Starting January 1, 2011, Illinois will join just four other states (Hawaii, Louisiana, Oregon and Washington) that prohibit employers from conducting credit checks on job applicants and employees as part of the process for making employment decisions.

The new law, called the Employee Credit Privacy Act, prevents Illinois employers (with certain exceptions) from inquiring about an applicant or employee’s credit history or obtaining a copy of their credit report.

Other Prohibited Conduct

In addition to preventing employers from using credit history as a basis for hiring, promotion or other employment decisions, the Act also prohibits employers from discriminating or retaliating against anyone who files a complaint under or participates in an action concerning a violation of the Act. Further, the Act specifically prohibits any agreement to waive the requirements of the Act.

Consequences

An individual who believes his or her rights have been violated under the Act may bring a civil action in court to obtain injunctive relief or damages, or both. In such an action, the individual, if successful, would be entitled to award of attorneys’ fees and costs.

What Can You Do?

Employers who conduct any kind of background check that involves an applicant or employee’s credit history should carefully evaluate whether their business falls under one of the many exceptions to the Act’s prohibitions. The Act does not prevent an employer from conducting thorough background investigations. However, any such investigations must comply with the Fair Credit Reporting Act, and should include obtaining an applicant’s prior written consent and providing an applicant with a copy of any information obtained during a background investigation by a third party which results in an adverse employment decision.

Barry P. Siegal is both a CPA and attorney with over 40 years of experience representing individuals and closely held businesses, with special expertise in creative estate tax planning. Prior to joining Golan & Christie, Mr. Siegal was a member in the firm of Stahl Cowen Crowley Addis LLC, and was chairman of their trusts and estates department. From 1980 until 2002, Barry managed his own law firm, Barry P. Siegal Ltd.

Mr. Siegal joins Golan & Christie as a partner in the firm’s estate planning and corporate law practices.

On September 27, 2010 President Obama signed into law the Small Business Jobs Act. As part of a larger bill, the legislation contains new (and extensions of existing) tax incentives for small businesses, including extended bonus depreciation, increased Code Section 179 start up expenditures, 100% capital-gains exclusion for “qualified small business stock,” reducing the holding period for avoiding S corporation built-in-gain tax, extending the carry back period for eligible small business credits, providing retroactive 6707A penalty relief for failure to report “listed” and “reportable” transactions, and allowing self-employment deductions for health insurance costs in computing FICA taxes.

Many of these tax incentives are time sensitive and some require affirmative taxpayer action during the 2010 taxable year to be eligible for the benefits. Please call Donna Hartl or Justin Clark for further information and details about taking advantage of the tax incentives offered under the Small Business Jobs Act.

The United States Department of Labor (DOL) recently released an announcement to clarify the definition of “son and daughter”under the Family and Medical Leave Act (FMLA) to ensure that an employee who assumes the role of caring for a child receives parental rights to family leave regardless of the legal or biological relationship. The FMLA allows workers at covered employers to take up to 12 weeks of unpaid leave during any 12-month period to care for loved ones or themselves. The 1993 law also allows employees to take time off for the adoption or the birth of a child.

The DOL’s clarification explains that an employee who has taken responsibility to care for a child is eligible for protected leave from work under the FMLA, including an uncle who is caring for his young niece and nephew when their single parent has been called to active military duty, a grandmother who assumes responsibility for her sick grandchild when her own child is debilitated and an employee who intends to share in the parenting of a child with his or her same sex partner. As a result of the DOL’s clarification, many employers may need to revise their current FMLA policies to reflect a broader definition of “parent.”

Starting on January 1, 2011, employers in Illinois will be subjected to harsher penalties under state law for failure to pay wages due to employees. The amendment to the Illinois Wage Payment and Collection Act, which is being referred to as the “Wage Theft Enforcement Act,” will also make it easier for employees to bring claims for unpaid or late wages before the Illinois Department of Labor or in court.

Specifically, the new Act makes the willful failure to pay wages a Class A or B misdemeanor, depending on the amount of the wages, and makes repeated violations a Class 4 felony. Further, the Act provides for employees to collect interest on unpaid wages at a rate of 2% per month for the entire time the wages are unpaid. Additionally, although the previous law already prohibited retaliation against an employee for exercising his or her rights under the Act, the amendment now provides for an employee’s recovery of costs and attorneys’ fees in a retaliation claim brought in court.

To avoid being on the receiving end of these harsh penalties, all employers should review their wage payment practices to make sure that employees are paid on time and in full, and that terminated employees receive all final compensation due within the time period prescribed by the Act.

To discuss these or other employment laws, contact Laura A. Balson or Margaret A. Gisch.

For many of you in Cook County, the receipt of the 2nd installment 2009 bills after the election came as an unpleasant surprise. The total 2009 taxes due were often higher than the year before despite property values being down.

Real estate taxes have 3 components. The Assessed Valuation, the Tax Rate and the Equalizer. The Equalizer is designed to ensure that there is an equal assessment among all 102 counties in Illinois. For 2009 the Equalizer increased in Cook County by over 13% from 2008. So if your Assessed Valuation did not change and your tax rate did not change, your taxes sill went up by over 13%.

While there is nothing that can be done for 2009 taxes, if you believe that your commercial property is over assessed, it is imperative that you contact us immediately after the Notice of Change in Assessment is received. The time periods for filing objections are very limited. Please contact Liat Meisler (312-696-1360) or Jason Kuether (312-696-1358) for more information.