12-7-15; IL WC Reforms Appear to be Dropped and Some Good Pro-Business Legislation Enacted; IL WC Commission Adds "Net" One New Arb.; EEOC May Get Hit with $4.7M Attorney Fee Award by SCOTUS and...
/Synopsis:Illinois Workers’ Comp/Tort Reforms Appear to be Dropped—Instead We Report Other Pro-Business Changes for Illinois State Government.
Editor’s comment: Gov. Rauner and four legislative leaders from both sides held public and then secret/private public talks last Tuesday, Dec. 1 in Springfield as we reported a couple of weeks back. The Illinois House was in session Wednesday, Dec. 2. Things of importance to our Illinois readers are happening in Springfield.
IL WC and Tort Reforms Appear to be Dropped
The Illinois Policy Institute news service reported Governor Rauner dropped the WC and tort reforms, preferring to narrow his agenda to three other make-or-break legislative concepts he asserts are not “extreme.” The controversy about the term “extreme” is in response to IL House Speaker Madigan claiming the Governor’s “turnaround” approach was radical or extreme. During the much-anticipated meetings last week to discuss the IL State budget impasse now in its sixth month between Republican Governor Bruce Rauner and the four legislative leaders, Rauner said he’s willing to raise IL income taxes from the current 3.75% to perhaps 5% but he now only wants these three legislative reforms:
· Redistricting reform for IL political maps
· Term limits on elected officials and
· A property tax freeze with local cost controls.
One has to wonder when the 800lb. gorilla—our nutty state government defunded fake pensions with their multi-billion dollar debt problem will hit the bargaining table. That said, several items Rauner previously pushed for that didn’t get aired at all were legislative reforms to tort law and workers’ compensation. IL WC leaders now assume the proposed work comp and tort reforms have fallen to the wayside. As we have reported, we don’t feel the WC reforms, as outlined were needed and we feel the new IL WC Commission administrators are going to continue to quietly “reform” things and cut WC costs without any legislative changes. Watch this space for continuing news on WC cost-cutting and what we call “progress-to-the-middle” of U.S. workers’ comp costs. The national WC insurance premium ranking report from the State of Oregon is due in less than a year.
Data Security Rules/Legislation for Illinois Businesses
HB 1260, legislation on data security requirements for all IL businesses and governments overwhelmingly passed the IL House. This new law updates Illinois' data breach statutes by:
· Requiring data collectors to implement reasonable security measures, and
· Covering additional data elements that create risk to an individual if obtained by unauthorized hackers.
This important legislation for Illinois employers and governments presents a fair and even-handed legislative approach which protects individuals from breaches where they face risk of harm, identity theft, or fraud. HB 1260, as amended, is very similar to Governor Rauner's amendatory language of SB 1833. The only difference is the elimination of a section which required data owners to give “breach notification” to the Illinois Attorney General.
Unemployment Insurance
The House approved Senate Amendment #2 to HB 1285, which is an “agreed bill” between both sides of the political spectrum on IL unemployment insurance. The entire IL General Assembly voted for the bill. Illinois Gov. Bruce Rauner signed this legislation aimed at lowering the cost of unemployment insurance for all IL businesses. The bill was a compromise between business groups and labor unions. It tightens the definition of "misconduct" used to disqualify laid-off workers from receiving unemployment benefits. Under current law misconduct must be shown to be "willful and deliberate."
The new law would deny benefits in additional cases, such as if someone provides false information on an employment application or damages an employer's property through gross negligence or intentional acts. The measure also eliminates a "Social Security offset," a reduction in unemployment benefits for people in Illinois who receive Social Security. Most of the new legislation takes effect immediately. Some provisions take effect Jan. 3. If you need details, send a reply.
Property Tax Freeze Bill
Another property tax freeze bill was called on the House floor. One of many versions was finally enacted—we will call this a win for Governor Rauner’s camp.
