General Assembly Wraps up Veto Session
Pause of Day Labor Act’s Monetization of Benefits Requirement
If you use Day Labor Services to meet your workforce needs, you will want to be aware of the new law that creates new responsibilities and obligations as a third-party client of those services.
During the recently concluded Veto Session, Illinois lawmakers sent to Gov. Pritzker an omnibus bill (Senate amendment 3 to HB 3641) that contained a delay in implementation of Section 42 of the Day and Temporary Labor Services Act (see pages 138-139 for change). Specifically, for purposes of monetization of benefits required by the Act, “calculation of the 90 calendar days may not begin until April 1, 2024”.
The Illinois Chamber worked with a coalition of business groups to successfully get the delay approved. Gov. Pritzker is expected to sign the measure which will provide stakeholders an opportunity to negotiate changes to this provision and perhaps other requirements of the law that impact third-party clients.
In addition, the Illinois Chamber’s Employment Law Council submitted comments on the Illinois Department of Labor’s (IDOL) proposed rule Day Labor rule that eventually will be replacing the emergency rule regarding day and temporary labor.
In response to the Governor's signing of HB 2862 into law as PA 103-437, IDOL issued emergency rules and corresponding proposed rules. The new law and emergency regulation were effective August 4, 2023.
The emergency and proposed rule makes extensive changes that affect the responsibilities and obligations of employers who use day and temporary labor services. In general, the emergency rule:
- clarifies day and temporary labor services agencies’ responsibilities to pay certain laborers wages and benefits equal to those of direct-hire employees of the third-party client;
- increases fees and fines per the law for third-party clients;
- authorizes laborers to refuse assignment to the site of a labor dispute;
- outlines for procedures for an interested party to pursue a whistleblower action against third-party clients;
- clarifies parties’ responsibilities when IDOL, the Office of the Attorney General, or another party are pursing related actions at the same time; and
- clarifies the obligation of day and temporary labor service agencies and third-party clients to inform and train laborers regarding work site hazards.
The Council’s comments centered on:
- the definitions that impacted how benefits were to be calculated under the equal pay requirements
- the overly broad definition of “labor dispute”
- the manner as to how 90 days of “assigned” work was to be calculated
- how training needed to be more focused on specific worker responsibilities and exposures
- other overly broad requirements and definitions that employers would be subject to.
CLICK HERE to view a copy of the pending rule. Contact Aaron Harris for a copy of the ELC comments.
Senate Approved E-Verify Limits Go to House for Consideration in 2024
The Illinois Chamber’s Employment Law Council efforts have led to an agreement on SB 508. Following testimony by Kassandra Silva of Michael Best Strategies on behalf of the Illinois Chamber, members of the Senate Executive Committee indicated to the Senate sponsor that the bill needed further work before being considered by the full Senate.
Prior to passage by the Senate, the Illinois Chamber led negotiations with SB 508 sponsor Sen. Javier Cervantes (D-Chicago). Senate amendments 4 and 5 moved the Illinois Chamber to “neutral” on passage of SB 508.
This amendment follows up the veto of SB 1515 by Gov. Pritzker due to serious drafting errors that put the legislation in direct conflict with the federal E-Verify law. The amendment seeks to amend the Right to Privacy in the Workplace Act placing limits and penalties on employers. If an employer is required to participate in the E-Verify program or a similar Electronic Employment Verification System and receives notification from the Social Security Administration IRS or any state agency of a discrepancy between an employee's name or social security number and the government agency’s records, the employer is required to provide the employee with specified documents. Provides for additional rights and protections granted to an employee following the notification from the Social Security Administration of a discrepancy.
An employer is required to provide notice to current employees, by posting in the language the employer normally uses to communicate employment-related information to the employee, of any inspections of I-9 Employment Eligibility Verification forms or other employment records conducted by the U.S. Immigration and Customs Enforcement, United States Customs and Border Protection, or any other federal entity enforcing civil immigration violations. Provides for additional notice requirements concerning obligations of the employer and the employee.
An employer who knowingly and willfully fails to comply with new Section 13 is be subject to a civil penalty of a minimum of $2,000 up to a maximum of $5,000 for a first violation and a civil penalty of a minimum of $5,000 up to a maximum of $10,000 for each subsequent violation.
The legislation is sponsored in the House by Rep. Eva-Dina Delgado (D-Chicago) and is likely to be considered in 2024 when the General Assembly returns to Springfield.
The ELC offers special thanks to Sara Zorich of Amundsen Davis and Kassandra Silva for their work on this important legislation for Illinois employers.
IDOL Issues Proposed Rule on Paid Leave for All Workers Act
The Illinois Department of Labor's proposed rule to implement the Paid Leave for All Workers Act that goes into effect on January 1, 2024 was published in the November 3, 2023 Illinois Register (see pages 15559 to 15588).
We are reviewing the proposal and will be scheduling a virtual meeting to assist us in preparing our comments that are due December 18th.
If you have any suggestions, concerns or thoughts we should consider in our comments, please contact us at your earliest convenience.
The underlying Paid Leave for All Workers Act goes into effect on January 1, 2024. It has far-reaching implications and requires extensive compliance by employers.
