Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
Final election results were counted and confirmed yesterday. Below is a rundown of the winners. Congratulations to each of them as we wish them well in fulfilling their terms. Thank you as well to those that were not victorious for having the courage and putting the time into running a campaign.
Another election is right around the corner in April of 2025. The City of Joliet will have three member at large spots on the ballot and we’ll cover those that have submitted interest to run. Finally, a major ruling concerning an overtime compensation rule change that went into effect a few months ago.
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Election Results
The final ballots from the November 5th general election were counted yesterday and results were announced through the Will County Clerk’s office. The results are as follows:
Lauren Underwood will remain as our 14th Congressional district representative in Washington, D.C. Nearby district representatives winning as well were Bill Foster, Robin Kelly, and Jonathan Jackson.
All six Illinois Senators and Representatives that we consider covering our chamber membership area won reelection as well. Rachel Ventura remains the 43rd district Senator, Meg Loughran Cappel remains the 49th district Senator, Larry Walsh Jr. remains the 86th district Representative, Natalie Manley remains the 98th district Representative, Dee Avelar remains the 85th district Representative, and Harry Benton will remain the 97th district Representative.
Will County races saw a majority of incumbents holding their seats as well. Jennifer Bertino-Tarrant will remain as the Chief Executive Officer, Andrea Chasteen will remain as the Circuit Clerk, Karen Stukel will remain as the Recorder of Deeds, Duffy Blackburn will remain as the Auditor, Laurie Summers will remain as the Coroner, and Jim Glasgow will remain as the State’s Attorney. In the race to fulfill an unexpired two-year term for Clerk, Annette Parker was elected to serve.
Denise Winfrey and Herb Brooks Jr. were elected for Will County Board district 6, Dawn Bullock and Vince Logan were elected for Will County Board district 7, and Kelly Hickey and Julie Berkowicz were elected for Will County Board district 10.
Finally, John Anderson, Linda Davenport, and Lance Peterson were elected as Judges of the Appellate Court 3rd Judicial District, each filling vacancies. Colette Safford was elected to fill a vacancy as Judge of the Circuit Court 12th Judicial Circuit. Jennifer Lynch was elected to fill a vacancy as Judge of the Circuit Court 12th Judicial 2nd Subcircuit and Victoria Breslan was elected to fill a vacancy as Judge of the Circuit Court 12th Judicial 4th Subcircuit.
Federal Court Strikes Down US Dept. of Labor Overtime Exemptions Rule Nationwide
On November 15, 2024, a Texas federal court struck down a U.S. Department of Labor (DOL) rule that raised the minimum salary required to be paid to most employees classified as exempt from overtime and minimum wage requirements under the Fair Labor Standards Act (FLSA). The court’s order invalidates the rule nationwide effective immediately.
The details:
Background
For an employee to be exempt from the FLSA minimum wage and overtime requirements, the employee must generally meet the following three tests:
- Salary basis test: Employee is paid a predetermined and fixed amount that is not subject to reduction because of variations in the quality of quantity of worked performed.
- Salary level test: The amount of salary paid to the employee must meet a minimum specified amount.
- Duties test: The employee must perform executive, administrative, or professional duties.
On April 23, 2024, the DOL released a final rule that would have raised the minimum salary required to be paid to most employees classified as exempt from the FLSA overtime and minimum wage requirements (the salary level test). The final rule specifically impacted those employees classified as exempt under the executive, administrative and professional employee exemptions.
The final rule raised the minimum salary in two phases. First, the final rule raised the salary amount from $684 per week ($35,568 annually) to $844 per week ($43,888 annually) effective on July 1, 2024. A second increase would have raised the salary amount to $1,128 per week ($58,656 annually) on January 1, 2025.
The final rule also increased the salary amount for certain highly compensated employees (HCEs) who are paid a salary, earn above a higher total annual compensation level, and satisfy a minimal duties test. Employees meeting the requirements of this alternative HCE test, are also exempt from the FLSA overtime and minimum wage requirements. The final rule increased the amount required to be paid to HCEs from $107,432 annually (including at least $684 per week paid on a salary or fee basis) to $132,964 annually (including at least $844 per week paid on a salary or fee basis) effective on July 1, 2024. A second increase would have raised the amount to $151,164 (including at least $1,128 per week paid on a salary or fee basis) on January 1, 2025.
Finally, the rule would have provided for an automatic update to the minimum salary and HCE amounts every three years.
This past June, a federal district court temporarily blocked the rule from going into effect for state of Texas employees pending resolution of legal challenges brought by the state of Texas. Several business groups joined the state of Texas legal challenge and sought to permanently block the rule for all employers. The court consolidated these legal challenges and issued a decision.
The court’s decision
The court held that the DOL exceeded its authority indicating that the DOL “simply does not have the authority to effectively displace the duties test with such a predominant salary-level test.” The court also noted that its analysis applied equally to the HCE exemption and the related increases to the minimum compensation amounts.
