Veto Session Wrap-up
Workers' Compensation Changes:
The General Assembly overrode the Governor's amendatory veto of SB 904/PA 100-1117, sponsored by Sen. Hastings and Rep. Hoffman. With the override, the legislation became effective on November 27th. SB 904 provides extensive changes to medical billing process that benefit medical providers under the WC Act, including access to Circuit Court. Two trailer bills amending SB 904, HB 3452and HB 200also were approved and will be sent to the Governor. HB 3452 clarifies access by medical providers to the Circuit Court and limits access to the courts to a bill collection action for interest penalties due to the provider. HB 200 expands the requirement of providing an explanation of benefits to the medical provider to include the injured worker or their designee.
SB 1737/P.A. 100-1118
sponsored bySen. Munoz and Rep. Hoffman: The Governor's veto also was overridden.As approved, the legislation makes changes to the workers' compensation insurance rates overseen by the Illinois Department of Insurance (DOI). Those changes will take Illinois from its current competitive marketplace approach to requiring an insurer/rating organization to file its rates, manuals, rules, etc. with DOI 30 days before their use. Also requires workers' compensation insurers to provide 30-day advance notice of any premium increase of 5% or more. The following additional non-workers' compensation changes are in this legislation as well:
* Creates the Short-Term, Limited-Duration Health Insurance Coverage Act;
* Creates the Domestic Stock Company Division Law in the Insurance Code; and
* Amends the Domestic Captive Insurance Companies Article of the Insurance Code regarding the authority and restrictions on captive insurers. Effective: certain provisions November 27, 2018; certain provisions February 1, 2019
Employment Discrimination:
The Governor's amendatory veto of HB 4743/PA 100-1140, sponsored by Rep. Ford and Sen. Lightford, was overridden by the General Assembly and is effective January 1, 2019. This measure amends the Equal Pay Act providing 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.
Two other proposals that were not considered during the Veto Session and are now dead but we believe they will be advanced early in the new General Assembly are:
- HB 4163, sponsored by Rep. Moeller and Sen. Castro, amends the Equal Pay Act of 2003 prohibiting an employer from inquiring about salary and wage history. Also adds new standards that limit employer defenses and adding new compensatory and punitive damage penalties on businesses who are not compliant.
- HB 4572, sponsored by Rep. Guzzardi and Sen. Castro, 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.
Employment Law Council Membership/Advocacy at the Capitol Needed More than Ever
As the veto session concluded last week, signs of things to come for employers from the General Assembly and Governor-Elect JB Pritzker became more evident. Several workplace issues that could have been voted upon last month were put over to 2019 to allow political credit to go to the new Governor. In addition, nearly 1 of 4 legislators to be sworn in next month will be new to the process. Many have little understanding of the risk and investment business owners undertake in doing business in Illinois. Some see business as a cow to milk, some as a cow to be slaughtered. Too few see business as the source of economic security and growth.
At the top of the list for priorities early in 2019 are more government regulation, legalized cannabis, expanded gaming and threats to business in finding new ways to increase revenue for the State.
Below are issues impacting employers that in recent years were vetoed by Gov. Rauner or because of a threat of a veto were not approved. We anticipate that these issues will be revived and without education and pushback will quickly become law. That's why your membership in the Employment Law Council is so critical at this time. Not only are your dues supporting advocacy at the state capital, but legislative alerts, member meetings and newsletters to provide you the latest on the key issues and public policy officials you need to be engaged with. Here are some of the issues we will be engaged in next year:
Workplace Mandates:
- Mandated paid sick leave
- Expansion of FMLA to smaller employers and making it paid leave
- Mandating how employers establish and implement employee work schedules
- Minimum wage increase
Wage Payment & Collection:
- Increased criminal penalties for violation of the Wage Payment & Collection Act, including barring of state contractors for 5 years from bidding on any state procurement for violating certain Illinois employment laws, any comparable laws in other states or the federal FLSA.
- Creation of wage lien rights against corporate officers and a company owner's personal property
Workers' Compensation:
Codification of current bad case law for "causation" and "traveling employee"
Employment Discrimination:
- Prohibit an employer from seeking information about a job applicant's wage, salary and benefit history., reducing employer defenses and increased financial penalties and remedies under the Equal Pay Act.
- Expand "employer" definition under the Illinois Human Rights Act to employers of 1 or more employees.
- Prohibit a sexual harassment settlement from including or agreeing to include any term or condition that would prevent the disclosure of the underlying facts and circumstances of the claim or action unless the condition of confidentiality is the plaintiff's preference or other specified conditions are met.
- Change the definition of "employee" under the Illinois Human Rights Act to include independent contractors
- Creation of the Limitations on Forced Arbitration Act limiting the use of forced arbitration agreements on entities doing business with the State.
2019 New Employment Laws
HB 1595/P.A. 100-1003 Nursing Mothers in the Workplace
(Rep. Stuart/Sen. Haine)provides for reasonable break time (instead of "unpaid break time each day") during the first year after the child's birth each time the employee needs to express milk. The break time may run concurrently with any break time already provided to the employee and an employer may not reduce an employee's compensation for time used for the purpose of expressing milk or nursing a baby. An employer shall provide reasonable break time as needed by the employee unless to do so would create an undue hardship as defined by the Illinois Human Rights Act. Effective January 1, 2019
HB 2617/P.A. 100-1102
(Rep. Gabel/Sen. Murphy) Health Insurance: Fertility Preservation: amends the Illinois Insurance Code to require a policy of accident or health insurance to provide coverage for medically necessary expenses for standard fertility preservation services when a necessary medical treatment may directly or indirectly cause iatrogenic infertility to an enrollee. Prohibits a policy from imposing a deductible, coinsurance, copayment, or any other cost-sharing requiring on coverage for contraceptives and does not apply to coverage of voluntary male sterilization procedures to the extent that such coverage would disqualify a high-deductible health plan from eligibility for a health savings account. Effective January 1, 2019
HB 4795/P.A. 100-0759
(Rep. Demmer/Sen. Syverson) Substance Use Disorder changes the Alcoholism and Other Drug Abuse and Dependency Act to the Substance Use Disorder Act, defines "substance use disorder", and removes certain terms and their definitions. Requires Illinois DHS to encourage all health and disability insurance programs to include substance use disorder treatment as a covered service and to use evidence-based best practice criteria as maintained in administrative rule and required in P.A. 99-0480 in determining the necessity for such services and continued stay. Effective January 1, 2019
SB 2826/P.A. 100-0714
(Sen. Morrison/Rep. Olson) Human Rights-Protection Status: amends the Human Rights act to include status as a person protected under the Protective Orders Article of the Code of Criminal Procedure of 1963, the Stalking No Contact Order Act, and the Civil No Contact Order Act to the "order of protection status". Effective January 1, 2019
SB 2999/P.A. 100-1094
(Sen. Van Pelt/Rep. Conyears-Ervin) Employee Expenses Reimbursement: amends the 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. The expenditure must be within the scope of employment. An employer is not responsible for losses due to an employee's own negligence, losses due to normal wear, or losses due to theft unless the theft was the result of the employer's negligence. If an employer has a written expense reimbursement policy that establishes specifications or guidelines for necessary expenditures, then the employer is not liable for the portion of the expenditure amount that exceeds the specifications or guidelines of the policy. Effective January 1, 2019
SB 3547/P.A. 100-1101
(Sen. T. Cullerton/Rep. Chapa LaVia) Service Member Employment Creates the Service-Member Employment and Reemployment Rights Act 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. Effective January 1, 2019
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