Illinois General Assembly Moves into Final Two Weeks of Session
Important issues remain unresolved as the General Assembly winds down towards the Spring Session May 31 adjournment. The budget, allocation of over $8 billion of federal dollars, redistricting of congressional as well as legislative districts all are issues that are still up in the air.
State Budgeting Should Get Easier
Tax receipts continue to come in well above expectation. The revenue estimate for FY 21 which ends June 30th has been increased by $1.4 billion and by $842 million for FY 2022.
The federal government has determined that Illinois will receive an additional $600 million, bringing the total to $8.1 billion up from $7.5 billion. However, the recently released US Treasury interim final rules prohibit the repayment of debt, including pensions. Whether the State will be able to use the federal monies to repay the $2 billion borrowed from the federal government in December remains unclear.
When the state enacted the Evidence-Based Funding formula (EBF) for k-12 education, a key element was a minimum, $35 million a year increase per year to the formula until “education adequacy” is achieved. With the State’s continued strong revenue collections, there appears to be general agreement that an additional $350 million can be provided to education this coming fiscal year.
Also, the positive revenue receipts and forecasts should lead to less of a push to attack the many business tax incentives that Governor Pritzker threatened earlier this year in his budget message.
Redistricting Update
Legislative Democrats continue to work through their differences on a new legislative district map. A number of hearings were held around the State to receive public input. But as the June 30th constitutional deadline for legislative approval of congressional and legislative maps draws nearer, Republicans and the public have yet to see anything. If in the unlikely event the June 30th deadline is not met, the process is shifted to a bi-partisan commission.
Bills Advancing in Springfield
Wage Issues & Workplace Mandates
HB 53: VIDEO INTERVIEW DEMOGRAPHIC (Rep. Andrade, D-Chicago/Sen. Connor, D-Joliet)
Amends the Artificial Intelligence Video Interview Act. Provides that employers that rely solely upon artificial intelligence to determine whether an applicant will qualify for an in-person interview must gather and report certain demographic information to the Department of Commerce and Economic Opportunity. Requires the Department to analyze the data and report to the Governor and General Assembly whether the data discloses a racial bias in the use of artificial intelligence. Senate 3rd Reading
HB 75: School Code Paid Sick Leave (Rep. Flowers D-Chicago/Sen. Feigenholtz, D-Chicago)
Amends the School Code requiring the calculating of paid sick leave for the birth of a child or the adoption or placement for adoption of a child, the days do not have to be taken immediately after the birth of the child or the adoption or placement of the child, the days do not have to be taken consecutively, and the school board may not count any day in which school is not in session, including an extended break. Senate Labor Committee
HB 117: SECURE CHOICE SAVINGS PROGRAM (Rep. Guzzardi D-Chicago/Sen. Martwick D-Chicago) Senate Third Reading
As amended, the Act will apply to employers with at least 5 employees, rather than at least one employee. (Current law applies to employers with more than 25 employees.) Newly covered employers will be done in two waves – employers with 16 to 24 employees will have a deadline to comply of no sooner than September 1, 2022 and employers with 5-15 employees will have a deadline to comply of no sooner than September 1, 2023. Small employers may, but are not required to, establish payroll deduction arrangements for retirement savings arrangements. Modifies the enforcement process so that employers have an additional chance to come into compliance after receiving the notice of proposed assessment from the Department of Revenue – they will be given 120 days to come into compliance and if they do, any penalty fees assessed will be waived.
SB 208: SECURE CHOICE SAVINGS PROGRAM (Sen. Martwick/Rep. Guzzardi) House Executive Committee
HB 118: Recovery of Damages for Underpayment in Wages (Rep. Guzzardi/Sen. Villa, D-W. Chicago) Senate Third Reading
HB 118 amends the Wage Payment & Collection Act to provide that an employee is entitled to recover damages of 5% (rather than 2%) of the amount of any underpayments in wages for each month following the date of payment during which such underpayments remain unpaid. -OPPOSE Many thanks to Jeff Risch of SmithAmundsen for his expert witness testimony before the Senate Labor Committee!
HB 3582: Expansion of VESSA (Rep. Robyn Gabel D-Evanston/Sen. Robert Peters D-Chicago) Senate Committee on Assignments
Expands the Victims' Economic Security and Safety Act (VESSA) covering: 1) victims and family members of victims of crimes of violence (in addition to victims of domestic violence, sexual violence, and gender violence) and 2) any individual whose close association with the employee is the equivalent of a family relationship. An amendment eliminating a civil action option was agreed to by the Council. With removal of the civil action, the Illinois Chamber is Neutral.
