Illinois General Assembly Passes Bills Impacting Small Business

Date: June 10, 2024

Over the course of the spring legislative session, the General Assembly introduced, debated, and passed a number of proposals that could impact small businesses, either directly or indirectly.

The following bills are some of the legislative proposals that passed the General Assembly and are being sent to the governor for his signature.

Expands the Human Rights Act to Prohibit Discrimination on the Basis of “Family Responsibilities”

HB 2161 prohibits discrimination on the basis of “family responsibilities” under the Illinois Human Rights Act. “Family responsibilities is defined as “an employee’s actual or perceived provision of personal care to a family member.”  Employers are not obligated to “make accommodations or modifications to reasonable workplace rules or policies for an employee based on family responsibilities.”

Provides New Guidelines for Disclosure of Employee Personnel Records

HB 3763 requires employers with five or more employees to provide copies of personnel records to employee representatives upon a text-message request from the employee. Specifies additional types of documents subject to employee inspection. Streamlines the process for employees to bring civil action against their employers for alleged violations of the Personnel Records Review Act.

Expands the Whistleblower Act and Grants the Attorney General more authority to Initiate or Intervene in Civil Action against Employers

HB 5561 expands the scope of the Whistleblower Act and increases the penalties assessed against employers. Grants the Attorney General authority to intervene in civil cases or to initiate civil action and seek damages on behalf of the state under the act.

Regulates Employer Verification and Re-Verification of Employee Work Authorization

SB 508 specifies that employers may not put in place stricter work authorization verification or re-verification requirements than required by federal law. Regulates employer actions if a record discrepancy is discovered during the verification or re-verification process.

Regulates Carbon Sequestration

SB 1289 creates a new regulatory framework for carbon-sequestration projects and contains a moratorium on new carbon pipelines until federal rules are promulgated by the Pipeline and Hazardous Materials Safety Administration or until 2026. Contains provisions providing for eminent domain for carbon pipelines and for the integration of the pore space of non-consenting landowners into carbon-sequestration facilities. Reduces sequestration fees by half for carbon-sequestration projects that utilize project labor agreements.

Adjusts Workers’ Compensation Assessments

SB 1996 increases the surcharge on workers’ compensation insurance premiums from 1.01% to 1.092%; increases the workers’ compensation self-insurance fee from 0.0075% to 0.0081%; and increases the assessment on workers’ compensation payments from 1.25% to 1.375%.

Provides for a Workforce-Development Report

SB 2907 requires the Illinois Department of Commerce and Economic Opportunity (DCEO) to compile a one-time report of all state-funded job-training and workforce-development programs in Illinois.

 

Clarifications to BIPA

SB 2979 clarifies that liability for Biometric Information Protection Act (BIPA) violations going forward will be incurred on a per person—instead of a per incident—basis. It also contains provisions explicitly authorizing the use of electronic signatures on biometric collection consent forms. It does not, however, make these changes retroactive.

Increases Employee Access to Paystubs

 

SB 3208 requires employers to maintain copies of employees’ paystubs for three years after the date of the payment. Upon request, employers must furnish a copy of the paystubs to the employee within 21 calendar days of the employee’s request for the paystubs. Former employees may request a copy of their paystubs for up to a year after separation from employment. Employers are not required to grant more than two requests within a 12-month period. Employers who offer electronic paystubs to their employees in a manner the former employee cannot access after separation must offer a separating employee a copy of the past year of the employee’s paystubs.

Creates Reporting Requirements for Pharmacy Benefit Managers (PBMs)

SB 3268 included a number of new reporting requirements for pharmacy benefit managers to increase transparency in the insurance marketplace for independent pharmacists.

Extends Timeline for Employees to File Human Rights Charges Against Employers

SB 3310 more than doubles the period for civil-rights charges to be filed with or issued by the Department of Human Rights against employers, extending the period from 300 calendar days to two years. The extension puts Illinois outside the regional and federal norms for filing human rights complaints against employers.

Gags Employers from Discussing the Pros and Cons of Unionization with their Employees

 

SB 3649 limits employer rights under federal law to hold mandatory workplace meetings to discuss the employer’s perspective on unionization with its employees, exposing the employer to civil liability and penalties if the courts determine it took adverse action against an employee for failing to attend a meeting. The limitation also extends to broadly defined “religious” and “political” issues. The legislation empowers so-called “interested parties” to bring civil action if they believe an employer took adverse action against an employee for not attending a meeting on workplace unionization, religious issues, or political issues.

Revises Requirements for Day & Temporary Workers

SB 3650 revises last year’s new day-and-temporary-labor requirements for staffing agencies and third-party employers. It makes the language more workable but does not remove any of the onerous provisions. Includes additional paperwork requirements for staffing agencies.

Related Content: Small Business News | Illinois

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