The Chamber also assisted in the thwarting of the advancement of Senate amendment 2 to SB 509. This amendment would have expanded the new law to the airlines industry with Illinois Chamber member United Airlines being adversely affected, there were rumors that approval of the change would be the proverbial straw that broke the camels back regarding UAL headquarters remaining in Illinois.
To learn more about the rule and the new law, be sure to attend the Illinois Chamber’s 10th Annual New Employment Laws Forum being held December 5th in Lisle. The day long Forum focuses on the new employment laws and legal developments that will affect ALL Illinois employers in 2024 and beyond. The forum features Illinois attorneys and experts speaking about Illinois laws – as well as representatives from government agencies talking about the latest changes and your peers, a panel of Senior HR professionals discussing how the laws have and will affect their businesses. It's already been a busy year, and more regulation is coming. For more and information and to register: 10th Annual Illinois Chamber of Commerce New Laws Forum (ilchamber.org)
Illinois Chamber Opposes Efforts to Curtail Illinois’ Growing Logistics Industry (HB 2547)
Before the Senate Labor Committee last week, Illinois Chamber Senior Vice President of Government Affairs, Clark Kaericher, and ELC Executive Director Aaron Harris testified on the subject matter hearing on HB 2547, the "Warehouse Worker Protection Act."
Kaericher delivered the following remarks to the committee.
“I am here today to emphasize the importance of warehousing to the Illinois economy and to highlight some of our concerns with the proposed legislation. Warehousing has seen 600% growth nationally since 1998, representing an annual rate of 11.9%, nearly six times the rate of growth for business in general. Illinois has been at the forefront of this expansion. Indeed, warehousing is an important component of the Illinois economy. The Federal Reserve Bank research reveals Illinois warehousing has grown from a gross domestic product of $3.4 billion in 2012 to an estimated $4.7 billion in 2022.
Illinois Department of Employment Security numbers show a total of 65,000 warehouse employees in 2020 and they expect that number to grow to 82,000 by 2030. These numbers are triple their projected rate of job growth as a whole which makes warehousing one of the fastest-growing industries in our state. Jobs supporting this industry, including trucking, account for 350,000 total jobs and are expected to grow by an additional 50,000 over that same time period.
These are good jobs. Amazon alone employs 38,000 people in Illinois with a starting rate of pay of $19 an hour in addition to benefits that begin on day one. Online job site Indeed shows nearly 4,000 job openings for full-time warehouse work in Illinois.
HB 2547 would hinder the growth of the logistics industry in Illinois. Some of the Chamber's concerns relate to the sharing of proprietary data, response times for requests in as little as 3 calendar days (as opposed to 14 business days in other states), and the lack of definition of an “adverse employment action” which will lead to confusion and litigation. Speaking of litigation, the inclusion of a private right of action outsources a key duty of the state, unlike other states that use enforcement from the state’s attorney general.
Last year the General Assembly convened a task force on Warehousing. That group has started to meet, and the Illinois Chamber takes its inclusion in that group very seriously. We’d like to see the recommendations of that task force in its written report before legislation is enacted. Short of that, we wanted you to know that this industry is critical to Illinois, and we did not want proponents of the legislation to leave lawmakers with the impression that no one was concerned about legislative proposals that were not the product of serious discussions or negotiated solutions.
Lou Sandoval Named President and CEO of Illinois Chamber of Commerce
Lou Sandoval has been selected as the next President and CEO of the Illinois Chamber of Commerce. Lou’s appointment follows a national search led by Koya Partners, an executive recruiting firm focused on mission-driven leadership.
Lou comes to the Chamber after a successful career in the private sector, as both a business owner and a consultant across a variety of industries in Illinois. As President and Managing Partner of the Halo Advisory Group, Sandoval has advised both early-stage growth companies and Fortune 500 clients on go-to-market strategies, scalability, change management, and mergers and acquisitions. Previously he held executive leadership roles at NAUTIC-ON, a Brunswick Corporation brand focused on providing technology and business solutions to the recreational boating industry. For nearly 20 years, Sandoval founded and led his marine dealership, which served customers throughout the Western Great Lakes Region.
Lou is an Independent Board Director for Wintrust Bank N.A. In addition, he is a member of the Board of Trustees of Epic Academy, the Executive Board of Pathway to Adventure Council, and the Board of Advisors for DePaul University and Kognitive Networks. Previously, he led the Chicago Yacht Club’s Board of Directors as its Commodore. He is a proud Eagle Scout and served on the Northeast Council Board of the Boy Scouts of America. He also was appointed by Governor Bruce Rauner to the Illinois River Coordinating Council and co-chaired the Latino Advisory Committee for U.S. Senator Mark Kirk.
Lou is a graduate of DePaul University and is an adjunct faculty member for Hispanic & Latino Executive Leadership in McKinsey & Company’s Connect Leaders Program.
As a business leader and former business owner, Lou understands first-hand what it takes to lead and build successful enterprises in our state. He’s passionate about making Illinois a vibrant place for all business to thrive and is dedicated to working with business leaders and policy makers across our state to drive a new wave of growth and innovation. That combination of experience and vision make him an ideal person to lead our next chapter.
His first official day as our new CEO & President will be Monday, November 27th.
