EMPLOYMENT LAW COUNCIL
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JAY SHATTUCK

Executive Director
Employment Law Council

 
 
217/544-6590

General Assembly & Governor Approve FY 2019 Budget...
 
The General Assembly approved and yesterday the Governor signed the FY 2019 budget intended to create financial stability for Illinois. Lawmakers indicate that the $38.5 billion budget is balanced through a combination of higher revenue and almost $600 million in cuts.
 
It includes $350 million in new funding for public schools, as established in the new, evidence-based formula passed last year, and an additional $50 million for early education. Higher education institutions receive a 2 percent increase in funding, and MAP grants are extended to four years and $25 million has been set aside for a new grant program, AIM HIGH, that will provide additional tuition assistance.
 
The budget makes several changes to the governor's proposal. Instead of shifting the cost of pensions to local schools, the budget includes a pension buyout option estimated to save over $400 million. Group health for state employees will also continue to be fully funded, and the governor's proposed 4 percent cut to Medicaid rates was not included.
 
Illinois Legislature Takes Backward Steps on Workers' Comp ...
 
The Illinois Senate's final significant action before adjournment last Thursdy was to pass two bills that contained provisions that cannot be characterized as positive steps for employers. Neither of these proposals are reform of the system.
 
SB 904, sponsored by Sen. Mike Hastings (D-Orland Hills) and Rep. Jay Hoffman (D-Belleville), will allow medical providers to pursue the 1% per month interest penalty on unpaid medical bills in circuit court. During debate it was clarified that the intent of the legislation is that the changes to Section 8.2 (d) apply to undisputed bills. In addition, the measure adds language to Section 8.2a Electronic Billing requiring the Illinois Department of Insurance to adopt rules regarding health care providers responsibility "for supplying only those medical records pertaining to the provider's own claims that are minimally necessary under the federal Health Insurance Portability and Accountability Act of 1996". Nine Republicans joined 29 Democrats in passing the measure on a 38-7-4 roll call . The legislation now heads to Gov. Rauner for his consideration. The Chamber was opposed and offered a counterproposal that was rejected by the medical providers. Our counter proposal was embodied in HB 5910 , sponsored by Rep. Jeannie Ives (R-Wheaton) and SB 3617 , sponsored by Sen. Kyle McCarter (R-Lebanon).
 
House amendment 1 to SB 1737   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. DOI would have 30 days from the filing to approve or disapprove the rates. It also, requires a company that intends to deviate from the filing of a licensed rating organization of which it is a member, the company shall provide the Director with supporting information that specifies the basis for the  requested deviation and provides justification for the deviation. At renewal, if a rate is greater than 5% more than the rate filed with DOI, a notice of the increase must be provided to the policyholder 30 days prior to renewal. The House approved the measure 85-28 and the Senate sent onto the Governor with a 42-5 vote. The Chamber was neutral.
 
Employment Law Issues Heading to Governor ...
 
On a positive note, the House and Senate unanimously approved SB 20 sending the measure next to the Governor for his consideration.  Sponsored by Sen. Heather Steans (D-Chicago) and Rep. Barbara Currie (D-Chicago), this bill makes extensive procedural changes to the Illinois Human Rights Act and significant structural changes to the Illinois Human Rights Commission to provide for full-time, professional commissioners. A temporary panel of commissioners also will be responsible for eliminating the backlog of requests for review at the Commission. These reforms were spearheaded by the Chamber, especially addressing the backlog at the Human Rights Commission, as they will improve the state's administrative process for charges of employment discrimination.
 
HB 4572 , sponsored by Rep. Will Guzzardi (D-Chicago) 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. The Illinois Chamber opposes this measure. This bill passed both houses and the Chamber will seek a veto by Gov. Rauner.   

SB 2999 , sponsored by Sen. Patricia Van Pelt (D-Chicago) and Rep. Melissa Conyears-Ervin (D-Chicago) requires an employer to reimburse an employee for all necessary expenditures or losses incurred by the employee directly related to services performed for the employer. It requires that the expenditure must be within the scope of employment, authorized or required and appropriate documentation is provided.  ELC worked out amendments to remove our opposition and we were  neutral on its passage. 
 
