Here we go again, it’s time for us to take a look at what the Illinois and Federal government has been up to in 2024 that is going to affect you as an employer. Thankful, there are not quite as many new laws on the books for 2025, but since there was so much focus on the new Paid Leave For All Workers Act and Chicago Sick and Safe Leave Ordinance change in 2024, let’s do a review of some of the other laws that went into effect just this past summer.
While we address certain actions employers need to take for each change, understand the first step all employers should do is update your posters. Because updated posters is required for a number of the updated laws listed here, we won’t repeat that important step in each change discussion below.
2024 Federal Laws:
- Pregnant Workers Fairness Act:
The Equal Employment Opportunity Commission (EEOC) recently issued the new Pregnant Workers Fairness Act (PWFA), which went into effect on June 18, 2024. The PWFA protects qualified employees due to: “Pregnancy, childbirth, or related medical condition.” Because of this, employers are responsible for providing reasonable accommodations to these individuals.
What do businesses need to do?
Illinois amended the Illinois Human Rights Act (Act) in 2015 expanding protections for pregnant workers. The Act requires reasonable accommodations due to pregnancy. Pregnancy is similarly defined as “pregnancy, childbirth, or a medical or common conditions related to pregnancy or childbirth.” So, as an Illinois employer, not a lot might change for your business. With that said, revisit your employee handbook and ensure that it is compliant with both the PWFA and the Act, and look out for a new blog coming your way comparing the current Act versus the PWFA.
- Changes to Freelance Classification
The U.S. Department of Labor (DOL) announced the final rule revised the guidelines determining independent contractor status which went into effect on March 11, 2024. The rule rescinds the 2021 Independent Contractor Status Under the Fair Labor Standards Act rule. Thus, the rules regarding who is an independent contractor will go back to the way they were before 2021. So, the final rule instructs employers to determine whether a worker is an independent contractor through the Six Factors of The Economic Reality Test, which can be found on the DOL website.
What do businesses need to do?
You should take time to examine your current workers and ensure that the reverting of the rules does not change the classification of any of their workers.
- Changes to the Overtime Requirements – NO LONGER IN EFFECT
The U.S. Department of Labor had previously issued a final rule which went into effect on July 1, 2024, increasing the salary threshold for exempt workers to $43,888. This threshold was scheduled to increase again to $58,656 as of January 1, 2025, however, a federal judge in Texas permanently blocked this new rule – including rescinding the July 1 increase,
What do businesses need to do?
If you already implemented pay increases in June and announced pay increases for January 2025, unwinding those increases may be difficult so please seek professional assistance. Any increases planned but not announced can now be revaluated.
Also keep in mind that the salary threshold is only one element of determining whether an employee must be classified as exempt or non exempt. Simply paying an employee a salary equal to or over the threshold is not enough. The employees role must also fall under one of the exemptions (bona fide executive, administrative, professional and outside sales employees) for more information see the Department of Labor’s website.
- The Non-Compete Ban?
You may have heard a lot about the FTC Banning Non-Competes and may wonder where that is on our list. Well, worry not. The FTC’s ban on non-competes was blocked and it has no effect. To read a more detailed analysis we talk about it more here!
2024 State Laws
- Freelance Worker Protection Act
Speaking of freelance workers, the Illinois Department of Labor also made some changes regarding certain freelance workers through the Freelance Worker Protection Act. The freelance worker affected must be an independent contractor who “provides products or services in Illinois” and only if within 120 days the value of that work is more than $500. This act gives freelance workers certain protection in Illinois. Accordingly, they are entitled to the following:
- A written contract;
- Payment of services as specified in the contract or within 30 days of completion of services; and
- Protection from retaliation
What do businesses need to do?
Most likely this will not impact your business all that much. But if you do not currently have contracts with your freelancers, now is the time to put those in place. Also, you should review your payment and other terms with your freelancers to ensure they comply with the new law.
- Changes to Biometric Information Privacy Act (Illinois Public Act 103-0769; 740 ILCS 14/10 and 14/20)
The Biometric Information Act was amended with two significant changes effective as of August 2, 2024. The first change allows for a written release to be collected electronically. The second change clarifies what constitutes a “violation” adding that if a company violated the Act in how it obtains or disseminates biometric information and if that violation occurred more than one time, as long as it was “the same biometric identifier or biometric information from the same person using the same method of collection” then the company has only committed a single violation (versus a separate violation for each offense)
What do businesses need to do?
