EMPLOYMENT LAW COUNCIL
Newsletter

JAY SHATTUCK

Executive Director
Employment Law Council



217/544-6590

Governor Offers FY 2019 Budget Proposal
 
On Wednesday, February 14, Governor Rauner gave his FY 2019 Budget Proposal to the Illinois General Assembly. His proposal included changes to the way pensions are paid out to state employees with a $1 billion savings that could result in a tax cut. He proposed spending more than $8 billion on elementary and secondary education in the coming year but cut $2 billion in state spending in part by shifting the employer's portion of teacher pension payments to public school districts. Shifting pension costs back to school districts and universities, which is phased in over four years, will save the state $696 million this year.
 
Governor Rauner's budget proposal carried a tone throughout his entire message: asking public employers to take more responsibility for its employee's benefits. Twenty-five percent of the state's expenses come from pension payments and employee group health expenses.
 
In addition to changing pension pay out, the Governor's proposal looks to change state and university employees' group health insurance-similar to what Massachusetts's legislature has done, saving $470 million in general revenue this year and $560 million in all funds.
 
The Governor mentioned lowering the workers' compensation insurance rates to the national average to create thousands of new jobs over time, increase economic growth that would help keep the budget balanced, and save millions of dollars in lower government costs.
 
The budget proposal also addressed higher education, MAP grants, housing for veterans, child care assistance, Community Care Program, Medicaid, reforms to the criminal justice system, and infrastructure improvements.
 
He ended his message with a collaborative message, stating the budget proposal is a "framework" for the legislature to consider, and he "welcomed a call to the table for serious conversations about how to proceed".
 
Governor Also Delivers 2018 State of the State
 
A few weeks earlier, Governor Rauner presented his State of the State speech, in Springfield tying in themes of economic opportunity and potential. He mentioned his administration's achievements in ethics politics, education funding, criminal justice reform, spending restraint, and technology advances as opportunities for further growth.
 
The Governor laid out his agenda for the upcoming year to include controlling spending, introducing legislation to make the Ethics Act the supreme law of the state in all matters involving misconduct, getting term limits on the ballot and "let the people decide", and aggressively dealing with property tax assessment corruption by introducing legislation to prohibit legislators from practicing before assessment appeal boards in Illinois to name a few initiatives.
 
While the speech took a note of positivity calling on the collaboration of issues everyone can agree on and listing the long list of historic achievements Illinois has seen, it's difficult to predict that this will be a collaborative session with this year being a gubernatorial election. Both political sides will be ready for all-out assaults after the March primaries.

Senate Hearing on IWCC Arbitrators this Friday
 
In an unusual move, the Senate Judiciary Subcommittee on Tort Reform has scheduled a hearing for Friday, February 23rd at 11 am to question the 5 newly appointed arbitrators, Thomas Ciecko, Robert Harris, Robert Luedke, Tiffany Nicole Kay, and Charles Watts. The hearing will be held in room  C600 Michael A. Bilandic Building 160 N. LaSalle St., Chicago.
 
All 5 of these arbitrators were supported by the Illinois Chamber through the IWCC Advisory Board LAST YEAR. The Labor and petitioner attorney representatives to the Advisory Board also supported these appointments.  I encourage Council members to send a representative to  the hearing in support of these arbitrators.
 
2018 Bills of Interest for ELC Member

Last Friday was the deadline for introduction of legislation. Below are the key bills we are working on:
 
HB 2771  (Rep. Mitchell/Sen. Hutchinson) Creates the Healthy Workplace Act to require employers to provide 40 hours of paid sick time. The bill exempts the construction industry, certain railroad employees, school districts, park districts, and certain City of Chicago sister agencies. An employee may earn sick days after 180 days of employment. On House Calendar for Concurrence Senate Amendments 1 & 2
 
HB 3332 (Rep. Andrade) Amends the Illinois Wage Payment and Collection Act to increase the administrative fee imposed upon an employer that has been demanded or ordered by the Department of Labor, or ordered by a court to pay wages. Imposes fee on a scale depending upon the amount of wages that are owed. Assigned to House Labor & Commerce Committee
 
HB 4081  (Rep. Halpin) Creates the Call Center Worker and Consumer Protection Act to require employers that intend to relocate a call center or portions of a call center from Illinois to another state or a foreign country to provide notice to the State Treasurer at least 120 days before relocation. Any employer intending to relocate call centers must also pay back any grants, loans, and tax benefits that may have been received. Authorizes a civil penalty of up to $10,000 for violations and requires the Treasurer to compile and post on the Treasurer's website a list of employers that have relocated call centers. Assigned to House Economic Opportunity Committee
 