HB 4163, sponsored by Rep. Anna Moeller (D-Elgin) and Sen. Cristina Castro (D-Elgin) amends the Equal Pay Act of 2003 prohibiting an employer from inquiring about salary and wage history by adding new standards that limit employer defenses and adding new compensatory and punitive damage penalties on businesses who are not compliant.  The Chamber  opposed this bill and prefers the alternative method outlined in SB 3100 , sponsored by Sen. Jennifer Bertino-Tarrant (D-Plainfield).  SB 3100 only prohibits the inquiry about or using of a job applicant's wage, salary, benefits history. It does not diminish employer defenses or enhance and expand legal remedies and fines as HB 4163 does.  HB 4163 passed both houses. The Senate sponsor has filed a motion to reconsider the vote which hold the bill in the Senate until the motion is withdrawn. We will be urging a total veto when it goes to the Governor. 
 
HB 4743 , sponsored by Rep. Lashawn Ford (D-Chicago) and Sen. Kimberly Lightford (D-Chicago) 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.  We have recommended that "race" would be more appropriate than singling out African Americans or any other race. We also point out that the protection being sought is already prohibited under state and federal law. 
 
HB 1595 , sponsored by Rep. Katie Stuart (D-Edwardsville) and Sen. Bill Haine (D-Alton) amends the Nursing Mothers in the Workplace Act and 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. With the amendment added in the Senate, we are neutral.
 
Other key employment law issues that did not pass ... HB 4324, sponsored by Rep. ChrisWelch (D-Hillside) and Sen. Kim Lightford (D-Chicago), amends the Illinois Wage Payment and Collection Act requiring the Department of Labor to adjudicate claims under the Act within 30 days. IDOL is required to request that an employer deposit up to 10% of a disputed wage claim with the Department pending adjudication of the claim. Increases the administrative fees imposed upon an employer who has been demanded or ordered by the Department of Labor or a court to a pay wage settlement. Authorizes the placement of a judgment lien upon and employer's real estate and authorizes action under the Code of Civil Procedure for a citation or a supplementary proceeding to discover assets. The original bill created a nightmare of regulation and potential liability for business owners. The broad, strong opposition of business interests, including the Chamber, led to a more reasonable approach that was approved by the House. However, Sen. Lightford amended the bill that unraveled the agreement. The House sponsor, Rep. Welch, filed a motion to non-concur which the House approved. During the fall veto session, Sen. Lightford may recede from the Senate amendment which then sends the measure to the Governor. If the non-concur motion is rejected, the bill likely dies later this year.
 
HB 2771 , sponsored by Rep. Christian Mitchell (D-Chicago) and Sen. Toi Hutchinson (D-Olympia Fields) requires employers to provide 40 hours of paid sick time. The bill exempts unionized construction companies, certain railroad employees, school districts, park districts, and City of Chicago sister agencies. An employee may earn sick days after 180 days of employment.  The bill failed to receive the required number of votes in the House to concur to Senate amendments.  We expect this Chamber-opposed measure to resurface during veto session. 
 
This session saw two committee hearings on two related bills. HB 5046 (Welch) and SB 202 (Castro). Both measures create 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.  Neither of these bills were moved this session but we do expect similar legislation to return next session. 
 
IDHR Proposes Procedural Rule
 
The June 1, Illinois Register has the Illinois Department of Human Rights proposing rule changes that modify the Illinois Department of Human Rights' regulations regarding verified responses and responses to Department charges pursuant to PA 100-492 and repeal request for review provisions of the Department's rules, which are no longer current. For a copy of the rule change, go to page 8725 of the June 1, 2018 Illinois Register.
 
Committee Engagement the Key to our Successes
The Employment Law Council's legislative successes are accomplished because of the time spent by our committee members in reviewing legislative issues and providing input and guidance to offer solutions on the myriad of employment law legislation considered in Springfield. If you are interested in being fully informed and engaged on one or more of our issues, contact us to join our Employment Law & Litigation Committee, our Workers' Compensation Committee or our Unemployment Insurance Committee.


Chamber in the News
 

Illinois Legislature Adjourns Its Spring Session 

Study looks at introducing graduated State income tax in Illinois 



Rauner decision to sign state budget avoids election-year repeat of historic feud


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 
  • October 24, 2018 - Workers' Compensation Conference - Shirley Ryan Ability Lab, 355 East Erie, Chicago 
  • December 13, 2018 - Workers' Compensation Committee Meeting - Law Office of Heyl Royster, 33 N. Dearborn, Chicago

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