Business Best Practices
Top Five 2020 Illinois Labor Laws Impacting Your Business
Dec 20, 2019
Staying compliant as a business owner is a full-time job and new laws and regulations only make that job harder. With the New Year creeping up fast, it is beneficial to educate yourself on new laws that will directly impact your business. The problem with this is that the new 2020 Illinois labor laws can be very hard to understand and every online article has their own, subjective opinion that alters their perception of the law, hence altering yours. To combat this, HireLevel has decided to provide you with the information needed about the 2020 Illinois Labor Laws, to allow you to draw your own conclusions concerning these laws and the impact it will have on your business specifically.
Please Note: These laws are taking effect in the state of Illinois. If located in another state, please refer to the state’s General Assembly Website for updated, accurate information regarding laws specific to the state.
Minimum Wage:
EMPLOYMENT (820 ILCS 105/) Minimum Wage Law- Effective January 1, 2020
This law states that the minimum wage will increase to $15 over the course of 5 years, Starting with an increase to $9.25 on January 1st, 2020 through June 30, 2020, where it will increase to $10.00. Starting January 1, 2021, the minimum wage will increase yearly in the amount of $1, with the last increase to be on January 1, 2025, bringing the minimum wage to $15 for all employees 18 or older.
Pay Increase Timeline as stated by the IDOL
This law does have exceptions and contains much more information than the amendments that have been disclosed here.
To see the full law, visit: Illinois General Assembly Website
HB 3405- Minimum Wage: Tips- Effective January 1, 2020
This Amends the Illinois Wage Payment and Collection Act to state that tips to employees are the property of the employees and are not to be withheld from the employees by the business. If these tips are not given to employees within 13 days of the pay period the tips were earned in, employers may be in violation of this act.
This act covers several subjects regarding tips given to employees. This amendment is part of a larger, more expansive bill with specific exceptions and exclusions. For more information, visit the Illinois General Assembly Website.
Fair Labor Standards Act- Overtime Rule- Effective January 1, 2020
This rule makes a couple different changes to the FLSA, including:
- Workers who do not earn at least $35,568 a year ($684 a week) would have to be paid overtime, even if they’re classified as a manager or professional.
- Non-discretionary bonuses and incentive payments (including commissions) paid on an annual or more frequent basis may be used to satisfy up to 10 percent of the standard salary level.
- The special rule for highly compensated employees would require workers to earn a total annual compensation of at least $107,432 ($684 of which must be paid weekly on a salary or fee basis).
- Special salary levels would apply to certain U.S. territories and an updated base rate would apply to employees in the motion-picture industry.
- No changes to the duties tests.
- The Department of Labor intends to propose updates to the salary threshold regularly to ensure that these levels continue to provide useful tests for exemption. Updates would not be automatic and would continue to require notice-and-comment rule-making.
These changes will “Make 1.3 million American workers eligible for overtime pay”. This could very likely impact employees and employers, making it worth everybody’s time to look at in detail. To learn more about this rule, visit: Department of Labor Website .
SB 556- Gender-Neutral Restroom- Effective January 1, 2020
This bill states that “…Every single-occupancy restroom in a place of public accommodation or public building shall be identified as all-gender and designated for use by no more than one person at a time or for family or assisted use.” This law does not impact restrooms accommodating more than one person at a time, but single occupancy and family restrooms must be labeled with appropriate gender-neutral exterior signage.
Visit the Illinois General Assembly Website for additional information.
HB 2830- School Conference No Terminate- August 1, 2020
This amends the School Visitation Rights Act, stating that employers are prohibited from terminating employees because of an absence from work, if employees attend academic meetings, behavioral meetings, or school conferences and have exhausted all applicable leave.
HB 2830 Amendment
For more information regarding this act, visit the Illinois General Assembly Website.
HB 1438- Cannabis Regulation & Tax Act- January 1, 2020
HireLevel has addressed this topic extensively in our November HiNotes, where we discuss the implications of this law and how it will impact the day-to-day operations of businesses and again in our article addressing amendments regarding impacting employers and their employees.
For more information on this bill, visit the Illinois General Assembly Website.
Keeping up with new laws and staying in compliance is a common stressor in businesses of all sizes, but continued research and education will only help you and your business know what to do to stay within the means of the law. With these new 2020 Illinois labor laws in mind, your business can compose a proactive approach to the year and get one step ahead of the competition.
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