2024 will bring local, state, and federal changes affecting businesses, including Northbrook’s new surcharge on single-use bags, an increase in the Illinois minimum wage, a statewide requirement for earned paid time off, and new federal report requirements for small businesses.
Northbrook Retail Bag Tax: Starting January 1, Northbrook retail stores over 3000 square feet are required to collect a 10-cent tax on most single-use paper or plastic bags distributed to customers. According to the Village website, this applies to approximately 50 businesses. The stated goal is to encourage consumers to carry reusable bags, in accordance with the Village’s Climate Action Plan. One-half of the collected revenues will be returned to the relevant business to help offset administration costs, with the other half channeled to Village sustainability initiatives. The Village website offers more detailed information about the bag tax for business owners and consumers.
Illinois Minimum Wage Increase: As scheduled by legislation enacted in 2019, the statewide minimum wage increases from $13 to $14 on January 1. Tipped workers’ minimum will increase from $7.80 to $8.40; wages for youth under age 18 and working less than 650 hours/year increase to $12. Read more about Illinois minimum wage requirements.
Illinois Paid Leave for Workers Act: Most employees in Illinois will be able to access paid time off under a new law going into effect in 2024. Paid leave accrues at the rate of one hour for every 40 hours worked. Starting on March 31, or 90 days following commencement of employment, workers can begin using their earned time off for any reason. This new law applies to every employee working for an employer in Illinois, including domestic workers, but does exclude independent contractors and employees covered by a collective bargaining agreement in the construction and parcel delivery industries. Read more here.
Federal Corporate Transparency Act: New federal reporting requirements, designed to prevent money laundering, will apply to many small businesses beginning in 2024. The Corporate Transparency Act requires “domestic reporting companies” – every corporation, LLC, or other entity formed under state law – must file a Beneficial Ownership Information (BOI) Report with the US Department of Treasury’s Financial Crimes Enforcement Network. Since the law exempts “large operating companies” and various other categories that are already subject to federal regulation, the new requirement mostly will impact small businesses. The BOI reports identifying information about the company and each of its beneficial owners. For companies existing as of January 1, 2024, the initial BOI must be filed by January 1, 2025; companies launched later must file an initial BOI within 30 days of receiving notice that its creation has become effective. Read more here.
Links to these resources and more information can be found anytime on the Business Resources section of the Chamber’s website.