July 1, 2024; New Laws from the WC Perspective in IL/Chicago--this is a must read for WC folks

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Synopsis: Last Night, at 12:00 midnight, July 2024 started and there a new laws that are certain to change your day-to-day IL WC claims handling.

 

Editor’s comment: Please note the changes aren’t great for Illinois/Chicago businesses but “it is what it is”—we all have to follow the law.

 

Chicago and Cook County Minimum Wage Goes Up

This will have a direct impact on IL WC Section 8(d-1) wage loss claims.

While Illinois’ state-wide minimum wage will not go up until the end of the year 2024, residents in Cook County and Chicago will see higher minimum wages starting on July 1.

The minimum wage in Chicago will rise to $16.20 an hour, up from $15.80. That number increases annually according to the Consumer Price Index or a rate of 2.5%, whichever is lower, according to officials.

Please note one is making $648 a week if/when you work 40 hours at $16.20 an hour.

What’s more, the minimum wage for tipped workers will rise to $11.02 an hour, and over the next five years will continue rising until it is equal to the regular minimum wage, according to the City.

In suburban Cook County, the minimum wage will rise to $14.05 for non-tipped workers, according to officials. The rate will remain $8.40 per hour for tipped employees.

In the rest of Illinois, the minimum wage rose to $14 an hour on Jan. 1, 2024.

You may get claims for wage loss differential where Claimant’s counsel isn’t using the accurate minimum wage as the starting point for “what the worker could make in an light duty job.” Well, we again point out, “the law is the law”—it isn’t optional, if the worker goes back to work, they can and should be making at least whatever the applicable minimum wage is for their circumstance.

Paid Leave for Chicago Workers

Chicago workers will also have increased access to guaranteed paid leave, with employees who work at least 80 hours within a 120-day period eligible for up to five days of paid leave for whatever purpose and five days of paid sick leave.

As Chicago workers are guaranteed this time off, we may get less phony WC claims where a worker has financial needs—in earlier days, we did some some questionable claims when this benefits wasn’t present.

According to the City, employees accrue at a rate of one hour of paid sick leave for every 35 hours worked.

They must be allowed to use accrued sick leave no later than on the 30th day of employment.

Employees can carry over 80 hours of leave between 12-month periods.

If you have questions/concerns about the rules, please contact Bradley Smith of KCB&A at bsmith@keefe-law.com.

State of Illinois to offer driver’s licenses to undocumented immigrants

Like it or not, this may help your WC claims because an undocumented worker who can legally drive has a better chance of getting a job or returning to work following a work-related injury.

Starting on July 1, Illinois will have a program that will offer IL driver’s licenses to undocumented immigrants.

According to the new law, an undocumented immigrant must:

 

  • Prove their name and date of birth;

  • Prove their written signature;

  • Prove that they have lived in Illinois for at least 12 months;

  • Prove where they live in Illinois now;

  • Affirm that they are ineligible to get a social security number;

  • Provide a valid, unexpired passport or consular card issued by an approved country, or provide other proof of identity and residency the Secretary of State may require;

  • Pass the vision, written, and road exams;

  • Provide proof of insurance for the vehicle used for the road test;

  • Provide proof (ages 18-20) of completing a 6-hour adult driver education course; and

  • Pay a $30 application fee ($35 for motorcycles).

 

Freelance Worker Protection Act Starts July 1, 2024

This may or may not impact pending or future IL WC claims but it is important for your HR folks to be aware of it.

The Freelance Worker Protection Act provides protections for independent contractors

  • who provide products or services in Illinois or

  • who work for a hiring entity located in Illinois when the value of that work is equal to or greater than $500 in a 120-day period.

Under the law, freelance workers are entitled to all of the following: 

  • A written contract that includes:  

    • Name and contact information of both the hiring entity and freelance worker 

    • Itemization of products and services 

    • Rate and method compensation 

    • Date of compensation due 

    • Dates of services to be provided 

  • Full payment for the services by the due date in the contract, or if the due date is not specified, within 30 days of completing the services outlined in the contract 

  • Protection from retaliation and/or other negative action for exercising rights under the FWPA 

 

The law only applies to contracts taking effect after July 1, 2024.

 

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