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| [ House Amendment 001 ] |
91_HB3260sam001
LRB9110325WHcsam01
1 AMENDMENT TO HOUSE BILL 3260
2 AMENDMENT NO. . Amend House Bill 3260 by replacing
3 everything after the enacting clause with the following:
4 "Section 5. The Unemployment Insurance Act is amended by
5 adding Section 206.1 as follows:
6 (820 ILCS 405/206.1 new)
7 Sec. 206.1. Employment; employee leasing company.
8 A. For purposes of this Section:
9 1. "Client" means an individual or entity which has
10 contracted with an employee leasing company to supply it
11 with or assume responsibility for personnel management of
12 one or more workers to perform services on an on-going
13 basis rather than under a temporary help arrangement, as
14 defined in Section 15 of the Employee Leasing Company
15 Act.
16 2. "Employee leasing company" means an individual
17 or entity which contracts with a client to supply or
18 assume responsibility for personnel management of one or
19 more workers to perform services for the client on an
20 on-going basis rather than under a temporary help
21 arrangement, as defined in Section 15 of the Employee
22 Leasing Company Act.
-2- LRB9110325WHcsam01
1 B. Subject to subsection C, services performed by an
2 individual under a contract between an employee leasing
3 company and client, including but not limited to services
4 performed in the capacity of a corporate officer of the
5 client, are services in "employment" of the employee leasing
6 company and are not services in "employment" of the client if
7 all of the following conditions are met:
8 1. The employee leasing company pays the individual
9 for the services directly from its own accounts; and
10 2. The employee leasing company, exclusively or in
11 conjunction with the client, retains the right to direct
12 and control the individual in the performance of the
13 services; and
14 3. The employee leasing company, exclusively or in
15 conjunction with the client, retains the right to hire
16 and terminate the individual; and
17 4. The employee leasing company reports each client
18 in the manner the Director prescribes by regulation.
19 C. Notwithstanding subsection B, services performed by
20 an individual under a contract between an employee leasing
21 company and client, including but not limited to services
22 performed in the capacity of a corporate officer of the
23 client, are services in "employment" of the client and are
24 not services in "employment" of the employee leasing company
25 if:
26 1. The contribution rate, or, where applicable, the
27 amended contribution rate, of the client is greater than
28 the sum of the fund building rate established for the
29 year pursuant to Section 1506.3 of this Act plus the
30 greater of 2.7% or 2.7% times the adjusted state
31 experience factor for the year; and
32 2. The contribution rate, or, where applicable, the
33 amended contribution rate, of the employee leasing
34 company is less than the contribution rate, or, where
-3- LRB9110325WHcsam01
1 applicable, the amended contribution rate of the client
2 by more than 1.5% absolute.
3 D. Except as provided in this Section and
4 notwithstanding any other provision of this Act to the
5 contrary, services performed by an individual under a
6 contract between an employee leasing company and client,
7 including but not limited to services performed in the
8 capacity of a corporate officer of the client, are services
9 in "employment" of the client and are not services in
10 "employment" of the employee leasing company.
11 E. Nothing in this Section shall be construed or used to
12 effect the existence of an employment relationship other than
13 for purposes of this Act.
14 Section 99. Effective date. This Act takes effect upon
15 becoming law.".