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| [ Engrossed ] | [ Enrolled ] | [ House Amendment 001 ] |
| [ Senate Amendment 001 ] |
91_HB3260
LRB9110325WHcs
1 AN ACT to amend the Unemployment Insurance Act by
2 changing Section 204.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Unemployment Insurance Act is amended by
6 changing Section 204 as follows:
7 (820 ILCS 405/204) (from Ch. 48, par. 314)
8 Sec. 204. Employing unit; employee leasing company.
9 A. "Employing unit" means any individual or type of
10 organization, including the State of Illinois, each of its
11 political subdivisions and municipal corporations, and each
12 instrumentality of any one or more of the foregoing; and any
13 partnership, association, trust, estate, joint-stock company,
14 insurance company, or corporation, whether domestic or
15 foreign, or the receiver, trustee in bankruptcy, trustee or
16 successor thereof, or the legal representative of a deceased
17 person, which has or subsequent to January 1, 1936, had in
18 its employ one or more individuals performing services for it
19 within this State. "Employing unit" includes an employee
20 leasing company as defined in subsection B. All individuals
21 performing services within this State for any employing unit
22 which maintains two or more separate establishments within
23 this State shall be deemed to be employed by a single
24 employing unit for all purposes of this Act. A talent or
25 modeling agency that is licensed under the Private Employment
26 Agency Act is not the employing unit with respect to the
27 performance of services for which an individual has been
28 referred by the agency.
29 B. "Employee leasing company" means an individual or
30 independently established business entity that contracts with
31 a client to perform services for the client on an ongoing
-2- LRB9110325WHcs
1 basis, rather than under a "temporary help arrangement" as
2 defined in Section 15 of the Employee Leasing Company Act,
3 under the following conditions:
4 1. the individual or entity negotiates with clients
5 for such matters as payment of wages to employees
6 performing services at the client location;
7 2. the individual or entity pays the employees
8 performing services at the client location directly from
9 its own accounts;
10 3. the individual or entity retains the right to
11 direct and control the employees performing services at
12 the client location in personnel matters and such rights
13 and responsibilities may be shared by the client;
14 4. the individual or entity retains the right to
15 hire and terminate employees performing services at the
16 client location and such rights and responsibilities may
17 be shared by the client;
18 5. the individual or entity files the required
19 reports in accordance with regulations, consistent with
20 this Section, to identify each client to which the
21 employee leasing company provides its services.
22 Employees, including client officers and owners,
23 performing services at a client location under the terms of
24 an employee leasing company contract are considered employees
25 of the employee leasing company.
26 C. As used in this Section, "client" means an individual
27 or entity that has contracted with an employee leasing
28 company for the services described in subsection B.
29 (Source: P.A. 89-649, eff. 8-9-96.)
30 Section 99. Effective date. This Act takes effect upon
31 becoming law.