In 2017, more than 200 new laws are set to take effect in Illinois, many of them aimed at improving the quality of life for workers across the state and aid in their upward mobility in a rapidly changing economy. However, one law slated to take effect early this year has been pushed back to 2018 to allow businesses to prepare and adapt to its coming implementation.
The Illinois Secure Choice Savings Program (ISCSP) will require companies open for business for at least two years with 25 or more employees to offer employees a retirement plan using Roth IRAs or access to state retirement programs. Workers need to understand the impending law as they will automatically be enrolled in the program and see deductions made unless they specifically opt out of the system.
The ISCSP applies to private sector employees, and the employer must furnish workers with information packets that include various investment options as well as the risks associated with them. Employees must pick an IRA to put deductions in and if they do not, the employer must take 3 percent of the worker’s income and place it into a state-run investment program.
Employers do not have to match any employee contributions and may also set up their own employee-retirement savings programs like a 401(k) or a Savings Incentive Match Plan for Employees (SIMPLE) plan. Employers covered under the ISCSP who do not comply with the law could also face penalties from state regulators, making compliance all the more important.
Employers are expected to comply with and understand the ISCSP and other new business laws coming into effect this year and the years to come. As with other matters of strict liability, employers cannot claim ignorance of the law as an excuse for failing to implement mandates under various provisions.
To help avoid costly civil penalties and time-consuming investigations, businesses should strongly consider speaking to an experienced Illinois employment lawyer for businesses. With over 25 years of experience helping business owner comply with the law, the dedicated attorneys of Goldman & Ehrlich know what it takes to help companies avoid costly mistakes.
For a consultation about your business and how you can keep your employees protected, contact our office. Our Illinois employment lawyers serve clients throughout Chicago, Cook County, Lake County, DuPage County, Will County, Kane County, and McHenry County.