2019 Legislature: Small Business Victories, Losses, and Stalemates

Date: June 04, 2019

Let’s start our Roundup with this 2018 quote from then-candidate J.B. Pritzker. “I am a big proponent of small businesses and having a government that stands for small businesses,” he said. “We need to help people start businesses and grow those that already exist.”

We can see that candidate Pritzker and Governor Pritzker have little resemblance to each other through actions during his first six months on the job.

Governor Pritzker and one of the largest freshman legislative classes in recent memory worked together to pass an unprecedented number of major initiatives. Governor Pritzker moved nearly all his progressive agenda through the legislature, and none directly benefits small business.

NFIB earned some hard-fought wins, some stalemates, as well as some losses.

Minimum wage: This first battle came within the first weeks of the session with the super-majority and the governor going “all-in” and overwhelming the business coalition fighting against it. The law starts to take effect Jan. 1, 2020, with incremental hikes each year until $15 per hour in 2025.

Paid sick time: A major victory for NFIB and small business was our ability to keep this measure from moving forward despite advocates’ unrelenting pressure on legislative sponsors to pass it. It remains in the House Labor Committee.

Progressive income tax: NFIB applied a significant grassroots campaign with members to stop the “progressive” tax amendment from advancing. However, the super-majority had enough votes in the House and Senate to win its approval and now it will be on the ballot in 2020 for voters to decide. NFIB will continue to educate members on the potential cost to small business. Click here to take action on the progressive tax.

Prevailing wage expansion: NFIB helped in the effort to defeat legislation that would have expanded prevailing wage to everything from trucking and work sites to ethanol plants and chemical refineries. The latter issue was knocked out as part of Leader Jim Durkin’s negotiations on the major infrastructure bill.

Predictive scheduling: This issue never appeared in bill form this session. However, NFIB anticipates that it will come back in the 2020 session.

Workplace sexual harassment: NFIB sat in on the negotiations to diminish the burden of compliance on small business that could arise from the legislation. Every employer will be required to provide training to workers on sexual harassment do’s and don’ts. The state will offer an online training seminar at no expense to employers. But employers are required the ensure employees receive the training and include provisions in employee handbooks.

Prohibition on wage history questions: NFIB and other business groups worked against legislation that not only prohibits employers from asking work candidates from asking for salary history but also creates severe potential legal liabilities. NFIB is examining a legal case in Philadelphia on a similar law for potential action here in Illinois.

Contractor liability: NFIB worked with a coalition of business groups to stop this issue from advancing. It would have forced prime contractors to pay workers of a subcontractor that fails to pay its workers.

Human Rights Act: NFIB opposed legislation that amends the Illinois Human Rights Act so that it applies to all business with one or more workers. Previously, it applied to businesses with 15 or more workers within Illinois during 20 or more calendar weeks.

Workers’ compensation: NFIB supported more than a dozen bills aimed at reforming work comp but none received hearings in the Democratically controlled General Assembly. One workers’ comp bill, which NFIB opposed, passed out of both chambers. This bill expands civil liability on business by going around the system on cases that date back beyond the 25 years repose.

Property tax reform: All the General Assembly did was to create another “task force” to look at the issue.

Infrastructure: NFIB did not support the $41.5 billion measure because of increases in vehicle registration fees and a 19 cent-per-gallon increase in the state’s motor fuels tax. These increases, along with an increase in the cigarette tax and other items, will go to pay for roads and bridges. A massive gambling expansion will pay for capital construction projects.

NFIB’s requested changes to the rollout of an increase in the state minimum wage but were not part of the final negotiated package. Nonetheless, small businesses must look to benefit from the largest capital spending plan in Illinois’ history. There will be direct and indirect economic derivatives from $41 billion over six years. There are also some specific business-friendly parts of the measure including the manufacturers’ purchase credit, the Blue-Collar Jobs Act, and a reduction of retail reporting requirements.

Other anti-business legislation that NFIB opposed which did not pass:

  • Medicare for All
  • Paid Maternity Leave
  • Healthcare for All
  • Wage Insurance Act
  • Rent Control Act
  • Health Insurance Assessment Fee
  • Retail Theft Reprieve
  • Employee Background Fairness
  • Income Producing Property Assessment
  • Health Insurance Rate Review

Related Content: Small Business News | Illinois | Taxes

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