After a two and one-half year span of time covering two (2) administrations and pitting business interests against those of labor, the City of Chicago on July 24, 2019 passed the Fair Workweek Ordinance. This legislation will require companies in the covered industries to give all of their covered workers ten (10) calendar days of Notice of Work Schedules beginning July 1, 2020 and fourteen (14) calendar days as of July 1, 2022.
As we approach the summer months with temperatures rising and days getting longer, the issue of summer interns gains more interest for both employers and the interns alike. For the interns, they gain experience, training and exposure to the employment industries and real work life. For employers, they gain new help, new ideas and hopefully development of a pipeline for future employees. But one of the biggest problems with regard to summer interns for employers is whether or not the summer intern is a paid or unpaid position. This year, the United States Department of Labor has rejected its old six (6) factor test and replaced it with a new seven (7) factor test which is known as the "Primary Beneficiary Test".
In May 2016, the Department of Labor issued its controversial revisions to the white collar exemptions of the overtime regulations, more than doubling the minimum salary required for exemption; going from $455/wk. ($23,680/yr.) to $913/wk. ($47,476/yr.). A court in Texas subsequently found the rule invalid, and employers have been awaiting the Trump administration's position on the issue ever since. The wait is now over, at least at the moment.
Certainly the beginning of the Legislative Session in the State of Illinois during calendar 2019 is attempting to move quickly on the campaign promises of J.B. Pritzker. As everyone will recall, the recently elected Governor's campaign pledge to increase the state's minimum wage has been fast-tracked with the passing, by the Illinois Senate of the "Lifting Up Illinois Working Family's Act" and sending the bill to the State House of Representatives. The Illinois House of Representatives passed the bill on Valentine's Day, February 14, 2019, by a vote of 69-47-1. The bill was signed with extensive media coverage by Governor Pritzker on February 19, 2019.
Last week we reported that a new Illinois Minimum Wage law is all but certain to pass before the end of February. A $15 per hour minimum wage bill was introduced and had the support of newly elected governor J.B. Pritzker.
Media outlets are reporting that a new Illinois Minimum Wage law is all but certain to pass before the end of February. A $15 per hour minimum wage bill has been introduced and has the support of newly elected governor J.B. Pritzker. Minimum wage laws can be monumentally confusing. The usual principle is supremacy of federal law. The federal law calls for a $7.25 minimum wage. However, the federal Fair Labor Standards Act has a specific provision that more employee-friendly laws by state or local governments will trump federal law. That is why such a confusing patchwork has been created. Below is a bare-bones summary.
√ Audit compensation classifications and policies
As of October 31, 2018, the Chicago City Council unanimously approved the formation of the Office for Labor Standards (OLS). The OLS has been created to provide more rigorous enforcement of the City of Chicago Employment Ordinances and to promote investigation into alleged violations. This Law will come into effect as of January 1, 2019.
The Illinois House of Representatives and Illinois Senate recently voted to override outgoing Illinois Governor Bruce Rauner's veto of proposed changes to the Illinois Equal Pay Act. This means that Employers in the State of Illinois, effective January 1, 2019, will be required to comply with a new set of Pay Equity obligations.
On August 28, 2018, the Department of Labor, Wage and Hour Division, issued six new opinion letters on issues under the Fair Labor Standards Act and Family Medical Leave Act. They are summarized below: