CATA News

On December 14, 2023, the Cook County Board of Commissioners (“Board”) passed the Cook County Paid Leave Ordinance (the “Ordinance”), which converts the pre-existing Cook County Earned Sick Leave Ordinance into an ordinance requiring general paid leave. Under the previous Earned Sick Leave Ordinance, employers were required to provide 40 hours of earned sick leave per year to all employees in Cook County. Starting on January 1, 2024, the new Paid Leave Ordinance will instead require employers to provide 40 hours of paid leave to be used for any reason.

The new Ordinance is modeled after the Illinois Paid Leve for All Workers Act (PLAWA). Because the Board enacted this change prior to January 1, 2024, however, employers that are covered by this new Ordinance remain covered by this local law only, and not the PLAWA. This article outlines the key provisions of the new Ordinance and provides a side-by side comparison of the differences between the Cook County Ordinance and the PLAWA.

Parallel Provisions

The Ordinance aligns with the PLAWA in the following key respects:

Key Differences

The new Ordinance is distinct from the PLAWA in a few key respects:

Provision	Illinois Paid Leave for All Workers Act	Cook County Paid Leave Ordinance
Covered Employee	All employees other than: Employees as defined in the federal Railroad Unemployment Insurance Act or the Railway Labor Act; Temporary college or university student-employees; Certain short-term employees of an institution of higher learning; Employees working in the construction industry who are covered by a bona fide CBA; and Employees who are covered by a bona fide CBA with an employer that provides services nationally and internationally of delivery, pickup, and transportation of parcels, documents, and freight.	All employees other than: Employees as defined in the federal Railroad Unemployment Insurance Act; Temporary college or university student-employees; Certain short-term employees of an institution of higher learning; and Employees working in the construction industry who are covered by a bona fide CBA.
Denial of Leave	Employers may deny leave requests for operational necessity (per Illinois Department of Labor (IDOL) guidance and proposed regulations)	The Ordinance does not include a provision permitting employers to deny leave requests. We expect that this will be addressed in future rulemaking.
Employer Notice	Post the IDOL-provided notice in a conspicuous place in the workplace. If the workforce has a significant portion of non-English speakers, the notice must be posted in other languages as well. Provide the IDOL-provided notice (and, per the proposed regulations, the company policy) to employees at commencement of employment. Per the proposed regulations: Post a statement, written by the employer, summarizing the employer’s written policy and how an employee can obtain a copy of the policy. The statement must be provided in English and any other language commonly spoken in the workplace. Report employee’s paid leave accrual and remaining balance on each paystub and provide these records to the employee upon request. Alternatively, employers may report the accrual and balance on the form that the employer normally uses to notify the employee of wage payments and deductions from wages. Give written notice informing each employee of how many paid leave hours the employee is receiving on or before the first day of employment or on or before the first day of the 12–month period. The 12-month period may be any consecutive 12-month period designated by the employer in writing at the time of hire.	Post the Cook County Commission on Human Rights-provided notice in a conspicuous place at each facility in the County. If the workforce has a significant portion of non-English speakers, the notice must be posted in other languages as well. Provide the above notice to employees at commencement of employment.
Civil Damages	Employee may recover: actual underpayment, compensatory damages, attorney’s fees, reasonable expert witness fees, and other costs of the action.	Employee may recover: three (3) times the full amount of unpaid leave denied or lost, interest calculated at the prevailing rate, and reasonable attorney’s fees.

Next Steps

The new Cook County Ordinance adds a new layer of complexity to Illinois’ ever-changing paid leave landscape, with little over two weeks left in the calendar year before these changes will take effect. The Cook County Commission on Human Rights (“Commission”) – the agency tasked with enforcement of this new Ordinance – is expected to engage in formal rulemaking over the coming months. Employers should monitor the Commission’s website, which has already been updated to reflect the change, for updated notices and informal guidance before January 1.

Contact your HR and employment law partner if you have any questions. For assistance, contact us at 423-764-4127 or by email at sesco@sescomgt.com.

The maximum amount that Illinois dealers can charge in 2024 for documentary preparation fees is $358.03, the Illinois attorney general’s office announced Dec. 12.

The new maximum is a $10.77 increase over the 2023 maximum fee. As always, the DOC fee is taxable and must be substantiated upon request by the attorney general’s office.

