Constitutional Amendment Seeks to Guarantee Labor Rights
Earlier this year, the General Assembly approved SJR 55, sponsored by Sen. Ram Villivalam (D-Chicago) and Rep. Marcus Evans, Jr. (D-Chicago). SJR 55 sets forth an explanation of the amendment to Article I of the Illinois Constitution that is proposed by Senate Joint Resolution Constitutional Amendment 11 (Workers' Rights) which was approved by the General Assembly in 2021. It describes brief arguments in favor of and against the proposed amendment. SJR 55 describes the form in which the amendment will appear on the ballot at the general election to be held on November 8, 2022. The Illinois Chamber contributed to the brief arguments in opposition to the proposed Constitutional question.
If approved Amendment 1 will place four distinct labor provisions in the Illinois Constitution:
1) a “fundamental right” to organize and bargain;
2) the right to bargain over wages, hours, working conditions, economic welfare and safety at work – i.e., virtually anything;
3) a prohibition on lawmakers from interfering with, negating or diminishing those rights;
4) a prohibition against a worker’s ability to choose to be a member of a union.
Should voters approve Amendment 1, it will be the first constitutional provision of its kind in the nation to:
• make organizing and bargaining a “fundamental right”
• allow negotiations over limitless subjects
• prohibit lawmakers from limiting union power
• constitutionally ban a worker’s ability to choose to be a union member or not.
UI Agency Audit…not pretty
The office of the Illinois Auditor General recently released its latest audit of the Illinois Department of Employment Security (IDES). The audit findings showed a struggling Department for more than two years. The most recent audit confirmed similar findings of past reports which document mismanagement, dysfunction, and widespread fraud. The two-year audit shows 26 findings of non-compliance, including failure to prepare monthly reconciliations and weaknesses in security over confidential information, among many other concerning findings. It was noted that the massive disorganization regarding unemployment claimants continues to prevent auditors from determining the amount of fraud within the pandemic unemployment assistance (PUA) program.
According to IDES, more than 424,887 claimants had received benefits totaling $8.16 billion by June 30, 2021. Auditors were unable to conduct further testing to see whether those claimants were actually entitled to these benefits.
Illinois borrowed from federal taxpayer funds to pay unemployment claims during the pandemic. The state racked up $4.5 billion in debt with interest. After failing to fill the deficit this spring, the state still owes $1.8 billion. It is unlikely that the remaining deficit will be repaid prior to a November deadline which triggers a FUTA penalty payable by Illinois employers.
For copies of the audit summary and the audit contact us.
IL Chamber Annual Luncheon Sponsorship Availability
The Illinois Chamber’s 2022 Annual Meeting is set for October 6 from 10:30 am to 1:30 pm at the Palmer House Hilton in Chicago.
The agenda includes our one-hour pre-event reception “All Council Mix & Mingle”. The luncheon program is the “Future of Energy and Impact on Illinois: Actions of the Federal Reserve”
Sponsorship of the All Council Mix & Mingle is available for $2,500.00. Benefits of sponsorship are:
· Two seats for your company at the Annual Luncheon
· Acknowledgement on signage at pre-event reception, on website, and
invite for the event
· Exhibitor space to highlight your company during the pre-event reception.
