Employment Law Council - Governor Signs into Law Several Employment Bills; Many Remain on His Desk Awaiting Action

Aaron Harris | Executive Director, Employment Law Council | 312-596-5899

The mission of the Employment Law Council is to effectively represent Illinois employers on employment law issues such as workers compensation, unemployment insurance, employment discrimination, workplace mandates and other management/employee issues. We advocate public policy actions that advance the interests and viewpoints of employers, and to assist in creating a political climate conducive to improving Illinois' ability to create and retain jobs.

The Council accomplishes its mission with the involvement of hundreds of employers who participate in our three committees: Workers' Compensation; Employment Law & Litigation; and Unemployment Insurance. Through the efforts of these committees we develop policies and strategies that are implemented by the Council and Illinois Chamber staff.

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Governor Signs into Law Several Employment Bills; Many Remain on His Desk Awaiting Action

Below are the measures recently signed into law impacting Illinois employers. Also included are the many issues remaining the Governor’s action. Most of the legislation awaiting action must be dealt with within 60 days of being sent to the Governor. Essentially all his action on legislation passed by the General Assembly must be acted upon by the middle of August.

New State Penalties for Violation of Federal Discrimination Laws

HB 2248 (Cassidy/Peters) OPPOSED creates the Civil Rights Remedies Restoration Act providing that violations of the following federal Acts constitute a violation of the Act: the Rehabilitation Act of 1973; the Patient Protection and Affordable Care Act; the Americans with Disabilities Act of 1990; the Age Discrimination Act of 1975; the Education Amendments of 1972; the Civil Rights Act of 1964; or other federal statutes prohibiting discrimination under a program or activity receiving federal financial assistance. Whoever injures another by a violation of the Act is liable for each and every offense for all remedies available at law, including, but not limited to various damages in an amount no less than $4,000, and attorney's fees, costs, and expenses. Allows a court to grant as relief any permanent or preliminary negative or mandatory injunction, temporary restraining order, order of declaratory judgment, or other relief. Allows claims for a violation of the Act to be filed in any court of competent jurisdiction. Provides that nothing limits any enforcement authority under the Illinois Human Rights Act. Provides that the State waives sovereign and Eleventh Amendment immunity for any violation of the Act. Effective immediately. PA 103-150. The Illinois Chamber has asked the sponsors to provide for a trailer bill that clarifies the new law will not apply to employment-related matters.

Required Notices to Remote Workers:

HB 3733 (Olickal/Villivalam) NEUTRAL amends the Personnel Record Review Act to require an employer, upon the employee's written request, email or mail a copy of a requested record to the employee.

Amends the Minimum Wage Law, the Equal Pay Act of 2003, the Illinois Wage Payment and Collection Act, and the Day and Temporary Labor Services Act regarding remote workers. Requires an employer with employees who do not regularly report to a physical workplace, such as employees who work remotely or travel for work, shall provide specified information by email to its employees or conspicuous posting on the employer's website or intranet site, if such site is regularly used by the employer to communicate work-related information to employees and is able to be regularly accessed by all employees, freely and without interference.

Also amends the Equal Pay Act of 2003 eliminating the requirement that an employer file its annual Employer Information Report EEO-1 with the Director of Labor. For the Equal Pay Compliance Statement indicating compliance that the average compensation for its female and minority employees is not consistently below the average compensation, the definition of "compensation" changed. The use of average compensation from “as determined by rule by the USDOL” is now “remuneration or compensation an employee receives in return for services rendered to an employer, including hourly wages, overtime wages, commissions, piece rate work, salary, bonuses, or any other basis of calculation for services performed”. Effective January 1, 2024. PA 103-201

Prevailing Wage Act

HB 3491 (Hanson/Preston) OPPOSED Any laborer, worker, or mechanic who is employed by the contractor or by any lower tier sub-contractor and is paid for services in a sum less than the prevailing wage rates for work performed on a project shall have a right of action for whatever difference there may be between the amount so paid and the prevailing rates required to be paid for work performed on the project. Effective January 1, 2024. PA 103-48

HB 3351 (Walsh/Castro) amends the Illinois Power Agency Act to require projects under the Illinois Solar for All Program to be subject to the prevailing wage requirements of the Prevailing Wage Act. The Illinois Power Agency shall require verification that all construction performed on the project is performed by workers receiving an amount for that work equal to or greater than the general prevailing rate, as that term is defined in the Prevailing Wage Act. All projects, with the exception of residential houses and houses of worship, shall be classified as public works similar to the applicable projects falling under the Adjustable Block program are classified.

