THURSDAY, NOVEMBER 23, 2023

We're Thank-FULL

This Fall, we are thankful for all our members, corporate sponsors, endorsed partners, and you! Wishing you and yours a happy, healthy Thanksgiving on behalf of the entire IRA team!

Chicago Paid Leave Ordinance Q&A

Many IRA members in Chicago have reached out with questions about the new Paid Leave Ordinance passed by the City Council earlier this month that goes into effect on January 1, 2024. To answer some of these questions, the law firm of Hinshaw & Culbertson has prepared the attached Q&A to provide information Chicago restaurant operators need to know.

In the near future we will be providing more guides and resources to ensure our members have the information necessary to comply with the law when it goes into effect on January 1^st.

Click here to read the Q&A. 

Medicaid Coverage Update

During the COVID-19 pandemic, Congress acted to ensure Americans did not lose access to critical health care by preventing states from terminating a person’s Medicaid coverage. After a 3-year pause, states are starting to renew people’s Medicaid coverage. This means that over the next year, everyone with Medicaid coverage will need to renew it. If an individual is no longer eligible for Medicaid or CHIP, they can transition to another form of health coverage, such as the Affordable Care Act (ACA) Marketplace or employer-sponsored coverage.

Click here to read a letter from Secretary Becerra to Governors on Medicaid renewals

Click here for a "Call to Action" for partners on Medicaid renewals

Click here for a fact sheet on Medicaid renewals

#GivingTuesday

On Tuesday, November 28, the IRA Educational Foundation is joining a national day of generosity for Giving Tuesday. It's a day when you can make a big impact on IRAEF, which works year-round to develop the best and brightest high school talent into tomorrow's industry leaders through the ProStart Program.

Support the future of hospitality by donating to the IRAEF Scholarship Program. Click here to contribute today! Contact IRAEF Executive Director Jessica Blomquist for more ways to be engaged.

Transportation Benefits Program Act

Effective January 1, 2024, a new Illinois law called the Transportation Benefits Program (TBP) requires employers with 50 or employees in designated transit zones to provide transit benefits to their covered employees.

Employers subject to the law must give covered employees the ability to purchase transit passes (such as bus and train passes) through pre-tax payroll deductions for commuting to and from work. The pre-tax commuter benefit allows transit costs to be excluded from the employee’s taxable wages and compensation up to the maximum amount permitted by the federal tax law (26 U.S.C. 132(f)). A covered employer may comply with this Act by participating in a program offered by the Chicago Transit Authority or the Regional Transportation Authority.

Employers affected: The TBP defines a “covered employer” as an employer that employs 50 or more covered employees in a specified geographical area at an address that is located within one mile of fixed-route transit service location. The Regional Transportation Authority will make a publicly available searchable map of addresses that are located within one mile of a transit service location. The geographic area includes all of Cook County and numerous townships in surrounding counties. See full list below.

Covered Employees: Covered employees must be offered this new benefit. The law defines a “covered employee” as a person who performs at least 35 hours of work per week for compensation on a full-time basis. The benefit must become available no later than the first regular pay period after 120 days of employment. However, employers have the option to provide the benefit at an earlier date.

Maximum Amount: Transit costs may be excluded from the employee’s taxable compensation up to the federal law maximum amount. The maximum pre-tax transit amount is published by the Internal Revenue Service (IRS) each year. In 2023, the maximum amount is $300 per month. This number adjusts for inflation each year. The 2024 limit is expected to be published later this year. 

Click here for your account set up guide.

Click here to read the Illinois Transportation Benefits Act (HB2068).

We will keep you updated with further information as it becomes available.

Covered employers are those located within one or more of the following 38 designated Illinois transit zones:

Cook County Paid Leave Ordinance

Beginning on January 1, 2024, a new Illinois law will require all employees receive five days of paid leave per year, but because Cook County already requires employers to offer paid sick leave, it was left out of the statewide bill. To address this, the Cook County Board of Commissioners is considering a new ordinance that aligns the county with the law passed at the state level.

