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What Are the Top Business Structures for Your Small Business?
Illinois is home to a vibrant business community across industries, from restaurants to construction and everything in between. For entrepreneurs wishing to start their own business venture, a key early decision is the choice of corporate structure. A company’s corporate structure affects many aspects of its business, including the owners’ liability and taxation matters. That is why, before choosing a corporate structure, business owners should think about the advantages and disadvantages of each kind. An experienced Schaumburg, IL business formation attorney advises businesses on the right corporate structure for their venture.
Corporate structures are not one size fits all, and the right structure will depend on your goals for the company. Here are the top business structures for your small business:
How Should I Respond to a Claim of Age Discrimination?
In the state of Illinois, employees are protected on two levels from age discrimination in the workplace. Under the Illinois Human Rights Act, both public and private employers may not take adverse employment actions against an employee because they are age 40 or older and may not discriminate against job applicants based on age.
The Age Discrimination in Employment Act of 1967 is a federal employment law that protects employees across the U.S. from discrimination on the basis of age in the terms, conditions, or privileges of employment, as well as compensation, discharge, promotion, and hiring decisions. The federal law applies to employers with 20 or more employees.
Both Acts provide similar protections by prohibiting employers from harassing, discriminating, or taking adverse employment action against an applicant for a job or a current employee based on their age. The ADEA also protects workers from having certain benefits denied because of their age. The Older Workers Benefit Protection Act amended the ADEA so that employers may not deny work-related benefits to any employee over the age of 39.
What Are a Business’s Pregnancy and Maternity Obligations?
Certain federal and state laws regulate employer obligations to pregnant workers and their maternity leave. To ensure that your business does not open itself up to legal risks and to prevent reputational damages, it is important to be aware of and comply with the relevant rules and regulations surrounding pregnancy discrimination and maternity leave.
An experienced Schaumburg, IL employment law attorney can assist your business in setting up processes to ensure compliance with laws against pregnancy discrimination.
Family Medical Leave Act (FMLA)
Businesses employing 50 or more employees are subject to the Family Medical Leave Act (FMLA). Such businesses must provide up to 12 weeks of unpaid leave to employees for the birth and care of a newborn.
Pregnant Workers Fairness Act (PWFA)
Employers with 15 or more employees are required by the Pregnant Workers Fairness Act (PWFA) to provide pregnant workers with reasonable accommodations related to their pregnancy or childbirth. A reasonable accommodation under the PWFA is a change to the work environment to accommodate the special needs of the employee who is pregnant, such as additional breaks to use the restroom or the possibility of working remotely.
What To Know About Employee Wage and Hour Claims
Employers who face employee allegations that they have not properly paid wages have reason to be wary. These wage and hour claims can have financial consequences in the form of litigation or settlement costs, as well as an impact on a company's reputation and ability to hire and retain employees. For this reason, it is important to understand the types of claims that an employee can bring, as well as recommended actions to take to minimize the risk of litigation. A Schaumberg, IL attorney employment attorney can protect employers from wage and hour claims.
What Are Wage and Hour Claims?
Whether referred to as non-payment of wages claims, wage theft, or wage-and-hour claims, these types of claims allege that an employee violated employment laws related to the payment of wages or benefits owed to an employee. These can arise under the federal Fair Labor Standards Act (FLSA), the Illinois Wage Payment and Collection Act, and other federal and state laws.
Defending Against Employee Class Action Lawsuits
In an employee class action lawsuit, one or more employees file a lawsuit on behalf of a "class" of employees alleging that certain employer's violations of the law harmed all members of the class. Class action lawsuits often seek significant monetary damages, have a high tendency to end in a financial settlement, and can have a high profile and cause reputational damage. That is why employers who face the threat of a class action lawsuit should consult with an attorney experienced in defending employee class action lawsuits in Illinois.
Common Employer Class Action Lawsuits
These are a few common types of employee class action lawsuits and what they claim. Wage and hour lawsuits allege violations of wage and hour practices under Illinois law and federal law such as the Fair Labor Standards Act (FLSA). Discrimination lawsuits allege that an employer discriminated against employees on the basis of religion, sex, or another protected status. A claim for benefits violation accuses the employer of violating employees' legal rights to benefits, usually under federal law. Employee misclassification claims allege that the employer systematically misclassified employees, for example labelling employees as independent contractors.