The prevailing wage requirements apply to each Illinois Solar for All Program project for which a project application is submitted to the program after the effective date of the amendatory Act, except (i) projects that serve single-family or multi-family residential buildings and (ii) projects with an aggregate capacity of less than 100 kilowatts that serve houses of worship. Requires the Illinois Power Agency to verify that all construction performed on a project by the renewable energy credit delivery contract holder, its contractors, or its subcontractors relating to the construction of the facility is performed by workers receiving an amount for that work that is greater than or equal to the general prevailing rate of wages as that term is defined in the Prevailing Wage Act. Authorizes the Illinois Power Agency to adjust renewable energy credit prices to account for increased labor costs. Effective immediately. PA 103-188

Labor Dispute Act

HB 2907 (Yednock/Villivalam) OPPOSED Provides that no award of monetary damages, except for damage done to an employer's property as a result of conduct prohibited by law, shall be granted by any court of this State in any case involving a labor dispute. Effective January 1, 2024. PA 103-40

HB 3396 (Yednock/Villivalam) OPPOSED Provides that a person who, with the intent of interfering with, obstructing, or impeding a picket or other demonstration or protest, places any object in the public way commits a Class A misdemeanor with a minimum fine of $500. Effective January 1, 2024. PA 103-45

Workers’ Compensation Coverage Penalties

HB 2145 (Evans/N. Harris) NEUTRAL Amends the Department of Professional Regulation Law, the Asbestos Abatement Act, the Lead Poisoning Prevention Act, and the Illinois Plumbing License Law requiring the Department of Financial and Professional Regulation (DFPR) to refuse the issuance or renewal of a license to, or suspend or revoke the license of, any individual, corporation, partnership, or other business entity that has been found by the Workers' Compensation Commission or the Department of Insurance to have failed to secure workers' compensation obligations in the manner required by the Workers' Compensation Act, to pay in full a fine or penalty imposed due to a failure to secure workers' compensation obligations in the manner required by the Workers' Compensation Act, or to fulfill all obligations assumed pursuant to a settlement reached with the Workers' Compensation Commission or the Department of Insurance relating to a failure to secure workers' compensation obligations in the manner required by the Workers' Compensation Act. In various provisions concerning licensing, provides that no license shall be suspended or revoked until after the licensee is afforded any due process protection guaranteed by statute or rule adopted by the Workers' Compensation Commission or the Department of Insurance. Effective January 1, 2024. PA 103-26

Bills Awaiting Action

We believe the Governor will be signing in to law the following legislation in the next 30 to 45 days. The drop date indicates the last day the Governor is allowed to act on the legislation.

New Pay Scale & Benefits Posting Requirements

HB 3129 (Canty/Pacione-Zayas) NEUTRAL amends the Equal Pay Act of 2003 to require an employer with 15 or more employees to include the pay scale and benefits for a position in any job posting that will be physically performed, at least in part, in Illinois, or positions that will be physically performed outside of Illinois, but the employee reports to a supervisor, office, or other work site in Illinois. Effective January 1, 2025. Drop date August 14, 2023. Enrolled Version A number of amendments were negotiated by the Illinois Chamber and other business groups. A more comprehensive analysis will be forthcoming.

New Regulations for Independent Contractors

HB 3301 (Costa-Howard/Halpin) NEUTRAL amends the Unemployment Insurance Act adding to the definition of "employee": "an individual under an independent contractor arrangement". The change is being made to Section 1801.1. Directory of New Hires under the Unemployment Insurance Act. Section 1801.1 requires employers to file with the Illinois Department of Employment Security (IDES) a report within 20 days after the date the employer hires a new employee or, in the case of an employer transmitting reports magnetically or electronically, by 2 monthly transmissions not less than 12 days nor more than 16 days apart. More information on the new hire reporting requirements can be found at the IDES website: New Hire Reporting (illinois.gov) Effective January 1, 2024. Drop date August 7, 2023. Enrolled version

HB 1122 (Guzzardi/Pacione-Zayas) NEUTRAL creates the Freelance Worker Protection Act. Except as otherwise provided by law, a freelance worker shall be paid the contracted compensation amount on or before the date the compensation is due under the terms of the contract. If the contract does not specify when the hiring party must pay the contracted compensation or the mechanism by which the date will be determined, compensation shall be due no later than 30 days after the completion of the freelance worker's services under the contract. Once a freelance worker has commenced preparation of the product or performance of the services under the contract, a contracting entity shall not require as a condition of timely payment that the freelance worker accept less compensation than the amount of the contracted compensation. Requires written contracts for services or products provided by a freelance worker. Sets forth the information such written contracts must include. The definition of "freelance worker" does not include an individual performing construction services.

