Legal Alerts

2022 Illinois Labor & Employment Year End Review

Chicago, Ill. (January 5, 2022) - 2022 was another busy year for labor and employment law in the state of Illinois, with multiple significant developments. These developments include a wide range of topics, from payroll to non-compete agreements to human rights, and are summarized below.

Minimum Wage Increase

Effective January 1, 2022, the minimum wage in Illinois increased to $12.00 per hour, and the minimum wage for tipped employees increased to $7.20.

In Chicago, effective July 1, 2022, the minimum wage increased to $15.40 per hour for employees with 21 or more employees, and to $14.50 per hour for employees with between four and 21 employees. The minimum wage for tipped employees of employers with 21 or more employees increased to $9.24 per hour, and to $8.70 per hour for tipped employees of employers of between four and 20 employees.

Victims Economic Security and Safety Act Expands

Effective January 1, 2022, the Victims Economic Security and Safety Act (VESSA) expanded the circumstances under which an employer is required to provide employees who are victims of domestic violence, sexual violence, or gender violence with unpaid leave from work to address issues related to the violence. This requirement to allow unpaid leave now applies to family or household members of individuals who suffer such violence.

The type of violence for which an individual can take leave under VESSA also expanded and now includes harassment, sex offenses, assault, obscene communications, armed violence, and other crimes. Further, the list of eligible individuals who can take leave expanded to include family members, any person who shares a relationship to the employee through a child, and anyone else with a close relationship with the employee, equivalent to a family member.

The law also now states that an employee can be required to provide documentation in support of the request for leave only if the employee is in possession of the necessary documents. Further, the employer is now required to keep confidential all aspects of the leave pursuant to VESSA.

Remedy Added to the Personal Record Review Act

Effective January 1, 2022, an employee has a private cause of action against an employer who discloses the employee’s disciplinary records to a third party in violation of the Personal Record Review Act. The employee has three years after the date of the disclosure to file a lawsuit and the employee can collect actual damages plus costs. For a willful and knowing violation, the employee can recover $200 plus costs, attorneys’ fees, and actual damages.

Equal Pay Act Requires Registration for Equal Pay Registration Certificate

Between March 24, 2022 and March 23, 2024, companies with 100 or more employees must apply to the Illinois Department of Labor for an Equal Pay Registration Certificate (EPRC). The employer must then apply for recertification every two years.

For certification, the employer is required to submit a list of employees – separated by gender, race, and ethnicity – that shows the total wages paid to each employee in the previous calendar year, the county in which each employee works, and their start dates.

In addition, the amendment increases the penalty for a violation of an employee’s right to be paid equal wages for equal work, regardless of gender. In such situations, employers with more than 100 employees are subject to a civil fine of up to $10,000 per employee affected.

Artificial Intelligence Video Interview Act Expanded

Effective January 1, 2022, employers who rely solely on artificial intelligence analysis of video interviews to determine whether a candidate will receive an in-person interview must comply with collection and reporting requirements. Such employers must collect and report to the Department of Commerce and Economic Opportunity the race and ethnicity of all candidates who are and are not given an in-person interview.

Freedom to Work Act Expanded

Effective January 1, 2022, the Freedom to Work Act expanded to prohibit employers from entering into non-compete agreements with employees making less than $75,000 per year, and from entering into non-solicitation agreements with employees making less than $45,000 a year. The salary below which these restrictive covenants are barred will increase every five years.

The amended Act further prohibits non-compete and non-solicitation agreements for employees laid off due to government or business actions due to COVID-19 or a similar circumstance.

Employers are required to inform employees in writing to consult with an attorney before entering into a non-compete or non-solicitation agreement, and the employer must provide the employee with the agreements at least 14 days before signing to allow for review.

The amendments are not retroactive and only apply to non-compete and non-solicitation agreements entered into after January 1, 2022.

New Groups Protected Under the Illinois Human Rights Act

Effective January 1, 2022, the Illinois Human Rights Act expanded to state that it is unlawful to discriminate against a person “based on the person’s association with a person with a disability.”

Changes Made to Requirement Regarding Rest and Eating Breaks for Workers

Effective January 1, 2023, the requirements of the One Day Rest in Seven Act (ODRISA) have changed. Previously, ODRISA required that covered employees receive a minimum of 24 hours of rest per calendar week. However, starting January 1, ODRISA now mandates that employees receive a minimum of 24 hours rest per any seven consecutive day period. Thus, if an employee works for six consecutive days, they now must be given the seventh day off, regardless of whether that period occurred from Sunday through Saturday.

In addition, ODRISA expanded the meal break requirement. ODRISA still mandates that covered employees receive a 20-minute meal break for every seven and a half hour shift, with the meal break occurring no later than five hours into the shift. However, as of January 1, covered employees are also entitled to an additional 20-minute meal break for each additional four and a half hours worked after the initial seven and a half hour shift. This means that a covered employee is now entitled to two 20-minute meal breaks in a 12 hour shift.

Further, the ODRISA notice requirement expanded on January 1. The law now requires that employers conspicuously post a notice summarizing ODRISA and providing information about how to file a complaint. In addition, for employees who do not regularly report to a physical workspace, employers must now also email the notice or post it on a website that the employer regularly uses to provide work-related information.

For non-compliance by companies of fewer than 25 employees, ODRISA requires a payment of up to $250 to the Illinois Department of Labor and a payment of up to $250 to the employee effected. For companies with 25 employees or more, ODRISA requires a payment of up to $500 to the Department of Labor and a payment of up to $500 to the employee effected. Each seven days in which an employee is not given 24 hours rest is considered a separate offense, and each day an employee is not given a required meal break is considered a separate offense.

For more information on these new laws and regulations, contact the author or editor of this alert. Visit our Labor & Employment Practice page for additional alerts in this area.

Author:

Mark Guest, Partner

Editor:

Mary A. Smigielski, Partner

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