Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
A reminder that we will be hosting a webinar on Thursday, December 7th from 8:30 to 10:00 AM on the main subject of the Paid Leave for All Workers Act along with a Proposed Exempt Salary Overtime Threshold and the NLRB’s Joint Employer Rule. I can’t stress enough the importance of making sure your policies are updated for the new Paid Leave mandates.
For more information and to make a reservation, use this link: https://members.jolietchamber.com/events/details/2023-december-legislative-coffee-with-scott-cruz-6890
*Government Affairs Roundup brought to you by CITGO & Silver Cross Hospital*
Election News
In 2024, voters will choose 23 of the 59 Illinois state Senate seats, all 118 seats in the Illinois House, and dozens of positions at the county level, including judges. Two Illinois Supreme Court seats are also up for election, with two appointed incumbents – justices Joy V. Cunningham and Lisa Holder White – each facing their first electoral test on the high court. As of Tuesday evening, Democratic Justice Cunningham was slated to face challenger Jesse G. Reyes in the 1st District, while Republican Justice Holder White had no opponent in the 4th District.
Neither of Illinois’ two U.S. senators are up for re-election, but voters will weigh in on Illinois’ 17 congressional races as well as the race for president. A running list of candidate filings from the Illinois State Board of Elections can be found here.
Candidates interested in running for office have until 5 p.m. Monday, Dec. 4, to file their petitions to be on the March 19 primary election ballot.
NLRB Releases Joint Employer Final Rule
The National Labor Relations Board (NLRB) issued a final rule redefining what constitutes joint employer status under the National Labor Relations Act. This change dramatically increases liability risks and could have a crippling impact on both independent and franchise operators.
There is strong opposition to the definition of joint employer outlined in this final rule. The final rule, which will go into effect Dec. 26, 2023, adopts broader circumstances in which an entity can be considered a joint employer and expands the scope of “essential terms and conditions of employment.” Additionally, joint employer status can now be established if one entity exercises “indirect” control over the essential terms and conditions of a second entity’s employees, even if that ability is “reserved” and never exercised.
As noted above, this subject will be covered by attorney Scott Cruz during our December 7th legislative coffee session on zoom.
Transportation Benefits Program Act
Effective January 1, 2024, a new Illinois law called the Transportation Benefits Program (TBP) requires employers with 50 or employees in designated transit zones to provide transit benefits to their covered employees.
Employers subject to the law must give covered employees the ability to purchase transit passes (such as bus and train passes) through pre-tax payroll deductions for commuting to and from work. The pre-tax commuter benefit allows transit costs to be excluded from the employee’s taxable wages and compensation up to the maximum amount permitted by the federal tax law (26 U.S.C. 132(f)). A covered employer may comply with this Act by participating in a program offered by the Chicago Transit Authority or the Regional Transportation Authority.
Employers affected: The TBP defines a “covered employer” as an employer that employs 50 or more covered employees in a specified geographical area at an address that is located within one mile of fixed-route transit service location. The Regional Transportation Authority will make a publicly available searchable map of addresses that are located within one mile of a transit service location. The geographic area includes all of Cook County and numerous townships in surrounding counties. See full list below.
Covered Employees: Covered employees must be offered this new benefit. The law defines a “covered employee” as a person who performs at least 35 hours of work per week for compensation on a full-time basis. The benefit must become available no later than the first regular pay period after 120 days of employment. However, employers have the option to provide the benefit at an earlier date.
Maximum Amount: Transit costs may be excluded from the employee’s taxable compensation up to the federal law maximum amount. The maximum pre-tax transit amount is published by the Internal Revenue Service (IRS) each year. In 2023, the maximum amount is $300 per month. This number adjusts for inflation each year. The 2024 limit is expected to be published later this year.
Covered employers are those located within one or more of the following 38 designated Illinois transit zones:
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Governor Pritzker Announce in Interview that “Illinois is Back”
In an interview, Governor J.B. Pritzker declared that Illinois is experiencing a resurgence, with the state attracting new employers and jobs, positioning itself for significant economic growth. During a Crain’s luncheon, Pritzker, now in his second term, highlighted successes in drawing electric vehicle manufacturers and suppliers to the state, hinting at more developments on the horizon.
Although Pritzker refrained from explicitly naming his Republican predecessor, Bruce Rauner, he emphasized the positive shift in the state’s trajectory since Rauner’s departure five years ago.
Pritzker, addressing Crain’s Group Publisher and Executive Editor Jim Kirk, asserted, “The state’s attractiveness to business is the best it’s been in a long time,” citing ongoing discussions with 25 major companies poised to invest billions and create up to 4,000 jobs. According to him, companies are actively seeking to do business in Illinois.
However, a more nuanced reality persists. Illinois still contends with one of the highest unemployment rates among states, lagging behind in job recovery post-COVID. A recent Washington Post story highlighted the state’s low ranking in new housing permits relative to the nation. Despite these challenges, Pritzker’s administration is seen favorably compared to the political turmoil of the Rauner years.
