LAW NOTES  

KEY EMPLOYMENT LAW UPDATES: WHAT EMPLOYERS NEED TO KNOW FOR 2025

As workplace laws continue to evolve, it’s essential for employers to stay informed about the latest changes that may impact their businesses and employees. Several key employment law updates have taken affect in 2025, ranging from wage and hour regulations to expanded workplace protections for employees. Understanding these changes can help businesses maintain compliance. This article highlights some employment law updates that employers should be aware of as they navigate the year ahead.

          Pay Transparency Amendment to the Illinois Equal Pay Act of 2003: Most employers with 15 or more employees must include wage or salary details, a general benefits description, and other compensation, such as bonuses, in job postings and retain the postings for at least five years. Employers must also notify current employees of external postings within 14 days. This amendment applies to jobs performed in Illinois or where employees report to Illinois-based supervisors, offices, or worksites. To comply, employers can link to a publicly accessible webpage with the required job details. Those using third-party vendors must provide the necessary information, and vendors can be held liable if postings violate the law.

           Amendments to Illinois Personnel Record Review Act: Employees have long had the right to review their personnel records, but recent amendments clarify the request process and scope of accessible documents. Under the new rules, all requests must be in writing and specify the documents, format, and any additional information required by the amendment. Requests must be directed to a designated individual, such as the person responsible for maintaining personnel records or another contact specified in the employer’s written policy. The amendment also expands the scope of documents employees may request, now including records related to contracts, benefits, and policies or procedures as outlined in the amendment. If the requested documents are already available, the employer may simply provide instructions on how the employee can access them.

          Illinois Wage Payment and Collection Act Amendments: Under the new rules, upon a current or former employee’s request, employers must provide copies of the employee’s pay stubs, including an itemized statement of hours worked, rate of pay, overtime hours and pay, gross wages, deductions, and year-to-date totals. Employers must retain copies of all pay stubs for at least three years.

ILLINOIS LIMITED LIABILITY COMPANY ACT AMENDED TO CLARIFY PERSONAL

LIABILITY OF MEMBERS AND MANAGERS

          Limited liability companies (LLCs) are often chosen for the protection that they offer to members and managers, shielding personal assets from business liabilities. However, this protection only holds if legal requirements are properly followed. A recent amendment to the Illinois LLC Act (“Act”) underscores the importance of adhering to these rules to ensure liability protections remain in place. Effective January 1, 2025, an amendment to the Act provides that a member or manager can be held personally liable for their own wrongful acts, even if they were acting on behalf of the LLC.

One of the main advantages of forming an LLC is the protections it offers to members and managers from personal liability. This means that, in most cases, members’ personal assets—such as their home or savings—are shielded from business debts, lawsuits, and other financial obligations of the company. Many business owners and farming operations choose LLCs for these reasons.

The key takeaway is that Illinois LLCs should take proactive steps to ensure compliance with legal requirements to protect their limited liability status. Failing to follow business formalities can increase legal risks. This amendment emphasizes the importance of holding annual meetings, keeping accurate records, and maintaining separate financial accounts. LLC members and managers may be held personally liable if they fail to maintain proper business practices.

The amendment also clarifies that the Act does not shield members and managers from liability if other areas of law, such as agency, contracts, or torts law, imposes liability and reinforces that courts have the authority to impose liability when justified by law. For example, if an LLC manager commits fraud by laundering money through the company, the manager cannot avoid responsibility for their actions by using the LLC as a shield from liability. The amendment provides that courts can still apply certain remedies, such as piercing the LLC veil, to hold members and managers personally liable if they fail to follow formal LLC requirements. Piercing the corporate veil occurs when a court disregards an LLC’s legal shield and holds a member or manager personally responsible for the company’s debts or wrongdoing.

To preserve the liability protections offered by an LLC, it is essential for members and managers to understand and follow the legal requirements outlined in the Illinois LLC Act. A complete discussion of laws related to LLCs is beyond the scope of this article. For more information on how this amendment may impact your LLC, please consult with an attorney.

NEW FDIC INSURANCE LIMITS FOR TRUST ACCOUNTS EXPLAINED

          As of April 1, 2024, the Federal Deposit Insurance Corporation (FDIC) now limits trust account coverage up to $250,000 for each beneficiary per account owner per FDIC insured bank. If you have a trust account at a bank, you need to be aware of this important change to FDIC insurance coverage.

The new rule affects revocable trusts, irrevocable trusts, and “Payable on Death” (POD) or “In trust for” (ITF) accounts. The coverage change applies to both existing and new trust accounts. All deposit products, including “Certificates of Deposit” (CDs), regardless of when the products were purchased or their maturity dates, are also affected by the change.

           Under the new rule, a trust owner can have up to five eligible beneficiaries, with each beneficiary’s share insured up to $250,000. For example, a single trust owner who names two eligible beneficiaries may have up to $500,000 insured ($250,000 per beneficiary). If a trust has two owners and two eligible beneficiaries, the owners’ accounts are combined, allowing for up to $1 million in coverage ($250,000 per beneficiary per owner). However, if a trust has one owner and has more than five beneficiaries, the total coverage remains capped at $1.25 million, even if the account balance is higher.

          Bank mergers happen frequently, and account structures may change as a result. To ensure trust accounts and deposits remain fully insured, it’s important to stay informed about the new FDIC limits and review coverage regularly. If you have questions about how these changes affect your accounts, please consult with an attorney.

OFFICE NEWS

Attorney Ralph Elliott and his wife, Mary, are  proud to announce the birth of their grandson, Lucas Edward Elliott, on November 26, 2024. Lucas’s parents, Brian and Liz Elliott, and older brother, David James Elliott, are enjoying the great addition to their family.

In December, Attorney Weller was elected Illinois Farm Bureau Young Leader Committee Secretary during the Illinois Farm Bureau Annual Meeting. She is excited to serve in her new role!

Attorney Endress attended the 2024 Northwest Illinois Agriculture Industry Expo at Highland Community College in early December, where she shared about her career with local high school and college students. 

During January, Attorney Weller traveled to San Antonio, Texas for the American Farm Bureau Federation Annual Meeting on behalf of the Illinois Farm Bureau Young Leader Committee to support the Illinois agriculture industry. 

Attorneys Trainor and Endress had the opportunity to present a seminar on business organizations at the Greater Freeport Partnership Basecamp Series in February. If you would like us to conduct a seminar about a legal practice area, please contact us at (815) 233-1022. 

            In February, Attorney Weller assisted with organizing and hosting the Illinois Farm Bureau Young Leader Conference, which provides educational and networking  opportunities for 18-35 year-old Illinois agriculturists.

           Recently, Attorney Trainor joined the YMCA Board of Directors and is honored to be part of an organization that has played a vital role in the community. 

           Attorney Endress joined the United Way of Northwest Illinois Board of Directors in March. She is eager to serve in this new role.

           Attorney Trainor was selected as a co-chair of the first annual Gatsby Gala, hosted by the Foundation for Northwest Illinois. The event took place on March 22nd and raised money for the Jane Addams Legacy Fund, which supports women and girls in Northwest Illinois. 

           Please visit our website for past Newsletters and additional information about our firm at

https://www.etwlawyers.com/.