A six-month COBRA subsidy period was signed into law on March 11, 2021 as part of the American Rescue Plan Act of 2021 (ARP). It includes a 100% COBRA subsidy for all eligible employees and their covered dependents effective April 1 through September 30, 2021. All Employers with a group health plan will be required to pay 100% of COBRA or State...
Is My Business Essential?
Is My Business Essential? With the new normal in the State of Illinois and the US, the more pertinent question is “will I be able to stay in business?” The short answer is a definite probably. On March 21, 2020 Governor JB Pritzker signed into law Executive Order No. 8 Stay at Home; Social Distancing Requirements; and Essential Business and...
Families First Coronavirus Response Act
On March 18, 2020, President Donald Trump signed into law the “Families First Coronavirus Response Act” (H.R. 6021). This article will address the three (3) main provisions that will affect private businesses and their employees in Illinois and the US: the “Emergency Family and Medical Leave Expansion Act”, the “Emergency Paid Sick Leave Act”,...
Franchisor Liability in the Face of Misrepresentation
When considering franchise opportunities, due diligence is absolutely necessary prior to purchasing any franchise in order to protect yourself and your investment. What are your options when a franchisor misrepresents the estimated costs to operate a franchise in a disclosure document? Specific contract language for franchise liability...
Non-Compete Agreements and Non-Management Employees
A common question we are asked is whether employers may require non-management personnel to sign a non-compete agreement. The answer is yes, but there are limitations of which employers should be aware. To be enforceable in the State of Illinois, the agreement must (1) have adequate consideration, (2) be reasonably necessary to protect the...
Gender Identity and the Workplace
Gender identity is a protected class against discrimination under the Illinois Human Rights Act.[1] http://www.ilga.gov/legislation/ilcs/ilcs5.asp?ActID=2266 The law protects employees against discrimination in all terms and conditions of employment, including hiring, selection, promotion, transfer, pay, tenure, discharge, and discipline. To...
Reporting Change of Address or Responsible Party with the IRS
Beginning with 2014, it is mandatory that businesses report changes in responsible parties to the IRS. For non-publicly traded entities, a responsible party is the person who has a level of control over, or entitlement to, the funds or assets in the entity that as a practical matter enables the individual, directly or indirectly, to control,...
Paid Sick Leave Update
There are several new state, municipal and county paid sick leave laws in Illinois that will affect employers’ Paid Time Off policies and benefits. Some or all may apply to your business depending on where you do business or where you have employees working. The following is a brief description of the main points of each new law. ...
How to Limit Your Liability to Subcontractor Employees for Workplace Injuries
In a recent decision, Carney v. Union Pacific Railroad Company, 2016 IL 118984 (Oct. 20, 2016), the Illinois Supreme Court provided some guidance to owners and general contractors on limiting their liability to subcontractor employees in construction injury cases. Under the common law, anyone who employs an independent contractor is generally...
Major Changes to Exempt Status under the FLSA
The Department of Labor (DOL) has made some pervasive changes to the Fair Labor Standards Act (FLSA) which will affect the minimum salary requirement for employees to be considered Exempt from overtime. As of December 1, 2016 the DOL has raised the minimum salary for administrative, professional, and executive positions from $23,660 to $47,476 to...