The following changes in Illinois labor laws are effective January 1, 2014:
Prevailing Wage Act: The law now requires contractors, subcontractors and the public body to maintain prevailing wage records for up to five years, an increase from three years. The law also requires additional reporting requirements on certified payroll forms and on information relating to fringe benefit programs for contributions to funds not governed by the federal Labor Management Relations Act (Subsection c, Section 130/5). The Act requires contractors and subcontractors to pay workers employed on public works projects no less than the general prevailing rate of wages for work of similar character in the locality where the work is performed.
Wage Payment and Collection Act: The law now provides that all claims, regardless of amount, will be heard through the formal hearing process within the Department. When the Department determines that employers owe wages and other final compensation to a worker, the employer must pay a non-waivable administrative fee (Section 115/14) to the Department. This fee has been modified to $500 if the amount ordered to be paid back to a worker is more than $3000, and to $1000 if the amount ordered to be paid back to a worker is more than $10,000.The administrative fee for cases involving $3,000 or less in back wages remains $250.
Employee Classification Act: The law now allows for a formal hearing process during investigations and adds a personal liability clause for knowingly violating the Act. In addition, under reporting requirements, contractors who hire an individual to perform construction services and do not classify the individual as an employee must report to the Department on or before January 31 following the taxable year in which the payment was made (Section 185/43). The requirements are to include the name, address and tax ID (identification number) and the total paid, including payments for services and materials and equipment. The first reporting period covers calendar year 2014 and the first report is due by January 31, 2015.Failure to report can result in civil penalties.
Right to Privacy in the Workplace Act: This law further restricts an employer’s access to passwords of personal accounts by including an “account, service or profile on a social networking website that is used by a current or prospective employee exclusively for personal communications unrelated to any business purpose of the employer.” Please see the following links for specific changes in the laws and regulations contained in this site.
Prevailing Wage Act
Right to Privacy in the Workplace Act
Employee Classification Act
Wage Payment and Collection Act