Finally, the court found that the DOL lacked the authority to implement automatic increases to the required salary level for executive, administrative and professional employees and the HCE compensation amounts every three years.
Next steps
- The court’s decision blocks the minimum compensation increases that were scheduled to go into effect on January 1, 2025, and invalidates the previously required July 1, 2024, increases nationwide.
- Effective immediately, the salary level test amount for executive, administrative and professional employees return to $684 per week ($35,568 annually) and the required amount to be paid to HCEs returns to $107,432 annually (including at least $684 per week paid on a salary or fee basis).
- The DOL could decide to appeal the court’s ruling and an appeals court could either uphold the lower court’s ruling or reverse the lower court’s ruling. This could occur prior to President-Elect Trump taking office. It’s also possible that any such appeal is still pending when President-Elect Trump takes office on January 20, 2025. The Trump administration could choose to abandon such an appeal and could also choose to issue a new rule.
- Employers that have already raised compensation amounts based on the final rule might be considering whether to now decrease amounts based on prior DOL requirements. If you are planning to decrease amounts or are planning to not increase amounts in the future that have been previously communicated (e.g., increases that were planned for January 1, 2025), then you should discuss your strategy with counsel.
- Several states have their own test for exempt status. These tests are typically harder to satisfy. You should apply both the state and federal tests to determine an employee’s status under both federal and state law.
- Finally, be prepared to communicate any changes to employees promptly and in writing, taking into consideration any state or local requirements governing the timing of pay change notifications.
Joliet Park District Unveils State-Funded EV Charging Stations with Governor Pritzker
A new electric vehicle (EV) charging station in Joliet marked its grand opening on Monday, funded by nearly $500,000 in state grants. This installation is the first of hundreds of charging stations planned across Illinois in the next 18 months, part of an ambitious state-funded program aimed at building a robust EV infrastructure.
The expansion of charging stations is a critical step as Illinois seeks to meet its clean energy goals. The state currently has about 120,000 EVs on its roads, with a target of 1 million by 2030. To date, Illinois has allocated more than $25 million in infrastructure funding to gas stations, hotels, local governments, and other organizations for installing EV chargers. An additional $44 million in funding is in the process of being awarded, with future grants expected.
This latest funding round will add approximately 2,000 new charging ports, representing a 47% increase in charging capacity statewide, according to U.S. Department of Energy data. Governor J.B. Pritzker emphasized the accessibility of the network, stating, “There will be a charging station along every highway, every 50 miles.”
The Joliet chargers were built by Veterans Energy Team in partnership with the Joliet Park District. They were financed through the state’s Rebuild Illinois capital program and authorized by the 2021 Climate and Equitable Jobs Act (CEJA). Veterans Energy Team received a $480,000 grant to install 12 charging ports across two locations in Joliet, with four additional chargers funded from other sources.
“Reducing air pollution from transportation is vital to a healthy future for our children and our planet,” Pritzker said in a news release. “Today, you see the product of that vision in the first deployment of a CEJA-funded electric vehicle charging port.”
Supporters of the EV charging grant program view it as a dual opportunity to advance clean energy and create jobs. CEJA sets ambitious goals, including transitioning Illinois away from fossil fuels by 2050 and significantly boosting the EV market. Expanding charging infrastructure is critical to achieving these objectives.
Commonwealth Edison (ComEd), the electric utility serving most of northern Illinois—home to about 90% of the state’s EVs—has played a significant role in funding charging projects like Joliet’s. ComEd provided rebates for the Joliet project as part of its “beneficial electrification plan,” a CEJA-mandated initiative to support Illinois’ clean energy objectives. While the rebate amount for Joliet was not disclosed, eligible EV charging projects can receive up to $500,000 in rebates.
Earlier this year, ComEd announced $90 million in available rebates for EV-related projects. “To achieve these goals, we know we will need to accelerate the buildout of a widespread network of public chargers,” said ComEd CEO Gil Quiniones.
Beyond CEJA, Illinois has additional funding sources for EV charging infrastructure, including a legal settlement with Volkswagen over emissions standards and federal grant programs. The Joliet project exemplifies the state’s commitment to creating a sustainable future while fostering economic growth. As Illinois moves toward a greener transportation sector, investments like these are key to meeting its clean energy goals and building an accessible EV network for all residents.
Reforming Illinois’ Tiered Pension System
In last week’s veto session report we covered two identical bills introduced in the house and senate addressing pension changes. Here is more on that subject.
In Illinois, public workers—including state employees, university professors, schoolteachers, judges, and legislators—fall into two pension tiers. Employees hired before 2011 are part of Tier 1, which offers superior retirement benefits. Conversely, those hired after January 1, 2011, are enrolled in Tier 2, requiring longer service for smaller payouts upon retirement.