HB 4163  (Rep. Moeller) Identical to HB 2462 that was vetoed by Gov. Rauner last year. Amends the Equal Pay Act of 2003 to prohibit an employer from (i) screening job applicants based on their wage or salary history, (ii) requiring that an applicant's prior wages satisfy minimum or maximum criteria, (iii) requesting or requiring as a condition of being interviewed or as a condition of continuing to be considered for an offer of employment that an applicant disclose prior wages or salary, and (iv) seeking the salary, including benefits or other compensation or salary history, of a job applicant from any current or former employer. Limits an employer's defenses and provides for penalties and injunctive relief. House Third Reading
 
HB 4324  (Rep. Welch) Creates the Wage Lien Act to allow for the creation of a lien on an employer's property for the amount of unpaid wages owed to an employee. Assigned to House Labor & Commerce Committee
 
HB 4330 (Rep. Yingling) Amends the Biometric Information Privacy Act to prohibit a private entity to require a person or customer to provide his or her biometric identifier or biometric information as a condition for the provision of goods or services, except to the extent necessary for an employer to conduct background checks or implement security protocols. Does not apply to companies that provide medical services, law enforcement agencies, or governmental agencies. House Rules Committee
 
HB 4432  (Rep. Hoffman) Amends the Employer's Liability Rates Article of the Illinois Insurance Code to regulate workers' compensation insurance rates. Includes employer safety and return to work programs, returns injuries to the shoulder part of the arm and hip part of the leg, provisions concerning repetitive and cumulative injuries, annual reports done by IWCC on self-insurance, a Workers' Compensation Premium Rates Task Force, an evidence-based drug formulary, and other changes. This bill is identical to HB 2525 which was vetoed last year by the Governor. House Rules Committee
 
HB 4572  (Rep. Guzzardi) Amends the Illinois Human Rights Act to redefine "employer" to include any person employing one (currently 15) or more employees within Illinois during 20 or more calendar weeks within the calendar year of or preceding the alleged violation. House Rules Committee
 
HB 4743  (Rep. Ford) Amends the Equal Pay Act of 2003. Provides that no employer may discriminate between employees by paying wages to an African-American employee at a rate less than the rate at which the employer pays wages to another employee who is not African-American for the same or substantially similar work on a job that requires equal skill, effort, and responsibility and is performed under similar working conditions.  House Rules Committee
 
HB 5046  (Rep. Welch) Creates the Fair Scheduling Act to require employers to provide work schedules to employees at least 72 hours before the start of the first shift of the work schedule and to provide pay when an employee's work shift is canceled or reduced within 72 hours of the beginning of the shift. Prohibits retaliation by employers when employees seek to enforce rights under the Act. Authorizes private actions for damages. Enforced through the Department of Labor. House Rules Committee
 
HB 5103  (Rep. Thapedi)/ SB 3053 (Sen. Cunningham) These are Illinois Chamber of Commerce initiatives amending the Biometric Information Privacy Act. Provides that nothing in the Act shall be deemed to apply to a private entity collecting, storing, or transmitting biometric information if: (i) the biometric information is used exclusively for employment, human resources, fraud prevention, or security purposes; (ii) the private entity does not sell, lease, trade, or similarly profit from the biometric identifier or biometric information collected; or (iii) the private entity stores, transmits, and protects the biometric identifiers and biometric information in a manner that is the same as or more protective than the manner in which the private entity stores, transmits, and protects other confidential and sensitive information. House Rules Committee/Senate Assignments
 
HB 5240  (Rep. Reis) An Illinois Chamber of Commerce initiative which amends the Workers' Compensation Act to require a recipient of certain pain management medication to sign a written agreement with the prescribing physician agreeing to comply with the conditions of the prescription. Prohibits additional prescriptions while the recipient is noncompliant. Limits the applicability of the lack of pain management as a consideration in awarding benefits. Provides for the disclosure of violations of the agreement upon request by the employer. Requires a prescribing physician to file quarterly reports to obtain payment. House Rules Committee
 
