Aaron Harris | Executive Director, Employment Law Council | 312-596-5899
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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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All Bills in Gov’s Hands
The Illinois General Assembly adjourned in the early morning of April 9th, approving a budget and over 400 bills during this year’s truncated spring legislative session. In the coming months, Gov. JB Pritzker will take final action on each piece of legislation. His options are to sign a bill into law, issue a partial veto that includes recommended changes to a bill, or issue a full veto of a piece of legislation. If he takes no action on a bill that is sent to him, it automatically becomes law after 60 days. Unless a procedural move is utilized to delay sending a bill to the Executive Branch for final action, bills must be sent to the Governor within 30 days of full passage. All bills approved by the General Assembly this year are now in the Governor’s possession.
The FY23 budget which starts July 1, 2022 spends $46.5 billion, which sets the record for the most spending in state history. This is a billion dollars more than what the Governor asked for in his February Budget Address. There are billions of dollars in various temporary tax cuts for individuals and businesses that expires shortly after this year’s November election. The short-term relief includes freezing the motor fuel tax inflationary increase for six months, suspending the one percent sales tax on just groceries for a year, and a one-time property tax income tax credit rebate check. As an additional political element of the gas and sales tax measures, the majority party approved the placement of signs on all gas pumps and acknowledgment on all grocery receipts that the tax relief is due to legislative action.
Teachers & Parents Sue Claiming Amendment 1 Unconstitutional
Last month two Chicago Public School teachers and two parents sued the Illinois State Board of Elections and state officials asking the courts to stop the consideration by voters in November of the constitutional amendment to constitutionally make collective bargaining a “fundamental right”. The lawsuit, Sachen v. Illinois State Board of Elections, alleges that: 1) the proposed constitutional amendment is preempted by the National Labor Relations Act (NLRA); 2) the broad language of the constitutional amendment covers subjects required for collective bargaining that are not covered by the NLRA; and 3) Amendment 1 conflicts with the NLRA because it does not require, or provide conditions for, exclusive representation.
Fundamentally, the state cannot adopt a measure that conflicts with federal law which is clearly laid out in the Supremacy Clause of the U.S. Constitution. The lawsuit argues Illinois taxpayers should not be required to consider an unconstitutional ballot measure.
The infusion this past session of $2.7 billion American Rescue Plan (ARPA) funds towards the $4.5 billion Unemployment Insurance Trust Fund deficit was helpful. However, the inability to come to terms on a solution to the remaining $1.8 billion deficit in the Trust Fund brings greater instability for employer UI taxes in the future. Putting the “speed bumps” that increased employer taxes by $410 million and reduced benefits by $318 million to January 1, 2023 removes the pressure for lawmakers to address a problem that gets worse with each passing day. One of the potential solutions used twice before when we have faced recessions that caused significant Trust Fund deficits has been bonding. Private bonding then provided interest rates that saved employers significant tax dollars relative to the FUTA penalties that employers would otherwise incur. With interest rates climbing faster than we have seen in decades, the bonding option gets more expensive and less helpful.
The Illinois Chamber is encouraging all parties to reconvene the negotiations to reach solutions in eliminating the $1.8 billion debt and bringing stability to the Illinois unemployment insurance system.
During the closing hours before adjournment on April 9th, the Illinois Department of Employment Security had a couple of technical issues regarding the transfer of ARPA funds and allowing the Department to look back 5 years on misreported earnings by an individual. These changes were incorporated into SB 157. The UI changes were added to the legislation to entice republican votes for the measure. Republicans in both chambers were reluctant to vote for the UI changes as a stand-alone measure. They expressed concerns that the issue needed additional work and criticized the Governor and legislative democrats for failing to use ARPA funds to eliminate the UI Trust Fund deficit. The Governor signed the measure into law as PA 102-700 (the UI changes are found at pages 814-842).
Mandated Leave Changes
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. Enrolled version
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 sent to the Governor on April 19th. The measure provides for a January 1, 2023 effective date. Enrolled version
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 sent to the Governor on April 28th and has a January 1, 2023 effective date if signed into law. The Chamber is neutral. Enrolled version
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 received the measure on May 6th. It will have a January 1, 2023 effective date when signed into law. The Chamber is neutral. Enrolled version
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 has requested that the Governor veto the legislation. If signed into law the effective date is immediate upon approval by the Governor. Enrolled version
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 are requesting the Governor if he should decide to sign 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. HB 4600 is immediately effective or on the date House Bill 5412 takes effect, whichever is later. Enrolled version
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 sent to the Governor on May 6th and has an immediate effective date. Enrolled version
Other Employment Law Legislation
Constitutional Question to Prevent Right to Work Laws: 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). 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.
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 sent to the Governor on April 20th. It has an immediate effective date. The Chamber supports. Enrolled version
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 sent to the Governor on April 28th and has a January 1, 2023 effective date. The Chamber is neutral. Enrolled version
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 Chamber Webinars
Date/Time: May 25, 2022 | 1:30 pm – 3:00 pm
Title: Detection is Your Super Power!
Description: Protecting a network against a hacker used to mean that you had to be on your game 100%, but the hacker only needed to be right once to get in. With Detection, however, the tables are turned, and they’re on your territory. Detection becomes your advantage, as they have to avoid making any mistakes and all you have to do is watch and wait. Join Stel Valavanis, CEO of Onshore Security, to hear more about how Panoptic Cyberdefense gives us the super power to see all and stop bad actors in their tracks.
Date/Time: May 25, 2022 | 10:30 am – 12:00 pm
Title: Future of Work Virtual Conference
Description: Successful business leaders are always looking to plan for the future. As the economy emerges from the COVID pandemic, the conversation on the Future of Work has taken heightened intensity. Companies are launching “Future of Work” teams and legislatures across the country are studying policies that will shape the workforce for the next decade. Join the Illinois Chamber as we have a conversation with nationwide business leaders on the future of work, and what you can do to prepare.
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Workers' Compensation Conference
November 2, 2022
Doubletree Hilton - Lisle, IL
New Laws Form
December 6, 2022
Doubletree Hilton - Lisle, IL
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Not a member and want to learn more about the Illinois Chamber click here to contact Lanae Clarke
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