IDOL Proposed Rules Filed
In the May 20, 22 Illinois Register, the Illinois Department of Labor (IDOL) submitted proposed rule changes to three different areas of the law: Equal Pay Act; Worker Adjustment and Retraining Notification Act (WARN); and Victims Economic Safety & Security Act (VESSA). Questions and comments on the three IDOL rulemakings may be made through July 5, 2022, to Anna Koeppel, IDOL, 524 S. Second St., Suite 400, Springfield IL 62701, 217/558-1270, [email protected]
Equal Pay Act Section 11 Implementation
(Illinois Register Volume 46 Issue 21 pp 8023-8043)
As the adage goes, better late than never. Finally, IDOL has proposed amendments to the Part titled Equal Pay in Employment (56 IAC 320; 46 Ill Reg 8023) implementing Section 11 of the Equal Pay Act of 2003, which requires businesses that have more than 100 employees and file annual reports with the federal Equal Employment Opportunity Commission to apply to IDOL for equal pay registration certificates every 2 years. With the new law becoming effective in March of this year, hundreds of Illinois employers have been notified by IDOL and will be required to submit their data next week, with more employers being required to submit their data in June. Late last year and early this year, the Illinois Chamber met with IDOL staff to suggest possible clarifications and information to rules that could be helpful to employers in compliance with this awkward and cumbersome requirement. Until this rule's publication, IDOL provided only guidance on its website as to how employers are to comply. Now with a rule being proposed, we are going back to IDOL staff to get clarification as to how employers already required to file their data are to comply.
This rulemaking:
- establishes timelines for affected businesses and IDOL to fulfill this requirement.
- establishes how equal pay data must be reported to the IDOL.
- establishes that IDOL, after giving notice of a violation, must provide 30 days for an employer to come into compliance.
The rulemaking also outlines the processes for IDOL to notify an employer that an application for a certificate has been rejected, or that a certificate has been suspended or revoked, and for an affected business to appeal these decisions. Provisions and requirements for employees of large private businesses to request data concerning pay for their job classification or title are also established.
For a copy of a summary of the proposed rule's changes contact Jay Shattuck.
Equal Pay for African-Americans
(Illinois Register Volume 46 Issue 21 see page 8032)
Section 320.140 Recordkeeping Requirements is being amended for compliance with PA 100-1140, which prohibits employers with 4 or more employees from discriminating against African American employees regarding pay.
Proposed VESSA Rule
(Illinois Register Volume 46 Issue 21 pp 8014-8022)
IDOL's rulemaking implements statutory changes expanding the protections of the Act to victims of gender violence and any other crime of violence (currently, domestic violence and sexual violence.) It also incorporates a statutory change expanding the scope of the Act to employers who employ at least one employee. The proposal requires employees to submit a signed statement affirming that they are a victim of violence and to submit supporting documentation if it is available.
Proposed WARN Rule for Power Plants & Coal Mines
(Illinois Register Volume 46 Issue 21 pp 8009-8013)
This rulemaking codifies changes to the Worker Adjustment and Retraining Notification Act passed in Public Act 102-662, requiring owners of certain power plants and coal mines to provide employees and officials two years' notice before a mass layoff, relocation or other employment loss takes effect.
Illinois Chamber Releases Legislative Ratings and 102nd General Assembly Awards
Earlier this month, The Illinois Chamber of Commerce released its rating for the members of the 102nd General Assembly and announced its 2022 Champion of Free Enterprise Award Winners and Freshmen of the year.
The Illinois Chamber rated all members of the 102nd General Assembly based on each legislator's votes on the key business-related legislation of the past two years. These bills of importance were determined by staff and the Illinois Chamber’s Government Affairs Committee and made known to members of the legislature. With over 10,000 bills and resolutions introduced in 102nd General Assembly, 22 votes in the Senate and House were scrupulously selected based on their potential impact on the Illinois economy and members of the business community. None of the bills used in the report are weighted, as there were an adequate number of bills voted on during this General Assembly. Click here to view the complete 102nd General Assembly Legislative Ratings.
The awards are given by the Illinois Chamber of Commerce to legislators who work toward the advancement of economic opportunity for all Illinoisans and to those who have made special contributions to the defense and furtherance of free enterprise in our state.
The Champion of Free Enterprise Awards are given biennially to Senators and Representatives with Illinois Chamber ratings averaging 85 percent or higher over the previous two General Assemblies who have demonstrated their commitment to legislation that frees the entrepreneurial spirit.
