The purpose of the Employment Law Council is to effectively represent Illinois business on employment law topics such as workers compensation, unemployment insurance, and other management / employee issues, to pursue public policy actions that advance the interests and viewpoints of employers, and to assist in creating a political climate conducive to improving Illinois’ ability to create and retain jobs.
This Council strives to relieve burdens imposed by state government in areas such as workers’ compensation, unemployment insurance, employment training and workplace mandates. More than 100 Illinois employers were directly involved in policymaking and strategy for the Council’s activities during the past two years.
Employment Law Council Update
August Edition 2010
JCAR May Balk at IWCC Emergency Rule on Implants
Last month we advised that the Illinois Workers’ Compensation Commission (IWCC) had issued an emergency rule that went into effect July 6, 2010 regarding reimbursement of medical implants under the Illinois Workers’ Compensation Medical Fee Schedule. As part of the administrative review process, the Joint Committee on Administrative Rules (JCAR) discussed the emergency rule and questioned the nature of the emergency.
The twelve, legislator members of JCAR were responding to concerns raised by the Illinois Hospital Association. JCAR delayed any official action on the emergency rule until its next meeting in September. The Illinois Chamber ELC is contacting JCAR members to explain why the IWCC action is an emergency and how it will help control workers’ compensation medical costs. We urge ELC to also contact JCAR and to ask them to allow the emergency rule to stay in effect.
The emergency rule changes the reimbursement of implants from 65% of charge to invoice, less rebates plus 25% and reasonable shipping fees. In addition, the rule revises the reimbursement of ambulatory surgical treatment centers (ASTCs) from only licensed facilities to ASTCs credentialed by the American Association for the Accreditation of Ambulatory Surgical Facilities (AAAASF), Joint Commission on Healthcare Organizations (JCAHO), or Accreditation Association for Ambulatory Health Care (AAAHC).
The emergency rule is effective for 150 days unless suspended by JCAR. Concurrently an identical proposed rule has been filed that also will proceed through the administrative review process and is intended to replace the emergency rule when the emergency rule expires.
Governor Acts on Key Illinois Employment Law Issues
Limits on Employer Inquiries of Job Applicants… HB 4658 (Franks-D-McHenry/Harmon-D-Chicago) was signed by the Governor into law as Public Act 96-1426. It is effective January 1, 2011. The legislation prohibits an employer from using an employee’s or prospective employee’s credit history in an employment related decision. Banks, credit unions, insurance companies, and sureties pursuant to the Illinois Insurance Code, state law enforcement agencies, state or local government agencies that require the use of an applicant's or employee's credit history and debt collection agencies pursuant to federal or state law are exempted from the law.
ELC Employment Law & Litigation Committee Chairman Jeff Risch of SmithAmundsen notes that an amendment added to the bill and worked on by the Illinois Chamber ELC provided that employers who are not specifically exempt from the law may still access credit checks under limited circumstances, where positions involve: bonding or security per federal or state law; unsupervised access to more than $2,500 in marketable assets; signatory power over business assets of more than $100; management and control of the business; access to personal, financial or confidential information, trade secrets, or state or national security information
Wage Payment and Collection Act Penalties Expansion...The Governor also has signed SB 3568 (Delgado-D-Chicago/Hernandez-D-Chicago) into law. Public Act 96-1407 becomes effective January 1, 2011. The new law makes wage payment violations more serious crimes with repeat offenders facing up to three years in prison. The changes allow workers to file class action lawsuits against employers and to take alleged violations directly to the state circuit court and collect all costs and reasonable attorney’s fees. The Illinois Department of Labor (IDOL) will also establish a streamlined process to resolve small claims.
Jeff Risch comments that, “Under Senate Bill 3568, if the IDOL determines that an employer has committed wage theft, the employer will suffer a severe penalty and will be ordered to pay a hefty fine even if the employer believed it was acting in compliance with the Illinois Wage Payment and Collection Act.”
The Illinois Chamber ELC and Risch worked with proponents of the legislation in Springfield and successfully lobbied to provide employers the opportunity to exhaust any and all rights to appeal any adverse IDOL decision prior to any automatic penalty or fine. We also insisted that the Illinois Wage Payment & Collection Act should focus on preventing wage theft and should be aimed at penalizing only willful violations.
Risch adds, “Many employers will be instantaneously impacted by Senate Bill 3568 as many continue a custom and practice of withholding final wages or earned income to employees who owe their employer money, property, equipment, etc. This often used (and quite effective) tactic has always been outlawed, but there was no real teeth deterring it. There’s little doubt that Senate Bill 3568 now provides employees (and their lawyers) a better avenue to go after employers who withhold wages under any circumstance.”
Illinois Military Leave Law Expanded… SB 3818 (Hutchinson-D-Crete/Dugan-D-Kankakee) adds a child and grandparent of a person called to military service to the employees who may request leave under Illinois family military leave law. The Chamber was successful in adding an amendment which states that an employer that employs more than 50 employees shall provide up to 30 days of unpaid family military leave to an employee during the time federal or State deployment orders are in effect. Also, the number of days of leave provided to an employee because the employee's spouse or child is called to military service shall be reduced by the number of days of leave provided to the employee under specified provisions of the federal Family and Medical Leave Act of 1993 because of any qualifying exigency arising out of the fact that the employee's spouse or child is on covered active duty (or has been notified of an impending call or order to covered active duty) in the Armed Forces. Governor Quinn signed the bill as Public Act 96-1417 and it is effective January 1, 2011.
“This is a significant development in the law, as the prior Illinois Family Military Leave Act required employers to offer such leave benefits only after all other leave benefits (i.e. the FMLA) were first exhausted rather than offering both concurrently. This was due primarily because Illinois’ original Family Military Leave Act was created prior to the FMLA amendments that included military leave components, explains Risch.
Illinois Chamber Endorses State Senator Bill Brady for Governor
On August 12th, the Illinois Chamber Board of Directors officially announced its endorsement of Senator Bill Brady, the Republican Candidate in the race for Illinois Governor. The endorsement was made after an extensive process that included comprehensive candidate questionnaires and individual candidate interviews with Chamber board members.
While both Senator Brady and Governor Pat Quinn listed job creation and economic growth as their highest priorities, the Chamber Board believes that Senator Brady’s background as a business owner and long record of demonstrated support for the business community will bring much needed change to state government’s approach to strengthening the state’s economic environment. For more information on the endorsement, click here.