No steps are required at this time, but it’s important information to be aware of as to take, but this is extremely important information to have especially regarding the limited remedies.
2024 Chicago Laws
- Changes to the Fair Workweek Ordinance
The new Paid Leave and Sick and Safe Ordinance isn’t Chicago’s only new law impacting employers. Chicago’s Fair Workweek Ordinance which requires certain employers to provide workers with predictable work schedules has been updated to increase the salary threshold for employees covered under this act to be $61,149.35 effective July 1, 2024.
What do Chicago businesses need to do?
Review your employment practices to ensure you are in compliance.
Now that we’ve looked back, let’s look forward to 2025
- Changes to the Illinois Human Rights Act:
There are two significant changes to the Illinois Human Rights Act going in to effect:
The first amendment to the Illinois Human Rights Act extends the time an employee can file a claim with the Illinois Department of Hunman Rights for workplace violations from 300 days to 2 years. This change will be effective January 1, 2025.
Illinois now has one of the longest statute of limitations for state employment discrimination claims. Most states have 180- or 300-day limitations periods. Yet Arkansas, California, the District of Columbia, Florida, Idaho, Minnesota, New York, Ohio, Oregon, Rhode Island, Vermont, West Virginia, and now Illinois have all joined the growing trend to extend these deadlines beyond the federal requirement.
The second amendment creates and entirely new protected classes, effective January 1, 2025:
- Family Responsibilities: Illinois prohibits an Illinois employer from taking adverse actions against an employee, or prospective employee, based upon the employee’s “family responsibilities”.
“Family responsibilities” means an employee’s actual or perceived provision of personal care to a family member. Personal care is defined as activities to ensure that a covered family member’s basic medical, hygiene, nutritional, or safety needs are met, or to provide transportation to medical appointments, for a covered family member who is unable to meet those needs themself. It also encompasses being physically present to provide emotional support to a covered family member with a serious health condition who is receiving inpatient or home care. Applicable family members include an employee’s child, stepchild, spouse, domestic partner, sibling, parent, mother-in-law, father-in-law, grandchild, grandparent, or stepparent.
However, the protections afforded to this class are somewhat limited. Employers are not required to make accommodations or modifications to company policies for an employee based upon family responsibilities. In addition, an employer may still take adverse action or otherwise enforce reasonable workplace rules or policies relating to leave, scheduling, productivity, attendance, absenteeism, timeliness, work performance, referrals from a labor union hiring hall, and benefits against an employee with family responsibilities, as long as its policies are applied in accordance with the IHRA.
- Reproductive Health Decisions.
Illinois employers may not unlawfully discriminate against an employee for actual or perceived decisions on reproductive health and welfare.
“Reproductive Health Decisions” are defined as “a person’s decisions regarding the person’s use of: contraception; fertility or sterilization care; assisted reproductive technologies; miscarriage management care; healthcare related to the continuation or termination of pregnancy; or prenatal, intranatal, or postnatal care.”
While the Act already prohibits discrimination based upon pregnancy, this more expansive provision and includes decisions pertaining to fertility procedures and abortion.
What do businesses need to do?
Time up update that handbook! Also, be sure to train managers and supervisors on these the new protected categories.
- Changes to the Equal Pay Act
An amendment to the Illinois Equal Pay Act (IEPA) will become effective as of January 1, 2025, and will impact the recruiting process of any employer with 15 or more employees and require very steep penalties to be paid if it is violated.
The amendment requires certain employers to include the pay scale and benefits on any job posting. Additionally, it will require all posted promotion opportunities to be made available to current employees no later than 14 days after any external posting is made. The amendment details certain other requirements and changes that we talk about more here.
What do businesses need to do?
For all employers, review any and all job postings that will be active as of January 1, 2025, and ensure that they include a pay scale that fits the legal requirements.