SB 1905: Health Insurance Coverage Disclosure Requirements (Sen. Julie Morrison D-Highwood/ Rep. Margaret Croke D-Chicago) House Second Reading
With House amendment 1, SB 1905 creates the Consumer Coverage Disclosure Act to require employers to disclose to employees differences under the employees' health coverage and health coverage providing essential benefits under health plans regulated by the State of Illinois. Directs the Department of Insurance to provide information outlining the essential benefits and other benefits under coverage regulated under State law. Provides for enforcement by the Department of Labor. Authorize the imposition of civil penalties, if after notice of noncompliance, an employer does not come into compliance within 30 days.
Employment Discrimination and Workplace Agreements
HB 121: HUMAN RIGHTS-WORK AUTHORIZATION (Rep. Guzzardi/Se. Ram Villivalam D-Chicago) Senate Third Reading
HB 121 provides that it is the public policy of the State to prevent discrimination based on the specific status or term of status that accompanies a legal work authorization. It defines "work authorization status" as the status of being a person born outside of the United States, and not a U.S. citizen, who is authorized by the federal government to work in the United States. A Council requested amendment that has been added clarifies that an employer is not required to sponsor, either monetarily or otherwise, any applicant or employee to obtain or modify work authorization status, unless otherwise required by federal law. SUPPORT
HB 3418: Sexual Harassment Settlements & Disclosure Agreements (Rep. Jonathan Carroll D-Northbrook/Sen. Connor) Senate Judiciary Committee
Amends the Workplace Transparency Act prohibiting nondisclosure requirements from being imposed in settlements relating to claims of sexual harassment or sexual assault in the workplace except as they relate to the monetary amount of the settlement or, at the employee's request, when they prohibit disclosure of facts that could lead to the identification of the employee. We have determined that this measure will undue the balance that the Workplace Transparency Act currently enjoys. This compromise law only went into effect on January 1, 2020. OPPOSE
HB 3914: Employment Practices: Positive Action Act (Rep. Mary Flowers D-Chicago/Sen. Chris Belt D-East St. Louis) Senate Judiciary Committee
Creates the Positive Action Act which requires each State agency and all Illinois employers to take positive action when it reasonably believes such action is necessary to rectify discrimination or a disadvantage towards persons having a protected characteristic. Allows for favorable consideration in the process of recruitment or promotion for persons having a protected characteristic. Each State agency and all Illinois employers shall have a duty of equality in relation to employment and its employees. The duty of equality includes:
· Develop a policy and take positive action in relation to employment and its employees.
· Take positive action to:
o Remove or minimize disadvantages suffered by persons who share a relevant protected characteristic that are connected to that characteristic.
o Meet the needs of persons who share a relevant protected characteristic that are different from the needs of persons who do not share that characteristic; and
o Encourage persons who share a relevant protected characteristic to participate in opportunities in which participation by such persons is disproportionately low.
Nothing in the Act shall be construed to contravene any federal law or requirement regarding affirmative action or its application to State law. Makes conforming changes for the purpose of changing references from "affirmative action" to "positive action".
SB 995: Criminal Background in Employment Only Accessible from State Police (Sen. Omar Aquino D-Chicago) Senate amendment 1 pending in Assignments Committee/Senate Third Reading
Amends the Illinois Human Rights Act requiring that conviction records or arrest records used in whole or in part as the basis for any adverse employment action or adverse housing action shall be issued by the Department of State Police. Prohibits an employer from withholding or deducing from the compensation of any employee or require any prospective employee or applicant for employment to pay, any fee for, or cost of, any criminal history record information check, nor shall any employer withhold or deduct from the compensation of any employee, or require any employee to pay any fee for, or cost of, criminal history record information checks. OPPOSE the restriction of information from the State Police.
Workers’ Compensation
HB 1957: Group Workers’ Compensation Pools (Rep. Thad Jones D-Calumet City/Sen. Napoleon Harris D-Dolton) Senate Third Reading
This is a Department of Insurance initiative. The legislation makes changes to the filing due date applicable to actuarial opinions as to the sufficiency of the loss and loss adjustment expense reserves for group workers' compensation pools from June 1 to March 1 of each year.