HB 5334  (Rep. Harper) Creates the Employee Background Fairness Act. Provides that an employer may not refuse to hire an individual and may not discharge an individual because of the individual's criminal history unless the individual has one or more convictions and there is a direct relationship between one of more of an individual's convictions and the specific employment sought. Prohibits retaliation for exercising rights under the Act. Provides that an individual denied or discharged from employment because of his or her criminal history in violation of the Act may recover from the employer in a civil action: (1) damages in the amount of $2,000 or actual damages, whichever is greater; (2) costs and such reasonable attorney fees as may be allowed by the Court; and (3) any other relief as may be appropriate, including punitive damages. House Rules Committee
 
HB 5354  (Rep. Unes) Amends the Workers' Compensation Act. Limits the scope of the term "arising out of and in the course of employment". Makes changes regarding recovery when an employee is travelling. Increases the duration of the period of temporary total incapacity necessary for recovery. Provides that injuries to the shoulder and hip are to be considered to be injuries to the arm and leg, respectfully. Provides for the implementation of a closed formulary for prescription medicine. Provides for electronic claims. Requires the posting of collateral when seeking judicial review. Provides for a penalty for vexatious delay in payment of benefits. Increases criminal penalties for specified unlawful acts. Requires the Workers' Compensation Commission to provide annual reports to the Governor and General Assembly regarding self-insurance. Amends the Freedom of Information Act to exempt certain workers' compensation related information from the scope of that Act. Amends the Criminal Code of 2012 create the offense of workers' compensation fraud and prescribe penalties. The Illinois Chamber assisted Rep. Unes in drafting the legislation. House Rules Committee
 
HB 5498  (Rep. Feigenholtz) Amends the Illinois Human Rights Act. Provides that within 300 calendar days (instead of 180 days) after the date that a civil rights violation, other than a violation concerning a real estate transaction, allegedly has been committed, a charge in writing under oath or affirmation may be filed with the Department of Human Rights by an aggrieved party or issued by the Department itself under the signature of the Director of Human Rights. Provides that if a charge is filed with the Equal Employment Opportunity Commission (EEOC) within 300 calendar days (instead of 180 days) after the date of the alleged civil rights violation, the charge shall be deemed filed with the Department on the date filed with the EEOC. House Rules Committee
 
HB 5518 (Rep. Mah) Creates the Transportation Benefit Program Act. Provides that an employer that is situated in Cook County or specified townships and for which an average of 25 or more full-time employees work for compensation shall offer a program that allows a covered employee to elect to exclude from taxable wages and compensation the employee's commuting costs incurred for the purchase of a transit pass to use public transit or for the purchase of qualified parking, up to a maximum level allowed by federal tax law. Provides that a covered employer may comply by participating in a program offered by the Chicago Transit Authority or the Regional Transit Authority. Provides that all transit agencies shall market the existence of the program to their riders. Effective January 1, 2019. House Rules Committee.
 
SB 2275  (Sen. Cunningham) Creates the Marijuana Legalization Referendum Act to require the State Board of Elections to cause a statewide advisory public question to be submitted to the voters at the November 6, 2018 general election asking whether individuals support the legalization of possession and use of marijuana by persons of at least 21 years of age. Postponed in Senate Executive Committee
 
SB 2282 (Sen. Weaver) Creates the Limitations on Actions for Negligent Hiring Act to prohibit a cause of action to be brought against a party solely for hiring an employee or independent contractor who has been convicted of a nonviolent, non-sexual offense. Provides exceptions in certain situations. Sent to Judiciary's Subcommittee on Tort Reform
 
SB 2333  (Sen. Connelly) Amends the Equal Pay Act of 2003 to prohibit an employer to require an employee to sign a contract or waiver that would prohibit an employee from disclosing or discussing the employee's wage or salary and from seeking the wage or salary history of a prospective employee from his/her current or former employer. Allows an employer an affirmative defense against a violation of the Act if the employer, within the previous 3 years prior to the action, has completed a self-evaluation of the employer's pay practices and can demonstrate that reasonable progress has been made towards eliminating wage differentials based on gender for the same work. Senate Labor Committee
 
