Illinois Governor Signs Legislation Impacting Small Business

August 12, 2024 Last Edit: June 5, 2025

Illinois Governor Signs Legislation Impacting Small Business

Governor JB Pritzker signed into law a number of bills that could either directly or indirectly impact small businesses. Below of some of the most noteworthy of these bills. Provides New Guidelines for Disclosure of Employee Personnel Records PA 103-0727 (HB 3763) requires employers with five or more employees to provide copies of personnel records to employee representatives upon a text-message request from the employee. Specifies additional types of documents subject to employee inspection. Streamlines the process for employees to bring civil action against their employers for alleged violations of the Personnel Records Review Act. Effective January 1, 2025. Expands the Whistleblower Act and Grants the Attorney General more authority to Initiate or Intervene in Civil Action against Employers PA 103-0867 (HB 5561) expands the scope of the Whistleblower Act and increases the penalties assessed against employers. Grants the Attorney General authority to intervene in civil cases or to initiate civil action and seek damages on behalf of the state under the act. Effective January 1, 2025 Regulates Employer Verification and Re-Verification of Employee Work Authorization PA 103-0879 (SB 508) specifies that employers may not put in place stricter work authorization verification or re-verification requirements than required by federal law. Regulates employer actions if a record discrepancy is discovered during the verification or re-verification process. Effective January 1, 2025. Regulates Carbon Sequestration PA 103-0651 (SB 1289) creates a new regulatory framework for carbon-sequestration projects and contains a moratorium on new carbon pipelines until federal rules are promulgated by the Pipeline and Hazardous Materials Safety Administration or until 2026. Contains provisions providing for eminent domain for carbon pipelines and for the integration of the pore space of non-consenting landowners into carbon-sequestration facilities. Reduces sequestration fees by half for carbon-sequestration projects that utilize project labor agreements. Effective July 18, 2024. Adjusts Workers’ Compensation Assessments SB 103-0590 (SB 1996) increases the surcharge on workers’ compensation insurance premiums from 1.01% to 1.092%; increases the workers’ compensation self-insurance fee from 0.0075% to 0.0081%; and increases the assessment on workers’ compensation payments from 1.25% to 1.375%. Effective June 5, 2024. Limits Construction Covenants Not to Solicit PA 103-0921 (SB 2770) limits the use of covenants not to solicit for individuals employed in construction who are not in management, engineering, architecture, design, or sales. The limitation also does not apply to employees who are “shareholders, partners, or owners in any capacity of the employer.” Effective January 1, 2025. Provides for a Workforce-Development Report PA 103-0928 (SB 2907) requires the Illinois Department of Commerce and Economic Opportunity (DCEO) to compile a one-time report of all state-funded job-training and workforce-development programs in Illinois. Effective August 9, 2024. Clarifications to BIPA PA 103-0769 (SB 2979) clarifies that liability for Biometric Information Protection Act (BIPA) violations going forward will be incurred on a per person—instead of a per incident—basis. It also contains provisions explicitly authorizing the use of electronic signatures on biometric collection consent forms. It does not, however, make these changes retroactive. Effective August 2, 2024. Increases Employee Access to Paystubs PA 103-0953 (SB 3208) requires employers to maintain copies of employees’ paystubs for three years after the date of the payment. Upon request, employers must furnish a copy of the paystubs to the employee within 21 calendar days of the employee’s request for the paystubs. Former employees may request a copy of their paystubs for up to a year after separation from employment. Employers are not required to grant more than two requests within a 12-month period. Employers who offer electronic paystubs to their employees in a manner the former employee cannot access after separation must offer a separating employee a copy of the past year of the employee’s paystubs. Effective January 1, 2025. Creates Reporting Requirements for Pharmacy Benefit Mangers (PBMs) PA 103-0593 (SB 3268) includes a number of new reporting requirements for pharmacy benefit managers to increase transparency in the insurance marketplace for independent pharmacists. Effective June 7, 2024. Extends Timeline for Employees to File Human Rights Charges Against Employers PA 103-0973 (SB 3310) more than doubles the period for civil-rights charges to be filed with or issued by the Department of Human Rights against employers, extending the period from 300 calendar days to two years. The extension puts Illinois outside the regional and federal norms for filing human rights complaints against employers. Effective January 1, 2025. Gags Employers from Discussing the Pros and Cons of Unionization with their Employees PA 103-0722 (SB 3649) limits employer rights under federal law to hold mandatory workplace meetings to discuss the employer’s perspective on unionization with its employees, exposing the employer to civil liability and penalties if the courts determine it took adverse action against an employee for failing to attend a meeting. The limitation also extends to broadly defined “religious” and “political” issues. The legislation empowers so-called “interested parties” to bring civil action if they believe an employer took adverse action against an employee for not attending a meeting on workplace unionization, religious issues, or political issues. Effective January 1, 2025. Revises Requirements for Day & Temporary Workers PA 103-1030 (SB 3650) revises last year’s new day-and-temporary-labor requirements for staffing agencies and third-party employers. It makes the language more workable but does not remove any of the onerous provisions. Includes additional paperwork requirements for staffing agencies. Effective August 9, 2024.

Topics:

Taxes

State:

Illinois

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