HB 3293: IWCC SALARIES/Self Insurer Technical Changes (Rep. Jay Hoffman D-Belleville/Sen. Bill Cunningham D-Chicago) Senate Executive Committee
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 to be authorized to practice law in this State. Each Commissioner shall receive an annual salary of 70% of a Circuit Court Judge in the Judicial Court constituted by the First Judicial District under the Salaries Act and the Chairman shall receive an annual salary of 5% more than the other Commissioners. The performance of arbitrators shall be reviewed by the Chairman every other year, or more often at the discretion of the Chairman (rather than on an annual basis). No arbitrator shall hear cases in any county, other than Cook County, for more than 4 years consecutively (rather than 2 years in each 3-year term). The Secretary and each arbitrator shall receive a per annum salary of 5% less than the per annum salary of members of the Illinois Workers' Compensation Commission. Dissolves the Self-Insurers Administration Fund and transfers 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. Effective immediately. SUPPORT
HB 3662: MRSA Presumption (Rep. Marcus Evans D-Chicago/Sen. Linda Holmes D-Aurora) Senate Judiciary Committee
Amends the Workers' Compensation Act. Provides that, with respect to firefighters and emergency medical technicians, a contagious staph infection, including Methicillin-resistant Staphylococcus aureus (MRSA), is rebuttably presumed to arise out of and in the course of employment. Effective immediately.
HB 3697: Prevents WC Act to Pre-empt BIPA Action (Rep. Hoffman /Sen. Cunningham) Senate Judiciary Committee
Provides the Workers' Compensation Act does not preempt or prevent an employee from recovering under the Biometric Information Privacy Act. OPPOSE
SB 1993: TRANSFER of IWCC INSURANCE COMPLIANCE DIVISION to DOI (Sen. Tony Munoz D-Chicago/Rep. Bob Morgan D-Highwood)
Transfers all powers, duties, rights, responsibilities, personnel, books, records, papers, documents, property (real and personal), contracts, causes of action, and pending business of the Insurance Compliance Division within the Illinois Workers' Compensation Commission to the Department of Insurance. When reports or notices are to be made or given or papers or documents furnished or served by any person to or upon the Insurance Compliance Division, they shall be made, given, furnished, or served in the same manner to or upon the Department of Insurance. The amendatory Act does not affect any act done, ratified, or canceled, any right occurring or established, or any action or proceeding had or commenced in an administrative, civil, or criminal cause by the Insurance Compliance Division before the amendatory Act takes effect. Amends the Workers' Compensation Act replacing references to the Insurance Compliance Division with references to the Department of Insurance. In provisions concerning Department of Insurance oversight, changes the date before which insurers licensed to write workers compensation coverage in the State must record and report specified information concerning claims from March 1 to June 1 of each year. Deletes a provision stating that the fraud and insurance non-compliance unit shall procure and implement a system using advanced analytics for the detection and prevention of fraud, waste, and abuse. Effective July 1, 2021. SUPPORT
Other Pending Issues
Non-compete Agreements:
The Council has worked through issues with the Illinois Office of the Attorney General regarding their enforcement and the AFL-CIO’s request to exempt construction workers except management and professional level employees. The agreed to measure will be amended on a House Bill in the Senate. For a copy of the amendment contact Jay Shattuck.
SB 1847: Equal Pay Certificate Registration (Sen. Mattie Hunter (D-Chicago/Rep. Sonya Harper D-Chicago) House Second Reading
The Council and other business groups have agreed to an amendment making several important changes to the recently enacted mandate for Illinois employers of 100 or more to provide extensive wage data to the Illinois Department of Labor and certify compliance with federal and Illinois equal pay and discrimination laws. House amendment 1‘s positive changes include 1) delaying the effective date 2) providing privacy protection to individual corporate and employee data and 3) replacing the 1% of gross profit with a definitive penalty. With the original legislation SB 1480/PA 101-656 being one of the Black Caucus pillars, the House sponsor is getting approval from the Black Caucus members before advancing the measure.
Paid Leave Mandate:
In the past few days, negotiations on a paid leave mandate have rekindled. The latest version requires paid leave to be paid based on an accrued basis with a minimum of 40 hours earned in a year. Some of the key issues of concern to employers are addressed, especially allowing employer flexibility in implementation. We will keep our members aware of the details when we are able to provide them.
Unemployment Insurance:
There has only been one negotiation session held a few weeks ago and nothing has been scheduled. With the recent guidance as to how Illinois can spend its $8.1 billion of federal assistance, we continue to seek a portion of those funds to be allocated towards the UI Trust Fund deficit. Organized labor is pushing for waivers of any excess benefits paid to a worker that were paid in error and not due to anything the worker did. They also want a permanent extension of benefits be paid to non-instructional workers during summer and holiday breaks. Serious discussions are unlikely to occur until this summer.