IL State Budget Negotiations
The four legislative leaders met Tuesday with Gov. Bruce Rauner to discuss the budget. The first part of the meeting was public, with the Governor and the four legislative leaders giving their spins on what they want for the media and voters. The confab then moved into a private or secret gathering, which is how business is conducted in Springfield. Sen. Pres. John Cullerton later told reporters the group planned to hold more meetings and there was a good conversation on workers' compensation, which Senate President Cullerton labeled "a fruitful area of compromise." The major changes proposed by Governor Rauner will address causation, “traveling employee” and another cut in the IL WC Medical Fee Schedule that is a sore point for doctors, hospitals and other care givers. There is no way to know what the tug and pull on negotiations might be. As we have told our readers many times, we don’t see the WC legislative changes to be major and the first two concepts are still going to require reasonable hearing officers to implement, and not ignore, them. The House approved SB 2039 as amended, which is the new version of HB 4035 which contained pass-through funds for such things as local road districts, 911 services, lottery prizes, gaming revenues to local governments and various veteran and human services grants. This version also includes GRF monies of $18 million for domestic violence services and $10 million for the Secretary of State's office. The vote on the $1.9 billion in funding was 107-1-1. This bill now goes to the IL Senate and was expected to pass.
Will Gov. Rauner Fund the 2016 IL Senate Elections to Further His Influence?
Observers on all sides note there are a lot of IL Senate seats up for grabs in the fall 2016 Statewide Elections. It might be possible for our Governor to gain control of the Senate with careful use of campaign donations from both from himself and other wealthy supporters. If he gains control of the General Assembly or even one house, he can much more easily reform IL government in his image and likeness. It has been 32 years since the Republican party had control of both sides of the General Assembly and Governor’s mansion. Continue to watch this space for IL election news that we feel important to our readers, IL businesses and local governments across the state.
We will keep watching Springfield to see what happens next in the legislative arena. We appreciate your thoughts and comments. Please post them on our award-winning blog.
-------------------------------------------------------
Synopsis: Illinois WC Commission Adds “Net” One New Arbitrator Last Week.
Editor’s comment: We learned of the resignation of former Arbitrator Molly Dearinglast week. She was just reappointed by Governor Rauner in August 2015 so everyone is unsure why she resigned. She was a former Assistant Attorney General and she may be moving back to that post. Whatever she chooses, we wish her the best in her future endeavors.
We then learned of the addition of two new IL WC Arbitrators, creating a net addition of one new Arbitrator. We didn’t actually know they were hiring and hope someday both sides stop the secret hiring process.
Either way, Governor Rauner appointed Paul Cellini as an arbitrator for the Illinois Workers’ Compensation Commission. Mr. Cellini was formerly a staff attorney with the IL WC Commission and Traveler’s Insurance. He brings 20 years of experience in workers’ comp law in both the public and private sectors. New Arbitrator Cellini has worked on both sides of the IL WC matrix, representing Petitioners as well as Respondents, handling all aspects of cases: initial interviews, investigation, drafting legal pleadings, depositions of witnesses and physicians, litigation and the drafting of legal briefs. He has the unique perspective of this area of law from not only both sides, but also from a hearing officer's perspective. We expect Arbitrator Cellini to be highly professional and a moderate.
Governor Rauner also appointed Gary Gale as an arbitrator for the Illinois Workers’ Compensation Commission. New Arbitrator Gale has been a workers compensation practitioner for 24 years. He became associated with a noted Chicago-based IL WC defense firm in 2005. Previously he served as the Executive Director of the good ole Illinois Industrial Commission for two and one-half years where his duties included supervision of the Judicial Division. Arbitrator Gale was an Assistant Illinois Attorney General representing state agencies as employers before the Industrial Commission. Mr. Gale has tried hundreds of Workers Compensation cases and has extensive knowledge of the Second Injury Fund due to representing the State Treasurer as ex officio custodian of the fund for all cases filed in Northern Illinois under that section of the Workers Compensation Act for two years. It is our expectation Arbitrator Gale will be an expert on the IL WC Act/Rules and a moderate-conservative.
Here is an alphabetical listing of our current IL WC Arbitrators along with their term expiration and their appointment date beginning with the year 2011 appointments. As we have repeatedly told our readers, we consider this group to be reasonable, professional, fair and well-versed in the IL WC Act and Rules Governing Practice.
