The Illinois legislature has been busy signing bills into law. Don’t risk getting fined for noncompliance. Learn what applies to your business, adjust your policies and train your team. We can help you manage it all. Our HR team proactively alerts clients to new and changing legislation. We eliminate any worries over pending local, state and national law changes that will impact them. Feel free to call MidwestHR at 630.836.6000 to learn more about how we help clients stay focused on business.
Act quickly with currently effective laws
Ready for retirement: Depending on company size, you may be required to offer employees a qualified retirement savings plan. If you don’t offer a 401K, SIMPLE IRA, pension or other retirement savings vehicle, companies with 25 or more employees must use the Illinois Secure Choice program. When using this program, 5% of employees’ compensation will automatically be withheld. Noncompliant businesses may face a penalty of $250/employee for the first year. That fine increases to $500/employee in subsequent years. MidwestHR clients have the ability to customize a retirement program to their needs with zero liability and administration fees.
Don’t ask: Whether a face-to-face interview, phone interview or written application, the Illinois Equal Pay Act Amendment of Illinois prohibits employers from asking job applicants about current wages, previous wages or salary history. Avoid hefty fines up to $10,000 by training anyone who interviews or hires employees on the nuances of this new law. Also, review and update employment applications, background check procedures and compensation policies to align with the new law.
2020 rings in big changes for Illinois employers
Budget impact: Get ready for the new year. Minimum wage increases from $8.25 to $9.25 per hour on 1/1/20 in Illinois. Chicago businesses should follow the Minimum Wage Ordinance which required a minimum wage increase to $13 per hour on 7/1/19.
Workplace safety: On 1/1/20, recreational marijuana will be legal for adults in Illinois. How does this potentially impact workplace safety? You need to decide your stance on marijuana and revise written policies, training and employee screenings accordingly. Will your workplace be a zero tolerance or impairment free zone?
Harassment prevention: By the end of 2020, the Illinois Human Rights Act Amendment requires employers to provide sexual harassment prevention training every year to all existing employees, new hires (within 60 days) and contractors. This applies to all companies, even if you only have one employee.
Federal changes on deck
Overtime clock is ticking: Starting January 1, there will be a 50% increase in the salary threshold for employees who are “exempt” from overtime pay under the Fair Labor Standards Act (FLSA). Determine which exempt employees could be affected so you can calculate whether you need to raise pay to meet the new threshold or keep it the same. Keep in mind, the duties test has not changed, and all items outlined must be met for employees to be exempt from overtime pay. If you don’t increase pay, be sure to budget for additional overtime pay.
These are just high level summaries so you can anticipate these imminent changes. It may be hard to imagine, but there are more law changes coming in July 2020. This may be the year you consider getting outside help from a team of HR experts.
MidwestHR, a top Chicago PEO in Illinois (professional employer organization), constantly monitors HR and labor laws impacting our clients’ businesses. We examine the changes, alert clients and provide recommendations for the best path forward. By outsourcing your HR to us, you can stay focused on your business knowing we are monitoring legislation changes going into effect. Give us a call at 630-836-3000 to help you manage the new changes in 2020.