Labor & Employment Law Update

This summer seemed to fly by as quickly as the Illinois Legislature and Governor J.B. Pritzker enacted a dizzying slew of more new employment laws between the months of June and August. These changes are sweeping and require your attention now.

The current employment market is placing incredible stress on businesses, many of which are struggling to find enough employees to simply cover shifts. Pay increases and higher recruiting costs, consequently, continue to rise. On top of these challenges, inflation and other market pressures have resulted in higher operating costs, compounding the impact to the bottom line.

Today, the National Labor Relations Board (NLRB) just handed big labor a major assist when it comes to union organizing. In Cemex Construction Materials Pacific, LLC  and International Brotherhood of Teamsters 31-CA-238239, 372 NLRB 130, the NLRB ruled that an employer must essentially recognize a labor union claiming to represent a majority of its employees in an appropriate unit --- unless the employer promptly files a petition (an RM Petition) to test the union’s majority status or the appropriateness of the unit. The NLRB went on to explain that absent unforeseen ...

On June 30, 2023, Governor Pritzker signed HB 3351 into law, which amends the Illinois Power Agency Act (IPAA) to require certain projects under the Illinois Solar For All Program to be subject to the prevailing wage requirements of the Illinois Prevailing Wage Act (IPWA). Effective June 30, 2023, all workers performing work on such projects must be paid in accordance with the IPWA. Of course, all owners, developers and contractors must become intimately familiar with the IPWA mandates. Since such work has been historically not covered by the IPWA, there is likely a giant learning curve. The IPWA sets forth very detailed and nuanced requirements well beyond simply paying workers in accordance with the local area wide collective bargaining agreement.

The possible uses of artificial intelligence (AI) have received much coverage lately. Now the risks of using AI to assist in the hiring process are in the spotlight since the EEOC just settled its first suit alleging discrimination in hiring through the use of AI.

On Wednesday July 19, 2023, the Chicago City Council introduced legislation to eliminate the city’s “tip credit” over a two-year period (if passed), in an effort to raise the city’s current hourly minimum wage rate for tipped employees to equal the city’s hourly minimum wage rate for non-tipped employees.

On August 4, 2023, Governor Pritzker signed House Bill 2862 into law amending Illinois’ Day and Temporary Labor Services Act. This game changing legislation passed by State Legislature affects Illinois’ Staffing Industry as a whole and ALL EMPLOYERS that utilize temporary labor in Illinois. For more information about this new legislation, see our previous blog on House Bill 2862.

An employee complains to human resources, “I am a hamster from Venus and filing unfair labor practice charge because the pay policy of paying bi-weekly is chilling my Section 7 rights!” No, this is not a bizarre scene out of a Monty Python movie but now the potential absurd reality in workplaces across the country. Reality, reasonableness…. who needs them? Not the Biden NLRB.

Illinois employers need to be aware of additional notice and distribution requirements under the recently-signed House Bill 3733 (the “Bill”), which will become effective January 1, 2024 – particularly staffing agencies and employers with remote workers and/or workers who do not regularly report to a specific jobsite.