The CATA is developing a poster about the DOC fee that dealer members can display. On the poster, the DOC fee amount is left blank for dealers to fill in; any amount up to the maximum allowed may be charged, but all customers should be charged the same amount. Systematically charging one group but not another — all males but no females, for instance — could bring charges of profiling.

Two copies of the poster will be mailed to dealers later this month. For limited additional copies, call the CATA at (630) 495-2282.

IMPORTANT: The new maximum fee cannot be charged before Jan. 1.

As 2024 draws near, now is an excellent time to review your dealership’s tax planning strategies. This guide outlines various potential tax-saving opportunities and year-end tasks. Click to download the checklist from CATA Accountant MichaelSilver: PDF | Word.

CATA Members can now order discounted tickets for the 2024 Chicago Auto Show, which opens Feb. 10 and runs through Feb. 19. Any Day Tickets are sold in blocks of 100 for $7 each. Members can also purchase $5 weekday discount coupons for $1 each, again sold in blocks of 100.

Click here to download the order form. If you have questions, please contact Donna Young at dyoung@drivechicgo.com.

First Look for Charity stands as one of Chicago’s finest fundraisers, regularly generating nearly $3 million annually for 18 area nonprofits. Held at McCormick Place the evening before the Chicago Auto Show opens, the benevolent event is anticipated by socialites and car buffs alike. Guests are treated to champagne, wine, soft drinks, elegant hors d’oeuvres, and desserts all while being the first to explore the annual edition of the nation’s largest auto show. Additionally, gala attendees have the chance to win a brand-new Chevrolet Blazer.

For the first time, we now have an opportunity for businesses to show your support as a sponsor at various levels starting at $7,500. Involvement with First Look for Charity puts your company and brand in front of an affluent group of Chicago leaders, business owners, and influencers. To maintain the exclusive nature of the event, sponsorship availability is limited and on a first-come, first-served basis. Contact Jim OBrill, Marketing Director, Chicago Auto Show at jobrill@drivechicago.com or 630-424-6085 for more details.

Enacted in 2008, the Illinois Biometric Information Privacy Act (“BIPA”), went largely unnoticed until a few years ago when a handful of cases sparked a flood of class action litigation over the collection, use, storage, and disclosure of biometric information.

What is BIPA?

BIPA’s purpose is to protect individuals' privacy rights in their biometric information, including retina or iris scans, fingerprint, voiceprint, hand scans, facial geometry, DNA and other unique, identifying biological information.

Employers may collect and store this information only if they:

Employers may not disclose this information to third parties without the individual's written consent.

A wave of lawsuits followed BIPA's passage. Most were brought by former or current employees whose employers used fingerprints or handprints for timekeeping. For instance, a jury in the first ever BIPA trial (October 2022) found that defendant BNSF Railway Company recklessly or intentionally violated BIPA 45,600 times (once per class member) when it required drivers to register and provide fingerprints each time they used an automated gate system to enter the railyard. The verdict resulted in a $228 million award for the plaintiffs.

Two recent rulings by the Illinois Supreme Court have increased BIPA exposure. First, the Court found a five-year statute of limitations period applies to BIPA claims, rather than a one-year period. Second, the Court found a BIPA claim accrues each time an entity scans or transmits an individual's biometric identifier or information, instead of a single violation when biometric information is first collected.

What Employers Should Do to Limit Liability?

Before employers obtain any biometric data, we recommend they have all employees provide written authorization:

Effective January 1, 2024, a customer’s responsibility for physical damage to a rental vehicle under Section 6-305.2 of the Illinois Vehicle Code has been modified to the following, which is beneficial to loss recovery for your dealership.

A Customer’s responsibility for damage to, loss of, or theft of a rental vehicle includes:

The law change requires that a notice outlining these changes be posted in a conspicuous place for the customer to see. A copy of the sample notice is attached for your usage.

Additionally, the current Illinois version of the Vehicle Use Agreement (VUA) will be updated and available January 1, 2024, adding the updated loss payment conditions by your Fleet Management Software company and printing vendors.

Click here to view sample notice for your dealership.

Form 8300 is used for businesses to report any transaction in which the business receives more than $10,000 cash. Form 8300 provides the IRS with valuable information to aid their efforts to combat money laundering. Previously, a business was only required to file electronically when 250 or more information returns (Form 1099, Form W2, Form 8300, etc.) were filed in the year. In 2024, businesses that file 10 or more information returns are required to e-file those returns.