Avoiding Common Employer Overtime Mistakes
Illinois employers are legally required to pay employees time and one-half the regular rate of pay for any hours worked over 40 hours per week. There are exemptions to who must be paid overtime, depending on the employee's classification under the federal Fair Labor Standards Act (FLSA). Considering the complex legal framework governing overtime pay laws, an experienced Illinois employer-side employment attorney can advise employers on the common overtime mistakes employers make, and how to avoid them.
Failing to Comply with State Laws
Illinois has its own minimum wage and overtime laws. Employers should ensure that they comply with the most stringent legal requirements, whether that is Illinois or federal law. For example, Illinois minimum wage is higher than the federal minimum wage, and consequently employers will have to pay higher overtime to workers making minimum wage in Illinois.
What Is the Difference Between Exempt and Non-Exempt Employees?
Employers are required to comply with the Fair Labor Standards Act (FLSA), a set of federal employment laws on issues like overtime pay and minimum wage. Companies in Illinois must also comply with state laws such as the Illinois Minimum Wage Law and the Wage Payment and Collection Act. However, not all employees are covered by these rules. Some salaried workers are exempt from such requirements, while others are not exempt and are entitled to overtime pay and minimum wages.
This article will discuss the differences between exempt and non-exempt salaried employees. Make sure to consult an Illinois employment lawyer for more details or for help defending your business against claims of employment law violations.
Exempt Employees Have Minimum Salary Thresholds
Exempt employees are paid set salaries regardless of the amount of hours they work. In most cases, employees who make at least $844 per week, which comes out to $43,88 a year, are considered exempt. In January 2025, this figure will change to $1,128 a week or $58,656 annually. Those who work in the film industry must collect a minimum of $1,043 per week to qualify as exempt workers.
Collecting Employee Biometric Data Without Consent
Biometric scanners have proven to be efficient tools in the workplace. More businesses are starting to collect biometric data from employees for purposes such as payroll, entry, and security. These data sometimes include fingerprints, palm prints, iris or retina scans, and facial recognition. Fingerprint scanners, for example, have replaced time cards in many companies. This not only offers more efficiency but also reduces wage theft. Biometric information is often stored by the company for employee verification.
The Illinois Biometric Information Privacy Act (BIPA) requires employers to first obtain an employee's consent before collecting his or her biometric data. Failing to do so can invite class action lawsuits against a company. This article will discuss what happens if permission is not obtained and how to contact an Illinois employment law attorney to protect your business.
3 Challenges When Hiring Remote Workers
Working from home used to be considered a luxury, but it has started to become mainstream since the COVID-19 pandemic. According to some estimates, approximately 32.6 million Americans will be working remotely by next year, totaling about 22 percent of the national workforce. Sixteen percent of companies and 20 percent of workers already operate fully remotely.
There are benefits to allowing employees to work remotely, not the least of which is access to a larger worker pool. However, there are also significant challenges that a business should consider when allowing employees to work from home, such as how to track overtime. This article will discuss three of those challenges, as well as how to contact the right Illinois employment lawyer to guide you through them.
Overtime
Both federal and Illinois state laws require businesses to pay their employees overtime pay. On the federal level, the Fair Labor Standards Act says that employers must pay workers at least 1.5 times their regular pay for every hour worked overtime, which is defined as more than 40 hours per week. Illinois state law has the same requirement.
Illinois Employer's Burden of Proof for Workplace Bullying
Bullying is not something that only happens to children. Bullying behavior occurs in the adult workplace at an alarming rate, with an estimated 48.6 million Americans admitting to being bullied at work. While we might think virtual workers are immune from bullying, a staggering 43.2 percent of virtual workers say they have been bullied in virtual meetings and through emails. Women bully other women at twice the rate that women bully men.
Although the employee claiming bullying in the workplace must prove that the bullying behavior is pervasive and creates a hostile workplace, Illinois employers also have a burden of proof to show they immediately handled the situation once it was reported. In Illinois, if an employee can show they have legal cause to sue their employer for matters involving discrimination, the employer will need to prove they are not violating the FLSA. Bullying falls under a hostile work environment or harassment in the workplace and is a form of discrimination.
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