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Recent Blog Posts
Off-Duty Marijuana Use Not Grounds to Deny Unemployment Benefits
As a business owner, you have the right to create workplace policies that encourage a safe and productive work environment. For many employers, this means a complete ban on alcohol and controlled substances on the job. The use of drugs or alcohol while working can be extremely dangerous, and, in a large number of companies, grounds for severe discipline up to and including termination. Recreational use away from the workplace, however, is a different story, at least according to a recent Illinois appellate court decision.
Marijuana While on Vacation
The lawsuit before the appeals court was based on the denial of unemployment benefits to man who verbally acknowledged the use of marijuana on personal time. His case, Eastham vs. Housing Authority of Jefferson County, claimed that he was wrongfully denied unemployment compensation, as his marijuana use did not violate his employer’s drug-free workplace policy.
Employee Handbooks and At-Will Employment
As a business owner, staffing your company properly is one of the keys to success. Your employees not only help you provide goods or services to your customers, they are also a representation of your company, both on and off the clock. To ensure that employees are living up to the expected standards, many employers will draft an employee handbook which addresses a staff member’s rights and responsibilities. As you develop a handbook, however, there some things you should keep in mind that can help you protect your company.
Illinois At-Will Employment
In Illinois, as in just about every state, employment relationships are presumed to be “at-will,” meaning that either party may end the relationship at any time and for any reason, other than those prohibited by law, or no reason. Of course, there may economic or reputation-related consequences that result from terminating employment unfairly, but, with certain exceptions, there is no legal liability incurred.
Thousands Swarm McDonald’s Headquarters over Wages
Earlier this week, protesters from as far as New York City descended upon the Oak Brook headquarters of McDonald’s pushing for increases in the wages for front-line workers. This protest is the latest in an ongoing push among fast-food workers toward raising the minimum wage and the quality of life for employees in the nation’s restaurants.
According to reports, organizers were expecting a turnout of more than 5,000 participants, many of whom currently work for the fast-food giant. Oak Brook police estimated that about 2,000 people participated in Wednesday’s demonstration that was held one day before the company’s annual shareholder meeting. A similar protest was held last year about the same time, which led to the arrest of more than 135 people for trespassing.
Ban the Box Law Now Effective in Illinois
People sometimes make mistakes and bad decisions. For some, the impact of those bad decisions can last for many years, especially when such decisions are related to illegal activity. A criminal history, especially one with certain types of charges or convictions, can be difficult to overcome, even if the individual has successfully committed to a new, positive lifestyle. A new law in Illinois, known as a “Ban the Box law,” however, may offer job-seekers some assistance in this area, possibly making it easier to find employment and improve their lives.
Signed into law in July of 2014, and taking effect at the beginning of this year, the state’s Ban the Box measure is officially titled the Job Opportunities for Qualified Applicants Act. The colloquial name “Ban the Box” refers to requirements based on legislation of this type to remove of a “box” from employment applications asking whether the applicant has ever been convicted of a crime. Lawmakers and proponents of such laws have indicated that banning the box can reduce the likelihood that an applicant will be immediately removed from consideration for a job based on a criminal history without first considering other qualifications.
Future Uncertain for Illinois Minimum Wage Increase
In recent months, lawmakers in Illinois have begun a serious push for raising the state’s minimum wage by nearly three dollars over the next two years. As one of 29 states with a minimum wage above the $7.25 per hour required by federal law, the minimum wage in the state is $8.25 per hour. With public pressure mounting, however, members of the Illinois legislature have proposed plans which would increase minimum wage to $11.00 per hour by July 1, 2017.
Illinois residents also had the opportunity in November to express their opinion on Election Day by means of an advisory question on the general election ballot. The advisory measure was approved by a margin of more than two to one, with nearly 64% of voters expressing their support of raising the minimum wage to $10.00 per hour in 2015.
Overtime, Productivity, and the 40-Hour Work Week
When most people think about the requirements of a full-time job, they typically envision the average eight hour day and a resulting 40-hour week. Recent economic trends, however, are quickly proving that image to be no longer true. In fact, a recent Gallup study suggests that half of all full-time workers in the United States work more than 40 hours per week, and almost 40 percent work 50 hours or more. While expectations for longer work days and weeks are becoming increasingly common in many jobs, there are indications that putting in all the overtime may not actually be worth it.
In 1926, Henry Ford was the first prominent American business owner to experiment with a new expectation for his employees. After years of research within his company and against the recommendations of his contemporaries, Ford made the drastic decision to increase his workers’ wages while reducing the length of a standard work day to eight hours. The years that followed for the Ford Motor Company were among the most successful of any company in the country’s history, and unsurprisingly, other business owners took notice, making similar changes within their own organizations.
Independent Contractors or Employees?
For a small business owner, one of the most important decisions he or she must make is how to acquire the help needed to run the company. An owner must choose between hiring employees, utilizing independent contractors, or some combination of both. It is very important to understand the difference between employees and independent contractors, as each classification carries with it different requirements and responsibilities.
According to labor and tax regulations, there is no single standard for determining employee or contractor status. There are, however, a number of factors which, when weighed together, may offer some clarification to an individual’s classification. The Internal Revenue Service (IRS) has divided the relevant considerations into three basic categories:
Protecting Your Business from Wrongful Termination Action
Like many states, Illinois is an “at-will” employment state. In simple terms, at-will means that, unless there is a specific agreement in place, employment may be terminated by either the employer or employee at any time, without advance notice, and for almost any reason or no reason at all. Employment contracts, employee handbooks, and verbal promises may create exceptions to an at-will arrangement, and situations may still arise in which an employee was wrongfully terminated.
According to Illinois law, it is illegal to fire an employee on the basis of certain protected characteristics. Among others, such characteristics include race, religion, gender, nationality, and disability. In order to be considered a wrongful termination, however, the employee must be completely terminated from the company. Demotions or pay decreases based on illegal discrimination are not considered under Illinois labor laws. Instead, such cases may be investigated by the Illinois Department of Human Rights.
Tips for Avoiding Employee Lawsuits
A business owner never hires an employee expecting to be sued. Employment agreements are based on trust that both the employer and employee will act in accordance with the best interest of the company while adhering to all applicable laws. Over time, however, even the best employment-based relationships can break down, and in an ever-increasingly litigious environment, it is all too common for a disgruntled worker to file a lawsuit against the business owner.
Of course, many such lawsuits may be groundless to the point of frivolity, but they still require time, attention, and money to defend. While there may be no way to prevent frivolous litigation, there are some things a business owner can do to make sure neither employees nor the government have legitimate grounds upon which to file suit.
Are My Employees Exempt or Nonexempt?
While many employees may not realize its impact, the Fair Labor Standards Act (FLSA) applies to most jobs in America, mandating employers to act in accordance with the law’s requirements for both minimum wage and overtime pay. A very small percentage of jobs fall completely outside the purview of the FLSA and those under within its scope are divided into two classifications: exempt and nonexempt. It is extremely important for employers to know the difference so as to remain in compliance with the law.
Nonexempt
In most companies, the average worker is “nonexempt” meaning the FLSA standards generally apply to that individual. The employee must be paid at least the federal minimum wage for every hour he works and at least time and a half as overtime pay for any hours above 40 per workweek. Nonexempt employees typically comprise most of a company’s workforce and include general laborers, clerks, production or line workers, customer service representatives, and “inside” sales staff.
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