New Mandated Leave Laws
Bereavement Leave: SB 3120, sponsored by Sen. Melinda Bush (D-Grayslake)/Rep. Anna Moeller (D-Elgin) was sent to the Governor on April 28th. The bill will expand the Child Bereavement Act to include family members. The proposal also will expand up to 10 workdays of unpaid leave to pregnancy loss; unsuccessful round of intrauterine insemination or of an assisted reproductive technology procedure; a failed adoption match or an adoption that is not finalized because it is contested by another party; a failed surrogacy agreement; a diagnosis that impacts pregnancy or fertility; or a stillbirth. It has a January 1, 2023 effective date. The Chamber is neutral. PA102-1050
Employee Sick Leave Act- Amendment will Establish Act as Minimum for CBAs: SB 645 sponsored by Sen. Mike Hastings (D-Frankfort) and Rep. Jay Hoffman (D-Swansea) amends the Employee Sick Leave Act. As approved by both chambers, the measure will establish the Act as the minimum standard in a negotiated collective bargaining agreement. The Chamber is opposed. It was approved by the Governor with a January 1, 2023 effective date. PA 102-817
One Day Rest in Seven Act Changes
SB 3146, sponsored by Sen. Celina Villanueva (D-Chicago)/Rep. Lakesia Collins (D-Chicago) increases civil penalties for violation of the law. An employer with fewer than 25 employees, the civil penalty shall not exceed $250 per offense, payable to the Department of Labor, and damages of up to $250 per offense, payable to the employee or employees affected. For an employer with 25 or more employees, the civil penalty shall not exceed $500 per offense, payable to the Department, and damages of up to $500 per offense, payable to the employee or employees affected. Provides that an offense under the Act shall be determined on an individual basis for each employee whose rights are violated. The bill also changes “calendar week” to “consecutive seven-day period”. An employee who works more than 7 1/2 continuous hours will be entitled to an additional 20-minute meal period for every additional 4 1/2 continuous hours worked. Employers covered by the Act must post and keep posted, in one or more conspicuous places on the premises of the employer where notices to employees are customarily posted, a notice, to be provided by the Director of Labor, summarizing the requirements of the Act and information pertaining to the filing of a complaint. The legislation was approved by the Governor and has a January 1, 2023 effective date. The Chamber is neutral.
SB 3416, sponsored by Sen. Emil Jones, Jr. (D-Chicago) and Rep. Marcus Evans, Jr. (D-Chicago), as passed by both chambers provides that specified provisions of the One Day Rest in Seven Act do not apply to employees for whom work hours, days of work, and rest periods are established through the collective bargaining process. The Governor approved the bill which has a January 1, 2023 effective date. The Chamber is neutral. PA 102-1012
Shifting Unpaid Wage Liability for Construction Contractors
HB 5412, sponsored by Rep. Marcus Evans (D-Chicago) and Sen. Cristina Castro (D-Elgin) was sent to the Governor on May 12th. Under the Illinois Wage Payment and Collection Act, HB 5412 shifts liability for unpaid wages by a lower tiered construction contractor to the primary/general contractor. Illinois Chamber requested that the Governor veto the legislation. The effective date is June 10, 2022. PA 102-1076
The Illinois Chamber joined other opponents in offering a number of comprises to HB 5412. Ultimately, Sen. Castro, who also is the sponsor of HB 4600, advanced an amendment to HB 4600 that contained modest changes to HB 5412. Those modest changes included:
· a threshold of application of the law to projects with a total cost of more than $20,000;
· a task force to study innovative ways to reduce bonding and insurance costs for construction contractors;
· exempts primary contractors party to a collective bargaining agreement;
· exempts primary contractors making alteration or repair of an existing single-family dwelling or a single residential unit in an existing multi-unit structure; and
· limits claims to those filed with the Illinois Department of Labor or with the circuit court within 3 years after the wages were due.
The Illinois Chamber and the coalition of opponents to HB 5412 requested the Governor to amendatory veto HB 4600 adding that all residential construction be exempt and to increase the threshold for exemption for non-residential construction to $100,000. Are request was rejected. Effective June 10, 2022. PA 102-1065
Workers’ Compensation
HB 1208, sponsored by Rep. Jay Hoffman (D-Swansea) and Sen. Bill Cunningham (D-Chicago), replaces language regarding the qualifications of Commissioners of the Illinois Workers' Compensation Commission with language requiring each Commissioner appointed on or after the effective date of the amendatory Act to be authorized to practice law in this State. Requires the performance of arbitrators to be reviewed by the Chairman every other year, or more often at the discretion of the Chairman (rather than on an annual basis). Prohibits any arbitrator from hearing cases in any county, other than Cook County, for more than 4 years consecutively (rather than 2 years in each 3-year term). Dissolves the Self-Insurers Administration Fund and transfers of the moneys in that fund to the Self-Insurers Security Fund. Authorizes expenditures from the Self-Insurers Security Fund for the purposes that were authorized for the Self-Insurers Administration Fund. Illinois Chamber supports. The bill was signed by the Governor on May 27th which is the effective date. PA 102-910
Other Employment Law Legislation
Federal Preemption of Certain Illinois Labor Acts: Included in the state government omnibus bill, HB 5186, sponsored by Rep. Will Davis (D-Hazel Crest) and Sen. Napoleon Harris III (D-Harvey) are the following Acts that will be inoperative until and unless certain federal occupational safety and health standards cease to be in effect.