Requires the Illinois Department of Labor (IDOL) to enforce the Act and to make model contracts available on its website for use by the general public at no cost. Prohibits a contracting entity from taking any action that penalizes a freelance worker for, or is reasonably likely to deter a freelance worker from, exercising or attempting to exercise any right guaranteed under the Act. Subject to appropriation, IDOL may conduct a public awareness campaign regarding the Act that, at a minimum, includes making information available on its website, otherwise informing contracting entities of the provisions of this Act, and establishing a means for assistance by a natural person through phone or email. Requires the Department to submit a report every 5 years to the General Assembly on freelance contracting and payment practices, the number of complaints received by the Department alleging a violation of the Act, and other matters. Requires the Department to publish each report on its website.

Authorizes the Attorney General to initiate or intervene in a civil action if the Attorney General has reasonable cause to believe that any person or entity is engaged in a pattern and practice prohibited under the Act. Grants the Director rulemaking authority. Effective July 1, 2024. Drop date August 8, 2023. Enrolled version

New & Expanded Liabilities for Employers

HB 1363 (Guzzardi/Villa) NEUTRAL Amends the Gender Violence Act to define "employee", "employer", and "workplace". Changes the definition of "gender-related violence" to also mean domestic violence. Provides that an employer is only liable for gender-related violence committed in the work environment by an employee or agent of the employer. Liability also only extends to gender-related violence that occurs while the employee was directly performing the employee's job duties and the job duties were the proximate cause of the injury, or while an agent of the employer was directly involved in the performance of the contracted work and the contracted work was the proximate cause of the injury. Provides that an employer is liable for gender-related violence if the employer: failed to supervise, train, or monitor the employee who engaged in the gender-related violence; or failed to investigate complaints or reports directly provided to a supervisor, manager, owner, or another person designated by the employer of similar conduct by an employee or agent of the employer and the employer failed to take remedial measures in response to the complaints or reports. Requires an action against an employer for gender-related violence to be commenced within 4 years after the cause of action accrued, except that if the person entitled to bring the action was a minor at the time the cause of action accrued, then within 4 years after the person reaches the age of 18. Provides that no person has the power to waive any provision of the Act as part of a dissolution of marriage agreement, civil union, domestic partnership, or custody agreement. Effective immediately. Drop date: August 15, 2023. Enrolled version The Illinois Chamber negotiated with the sponsors for over a year to narrow the impact on employers.

Mandated Benefits; New & Expanded

SB 2034 (Villa/West) NEUTRAL creates the Child Extended Bereavement Leave Act also known as Zachary's Parent Protection Act. An employee of a large employer that employs 250 or more full-time employees is entitled to use a maximum of 12 weeks of unpaid leave if the employee experiences the loss of a child by suicide or homicide. An employee of a small employer that employs at least 50 but fewer than 250 full-time employees is entitled to use a maximum of 6 weeks of unpaid leave if the employee experiences the loss of a child by suicide or homicide. Leave may be taken in a single continuous period or intermittently in increments of no less than 4 hours, but leave must be completed within one year after the employee notifies the employer of the loss. Permits an employer to require reasonable advance notice of the employee's intention to leave and reasonable documentation. An employee who takes leave is entitled to be restored to the position of employment held by the employee when the leave commenced or to be restored to an equivalent position. Nothing shall be construed to entitle any restored employee the accrual of any seniority or employment benefits during any period of leave. The Act does not extend the maximum period of leave to which an employee is entitled under the federal Family and Medical Leave Act of 1993 or under any other paid or unpaid leave provided under federal, State or local law, a collective bargaining agreement, or an employment benefits program or plan. Prohibits an employer from taking any adverse action against an employee who exercises his or her rights under the Act. A person who uses leave under either the Child Bereavement Leave Act or the Child Extended Bereavement Leave Act may not take leave under the other Act. Requires the Illinois Department of Labor to enforce the Act. Effective January 1, 2024. Drop date: August 15, 2023. Enrolled version

