders him unable to perform his duties “shall

continue to be paid by the employing public entity on the same basis as he was paid

before the injury, with no deduction from his sick leave credits, compensatory time

for overtime accumulations or vacation.” 5 ILCS 345/1(b) (West 2018). The phrase

“on the same basis” clearly means that an injured employee is to be paid from the

regular payroll in the same manner as if the employee was on duty and in active

service. Thus, if a public employer withheld employment taxes from an employee’s

pay before an injury, it may continue to do so after the injury in order to maintain

payment “on the same basis” as before the injury.

¶ 30 Moreover, section 1(b) expressly prohibits public employers from deducting

sick leave credits, compensatory time for overtime accumulations or vacation, or

service credits in a public employee pension fund. Yet, the statute says nothing

about prohibiting the withholding of employment taxes. Under the maxim of

expressio unius est exclusio alterius (the expression of one thing is the exclusion of

any another), section 1(b)’s listing of particular prohibitions is an implied exclusion

of all others. See Schultz v. Performance Lighting, Inc., 2013 IL 115738, ¶ 17.

Accordingly, nothing in the plain language of the statute prohibits public employers

from withholding employment taxes from disability payments made under section

1(b).

¶ 31 The plaintiffs maintain, however, that the statute cannot be read as allowing the

withholding of employment taxes. Citing In re D.F., 208 Ill. 2d 223, 230 (2003),

the plaintiffs note that a court is not bound by the literal language of a statute when

that language “yields absurd or unjust consequences not contemplated by the

legislature.” The plaintiffs contend that is the case here.

¶ 32 The plaintiffs again argue that any payments received under section 1(b) are not

subject to federal income tax. The plaintiffs maintain that, if withholding is allowed,

“the injured employee would lose out on an amount equivalent to the employment

tax withholdings,” even though section 1(b) payments are tax exempt. The plaintiffs

contend that the legislature’s purpose in enacting section 1(b) was “to create a

benefit that provides full pay” and that “the legislature could not have intended to

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allow a public employer to withhold a portion of the benefits from an injured

employee without reason.” Thus, the plaintiffs argue that section 1(b) must be read

as prohibiting the withholding of employment taxes. Here, too, we disagree.

¶ 33 As in the circuit court, the plaintiffs in this court have not pointed to any IRS

ruling specifically establishing that payments under section 1(b) are exempt from

federal income tax. Nor have the plaintiffs identified any federal law or regulation

that prohibits public employers from withholding employment taxes from section

1(b) payments. Even assuming, however, that the plaintiffs are correct and that

section 1(b) payments are not subject to federal income tax, that does not mean that

an injured employee is wrongfully denied amounts owed to him when the employer

withholds employment taxes. Instead, it simply means that the employee must seek

a refund from the IRS or adjust his tax withholding by submitting a new W-4

withholding form to his employer.

¶ 34 At its root, then, the plaintiffs’ complaint is not about failing to receive amounts

owed but, rather, about how section 1(b)’s payments are administered. Requiring

public employers to determine when employment taxes should and should not be

withheld from section 1(b) payments can create an administrative burden on the

employer, particularly in cases where the employee is on repeated, short periods of

leave and switching back and forth between being on and off active duty. Section

1(b) eases that burden by allowing the public employer to simply continue the

payments made to the employee in the same way they were made before the injury

occurred. This makes the employee’s tax liability his own responsibility and leaves

the taxation question a matter to be determined between the employee and the IRS.

That may not be the plaintiffs’ preferred policy choice, but it is not an absurd result.

Notably, other states have similar payment schemes. See, e.g., Mass. Gen. Laws

ch. 41, § 111F (2018) (“All amounts payable under this section shall be paid at the

same times and in the same manner as, and for all purposes shall be deemed to be,

the regular compensation of such police officer or fire fighter.”); N.C. Gen. Stat.

Ann. § 143-166.15 (West 2018) (“All payments of salary shall be made at the same

time and in the same manner as other salaries are paid to other persons in the same

department.”).

¶ 35 Section 1(b) unambiguously does not prohibit a public employer from

withholding employment taxes from payments made to an injured employee under

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that provision. Thus, the defendant did not violate section 1(b) when it continued

to withhold employment taxes from the plaintiffs’ disability payments on the same

basis as before the plaintiffs were injured. Accordingly, we affirm the appellate

court’s judgment reversing the circuit court’s judgment that the defendant

unlawfully withheld employment taxes.

¶ 36 CONCLUSION

¶ 37 For the foregoing reasons, we affirm the judgment of the appellate court

reversing the judgment of the circuit court. We remand this matter to the circuit

court with directions to enter summary judgment for the defendant on the plaintiffs’

claim that the defendant unlawfully withheld employment taxes and for further

proceedings on Bitner’s claim that the defendant improperly deducted sick,

vacation, or compensatory time.

¶ 38 Appellate court judgment affirmed.

¶ 39 Circuit court judgment reversed.

¶ 40 Cause remanded with directions.

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This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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