SB 2863  (Sen. Raoul) Amends the Employer's Liability Rates Article of the Illinois Insurance Code. Provides that a rate is excessive if it is likely to produce a long run profit that is unreasonably high for the insurance provided or if expenses are unreasonably high in relation to the services rendered. Makes changes regarding competitive markets exists and disapproval of rates under specified circumstances. Amends the Workers' Compensation Act. Provides that accidental injuries sustained while traveling to or from work do not arise out of and in the course of employment. Permits an employer to file with the Illinois Workers' Compensation Commission a workers' compensation safety program or a workers' compensation return to work program implemented by the employer. Provides that (i) injuries to the shoulder shall be considered injuries to part of the arm and (ii) injuries to the hip shall be considered injuries to part of the leg. Contains provisions concerning repetitive and cumulative injuries; permanent partial disability determinations; annual reports by the Commission concerning self-insurance for workers' compensation in Illinois; and duties of the Workers' Compensation Premium Rates Task Force. Makes additional changes to the Workers' Compensation Act. Provides for an evidence-based drug formulary. Requires an annual investigation of procedures covered for ambulatory surgical centers and the establishment of a fee schedule. Changes a waiting period for benefits for certain firefighters, emergency medical technicians, and paramedics. Changes compensation computations for subsequent injuries to the same part of the spine. Identical to HB 2525 that was vetoed by Gov. Rauner last year. Senate Assignments
 
SB 2999  (Sen. Van Pelt) Amends the Illinois Wage Payment and Collection Act to require an employer to reimburse an employee for all necessary expenditures or losses incurred by the employee directly related to services performed for the employer. Requires the Department of Labor to adopt rules implementing the requirement. Senate Assignments
 
SB 3100  (Sen. Bertino-Tarrant) Amends the Equal Pay Act of 2003. Prohibits an employer from requiring an employee to sign a nondisclosure agreement regarding the employee's salary, from seeking the salary history of a prospective employee, and from requiring that a prospective employee's salary history meet any specified criteria. Provides for employers to establish a self-evaluation plan of the employer's pay practices. Sets forth permissible components of a self-evaluation plan. Requires the self-evaluation plan to be submitted to the Department of Labor for verification. Provides that an employer that has completed a self-evaluation plan that has been verified by the Department of Labor has an affirmative defense to liability for certain alleged violations of the Act. Provides that an employer that does not have a verified self-evaluation plan may be subject to civil penalties for violations of the Act. Senate Assignments
 
SB 3390 (Sen. Castro) Identical to HB 2462 that was vetoed by Gov. Rauner last year. Amends the Equal Pay Act of 2003. Prohibits an employer from: (i) screening job applicants based on their wage or salary history, (ii) requiring that an applicant's prior wages satisfy minimum or maximum criteria, and (iii) requesting or requiring as a condition of being interviewed or as a condition of continuing to be considered for an offer of employment that an applicant disclose prior wages or salary. Prohibits an employer from seeking the salary, including benefits or other compensation or salary history, of a job applicant from any current or former employer, with some exceptions. Limits defenses. Provides for penalties and injunctive relief. Senate Assignments.
 
SB 3547 (Sen. Tom Cullerton) Creates the Service-Member Employment and Reemployment Rights Act. Contains provisions concerning matters relevant to the employment rights of service-members, including employment protections, additional benefits for public employee members of a reserve component, prohibitions on discrimination, a notice of rights and duties, violations, enforcement, remedies, and rulemaking. Provides that the Attorney General shall appoint an Illinois Service-Member Employment and Reemployment Rights Act Advocate to carry out various duties related to the Act. Provides that in times of national or State emergency, the Governor may extend the protections of the Act. Limits the concurrent exercise of power by home rule units. Makes corresponding and related changes throughout the statutes. Repeals the Military Leave of Absence Act, the Public Employee Armed Services Rights Act, the Municipal Employees Military Active Duty Act, and the Local Government Employees Benefits Continuation Act. Amends the Service Member's Employment Tenure Act to change the short title to the Service Member's Tenure Act.

 

 





Chamber in the News
 
Does Governor Rauner truly have a $1 billion "tax relief" plan?
CHICAGO TRIBUNE

Governor Rauner budget proposal at odds with re-election rhetoric.



Governor Rauner says Illinois falls short on job creation.  How does the state stack up against it's neighbors?


Key Legislation
 
 
 
 
 
 
 
 
 
 
 
Upcoming Events
  • June 20, 2018 - Workers' Compensation Committee Meeting - ASA Law Group, LLC, 1301 W. 22nd St., Ste. 215, Oakbrook
  • October 23, 2018 - Workers' Compensation Committee Meeting - Location/Time TBD 
  • December 13, 2018 - Workers' Compensation Committee Meeting - Law Office of Heyl Royster, 33 N. Dearborn, Chicago

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