Labor & Employment Law Update

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.

Employers in Indiana, Illinois and Wisconsin must now accommodate an employee’s work-schedule “if an employee's disability substantially interferes with his ability to travel to and from work … if commuting to work is a prerequisite to an essential job function, including attendance in the workplace, and if the accommodation is reasonable under all the circumstances.” Equal Emp. Opportunity Commission v. Charter Communications, LLC, 75 F.4th 729, 734 (7th Cir. 2023). 

Hold onto your hard hat! What you thought you knew about federal Davis-Bacon prevailing wage law is changing --- substantially changing decades of well-established rules, precedent and interpretations as to the applicability and scope of federal prevailing wage laws to construction projects and how contractors must comply with the legal mandates. Remember, federally funded projects that involve construction work in excess of $2,000, will trigger Davis-Bacon obligations. 

OSHA has been particularly busy and aggressive lately, making good on Biden Administration promises and talking points—hiring more inspectors, appointing new administrators, conducting more inspections, aggressively issuing citations, adopting and expanding emphasis programs, reviving old rules, and expanding existing rules.

On September 1^st the Centers for Medicare & Medicaid Services (CMS) announced a proposed rule that would require nursing homes that participate in Medicare and Medicaid to comply with a first-ever federal staffing mandate. If adopted, the requirements would be phased in over two to five years. The comment period for the proposed rule closes November 6.

Entering 2023, the union membership rate dropped to a new historic low of 10.1%. Among private sector workers, the numbers were even more bleak for unions: just 6% of the overall private sector workforce is now unionized (compared to 33% in the public sector). The membership rate actually dipped in 2022 in both the private and public sectors. Organized labor has been in full panic mode and seeking assistance from its allies in D.C. while trying to organize as many young adults as possible working in coffee shops and cannabis stores.

On July 28, 2023, Governor Pritzker signed into law a number of amendments to the Illinois Prevailing Wage Act (IPWA), including HB 3792, which amends the IPWA to include, among other things, all work related to fixtures or permanent attachments affixed to traffic light and street light poles in the Act’s definition of the term “Public works” --- regardless if public funds are used or not. 

This summer seemed to fly by as quickly as the Illinois Legislature and Governor J.B. Pritzker enacted a dizzying slew of more new employment laws between the months of June and August. These changes are sweeping and require your attention now.

The current employment market is placing incredible stress on businesses, many of which are struggling to find enough employees to simply cover shifts. Pay increases and higher recruiting costs, consequently, continue to rise. On top of these challenges, inflation and other market pressures have resulted in higher operating costs, compounding the impact to the bottom line.