Acknowledging the nuances, Pritzker pointed to notable achievements, including the planned battery plant by Gotion in Manteno and a substantial auto assembly and battery plant commitment from Stellantis in Belvidere. The governor highlighted Illinois’ success in attracting data centers through tax incentives, resulting in a $6 billion private-sector investment.
Governor Pritzker emphasized the state’s ability to retain talent, particularly individuals with college degrees, citing a 20% increase in such residents over recent years. He contrasted this with Florida, underscoring Illinois as an attractive hub for educated, young professionals.
While acknowledging Pritzker’s accomplishments, business leaders Mark Denzler (IMA) and Jack Lavin (Chicagoland Chamber of Commerce) noted improvements but pointed out lingering concerns about the overall business climate and the state’s reputation for business friendliness.
More spending for migrants anticipated when lawmakers return in January
Over the past 15 months, the state of Illinois has allocated nearly $1 billion toward the care and services for over 24,000 non-citizen arrivals. As legislators prepare to reconvene in January, there is a possibility that the taxpayer cost may see an increase.
To address the growing influx of noncitizen arrivals, Chicago has designated an additional $150 million for shelter and care. The state, in a recent announcement, has committed an additional $160 million in taxpayer funds to support these services.
Governor J.B. Pritzker, responding to the escalating situation with 25 more buses arriving over the weekend, indicated that lawmakers might consider voting on increased funding upon their return. Pritzker stated, “I want to ensure we are doing everything we can. Obviously, those will be parts of a budget discussion with the General Assembly.” He added, “We have made it available to the General Assembly to vote on if they wanted to have a supplemental [appropriation] to provide dollars for this.”
Contrary to his stance in October, where he rejected the idea of a supplemental appropriation, Pritzker acknowledged the evolving circumstances and the need for additional funds. He mentioned that money had been redirected from existing state programs to address the crisis, citing the example of the rental assistance program, originally intended for a different purpose but adapted to assist with the migrant crisis.
Beyond the tens of millions allocated for housing migrants, the state budget also earmarks $550 million in taxpayer subsidies for the healthcare of migrants aged 65 and older.
Temporary Staffing Agencies Fight Against New State Law
A coalition of temporary staffing agencies and their trade associations have initiated legal action to prevent the enforcement of a recent state law governing the management and compensation of day laborers and temporary workers. Filed in Chicago this month, the lawsuit challenges amendments made this year to the Illinois Day and Temporary Labor Services Act, originally enacted in 2006 to regulate staffing agencies in the state.
The Act, applicable to approximately 650,000 workers in Illinois engaged in short-term labor within sectors like warehousing, light manufacturing, and distribution, requires staffing agencies to register with the Illinois Department of Labor. The law also establishes basic protections for employees, such as ensuring a minimum of four hours of pay for each assignment.
During the spring legislative session of this year, lawmakers introduced extensive amendments to the Act, introducing new mandates for staffing agencies and expanding protections for short-term workers. Notable changes include a provision entitling temporary workers to pay and benefits equal to or exceeding those offered to directly hired comparable employees after 90 days on an assignment. Additionally, staffing agencies are now obligated to inform workers about any strikes or labor disputes at a work site, granting them the right to refuse an assignment without facing penalties.
The amended law also empowers any “interested party” to take legal action against a staffing agency for alleged violations. Defined as an organization attentive to compliance with public or worker safety laws, wage and hour requirements, or other statutory obligations, these parties can sue if they believe the agency is not adhering to the law.
State Senator Robert Peters, the chief sponsor of the legislation and chair of the Senate Labor Committee, highlighted concerns about the increasing use of temporary labor to suppress wage and benefit costs for other workers. He emphasized the unequal treatment of temporary workers and the practice of keeping them in a perpetual temporary status without offering permanent positions.
Although the new provisions became effective immediately upon Governor JB Pritzker’s signing on August 4, a subsequent measure passed during the fall veto session delayed the implementation of the equal pay provision until April 1, 2024.
Despite the ongoing enforcement of other aspects of the law by the Illinois Department of Labor, the plaintiffs in the lawsuit are seeking a federal court injunction against any enforcement, asserting that the requirements are excessively burdensome, impossible to comply with, and in conflict with existing federal laws. The lawsuit argues that the amendments create an untenable compliance burden and conflict with federal legislation, making adherence practically impossible. The plaintiffs also contend that calculating the value of benefits for equal pay purposes is unfeasible due to variations among employees, and they raise objections to the provision allowing any interested party to sue staffing agencies, claiming it exposes them to an endless stream of lawsuits without demonstrating actual damages.
Illinois Back to Business New Business Grant Program (B2B NewBiz)
Illinois B2B NewBiz will provide financial relief to businesses that started during the pandemic in the industries most impacted by the pandemic. Businesses that started during the pandemic have not been eligible for state grants and most federal emergency support provided for emergency relief to small businesses thus far.
Eligibility Requirements
To be eligible for a grant award under Illinois B2B NewBiz, for-profit businesses and nonprofit organizations must meet all the criteria listed below:
- Started operations between January 1, 2020, and December 31, 2021.