HB 2493 (Ortiz/Peters) NEUTRAL amends the Victims' Economic Security and Safety Act to allow an employee to take unpaid leave from work for specified reasons relating to a family or household member who is killed in a crime of violence. An employee is entitled to a total of not more than 2 workweeks of unpaid leave for specified reasons relating to a family or household member who is killed in a crime of violence, which must be completed within 60 days after the date on which the employee receives notice of the death of the victim. An employee may satisfy the certification requirement by providing an employer with a death certificate, published obituary, or written verification of death, burial, or memorial services from a mortuary, funeral home, burial society, crematorium, religious institution, or government agency, documenting that a victim was killed in a crime of violence. Effective January 1, 2024. Drop date August 15,2023. Enrolled version

HB 3516 (Syed/Villivalam) NEUTRAL amends the Employee Blood Donation Leave Act changing the name of the Act to the Employee Blood and Organ Donation Leave Act. Allows an employee to use up to 10 days of paid leave in any 12-month period to serve as an organ donor. Effective January 1, 2024. Drop date: August 15, 2023. Enrolled version

HB 2068 (Mah/Villivalam) OPPOSED creates the Transportation Benefits Program Act which requires employers to provide 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. A "covered employer" includes an employer that employs 50 or more covered employees in Cook County and certain designated townships in the collar counties and at an address that is located within one mile of regularly scheduled transit service. Effective January 1, 2024.Drop date: August 14, 2023. Enrolled version

SB 1515 (Cervantes/ Delgado) NEUTRAL amends the Right to Privacy in the Workplace Act restricting the use of employment eligibility systems. If an employer receives notification from the Social Security Administration of a discrepancy between an employee's name or social security number and the Social Security Administration's records and the employer takes any adverse action against the employee, an employer must provide the employee with specified information and grant the employee no less than 30 days of unpaid leave to correct any verification discrepancy.

Also, if an employer receives a notification of a discrepancy from any federal or State agency, including, but not limited to, the Social Security Administration or Internal Revenue Service, the employee may choose which work authorization documents to present to the employer during the verification or re-verification process and choose to be represented by counsel or represent his of herself in any meetings, discussions, or proceedings with the employer.

If the discrepancy has been remedied, the employer must:

(1) return the employee to his or her former position, without loss of seniority, compensation rate or salary, or benefits; and (2) not consider the discrepancy in future promotion decisions or continued employment considerations. Effective January 1, 2024. Drop date: August 5, 2023. Enrolled version

Punitive Damages Being Added to Wrongful Death

HB 219 (Hoffman/Harmon) OPPOSED amends the Wrongful Death Act to allow recovery of punitive damages. Punitive damages are not available in actions against: (i) the State or an employee of the State in his or her official capacity; (ii) a unit of local government or an employee of a unit of local government in his or her official capacity, or (iii) healing art malpractice or legal malpractice. Effective immediately. August 15, 2023. Enrolled version

Other Changes to Illinois Employment Laws

HB 3135 (A. Williams/Fine) NEUTRAL amends the Illinois Human Rights Act to allow the Department of Human Rights (IDHR) to intervene as a party in the proceeding if the Human Rights Commission determines that: IDHR has an interest different from one or more of the parties; the expertise of IDHR makes it better suited to articulate a particular point of view; or the representation of IDHR's interest by existing parties is or may be inadequate and IDHR will or may be bound by an order or judgment in the action. If IDHR certifies that the case is of general public importance, the Attorney General may seek to intervene on behalf of IDHR in a civil action filed by a complainant in State or federal court.

Requires, in various situations, a complainant to notify IDHR that a complaint has been filed by serving a copy of the complaint on the IDHR chief legal counsel within 21 days from the date that the complaint is filed in circuit court. A petition for temporary relief shall contain a certification by the IDHR Director that the particular matter warrants temporary relief. The filing of a petition for temporary relief does not affect the initiation or continuation of other specified administrative proceedings. Removes language providing that when a petition for temporary relief is based upon a civil rights violation, the relief or restraining order shall not exceed 5 days. Proceedings on requests for review shall toll the time limitation from the date on which IDHR's notice of dismissal or default is issued until 30 days after (rather than issued to) the date on which the Human Rights Commission's order is served on the IDHR chief legal counsel. Effective January 1, 2024. Drop date: August 15, 2023. Enrolled version

