LocalState of Illinois

New laws Illinois business owners need to know in 2020

Business owners throughout Illinois will have to comply with new laws and regulations in 2020.

Employers throughout the state will begin the minimum wage increase to $15 an hour by 2025 with two minimum wage increases this year. Public Act 101-0001 mandates that employers who have minimum wage employees will go from $8.25 per hour to $9.25 per hour on Jan. 1. The second $.75 increase will go into effect on July 1, bringing the minimum wage up to $10 per hour. 

Employees who receive tips can still be paid 60-percent of the regular minimum wage.

The Illinois Human Rights Act has been expanded to include all employers with more than one employee for 20 or more calendar weeks per year. Previously the Act only applied to those with 15 employees or more. 

Also by July 1, 2020, employers with one or more employees must display information needed about Wage Payment and Collection Act, Child Labor Law, Minimum Wage Law, Equal Pay Act, Victims’ Economic Security and Safety Act and the One Day Rest in Seven Act.

Public Act 101-0221 will require employers to train employees annually on preventing sexual harassment in the workplace. A free online training program through the Illinois Department of Human Rights will be available, but employers can provide alternative training if it meets the minimum criteria.

Employers will also be required to report charges filed against their establishment by Illinois employees for employment discrimination and sexual harassment.

The Employment Discrimination/Sexual Harassment Act also makes harassment toward contract workers and employees illegal. 

The Victims Economic Security and Safety Act will allow victims of gender violence to take unpaid leave from work for medical assistance, legal advice or counseling.

Two other measures that have already gone into effect include Public Act 101-0177, Wage History Question Prohibition and Small Business Retirement Plans, which only applies to businesses with 25-99 employees.

Employers, who needed a retirement savings plan for their employees were required to register in The Illinois Secure Choice by October.

The state-mandated retirement savings program allows employees to have a way to save for retirement with portable accounts that go from job-to-job.

Employees who do not want to participate must opt-out. 

Wage History Question Prohibition is an amendment to the Equal Pay Act of 2003. Under this prohibition, employers are not allowed to discriminate among candidates for a position based on the previous compensation rates. 

An applicant does not have to disclose prior wages or salary in order to be interviewed or considered for employment, and an employer may not seek the salary or benefits history of an applicant with a few exceptions. An applicant, though, can freely provide the information to the employer. 

The Illinois Workplace Transparency Act prohibits employers from preventing employees or prospective employees from alleged unlawful employment practices or criminal activity within an organization.

By July 2020, Illinois employers must provide the Illinois Department of Human Rights with a report that discloses unlawful discrimination or sexual harassment settlements, the number of settlements entered into the prior year and the total number of adverse judgment or administrative rulings against the employer.

This report must be submitted annually. 

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