This isn’t the only recent amendment to the IEPA. Back in March 24th of 2024, another change required any employer of a 100 or more employees to obtain an Equal Pay Registration Certificate, and will require these employer to be recertified every two years.
What do businesses need to do?
For businesses with over 100 employees, ensure you stay up to date with the Equal Pay Registration, more information can be found on the Illinois Department of Labor’s website here.
- Updates to the Personnel Records Review Act
Changes to the Personnel Records Review Act, this will impact how an employee must request records, how employers produces documents, and what document employees may request.
First, there is a change to how employee must request records:
- All requests for records must now be made in writing.
- The request must be made to whoever is responsible for maintaining the records
- The request must identify what records they request or if they want all of them.
- The employee must ask if they are going to inspect the documents or receive a copy of the records.
- Specify if they will personally be receiving the documents or if their representative such as a family member, lawyer, union steward, or translator will be.
- Any request including medical information must include a signed waiver
- Employees can request twice per calendar year
There are also changes to how an employer produces the documents:
- An employer has 7 days to produce documents, but they can receive an extension for an additional 7 days
- Employers can charge for copies, but it is limited to actual cost..
And the final change is regarding are the additional documents that employees may request per the amendment:
- Any employment-related contracts or agreements that the employer maintains are legally binding on the employee;
- Any employee handbooks that the employer made available to the employee or that the employee acknowledged receiving; and
- Any written employer policies or procedures that the employer contends the employee was subject to and that concern qualifications for employment, promotion, transfer, compensation, benefits, discharge, or other disciplinary action.
- Employees are entitled to personnel documents related to benefits.
What do businesses need to do?
Employers should ensure that they have copies all of previous employee handbook and policies as they can now be requested. Additionally, employers should ensure their current handbook and policies comply with this new requirement.
- Changes to the IL Right to Privacy in the Workplace Act
Do you use E-Verify? If so, pay close attention. An amendment was enacted which will be effective January 1, 2025. The purpose of this amendment is to provide employees with further protection and increase alignment with federal laws.
- Employers must notify employees prior to taking any adverse action
- Employers must also provide notice within 72 hours of their receiving notice from a State or federal agency of any discrepancy found in an employee’s work status from any
- Employers are required to notify employees of any discrepancy found in an employee’s work status
- Civil penalties for violations have increased from a minimum of $2,000 and up to $10,000
What do businesses need to do?
Review your employment practices to ensure you are in compliance.
- Updates to the Worker Freedom of Speech Act
Effective January 1, 2025 the Workers Freedom of Speech Act will be updated to protect from any sort of penalization due to declining to attend or participate in an employer-sponsored meeting or declining to receive or listen to communications from employers if it is in regards to religious or political matters.
What do businesses need to do?
There are already a number of challenges to this act, such as first amendment challenges. We will keep an eye and this and keep you posted, but for now review your employment practices to ensure you are in compliance.
- Restrictions on Use of Artificial Intelligence (AI) in Employment Decisions
The new HB3773 seeks to regulate the use of AI across the employment term.
Under the Act, AI include content-creating generative AI and more traditional predictive AI (which produces scores, ranks, classifications and other recommendations to assist in decision-making).
Employers will be required to provide notice to employees (including apprentices and applicants for apprenticeship) when an AI tool is used for the purpose of “recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or the terms, privileges, or conditions of employment.”
The amendment confirms that employers are liable if the use of AI for any of the purposes listed above results in discrimination against classes of individuals protected by the IHRA.
The amendment does not specifically include job applicants explicitly; however, its language suggests the Act may apply to job applicants as well, so proceed cautiously..
What do businesses need to do?
Review the use of AI in the workplace, particularly with respect to the employment lifespan, to ensure that these uses are compliant with current (and new) laws, including laws related to privacy.
- Increase in Minimum Wage
As always, the minimum wage will increase in Illinois starting January 1, 2025. This year, the minimum wage will rise from $14 to $15 per hour. While this is the statewide minimum wage, be aware that the City of Chicago has higher minimum wages for different types of employers, currently, employers with 4 or more employees have a minimum wage of $16.20 per hour.
If you have questions about the content of this blog or employment law needs, contact Navigant Law Group, LLC at (847) 253-8800 or email us at hello@navigantlaw.com.
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