Employee Washroom Act
Work Under Compressed Air Act
Underground Sewer Employee Safety Act, and
Toxic Substances Disclosure to Employees Act.
The bill was effective June 10, 2022. The Chamber supports. PA 102-1071
Child Labor: SB 3161 sponsored by Sen. Ram Villivalam (D-Chicago) and Rep. Michelle Mussman (D-Schaumburg) provides that minors under 16 years of age working as models, performers or other entertainment-related performances shall be permitted to work until 10 p.m. A waiver request for a minor to work between 12:30 a.m. and 5 a.m. may be granted if the Director of Labor, or his or her authorized representative, is satisfied that the performance by the minor during that time is critical to the success of the production, as demonstrated by true and accurate statements by the employer that filming cannot be completed at any other time of day; the filming primarily requires exterior footage of sunset, nighttime, or dawn; the filming is scheduled on the most optimal day of the week for the minor's schooling; the employer provides a schedule to the Department of Labor of schooling and rest periods on the day before, the day of, and the day after the overnight hours to be worked; and the age of the minor is taken into account as provided by the Act or any rules adopted under the Act. A waiver request must be received by the Department at least 72 hours prior to the overnight hours to be worked. The measure was approved by the Governor with a January 1, 2023 effective date. The Chamber is neutral. PA 102-832
Human Rights Act-Hair: SB 3616, sponsored by Sen. Mattie Hunter (D-Chicago) and Rep. Jehan Gordon-Booth) amends the Illinois Human Rights Act providing that "race", as used in the Employment Article, includes traits historically associated with race, including, but not limited to, hair texture and protective hairstyles such as braids, locks, and twists. The Chamber is neutral. It has a January 1, 2023 effective date. PA 102-1102
15th Annual Workers’ Compensation Conference Set
The Illinois Chamber of Commerce strives to provide the Illinois business community with timely information to ensure employers are up-to-date in all realms of business. Workers' Compensation is no different. This confusing and often abused statute is one employers and their employees need to be familiar with to in order to stay in compliance. This conference is designed not only to inform, educate and assist employers on how to be in compliance, but also to show employers how to reduce their workers' comp costs in the process. Agenda this year will include many of the current topics pertinent to ALL Illinois employers including Cannabis, Obesity, investigation, cost drivers, remote workers, workers' compensation claims, and more.
This workers compensation and safety conference is from 8:00 AM to 3:30 PM on November 2nd at the Double Tree Hilton in Lisle, IL.
Other Upcoming Chamber Events
September 21, 2022 | 9:30 am – 12:30 pm
Location: NIU Center (Naperville, IL)
Title: Corporate Governance: From Nuts and Bolts to Trending Topics
Description: This timely presentation will review important governance basics, such as fiduciary duties, conflicts of interest, company maintenance and record-keeping, recent amendments to the Delaware General Corporation Law, the importance of operating agreements, minute-taking tips, and foreign qualifications and assumed name filings. We will report on recent Board diversity initiatives in Illinois and select states, including annual reporting, and Wall Street’s recent efforts to increase diversity. With a growing patchwork of data privacy laws, getting a clear view of a company’s legal obligations for data privacy practices and policies can be a challenge. We will provide an overview on the ever-changing area of data privacy and security regulations, rules and enforcement. Join Molly Arranz, Eric Fogel, and Steven Sims with SmithAmudsen LLC as they provide an overview of the Foreign Corrupt Practices Act and recent enforcement actions. We will review how the U.S. Department of Justice evaluates the effectiveness of corporate compliance programs to make prosecution decisions and assess monetary penalties and ongoing compliance obligations.
This seminar will qualify for HRCI, SHRM, CLE, and Ethics credits!!
September 27, 2022 | 10:30 am – 11:30 am
Title: Environmental Justice: How Popularity Contests Can Trump Business Decisions
Description: An emerging focus of environmental regulatory agencies -- environmental justice -- has become an important consideration in environmental permitting, inspections, and even enforcement.
What is environmental justice? How is Illinois incorporating environmental justice into its decision-making? Why should you take environmental justice considerations into account when making future business decisions involving expansions, siting locations, and other operational decisions? How can you plan for environmental justice challenges before they even appear?
This webinar will be free IERG, Energy Council and EAC members!!
Codes for Members: (Please include these codes in emails to appropriate members.
EACMEM
ENERGYMEM
IERGMEM
