Employment Law Council…the employers' voice on human resources                                                                         March 31, 2006

Lawmakers Work Towards Adjournment

The General Assembly is winding down its consideration of substantive issues and gearing up for the budget fight that looms prior to the scheduled April adjournment. With little left on the sustentative agenda, The Speaker and Senate President sent lawmakers home yesterday canceling session for today and the weekend. The House returns Monday afternoon and the Senate returns on Tuesday. Speaker Madigan also advised House members that they should plan to be in Springfield at least until April 12^th. Much work remains to be done on the budget.

Workers’ Compensation Advisory Board Meets, Third Panel Appointment Process Discussed

The reconstituted Workers’ Compensation Advisory Board met this past Tuesday, its first meeting since the 2005 law changes. The primary purpose of the meeting was to begin the process of reviewing candidates to recommend to the Governor as third panel appointments. The Advisory Board will be providing names to the Governor pursuant to the statute. The business members of the Board will be submitting names to serve as the management appointee to the Commission’s third panel.

To help provide input to the process, members of the Chamber’s workers’ compensation subcommittee has interviewed two known candidates for the management slot. Following the interviews, the Chamber indicated to the business members of the Advisory Board our support for David Kane, currently an arbitrator at the Commission. Sen. Steve Rauschenberger (R-Elgin) also has expressed possible interest in an appointment within the past 24 hours.

The Advisory Board’s next meeting is scheduled for April 6^th  in Springfield.

WC Workshops Set for May 5 in Willowbrook and May 16 in Collinsville

The Illinois Chamber is hosting two workshops on workers’ compensation in May: May 5^th in Willowbrook and May 16^th in Collinsville.  We will be covering the 2005 changes and how to best utilize the law as an employer. In addition, attendees will hear from experts about how to assure that your company is being charged the correct premium and how to avoid litigation when terminating or disciplining an employee who has a workers’ compensation claim.

Alholm Monahan Klauke Hay & Oldenburg, LLC is sponsoring the workshop handout materials. Other workshop sponsors are Advanced Insurance Management, CorVel Corporation and Keefe & Associates LLC. Registration information and workshop details will be mailed to Chamber members next week. To register for one of the workshops, contact Julie Brennan at the Illinois Chamber at 217-522-5512 or jbrennan@ilchamber.org

Legislature Continues to Add Health Mandates to Employer Policies

While the rhetoric in Springfield has been about increasing availability and affordability of health insurance benefits, the actions have been to continually add mandates that only drive the cost of health insurance higher. This session, the General Assembly has expanded the mental health mandate dramatically. HB 4202, sponsored by Rep. Lou Lang (D-Skokie) and Senate President Emil Jones, Jr. (D-Chicago), applies to health plans of employers with more than 50 employees requiring them to provide a minimum of 60 outpatient visits per year for serious mental illness. Current law requires a minimum of 35 visits per year. The bill passed the House 82-31 and the Senate 43-13 and now goes to the Governor.

Autism advocates also pushed through HB 4125, sponsored by Rep. Mary Flowers (D-Chicago) and Sen. Susan Garrett (D-Highwood) which adds an additional 20 visits for speech therapy. If HB 4202 and HB 4125 become law, the total number of outpatient visits per year will increase from 35 to 80. The more troubling element of HB 4125 was that the entire mental illness mandate will now apply to HMO policies as well. It passed the House 113 to 0 and the Senate 44-11. It too goes to the Governor for his signature.

Prevailing Wage Expansion Fails

HB 2113, sponsored by Speaker Michael Madigan (D-Chicago), dramatically expanded the Prevailing Wage Act to include the manufacture and transportation of materials to public works projects. This bill failed receiving only 17 votes in the House.     

In addition, the legislative Black Caucus is pushing for reporting requirements of minority and female participation in apprenticeship programs, union membership and employment on public works projects. In return, some union organizations want passage of HB 5002, sponsored by Rep. Larry McKeon (D-Chicago) which creates a new “trick bag” of regulations on independent contractors enforced by the Illinois Department of Labor. HB 5002 uses the ABC test to determine whether an individual is an employee or independent contractor. It also allows a third party action against a construction contractor if there is a violation of the new law. The vehicle for these proposals is SB 2399, a measure supported by construction contractors as it cleans up the start stop reporting requirements from last years changes to the Prevailing Wage Law.

Governor Calls for Minimum Wage Increase

Illinois recently raised the state minimum wage to $5.50 on January 1, 2004 and to $6.50 on January 1, 2005, $1.35 per hour higher than the federal level. The Governor has now called for the legislature to raise the minimum wage in Illinois to $7.50 per hour.

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