Under the proposed ordinance:

• Employees accrue 1 hour of PTO for every 40 hours worked.
• Paid leave may be taken for any reason of the Employee's choosing.
• Employees are entitled use paid leave after 90 days of employment.
• Paid leave shall be provided in accordance with the Employer's reasonable paid leave policy notification requirements which may include: A) If use of paid leave is foreseeable, the Employer may require the Employee to provide 7 calendar days' notice before the date the leave is to begin. B) If paid leave is not foreseeable, the Employee shall provide such notice as soon as is practicable after the Employee is aware of the necessity of the leave.
• Employers that provide the minimum number of hours of paid leave to an Employee on the first day of employment or the first day of the 12-month period (referred to as "frontloading") are not required to carry over paid leave.
• Unused paid leave that is earned on an accrual basis throughout the 12-month period (instead of frontloading), shall be carried over to the next 12-month period, provided that nothing shall be construed to require an Employer to provide more than 40 hours of paid leave for an Employee in the 12-month period unless the Employer agrees to do so.
• Employees are not entitled to payout of unused paid leave days at the end of their employment.
• County employers that provide at least 40 hours of leave may still need to revise their policies to ensure compliance with the rollover, notice, and other "non-leave" provisions of the new ordinance. 
• Retains a private right of action, which is a carryover provision from the County’s Paid Sick Leave Ordinance that is being amended. While the current Paid Sick Leave provides for a private right of action, it does not include administrative remedies. Provides for administrative penalties if an employee seeks to pursue that path, while granting the County Commission on Human Rights investigatory and enforcement powers.

Stay tuned for updates.

Click here to read the ordinance.

"Junk Fee" Rule

In his March 2023 State of the Union, President Biden said the “FTC is proposing a rule that…Would ban businesses from charging hidden and misleading fees and require them to show the full price up front.” He added the rule will apply to “event tickets, hotels and lodging, apartment rentals, car rentals, and more.” Restaurants were not mentioned by the FTC or any federal policymaker in the lead up to the November rule, but service fees could be caught up within this popular, broad “junk fee” rule. We are looking for restaurants to provide comments on this new rule that can be used to fight against it. If you would like to participate, please click here.

$25 Million Available in B2B Grants for New Businesses

The Governor and the Illinois Department of Commerce and Economic Opportunity (DCEO) today announced $25 million in available grant funding through the Back to Business (B2B) NewBiz program. The latest American Rescue Plan Act (ARPA)-funded opportunity is designed to provide additional support for businesses in hard-hit sectors who launched during the pandemic. Businesses that launched in 2020 or 2021 and remain in operation have faced significant impacts during the pandemic, but they have not been eligible for other federal or state relief programming since they were not operational prior to the pandemic. Applicants are encouraged to click here to learn more and apply.

NLRB deals a heavy blow to restaurants with Joint Employer Final Rule

The National Labor Relations Board (NLRB) issued a final rule redefining what constitutes joint employer status under the National Labor Relations Act. This change dramatically increases liability risks for restaurant operators and could have a crippling impact on both independent and franchise restaurant operators.

Along with the National Restaurant Association, we strongly oppose the definition of joint employer outlined in this final rule. The final rule, which will go into effect Dec. 26, 2023, adopts broader circumstances in which an entity can be considered a joint employer and expands the scope of “essential terms and conditions of employment.” Additionally, joint employer status can now be established if one entity exercises “indirect” control over the essential terms and conditions of a second entity’s employees, even if that ability is “reserved” and never exercised. 

The National Restaurant Association will work to help operators, franchisors and franchisees understand their responsibilities under the final rule and are considering all options available to restore a workable standard, including litigation, congressional oversight and legislation.

Job Shadow Day 2024

Become a 2024 High School Job Shadow Day Workplace Host on Thur. Feb 1, 2024! Click here to complete the volunteer form.

Save The Date and join us: Illinois Prostart Student Culinary & Management Competition, Sat. March 2, 2024 at Sysco Chicago; 250 Wieboldt Drive; Des Plaines, IL, 60016-3192. For more info or to volunteer, please contact Jessica Blomquist or click here.

IRA New Member Spotlight

The IRA would like to thank existing members and welcome the following new members: Un Amor

For more information about the benefits of becoming an IRA member, contact Christine DeSousa.

IRA Resources

November 27, 29: Sanitation Manager Certification Class