Workplace, Taxes & State Procurement

Bill: SB 1

Sponsor: Sen. Lightford/Rep. Guzzardi

Status:  Public Act 101-0001

Position: No Position

Description: $15 Minimum Wage

Senate Bill 1 or Public Act 101-0001 was the first law Gov. Pritzker signed into law.  This law sets forth a $15 an hour minimum wage to be phased in by 2025.  The first increase kicks in January 1, 2020 and the minimum wage then increases until it reaches $15 an hour.  It calls for a $1 hourly pay hike at the beginning of next year, followed by a 75-cent increase to $10 on July 1, 2020. The minimum wage then would increase by $1 per hour each year on Jan. 1 until it hits $15 per hour in 2025. It also provides for a tax credit for employers with 50 or fewer full-time employees to offset some of the cost of the increased wages. Employers would be able to claim a tax credit for 25 percent of the cost in 2020. The credit would scale back annually until it is phased out completely. Businesses would be able to continue paying a lower wage to workers younger than 18 if they work fewer than 650 hours in a year. The minimum wage for younger employees — currently $7.75 per hour — would increase to $8 on Jan. 1 and peak at $13 per hour in 2025.

 

Bill: SJRCA 1

Sponsor: Sen. Harmon/Rep. Martwick

Status: Passed Both Houses

Position: No Position

Description: Retail Discount

Senate Joint Resolution Constitutional Amendment 1 would amend the Illinois Constitution to replace the flat tax with a graduated income tax for individuals and corporations.  Voters will be given the opportunity to vote on whether to approve the constitutional amendment in the 2020 General Election.  

 

Bill: SB 687

Sponsor: Sen. Hutchinson/Rep. Zalewski

Status: Passed Both Houses

Position: No Position

Description: Income Tax – Graduated Rates

Senate Bill 687 imposes graduated income tax rates effective January 2021, if the constitutional amendment authorizing graduated rates is approved by the voters. The bill would raise the top rate on individuals and corporations to 7.99% (10.49% for corporations with the 2.5% replacement tax). Here are the rates set out in the legislation:

For Persons filing a Joint Return:

  • 4.75% on income from $0 to $10,000
  • 4.90% on income from $10,001 to $100,000
  • 4.95% on income from $100,001 to $250,000
  • 7.75% on income from $250,001 to $500,000
  • 7.85% on income from $500,001 to $1 million
  • 7.99% on all income when it totals more than $1 million

For Single Filers:

  • 4.75% on income from $0 to $10,000
  • 4.90% on income from $10,001 to $100,000
  • 4.95% on income from $100,001 to $250,000
  • 7.75% on income from $250,001 to $350,000
  • 7.85% on income from $350,001 to $750,000
  • 7.99% on all income when it totals more than $750,000

 

Bill: SB 1515

Sponsor: Sen. Hutchinson/Rep. Manley

Status: Passed Both Houses

Position: No Position

Description: Income Tax – Service Performed Within the State

Senate Bill 1515 amends the Illinois Income Tax Act. Provides that, for purposes of being liable for income tax, compensation is paid in this State if some of the individual's service is performed within this State, the individual's service performed within this State is nonincidental to the individual's service performed without this State, and the individual's service is performed within this State for more than 30 working days during the tax year. Contains provisions concerning the calculation of compensation paid in this State if the employer maintains a time and attendance system.

 

Bill: HB 2079

Sponsor: Rep. Will Guzzardi

Status: Re-referred to House Rules Committee

Position: Oppose

Description: Retail Discount

House Bill 2079 seeks to cap the Retail Discount, also known as the Vendor Collection Allowance, at $1,000 per entity per year. Any entity collecting and remitting sales tax on behalf of state and local governments receives the Discount.

 

Bill: HB 2127

Sponsor: Rep. Michelle Mussman

Status: Re-referred to House Rules Committee

Position: Oppose

Description: State Contractor Work Hour Verification

House Bill 2127 requires any business that enters into an information technology contract with a state agency for professional or technical services for more than $500,000 to use software to verify that hours billed for work under the contract for services performed on a computer are legitimate. Provides that the contract shall specify that the governmental entity will not pay for hours worked on a computer, unless those hours are verifiable by the software or by data collected by the software. Provides that the verification software shall be procured by the contractor from an independent entity. This legislation is being pursued by Transparent Business, Inc. which sells such work-hour verification software.

 

Bill: SB 75

Sponsor: Sen. Bush/Rep. Williams

Status: Passed Both Houses

Position: No Position

Description: Workplace Sexual Harassment Reform Bill  

Senate Bill 75 is legislation that provides extensive changes to limiting unilateral employment agreements for sexual harassment and employment discrimination related to NDAs and arbitration. The legislation requires disclosure by any employer of a final adverse administrative or final judicial ruling to the Illinois Department of Human Rights. Requires all Illinois employers annually to have all its employees trained regarding sexual harassment.

 

Bill: HB 3394

Sponsor: Rep. Welch/Sen. Belt

Status: Passed Both Houses

Position: No Position

Description: Diversity Reporting for Publicly Traded Companies

House Bill 3394 requires publicly traded corporations whose principal executive offices are located in Illinois to report whether each member of the corporation's board of directors self-identifies as a minority person and, if so, which race or ethnicity to which the member belongs.   Requires the University of Illinois System to review the reported information and publish on its website a report that provides aggregate data on the demographic characteristics of the boards of directors and executive officers of corporations filing an annual report for the preceding year along with an individualized rating for each corporation.

 

Bill: HB 834

Sponsor: Rep. Will Guzzardi

Status: Passed Both Houses

Position: No Position

Description: Equal Pay

House Bill 834 amends the Equal Pay Act of 2003 and provides that an employer may not require an employee to sign a contract or waiver that would prohibit the employee from disclosing or discussing information about the employee’s wages, salary, benefits or other compensation. An employer may
prohibit a human resources employee, supervisor, or other employee whose job responsibilities require or allow access to other employees' wage or salary information from disclosing that information without prior written consent from the employee whose information is sought or requested.  The legislation also makes it unlawful for an employer to screen job applicants based on their current or prior salary history or request or require a wage or salary history. The legislation does not prohibit an employer from providing an applicant about wages and benefits of a position or engaging in discussions with an applicant about wage and benefit expectations.