HB 2829 (Delgado/Villivalam) NEUTRAL amends the Illinois Human Rights Commission Article of the Illinois Human Rights Act. Removes language providing that: the Governor shall appoint a special temporary panel of commissioners. Requires the Commission to appoint at the expense of the Commission a qualified interpreter whenever a hearing-impaired individual or an individual who lacks proficiency in the English language is a party or witness in proceedings before the Commission. Effective January 1, 2024. Drop date: August 15, 2023. Enrolled version

HB 2862 (Gonzalez/Peters) OPPOSED amends the Day and Temporary Labor Services Act. No day and temporary labor service agency may send a day or temporary laborer to a place where a strike, a lockout, or other labor trouble exists without providing, at or before the time of dispatch, a statement, in writing and in a language that the day and temporary laborer understands, informing the day or temporary laborer of the labor dispute and the day or temporary laborer's right to refuse the assignment without prejudice to receiving another assignment. A day or temporary laborer who is assigned to work at a third party client for more than 60 calendar days shall be paid not less than the rate of pay and equivalent benefits as the lowest paid directly hired employee of the third party client with the same level of seniority at the company and performing the same or substantially similar work on jobs the performance of which requires substantially similar skill, effort, and responsibility, and that are performed under similar working conditions. Upon a reasonable belief that a day and temporary labor service agency or a third-party client is in violation of any part of the Act, an interested party may initiate a civil action in the county where the alleged offenses occurred or where any party to the action resides. Before the assignment of an employee to a worksite employer, a day and temporary labor service agency must: (i) inquire about the client company's safety and health practices and hazards at the actual workplace where the day or temporary laborer will be working; (ii) provide training to the day or temporary laborer for general awareness safety training for recognized industry hazards the day or temporary laborer may encounter at the client company's worksite; (iii) transmit a general description of the training program; (iv) provide the Department of Labor's hotline number for the employee to call to report safety hazards and concerns as part of the employment materials provided to the day or temporary laborer; and (v) inform the day or temporary laborer who the day or temporary laborer should report safety concerns to at the workplace. Effective July 1, 2023. Drop date: August 15, 2023. Enrolled version CLICK HERE TO VIEW THE CHAMBER'S VETO LETTER

HB 3448 (Evans/Castro) NEUTRAL amends the Illinois Wage Payment and Collection Act. Requires construction contractors and subcontractors to post and keep posted, in one or more conspicuous places accessible to all laborers, workers, and mechanics at a job site, a notice, to be made available by the Director of Labor, summarizing specified requirements under the Act and information pertaining to the filing of a complaint. One copy of the notice at a job site shall satisfy the notice requirement. The Director shall provide copies of summaries and rules to construction contractors and subcontractors upon request without charge. Any construction contractor or subcontractor who fails to provide notice as required shall be subject to a civil penalty, not to exceed $250, payable to the Department of Labor. Effective July 1, 2023. Drop date: August 15, 2023. Enrolled version

Prevailing Wage Expansions & Changes

HB 3400 (Guzzardi/Hunter) SUPPORT amends the Prevailing Wage Act to require the Department of Labor to report quarterly, rather than annually, to the General Assembly and the Governor the number of people employed on public works in the State during the preceding 3 months. This report shall include the total number of people employed on each public works project during the preceding 3 months. The report shall identify every public works project in the State by project name and contractor name and include the demographics of the workers on the project by percentage, including gender, race, and ethnicity, broken down by the following categories: (i) type of trade; (ii) whether the worker is a journey worker or apprentice; and (iii) total work hours performed. Effective January 1, 2024. Drop date: August 14, 2023. Enrolled version

HB 2845 (Vella/Cappel) OPPOSED amends the Prevailing Wage Act to add the removal, hauling, and transportation of biosolids, lime sludge, and lime residue from a water treatment plant or facility and the disposal of biosolids, lime sludge, and lime residue removed from a water treatment plant or facility at a landfill. Effective January 1, 2024. Drop date: August 21, 2023. Enrolled version

HB 3370 (Vella/Castro) OPPOSED amends the Prevailing Wage Act to add power washing projects by a public body or paid for wholly or in part out of public funds. Effective January 1, 2024. Drop date: August 15, 2023. Enrolled version

HB 3792 (Walsh/Stadelman) OPPOSED amends the Prevailing Wage Act to add all construction projects involving fixtures or permanent attachments affixed to light poles that are owned by a public body, including street light poles, traffic light poles, and other lighting fixtures, whether or not done under public supervision or direction, or paid for wholly or in part out of public funds. Effective immediately. Drop date: August 15, 2023. Enrolled version

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