To help with this process, the IRS has created a new, free online portal, known as the Information Returns Intake System (IRIS) to help businesses file information returns electronically. If you have not used IRIS in the past, you can create an account by clicking “Sign in to IRIS” from the link above and then clicking “Create an account”. To sign up for IRIS, you’ll need the business’ Employer Identification Number (EIN) and the business’ Transmitter Control Code (TCC). If you do not have a TCC, you can apply for one here.

Friendly Ford of Roselle is hosting a Holiday Toy Drive that runs through Dec. 9. Those willing to donate should visit the dealership during regular business hours to drop off a new, unwrapped toy for a child in need. In addition, Friendly Ford is matching all donations and dropping them off at the Humanitarian Service Project.

On Dec. 9 Apple Chevrolet is hosting its 9^th Annual Toy Drive Party. The event will include live entertainment, a visit from Santa Claus, Balloons and Joey’s Food Truck. For more information or to donate online, visit, https://www.applechevy.com/.

[From the Desk of CATA Council, Dennis O’Keefe] Dealers are asking how can I retail vehicles under recall and still protect myself? The answer is probably not what we want to hear.

First of all, most dealers understand that they are prohibited by federal law from retailing new vehicles that are subject to recall. But how about used vehicles? Is a notice of the recall to my customer sufficient? What if I have my customer execute a Hold Harmless Agreement? How do recalls affect Certified pre-owned vehicles? And what are my obligations to notify customers in the service lane?

As an example of a notice of an air bag deficiency, Carfax uses the following language: "Specifically, in some vehicles, the driver's front airbag inflators could produce excessive internal pressure upon deployment. If an affected airbag deploys, the increased internal pressure may cause the inflators to rupture (break apart) and deploy abnormally. In the event of an inflator rupture, metal fragments could pass through the airbag cushion material possibly causing serious injury or fatality to you or others in the vehicle. Past ruptures like this have killed and injured vehicle drivers." Certainly, such language might dissuade a customer from purchasing this vehicle. But will it protect you, the seller, from possibly being sued and being held liable? Hardly! To the contrary, what such language accomplishes is to show that you, the dealer, had actual knowledge of a potential injury-causing condition and sold the vehicle notwithstanding, a recipe for a lawsuit.

Some manufacturers are suggesting notice language for possible future air bag recalls. Again, such notice, while valuable to the customer, would hardly protect you, as again you now have knowledge of a potential injury-causing condition.

What about having your customer sign a Hold Harmless Agreement? While such an agreement MIGHT protect you from a personal injury claim by your customer, it would not protect you from a claim from a passenger or third party who sustained injury due to a faulty air bag deployment or other recall defect. Again, a recipe for a lawsuit.

So, it appears the only way to protect against potential personal injury liability is to not retail the vehicle until it is fixed. This means potentially a lot of vehicles sitting on your lot and depreciating-not a pretty picture, but vastly superior to a multi-million-dollar lawsuit.

What does this mean for CPO, "warranted" or "guaranteed" vehicles with open recalls? Back in January, because of investigations concerning this issue, the FTC entered into a consent decree with General Motors and several dealers that prohibits dealers from claiming their used vehicles are safe or have been subject to a rigorous inspection (CPO) unless they are free of unrepaired safety recalls or unless the companies clearly disclose the recalls in close proximity to the inspection claims. This standard would apply to all.

The so-called FAST Act (Fixing America's Surface Transportation Act) of 2015 provides that a dealer can lose its federal statutory entitlement to be fairly reimbursed for performing safety recall repairs if it fails to notify an "in-brand" service customer of any unremedied safety recalls applicable to their vehicles, if their franchise, operating, or any other agreement with their manufacturer requires such a service lane notice.

Because of the above, dealers might want to consult with their own counsel. However, the CATA urges all dealers to log on to the safercar.gov website, on a regular basis as it is frequently updated, to check the VIN numbers of all used vehicles in inventory prior to sale. The website apparently can retain the information as to who logged in to check a particular VIN, so use this feature to your advantage, not your disadvantage. Don't let your employees make a mistake that will cost you! In the service lane, make sure you are notifying customers about in-brand service recalls, and obtain an acknowledgement from those customers stating either that they authorize recall work to be done, they are declining the recall work, or they will return to have the work done when the remedy becomes available.