102nd GA Senate award winners:
· Senate Republican Leader Dan McConchie
· Senator Darren Bailey
· Senator Jason Barickman
· Senator Terri Bryant
· Senator Donald DeWitte
· Senator Dale Fowler
· Senator Steve McClure
· Senator Chapin Rose
· Senator Dave Syverson
· Senator Jil Tracy
102nd GA Outstanding Freshmen of the Year award winners:
· Senator Sally Turner
· Representative Amy Elik
102nd GA House award winners:
· House Republican Leader Jim Durkin
· Representative Thomas Bennett
· Representative Avery Bourne
· Representative Mark Batinick
· Representative Dan Brady
· Representative Tim Butler
· Representative Dan Caulkins
· Representative Andrew Chesney
· Representative C.D. Davidsmeyer
· Representative Tom Demmer
· Representative Randy Frese
· Representative Amy Grant
· Representative Norine Hammond
· Representative Brad Halbrook
· Representative Jeff Keicher
· Representative Michael Marron
· Representative Deanne Mazzochi
· Representative Tony McCombie
· Representative Charles Meier
· Representative Chris Miller
· Representative Dave Severin
· Representative Keith Sommer
· Representative Joe Sosnowski
· Representative Ryan Spain
· Representative Daniel Swanson
· Representative Dan Ugaste
· Representative Tom Weber
· Representative Keith Wheeler
· Representative Patrick Windhorst
Illinois Chamber Rejects Future of Work Taskforce Report
Last Tuesday, the Illinois Future of Work Task Force held a press conference and event on the release of its final report. Illinois Chamber Senior Vice President of Government Affairs, Clark Kaericher, a member of the Task Force, attended the press conference and made a few remarks. Kaericher was the only “no” vote on the final report that spoke at the event.
Kaericher's remarks from the event are provided in part below:
The Chamber wants to applaud lawmakers for taking a long-term perspective with the creation of this task force. For too long, Illinois has stumbled from one emergency to the next; while more successful states look towards the future. “Those who fail to plan, plan to fail.”
I very much believe that good jobs are good business. Looking at how we can align the needs of employers, and their employees, to get better business outcomes – will help move this policy discussion forward and lead to mutually beneficial outcomes.
Now, I’d be remiss not to acknowledge that I am the only person on this stage that voted against the final report due to the inclusion of some policies which would put Illinois, and its workers, at a competitive disadvantage. However, policy disagreements should not stop us from searching for consensus and continuing this newfound process of long-range planning for a better Illinois. I’m convinced that when we work together, we get outcomes that are far better than if one side had its way. Every generation of workers has had it better than the generations prior- with proper planning we can ensure this continues for future generations.
The Chamber felt that the deficiencies in the recommendations were too much to overcome. As a result, Kaericher joined our other association friends serving on the Task Force to vote NO on the report.
You can read the final report HERE.
Governor’s Actions
Bereavement Leave: SB 3120, sponsored by Sen. Melinda Bush (D-Grayslake)/Rep. Anna Moeller (D-Elgin) was signed into law by the Governor. The new law expands 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 was neutral on the measure. PA 102-1050
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 was 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 was 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 was 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 approved by the Governor. 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. The Governor rebuffed the Illinois Chamber requested to veto the legislation and signed it into law as PA 102-1076
During the legislative session, 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 also requested the Governor if he signed HB 5412 into law to provide an amendatory veto to HB 4600 adding that all residential construction be exempt and to increase the threshold for exemption for non-residential construction to $100,000. The Governor rejected our proposal and also signed HB 4600 as PA 102 -1065. Both laws were effective June 10, 2022
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
On June 13, the Illinois Workers’ Compensation Commission (IWCC) approved an order to increase the evaluation & management codes under the medical fee schedule by 15%. The increase will be effective September 1, 2022. The Chamber worked with other business groups and physicians serving on the IWCC Medical Fee Advisory Board to agree on the 15% increase.
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 signed by the Governor on June 10th which is its effective date. 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. The legislation was sent to the Governor on May 6th. It has a January 1, 2023 effective date. Enrolled version.
Upcoming Webinars
Title: Assessing the Impact of COVID-19
Description: Join us for an exciting webinar regarding Assessing the Impact of COVID-19.Leaders from the health system, pharmaceutical, insurance and employment industry will assess the impact of COVID-19 on consumers, payors and healthcare providers including the clinical, financial and operational implications.
Date/Time: June 29, 2022 | 1:30 pm – 3:00 pm
**Members of the Employment Law Council and Healthcare Council may attend for free**