On January 9, 2024, the U.S. Department of Labor issued final rules for employers to determine if a worker is an independent contractor or employee. Workers who do not meet the new criteria under the rule must be classified as employees and subject to the Fair Labor Standards Act (“FLSA”) protections and requirements. If misclassified, these workers must be treated as employees and will be eligible for overtime pay, unless they otherwise satisfy the requirements to be considered exempt, and be subject to the minimum wage requirements under the FLSA. The employer would also need to comply with the recordkeeping requirements and maintain daily and weekly time records for the worker.Continue Reading To Be or Not to Be (An Independent Contractor): U.S. Department of Labor Issues Final Rules for Employers
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Changes to Illinois and City of Chicago Labor and Employment Laws
I. Passing of the Illinois Paid Leave for All Workers Act (PLFAW).
The new Illinois Paid Leave for All Workers Act becomes effective on January 1, 2024. The Act applies to most employees in the state, with very limited exceptions (notably students and independent contractors are excluded). Employers may use two alternative methods to comply with the PLFAW.Continue Reading Illinois 2023 Year-End Reminders and Changes Coming to Employment Law in 2024 and Beyond
On November 9, 2023, the Chicago City Council passed a new Paid Leave and Paid Sick Leave Ordinance, which replaces the current Paid Sick Leave Ordinance, and grants up to 10 total days of paid time off per year to Chicago workers.Continue Reading Chicago Passes Expansive Paid Leave Ordinance
On August 4, 2023, Governor Pritzker signed into law a recent overhaul of the Illinois Day and Temporary Labor Services Act (the “Act”). Since the Act was passed in 2000, the number of low-wage day or temporary laborers (“Temporary Workers”) in Illinois has more than doubled, rising from approximately 300,000 to 650,000. The recent amendments to the Act impose new responsibilities on staffing agencies and companies utilizing temporary workers to meet their staffing needs.Continue Reading Sweeping Changes to Illinois Day and Temporary Labor Services Act Now in Effect
The Illinois general assembly kicked off 2023 off by passing the Paid Leave for All Workers Act (the “Act”). Governor Pritzker is expected to sign the bill later this year. Once signed, the Act will go into effect on January 1, 2024, and will make most Illinois private-sector employees eligible for up to 40 hours of paid time off per year.Continue Reading Illinois Mandates “Any Purpose” Paid Leave for Most Employees Starting in 2024
The U.S. Department of Labor on Tuesday unveiled a six-step “economic realities” test that looks to narrow the ability of employers to classify workers as independent contractors. The changes have broad implications as to whether, under federal law; workers are entitled to minimum wage and overtime pay; employers must comply with recordkeeping requirements for such employees; and payroll taxes such as FICA, workers’ compensation, and unemployment must be paid with respect to these workers. The misclassification of workers as independent contractors also can have dire consequences for employers based on the potential assessment of liquidated (double) damages and attorney’s fees under the Fair Labor Standards Act, particularly where such claims are brought as collective actions. The Department suggests that 10-30% of employers in the private sector are, per the proposed rule, misclassifying employees as contractors.
Continue Reading Employees in Disguise: Proposed Rule Would Roll Back Trump-era Independent Contractor Rule
Chicago has adopted a first-of-its-kind ordinance that requires employers doing business in the City to provide separate “bystander” sexual harassment training to their employees. The ordinance seeks to combat workplace misconduct in Chicago and may serve as a model for other municipalities seeking to expand worker protections.
Continue Reading See No Evil, Hear No Evil: Chicago Ordinance Requires New Sexual Harassment and Bystander Training
On January 13, 2022, the United States Supreme Court issued its opinion on the application for stay filed in National Federal of Independent Business v. Department of Labor. In that opinion, a six-member majority of the Court ruled that the Occupational Safety and Health Administration (OSHA) had exceeded its authority in issuing an emergency technical standard requiring the vaccination of employees of larger employers.
Continue Reading Off Again: United States Supreme Court Blocks OSHA COVID-19 ETS
A few things employers should consider as the New Year approaches
As a new year approaches, one thing many have in common is wondering about what lies ahead. Here are just a few things employers should be considering. The overarching theme? Compliance.
Every year, laws change. For employers, these changes flag new compliance issues. This year, perhaps more than any in recent history, this exercise is more critical. Congress is primed to enact new laws in the pending infrastructure package which has, in part, set this in motion. The Biden Administration and the President’s appointments to various agencies have also dramatically made this concern even more important. These changes will require employers to review how they have been operating over the years, and how these statutory and other legal developments will require them to alter their practices going forward. This article highlights a few of these items.Continue Reading Labor & Employment Compliance in 2022
The Solicitor of Labor has commented that the ETS is expected to be published in the coming weeks. The ETS will go into effect immediately upon publication except for those states with their own OSHA-type laws. Those states will have up to 30 days to conform their laws to the federal edict, and once they do so, the edict will apply to the same employers subject to the federal order, plus other employers the states choose to extend the rule to, such as public employers.
Continue Reading To Vax or Not to Vax: No Longer a Question for Larger Private Employers Under Biden’s Vaccine Mandate