ILLINOIS: Labor Laws Update for 2025

Illinois Bans “Captive Audience” Meetings – Effective 1/1/2025

Illinois employers will be prohibited from disciplining or otherwise retaliating against employees for refusing to attend mandatory employer sponsored meetings related to religious and/or political matters. Political matters are defined as matters relating to elections for political office, political parties, legislation, regulation and/or the decision to support a political, civic, community, fraternal or labor organization. Religious matters are defined as those relating to religious affiliation and practice and the decision to join or support any religious organization.  

The Act also prohibits employers from offering incentives or favorable changes in employment conditions to encourage attendance at such meetings.

For more information about this new law, a good summary is available here.

Illinois Adds Two New Protected Classes – Effective 1/1/2025

Illinois adds “family responsibilities” and “reproductive health decisions” to their list of protected classes under the Human Rights Act.

MARYLAND: Employment Law Reminders

Pay Transparency Reminder

Effective in October 2024, job postings for openings in Maryland must include the reasonable minimum to maximum salary range, benefits, and other expected compensation for internal and external job postings. Employers are expected to keep copies of postings for at least three years after the position is filled to demonstrate compliance with this new regulation.

Paid Family Leave Deductions Begin on July 1, 2025

Payroll deductions begin next year for Maryland’s paid family leave program, with benefits available to employees beginning in July 2026. The program is funded by a 0.9% tax on wages earned, with a 50/50 split between employees and the company. The leave is job protected, meaning employers will be required to restore employees to the same job after taking leave. 

FEDERAL: Federal Contractor Round Up – 2024 Updates

For our Federal Contractor clients, 2024 brought a few updates: 

Contractors were expecting the minimum wage for employees performing work on covered contracts to increase on January 1, 2025; however, that increase has been paused by a federal court in advance of the change in administration. It is likely that the current minimum wage of $17.20 will be reversed in early 2025, but until then, we recommend that contractors comply with that minimum wage until it is changed. The tip credit and lower minimum rate for workers with a disability are eliminated currently, but that may change in the new year. 

In September, E-Verify launched E-Verify+ as an option for all users. This is a website upgrade that is currently optional, but we anticipate all users will be migrated to the system within a few years. The end of the year is a great time to review and purge I-9s according to the document retention guidelines and review onboarding procedures to ensure compliance with both I-9 and E-Verify requirements. 

EEO-1 update

Employers holding contracts totaling at least $50,000 and at least 50 employees must file an EEO-1 report annually. The 2023 reporting cycle opened on April 30, 2024, and closed on June 4, 2024. More information can be found at the EEO-1 portal, and Infiniti HR can assist with filing this report. Employers holding a single contract of $150,000 or more and at least 50 employees must file a Vets-4212 report annually. Reports were due on September 30 but can still be filed on the Vets-4212 portal. 

Artificial Intelligence in business decisions: It seems like AI came out of nowhere and is suddenly everywhere. In 2024, several government agencies issued a joint statement on how employers should use (and not use) AI in business decisions. Since contractors are more likely to have their business decisions scrutinized through a government audit, contractors should be aware of and follow this guidance. 

Salary transparency may be forthcoming: In April, the government issued a proposed rule that would prevent federal contractors from considering an applicant’s salary history and require contractors to disclose the pay range for contract-related job postings. This rule is still proposed, so no action is needed at this time, but we recommend ensuring that your company can be in compliance if it is finalized.  

Interested in other current employment trends? Click the link to view the recent blog: Address Job Stress for Healthier Staff and Profits or check back for more on human resources, payroll, insurance, and benefits.

This article does not constitute legal advice, and there are subtle variations in employment law as it pertains to these topics, depending on where your business operates. It is strongly suggested that you seek consultation or legal counsel before making decisions about policies.