Arbitrator
Term Expires
Arbitrator Since
George Andros
07/01/2018
10/14/2011
Milton Black
07/01/2017
10/14/2011
Maria Bocanegra
07/01/2018
09/05/2014
Kurt Carlson
07/01/2016
10/14/2011
Brian Cronin
07/01/2016
10/14/2011
Paul Cellini
07/01/2018
12/04/2015
Carolyn Doherty
07/01/2016
10/14/2011
Greg Dollison
07/01/2016
10/14/2011
Anthony Erbacci
07/01/2017
10/14/2011
Robert Falcioni
07/01/2017
10/14/2011
Barbara Flores
07/01/2016
10/14/2011
Stephen Friedman
07/01/2018
09/05/2014
Steven Fruth
07/01/2017
09/05/2014
William Gallagher
07/01/2016
02/01/2012
Gerald Granada
07/01/2018
10/14/2011
Jessica Hegarty
07/01/2018
01/03/2014
Christine Hemenway
07/01/2016
09/14/2015
Jeffrey Huebsch
07/01/2018
09/02/2013
David Kane
07/01/2017
10/14/2011
Edward Lee
07/01/2016
10/14/2011
Nancy Lindsay
07/01/2018
11/07/2011
Molly Mason
07/01/2016
10/14/2011
Douglas McCarthy
07/01/2016
02/07/2012
Michael Nowak
07/01/2017
09/05/2014
Christine Ory
07/01/2018
08/31/2015
Maureen Pulia
07/01/2018
10/14/2011
Melinda Rowe-Sullivan
07/01/2017
08/31/2015
Deborah Simpson
07/01/2016
10/14/2011
Gary Gale
07/01/2018
12/04/2015
Douglas Steffenson
07/01/2018
08/24/2015
Lynette Thompson-Smith
07/01/2017
10/14/2011
Robert Williams
07/01/2016
10/14/2011
We appreciate your thoughts and comments. Please post them on our award-winning blog.
-------------------------------------------------
Synopsis: Will the Tables Be Turned?--U.S. Supreme Court May Whack EEOC With Multi-Million Dollar Attorney Fee Award.
Editor’s comment: The defense team at KCB&A fights employment law claim after claim for our business clients. If you haven’t read our articles, we strongly recommend all HR/Safety and other managers document, document and document to protect your company from this rabid federal agency. Perhaps one of the worst things that can happy to your company or any U.S. employer is to have the EEOC with their seemingly infinite legal budget, sue you and then force you to settle or spend zillions beating back their efforts to break your company for what sometimes might be an imagined slight.
Now, the tables may have turned against this agency. SCOTUS will consider whether the Equal Employment Opportunity Commission is obligated to pay $4.7 million in attorneys' fees that a trucking firm amassed while battling them in a sexual discrimination claim that was ultimately settled for only $50,000. The EEOC filed suit against Cedar Rapids, Iowa-based CRST Van Expedited Inc. in 2007 alleging the employer subjected 270 women in its training program to a hostile work environment in violation of Title VII of the Civil Rights Act of 1967.
In 2012, a divided three-judge panel of the 8th U.S. Circuit Court of Appeals in St. Louis essentially upheld a ruling by a U.S. District Court in Cedar Rapids, Iowa, dismissing the EEOC's suit, which also alleged inappropriate propositioning, physical assault and attacks on female workers. It appears many of the assertions were unfounded.
The 8th Circuit Court of Appeals partially affirmed the lower court's dismissal of the case, but reversed the lower court's grant of summary judgment against two Plaintiffs and remanded the case for further proceedings. The EEOC subsequently withdrew its claim on behalf of one Plaintiff and the other case was settled for $50,000. That means a class of 269 folks had their claims dropped.
The federal District Court also ordered the EEOC to pay $4.7 million in legal fees, in a ruling the 8th Circuit Court of Appeals overturned in December 2014. A three-judge federal appeals court panel unanimously held in that ruling the District Court had “made no particularized findings as to why the EEOC's appeal to this court was frivolous, unreasonable, or without foundation,” as required in order for the agency to be forced to pay attorneys' fees.
CRST filed its petition for certiorari with SCOTUS after the full 8th Circuit refused to reconsider the case. The U.S. Supreme Court accepted the claim for hearing. The question the Supreme Court agreed to consider is whether the dismissal “can form the basis of an attorney's award fee to Defendant.”
One of the problems with the award reported above is you and I will actually pay the attorney fee award from our tax dollars—there is no individual liability against the EEOC’s attorneys. But it is a potential win for U.S. business because it will deplete their budget and possibly drive some sense of fairness and even-handedness into what we feel is an otherwise radical and anti-business agency.
We appreciate your thoughts and comments. Please post them on our award-winning blog.