Tier 2 was introduced as a response to Illinois’ severely underfunded retirement system, which has been strained by decades of the state failing to meet its payment obligations. The Illinois Commission on Government Forecasting and Accountability’s December report estimated the state’s unfunded pension liability at a staggering $140 billion.
Efforts to reduce Tier 1 benefits were struck down by the Illinois Supreme Court in 2015, citing a constitutional clause that prohibits diminishing or impairing public pension benefits. However, Tier 2 benefits remain legally sound since they were part of employees’ terms upon hiring.
Despite initial savings, critics argue that Tier 2 may have gone too far in reducing benefits, potentially breaching federal laws. Most public employees in Illinois do not qualify for Social Security and rely solely on their pensions. Public-sector unions warn that Tier 2 benefits could fall below federal Social Security thresholds, violating a “safe harbor” provision.
The union coalition We Are One Illinois is advocating for changes through newly proposed legislation—House Bill 5909 and Senate Bill 3988—sponsored by State Rep. Stephanie Kifowit (D-Aurora) and State Sen. Rob Martwick (D-Chicago). These bills aim to address the safe harbor issue by enhancing Tier 2 benefits, including lowering the minimum retirement age and providing retirees with fixed annual increases of 3%.
The proposed measures would narrow the gap between Tier 1 and Tier 2 benefits, though significant differences would remain. For example, Tier 1 pensions feature compounding annual increases, while the proposed adjustments for Tier 2 would remain fixed.
Rep. Kifowit has supported various fixes for Tier 2 and plans a subject-matter hearing next week to review the latest proposal. While she hasn’t committed to advancing the union-backed Fair Retirement and Recruitment Act, she acknowledges the need for a balanced solution that respects both fiscal responsibility and employees’ retirement security.
Kifowit also highlights how inadequate Tier 2 benefits hinder government workforce recruitment and retention. Young teachers, for example, are leaving the profession or opting not to join due to retirement requirements that extend until age 67.
Improving Tier 2 benefits faces significant fiscal hurdles. The state is already projecting a $3 billion budget deficit for the 2026 fiscal year. Pension contributions account for $10.1 billion in the current budget, nearly 19% of general fund spending.
Governor J.B. Pritzker has expressed cautious support for addressing Tier 2 pensions but emphasized the need for a thorough evaluation of what is required to meet the safe harbor threshold. “It’s clear that it needs to be dealt with,” Pritzker said, though he suggested there’s no immediate urgency. While pressure from unions could accelerate legislative action, Illinois lawmakers face competing budget priorities in a challenging fiscal environment. The debate over Tier 2 reform underscores the ongoing tension between financial constraints and the need to ensure fair retirement security for public workers.
Lame-Duck To-Do List
Chances for a full-year fiscal 2025 spending package faded further when Speaker Mike Johnson said on “Fox News Sunday” that appropriators are “running out of clock” to clinch a deal ahead of the Dec. 20 deadline. “We’re still hopeful that we might be able to get that done, but if not, we’ll have a temporary measure, I think, that would go into the first part of next year,” he said. In such a scenario, “you’d have Republican control, and we’d have a little more say in what those spending bills are.” You’d also have a fight — both among Republicans and with Democrats — that could distract from everything else Trump wants to get done early next year.
One thing that will have to be dealt with this year is disaster aid funding: The damage from hurricanes Helene and Milton have tapped out the federal Disaster Relief Fund and other aid programs, and White House Budget Director Shalanda Young says in a memo that a formal supplemental funding request will be made in “the coming days.” Writes Young, “We look forward to working with Congress to quickly pass emergency funding so the Federal Government can meet its obligations to the American people.”
The farm bill is another issue on the lame-duck to-do list, and by most accounts, lawmakers are headed toward passing a one-year extension amid a partisan impasse in negotiations. That’s not to say there isn’t movement on a larger deal, however: Outgoing Senate Agriculture Chair Debbie Stabenow (D-Mich.) plans to release a farm bill draft. The move appears to be an effort to spark some movement in the talks, or at least force a floor vote on the legislation even if the writing is on the wall for a short-term punt.
City of Joliet Candidate Petitions for the April 2025 Consolidated Election
Candidate petitions required to be filed with the Clerk’s office in Joliet between Tuesday, November 12 and Monday, November 18. There are three council member-at-large positions open. Each carries a four-year term. Here are the candidates in alphabetical order:
Joe Clement
Larry Crawford
Cesar Guerrero
Jim Lanham
Juan Moreno
Jan Quillman
Marzell Richardson III
Glenda Wright – McCullum
Damon Zdunich
Our chamber will be hosting a candidate forum in March inviting each of the candidates to express their views and answer a few questions. More information will be shared as we move forward into the new year.
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
[email protected]
815.727.5371 main
815.727.5373 direct