NFIB has given the Illinois Joint Committee on Administrative Rules comments opposing proposed rules from the Illinois Department of Labor (IDOL) on “joint employer” regulations.
NFIB State Director Mark Grant said the proposed rules could harm and create liability for small businesses.
First, he said, IDOL failed to conduct a small business impact analysis as required by the Illinois Administrative Act.
Grant said NFIB also told the joint committee that:
- IDOL’s proposal would make it more difficult to classify outside vendors and contractors as independent contractors forcing more businesses to pay workers overtime and other benefits.
- IDOL’s proposal directly conflicts with the U.S. Department of Labor’s recently simplified and straight-forward four-factor worker classification test. This conflict will result in uncertainty for employers and workers and increased compliance and litigation costs.
- The economic impact of COVID-19 on the small business sector has been devastating. New labor laws will only add to an already dismal economic outlook and create greater uncertainty at a time when small businesses need certainty.
If you have questions about this or other issues affecting your small business, contact Grant at [email protected].