- Had gross receipts of at least $25,000 and up to $20,000,000 in 2021 (annualized if started during 2021).
- Currently active operations in Illinois.
- Have not received a Back to Business (B2B) grant prior to 2023.
- Business Interruption Grant (BIG), Back to Business (B2B) Grant issued prior to 2023, Shuttered Venue Operators Grant (SVOG), or Restaurant Revitalization Fund Grant (RRF).
- Must meet one of the following two criteria:
- The business or nonprofit is in a priority industry as defined for the previous Back to Business program
- A list of priority industries and their definitions can be found here.
- The business is majority owned by an individual or individuals that became eligible for and received unemployment insurance benefits – including from Pandemic Unemployment Assistance (PUA) – between March 13, 2020, and the date the business began operations.
- The business or nonprofit is in a priority industry as defined for the previous Back to Business program
Application Window Opens: November 30, 2023, at 9:00 a.m. CT.
Application Window Closes: January 11, 2024, at 11:59:59 p.m. CT.
Full information and forms can be found at https://b2bnewbiz.com/
Governor Pritzker Announces $25.5 Million for CEJA Equitable Energy Future Grants
Governor JB Pritzker and the Illinois Department of Commerce and Economic Opportunity (DCEO) launched $25.5 million in funding for the Equitable Energy Future Grants Program as part of a larger strategy to equitably grow the clean energy workforce in Illinois through the landmark Climate and Equitable Jobs Act (CEJA). The program supports renewable energy and energy efficiency projects in low-income and historically disadvantaged communities to grow and diversify the clean energy ecosystem across Illinois. Grantees will be selected through a competitive Notice of Funding Opportunity (NOFO) process.
“Since day one, I have prioritized moving our state into a clean energy future that is equitable in every facet,” said Governor JB Pritzker. “Curbing the devastating effects of climate change requires decisive action. In Illinois, we are making history with the implementation of the Climate and Equitable Jobs Act, and The Equitable Energy Future program is a key cornerstone of that approach.”
The goal of the Equitable Energy Future program is to provide seed and pre-development funding opportunities to eligible contractors to support the development of renewable energy and energy efficiency projects benefitting businesses, community organizations and the workforce in historically disadvantaged communities. The program is designed to help remove barriers to projects, community and business development efforts caused by lack of access to capital.
“In Illinois, we are committed to 100% clean energy by 2050, creating a sustainable future and job creation across our state,” said Lt. Governor Juliana Stratton. “Thanks to the Climate and Equitable Jobs Act, we are on our way to being at the forefront of climate justice.”
Grant funding can be used to support a variety of projects to benefit historically disadvantaged communities, including planning and project development, professional services, purchasing and leasing of land, equipment, staff, and more.
“Equity was at the forefront of the passage of the landmark CEJA legislation, and it continues to be a top priority for DCEO during the implementation process,” said DCEO Director Kristin Richards. “Through the Equitable Energy Future Grant Program, equity-eligible contractors have an opportunity to make a lasting impact on the communities that need it the most by supporting projects that will grow and diversify Illinois’ clean energy ecosystem.”
Qualified entities include equity eligible contractors and independent contractors, non-profits, co-operatives that are majority-owned by equity eligible persons, and businesses or non-profits with a proposed project that meets equity building criteria. Equity eligible contractors are businesses or non-profits that are majority-owned by equity eligible persons, including participants in CEJA workforce programs, Illinoisans who are in the foster care system or who were formerly in the foster care system, people who were formerly incarcerated, and Illinoisans who live in an R3 zone or environmental justice community.
Through a competitive Notice of Funding Opportunity (NOFO), qualified entities can apply for grants, with awards ranging from $250,000 to $1 million. Applications will be accepted on a rolling basis until funds are exhausted. To view the NOFO and apply for the grant, please visit the DCEO website. Interested parties are encouraged to reach out to CEO.GrantHelp@illinois.gov for application assistance. To help applicants prepare to apply for funding, DCEO will be holding technical assistance webinars from 12-1 p.m. on November 30 and December 14.
CEJA training, contractor & community investment programs administered by DCEO include:
- Clean Energy Contractor Incubator Program (20 ILCS 730/5-45)
- Clean Energy Primes Contractor Accelerator Program (20 ILCS 730/5-55)
- Clean Jobs Workforce Network Program (“Clean Jobs Hubs”) (20 ILCS 730/5-20) Coal to Solar and Energy Storage Initiative Fund (20 ILCS 3855/1-75)
- Energy Transition Barrier Reduction Program (20 ILCS 730/5-30)
- Energy Transition Community Support Grants (20 ILCS 730/10-20) Energy Transition Navigators Program (20 ILCS 730/5-35)
- Illinois Climate Works Pre-apprenticeship Program (20 ILCS 730/5-40)
- Jobs and Environmental Justice Grant Program (20 ILCS 730/5-60)
- Returning Residents Clean Jobs Training Program (20 ILCS 730/5-50)
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct