Labor & Employment Law Update

Today the National Labor Relations Board (NLRB) officially published its NEW Joint Employer Rule, that lowers the standard to an unprecedented level whereby an entity may be deemed jointly liable and responsible under the National Labor Relations Act (NLRA) for another entity’s unfair labor practices or collective bargaining obligations.

There have been several recent changes impacting employers in jurisdictions across the nation. Read the post to see if any of them apply to you.

On August 29, 2023, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) released more guidance and proposed rules on key provisions in the Inflation Reduction Act (IRA) that requires employers to meet certain labor mandates involving apprenticeship mandates, prevailing wage requirements and possible forced unionization on green energy construction projects.

With the January 1, 2024, effective date of the Illinois Paid Leave for All Workers Act (IPLAWA) quickly approaching, employers need to ensure they are analyzing their existing paid leave policies to determine what changes need to be made before the end of 2023.

On Friday, October 6, 2023, Chicago’s City Council passed the “One Fair Wage” Ordinance (“Ordinance”), which gradually phases out Chicago’s “tip credit” over a five-year period until it is completely eliminated by June 30, 2028. At which point, all tipped employees working in the City of Chicago will earn the same hourly minimum wage rate as non-tipped employees. Meaning, on and after July 1, 2028, Chicago employers will no longer be able to credit an employee’s earned tips and gratuities towards their hourly wage rate and will be required to pay all employees, including tipped employees, Chicago’s minimum wage rate.

In the immigration community, autumn brings a new-year sense of renewal. A new US government fiscal year beginning October 1 means a fresh start to the annual allocation of green cards for those looking to apply. But application backlogs which have grown for countries like mainland China and India have tempered that October optimism. A new wrinkle added to the application process this year has made it trickier.

On September 30, 2023, California enacted Senate Bill No. 553 (“S.B. 553”), which requires covered California employers to adopt a comprehensive workplace violence prevention plan by July 1, 2024.  These plans may be stand-alone documents or incorporated as new sections of the employer’s Injury and Illness Prevention Program (IIPP). 

On June 9, 2023, Governor Pritzker signed into law HB 3491 which amends the Illinois Prevailing Wage Act (IPWA) to provide workers with the  rights against general contractors and sub-contractors. Effective January 1, 2024, any worker, laborer or mechanic performing construction work on a prevailing wage project can file a private cause of action against the employer for any differential between what was paid and what was required to be paid to them pursuant to the IPWA. Sounds reasonable, right? Of course.

Unsurprisingly, California is yet again changing its already very employee friendly employment laws. Currently, California leads the nation with its employee friendly laws, though states like Illinois are quickly catching up. The California Legislature’s latest move is a first for any US state by banning “caste” discrimination in the workplace under its civil rights and employment discrimination laws. Seattle passed a similar law in February.

On July 28, 2023, Governor Pritzker signed into law a number of amendments to Illinois’ Prevailing Wage Act (IPWA), including HB 3370, which amends the IPWA to include “power washing.” Specifically, the term “Public works” under the IPWA is now revised.