Here’s a look at significant legislation that could have a big impact on your small business in 2020:
Employer Protections for Recreational Marijuana PA 101-0593
The legislative sponsors negotiated with the business community to provide workplace protections for employers. The goal to protect employers with zero-tolerance, drug-free workplace, and drug testing policies was met. Employers will be able to continue to provide for safe workplaces through their reasonable, non-discriminatory employment policies.
Employee Drug Testing Under Recreational Marijuana Law PA 101-0363
This language, added to the law during the fall veto session, codifies several key issues for employers and protects from litigation actions taken by employers for random drug testing, pre-employment testing and for failure of a drug test. It clears up the concern that employers might have to prove impairment when an employee fails a drug test. While employers still will need their drug testing policy to meet the standards of reasonableness and non-discrimination, these changes provide greater clarity and protections to employers.
Workplace Transparency – Sexual Harassment Training PA 101-0221
This extensive law, in part, strictly limits the use of employment, confidentiality, and termination agreements. Requires employers to provide annual sexual harassment training to all employees (online provided by IL Dept of Human rights). Requirements for food, hospitality, and gaming business are higher. Requires employers to report sexual harassment cases to the IL. Dept. of Human Rights. Changes definition of “unlawful discrimination” as deemed by an employee as “actual or perceived”. Employers are required to provide a harassment-free work environment, including from non-employees who are working under a contract for the employer. The Illinois Department of Human Rights is expected to provide on-line training resources in Q1 of 2020. Employers will have all of 2020 to comply.
Minimum Wage Increase PA 101-0001
Summary: Increases the state’s minimum wage to $15 an hour by 2025 and $13 for those under 18 by 2025. Teen wage is determined as under the age of 18 and working less than 650 hours per calendar year.
Rate Schedule (tipped wage is 60% of minimum wage)
Current – $8.25 Teens under 18 – $7.75 Tipped Worker– $4.95
1/1/2020 – $9.25 $8.00 $5.56
7/1/2020 – $10.00 $8.00 $6.00
1/1/2021 – $11.00 $8.50 $6.60
1/1/2022 – $12.00 $9.25 $7.20
1/1/2023 – $13.00 $10.50 $7.80
1/1/2024 – $14.00 $12.00 $8.40
1/1/2025 – $15.00 $13.00 $9.00
The law includes a payroll deduction tax credit for employers of 50 or fewer employees. The Illinois Department of Revenue has created a resource page for the withholding income tax minimum wage credit.
Human Rights Act PA 101-430:
Redefines “employer” to include any person employing one, instead of 15, or more employees within Illinois during 20 or more calendar weeks within the calendar year. Provides that “employer” does not include any place of worship with respect to the employment of individuals of a particular religion to perform work connected with religious related activities. IL. Department of Human Rights.
Equal Pay Act – Wage, Salary, and Benefits History Prohibition PA 101-177
Prohibits employers from asking potential employees for past or current salary histories. Requires equal pay for “similar work”. No prohibition on making a salary offer. Includes fines and penalties. Prohibits asking for similar information on job applications. Does not prevent an employer from offering a salary range or from job candidates volunteering a preferred wage.
School Activity Leave PA 101-486
Amends the School Visitation Rights Act to clarify that employees may use school visitation privileges for purposes of academic and behavioral meetings in addition to school conferences, effective Aug. 1, 2020. Adds that an employee may not be terminated for the use of school visitation privilege
Occupational Diseases Act – Employer liability PA 101-0006:
Amends the Worker’s Compensation Act and the Workers’ Occupational Diseases Act. Provides that specified sections limiting recovery do not apply to injuries or death resulting from an occupational disease regardless of the previous period of repose. For any such injury occupational disease, the employee, the employee’s heirs, and any person having the standing under the law to bring a civil action at law has the nonwaivable right to bring such an action against any employer or employers.
Arrest Information prohibition PA 101-565:
Amends the Illinois Human Rights Act to define “arrest record” as (1) an arrest not leading to a conviction; (2) a juvenile record; or (3) criminal history record information ordered expunged, sealed, or impounded under Section 5.2 of the Criminal Identification Act.
New Taxes and Fees
Parking tax
A new tax on parking kicks in to help pay for building projects as part of Gov. J.B. Pritzker’s $45 billion “Rebuild Illinois” infrastructure program. There will be a new 6% daily and 9% monthly tax on garage and lot parking. Parking lots and garages owned and operated by the state or local governments are exempt.
License plate fees
To support transportation-related projects, license plate fees are increasing by $50 to $151 annually, starting with the 2020 registration year. The charge for electric vehicles is going up to $248 per year from $35 for two years. While the cost of a license plate is going up, minors who need a state ID card are getting a break. The cost of a new, renewed or replaced ID for those under 18 will drop to $5 from $10.
Trade-in vehicle tax
Car buyers who trade-in another vehicle to fund their purchases now may be hit with higher sales tax. Previously, the trade-in value of a vehicle was exempt from sales tax. But starting in 2020, the exemption will be capped at $10,000. So, if you traded in a $12,000 car toward a $20,000 purchase in 2019, you would have paid sales tax on the $8,000 difference. Starting in 2020, you’ll pay taxes on $10,000. The state expects the change to bring in $40 million in annual funding for building projects.
Increase of fuel tax– Public Act 101-0032
This started July 1, 2019, so the first hike of 19 cents per gallon to 38 cents/gal on motor fuel is already in place. Also beginning July 1, the diesel tax more than doubled, up 24 cents to 45.5 cents per gallon from 21.5 cents per gallon. The Motor Fuel Tax rate will be increased annually, beginning July 1, 2020, and on July 1 of each subsequent year by an amount equal to the percentage increase, if any, in the Consumer Price Index.
Federal Overtime Rule Change
Earlier this year, the US Department of Labor finalized its proposed rule to raise the salary level for “exempt” employees. The change which goes into effect January 1 raises the salary threshold from $455 per week to $684 per week. That is equivalent to $35,568 per year. USDOL’s Final rule
