NOVEMBER -- 2005

IN THIS ISSUE
 
 

The Illinois Chamber's Multistate Tax and Economic Development Conference will be held December 5 and 6 in Chicago at the Renaissance Hotel. This will be a unique and informative conference reflecting a well-prepared agenda with top notch speakers and panelists. The Illinois Chamber is proud to be hosting this event which is presented by Ernst & Young LLP. For more information on the conference, click here.
 
The Tax Man Cometh
The IRS has announced that it increased the number of audits in 2005 by over 20%, or 1.22 million. While the agency has not yet reached the record number of audits conducted in the 1990’s, the 2005 statistics signal a significant return to the dreaded practice. As a result of these renewed enforcement measures, the IRS experienced a 10% growth in “enforcement revenues,” adding $47.3 billion to the government coffers. “Part of the increase comes from improved procedures and part from a new emphasis on enforcement,” says IRS Commissioner, Mark W. Everson.  MORE
 
 
Meetings: Are they worth the human cost?
If your staff appears weary these days, perhaps their little ‘gray cells’ have gone numb from attending too many meetings. In fact, it is estimated that between 11 and 25 million meetings take place in the U.S. marketplace every day! Byron Kalies, writing for the CEO Refresher, advises supervisors to take a deep breath and consider the following factors before you schedule the next one:

Factor 1: What purpose do you wish to accomplish? Can you annunciate a clear intended result?

Factor 2: Invite only those people whose participation is critical to the success of the meeting. It's 'cruel and unusual punishment' to have someone to sit through a three-hour meeting when his only contribution revolves around item 17 on the agenda (since you won't get there anyway).

Factor 3: Assign time limits to each item on the agenda. If the discussion flows over the designated time, reschedule the issue for a later date. For the complete article, click here.
 
 
Feature: High Court Clarifies Donning & Doffing Rules
Heads up to those employers in meat & poultry processing, auto manufacture, construction, chemical, electrical business (along with others who require employees to wear unique protective gear). The U.S. Supreme Court has ruled that the workday officially starts when an employee begins to don unique protective gear and flows continuously until the employee completely doffs the gear. Thus, an employer is liable to compensate the worker for all the time on the job with the exception of lunch or other agreed upon breaks. At first blush, it might sound like a minuscule impact to bottom line, but over time those nickels and dimes can really add up.  MORE
 
 
Calling in “Sick” Not Proper FMLA Notice
As a general rule, a worker’s allegation of employer wrongdoing under the Family & Medical Leave Act (FMLA) may be sustained even if the worker did not follow the employer’s internal policies for leave requests as long as he gives timely verbal or other notice. Further, a worker is not required to expressly identify the requested leave as FMLA-related. However, he must provide enough information for an employer to reasonably gleam that a “serious health condition” is at issue. Calling in “sick” does not suffice as adequate notice, says the 6th Circuit Court of Appeals.  MORE
 
 
Governor Signs Workers’ Comp Clean Up Bill
The business community breathed a collective sigh of relief when House Democrats released Senate Bill 1283 from the Rules Committee. The clean-up bill of a workers’ compensation reform agreement was necessary to avoid $55 million in unintended expenses on job providers. It passed the Senate unanimously the previous week, but for some reason did not immediately move through the committee process in the House. The bill was signed into law by the Governor on 11/16/05 as Public Act 94-695 and because effective immediately.
 MORE
 
 
CEO/Board Compensation Rises Again
The office of the CEO is apparently making a comeback – at least as far as compensation is concerned. The median total compensation (salary, bonus and long-term pay) for America’s CEO’s rose across all industries in 2004, reports the Conference Board. Using the latest data available, researchers found that those associated with construction trades reaped the greatest benefits with the median total compensation package reaching the $2,836,000 mark. Those in the transportation field received a median total compensation package of $803,000. MORE
 
 
Prices For Brand-Name Drugs Reach New Highs
The cost of two hundred of the most commonly used brand name drugs has outpaced the rate of inflation, rising 6.1% during the 12-month period from July 2004 to June 2005, according to a new study released by the AARP. During the same time period, general inflation rose at a rate of 3%. On the other hand, 75 widely used generic drug makers continue to hold the line on prices as the cost to consumers remained constant during the second quarter of 2005.  MORE
 
 
Use of Generics Key in Curbing Skyrocketing Drug Costs
Looking for new ways to cut costs? According to a new study released by Express Scripts, Inc., Americans could have saved $20 billion last year by opting for generic drugs over their brand name counterparts. The St. Louis-based pharmacy benefits manager estimates that both consumers and employers may overpay as much as $24 billion in 2005 by failing to inquire about generically acceptable substitutes.  MORE
 
 
Current Economic Indicators
For the latest on the economy, visit the Chamber's ECONOMIC INDICATORS website.
 
 
2006 Survey of Paid Holidays in Illinois
It's that time of the year again. The Illinois Chamber HelpLine is surveying Illinois businesses and organizations to determine the paid holidays they plan to offer their employees in 2006. As in the past, the survey can be taken online or you may download a simple check-off form and fax it to us for inclusion in the survey results. We need your help to make the 2006 paid holiday survey a success. Please
click here to take the survey and encourage other businesses in your community to participate too.
 
 
Illinois Chamber HELPLINE
Knowing what you can and can't do will help you prevent costly mistakes. Call Howard Parker, our Chamber HR expert. He will help you deal with problems safely and avoid disputes. You can reach the Helpline toll-free at 800-322-4722.
 
 
The HR Library
Just a click away! For the latest HR news and analysis, CLICK HERE or use the button at the top of the Chamber home page. The site is updated daily to keep you informed on current developments in HR and how they might impact your bottom line.
 
Best Places to Work in Illinois Extends Registration Deadline
The Best Places to Work in Illinois awards program is open to all for-profit and non-profit companies in the state and has now extended registration for the program until January 27, 2006! This statewide program is designed to honor companies in Illinois that show a dedication to their employees’ growth and quality of life. MORE
 
 
Business Services
Check out some of our programs and see how your membership pays with the Illinois Chamber: Learn more about these programs and how they benefit your company when you Join the Leaders!
 
 
Support Your Guard & Reservists!
The Chamber urges all Illinois employers to recognize their Guard and Reserve employees by signing and displaying the ESGR Statement of Support. To get yours, simply complete an online form and you will receive a personalized certificate that demonstrates your support. Also visit the SBA Veteran's Business Development web site for assistance to small business owners that have employees activated in the Guard or Reserves. Click  MORE

The Exec Report - Susan S. McComb, J.D., SPHR, Editor
Copyright © 2005 The Illinois Chamber