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Public Act 91-0342
HB2654 Enrolled LRB9102422WHmg
AN ACT to amend the Unemployment Insurance Act by
changing Sections 235, 401, 901, 1500, 1506.3, 1507, 1900,
and 2100.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Unemployment Insurance Act is amended by
changing Sections 235, 401, 901, 1500, 1506.3, 1507, 1900,
and 2100 as follows:
(820 ILCS 405/235) (from Ch. 48, par. 345)
Sec. 235. The term "wages" does not include:
A. That part of the remuneration which, after
remuneration equal to $6,000 with respect to employment has
been paid to an individual by an employer during any calendar
year after 1977 and before 1980, is paid to such individual
by such employer during such calendar year; and that part of
the remuneration which, after remuneration equal to $6,500
with respect to employment has been paid to an individual by
an employer during each calendar year 1980 and 1981, is paid
to such individual by such employer during that calendar
year; and that part of the remuneration which, after
remuneration equal to $7,000 with respect to employment has
been paid to an individual by an employer during the calendar
year 1982 is paid to such individual by such employer during
that calendar year.
With respect to the first calendar quarter of 1983, the
term "wages" shall include only the remuneration paid to an
individual by an employer during such quarter with respect to
employment which does not exceed $7,000. With respect to the
three calendar quarters, beginning April 1, 1983, the term
"wages" shall include only the remuneration paid to an
individual by an employer during such period with respect to
employment which when added to the "wages" (as defined in the
preceding sentence) paid to such individual by such employer
during the first calendar quarter of 1983, does not exceed
$8,000.
With respect to the calendar year 1984, the term "wages"
shall include only the remuneration paid to an individual by
an employer during that period with respect to employment
which does not exceed $8,000; with respect to calendar years
1985, 1986 and 1987, the term "wages" shall include only the
remuneration paid to such individual by such employer during
that calendar year with respect to employment which does not
exceed $8,500.
With respect to the calendar years 1988 through 2003 1999
and calendar year 2005 2001 and each calendar year
thereafter, the term "wages" shall include only the
remuneration paid to an individual by an employer during that
period with respect to employment which does not exceed
$9,000.
With respect to the calendar year 2004 2000, the term
"wages" shall include only the remuneration paid to an
individual by an employer during that period with respect to
employment which does not exceed $10,000. The remuneration
paid to an individual by an employer with respect to
employment in another State or States, upon which
contributions were required of such employer under an
unemployment compensation law of such other State or States,
shall be included as a part of the remuneration equal to
$6,000, $6,500, $7,000, $8,000, $8,500, $9,000, or $10,000,
as the case may be, herein referred to. For the purposes of
this subsection, any employing unit which succeeds to the
organization, trade, or business, or to substantially all of
the assets of another employing unit, or to the organization,
trade, or business, or to substantially all of the assets of
a distinct severable portion of another employing unit, shall
be treated as a single unit with its predecessor for the
calendar year in which such succession occurs, and any
employing unit which is owned or controlled by the same
interests which own or control another employing unit shall
be treated as a single unit with the unit so owned or
controlled by such interests for any calendar year throughout
which such ownership or control exists. This subsection
applies only to Sections 1400, 1405A, and 1500.
B. The amount of any payment (including any amount paid
by an employer for insurance or annuities, or into a fund, to
provide for any such payment), made to, or on behalf of, an
individual or any of his dependents under a plan or system
established by an employer which makes provision generally
for individuals performing services for him (or for such
individuals generally and their dependents) or for a class or
classes of such individuals (or for a class or classes of
such individuals and their dependents), on account of (1)
sickness or accident disability (except those sickness or
accident disability payments which would be includable as
"wages" in Section 3306(b)(2)(A) of the Federal Internal
Revenue Code of 1954, in effect on January 1, 1985, such
includable payments to be attributable in such manner as
provided by Section 3306(b) of the Federal Internal Revenue
Code of 1954, in effect on January 1, 1985), or (2) medical
or hospitalization expenses in connection with sickness or
accident disability, or (3) death.
C. Any payment made to, or on behalf of, an employee or
his beneficiary which would be excluded from "wages" by
subparagraph (A), (B), (C), (D), (E), (F) or (G), of Section
3306(b)(5) of the Federal Internal Revenue Code of 1954, in
effect on January 1, 1985.
D. The amount of any payment on account of sickness or
accident disability, or medical or hospitalization expenses
in connection with sickness or accident disability, made by
an employer to, or on behalf of, an individual performing
services for him after the expiration of six calendar months
following the last calendar month in which the individual
performed services for such employer.
E. Remuneration paid in any medium other than cash by an
employing unit to an individual for service in agricultural
labor as defined in Section 214.
F. The amount of any supplemental payment made by an
employer to an individual performing services for him, other
than remuneration for services performed, under a shared work
plan approved by the Director pursuant to Section 407.1.
(Source: P.A. 89-633, eff. 1-1-97; 90-554, eff. 12-12-97.)
(820 ILCS 405/401) (from Ch. 48, par. 401)
Sec. 401. Weekly Benefit Amount - Dependents'
Allowances.
A. With respect to any week beginning prior to April 24,
1983, an individual's weekly benefit amount shall be an
amount equal to the weekly benefit amount as defined in this
Act as in effect on November 30, 1982.
B. 1. With respect to any week beginning on or after
April 24, 1983 and before January 3, 1988, an individual's
weekly benefit amount shall be 48% of his prior average
weekly wage, rounded (if not already a multiple of one
dollar) to the next higher dollar; provided, however, that
the weekly benefit amount cannot exceed the maximum weekly
benefit amount, and cannot be less than 15% of the statewide
average weekly wage, rounded (if not already a multiple of
one dollar) to the next higher dollar. However, the weekly
benefit amount for an individual who has established a
benefit year beginning before April 24, 1983, shall be
determined, for weeks beginning on or after April 24, 1983
claimed with respect to that benefit year, as provided under
this Act as in effect on November 30, 1982. With respect to
any week beginning on or after January 3, 1988 and before
January 1, 1993, an individual's weekly benefit amount shall
be 49% of his prior average weekly wage, rounded (if not
already a multiple of one dollar) to the next higher dollar;
provided, however, that the weekly benefit amount cannot
exceed the maximum weekly benefit amount, and cannot be less
than $51. With respect to any week beginning on or after
January 3, 1993, an individual's weekly benefit amount shall
be 49.5% of his prior average weekly wage, rounded (if not
already a multiple of one dollar) to the next higher dollar;
provided, however, that the weekly benefit amount cannot
exceed the maximum weekly benefit amount and cannot be less
than $51.
2. For the purposes of this subsection:
With respect to any week beginning on or after April 24,
1983, an individual's "prior average weekly wage" means the
total wages for insured work paid to that individual during
the 2 calendar quarters of his base period in which such
total wages were highest, divided by 26. If the quotient is
not already a multiple of one dollar, it shall be rounded to
the nearest dollar; however if the quotient is equally near 2
multiples of one dollar, it shall be rounded to the higher
multiple of one dollar.
"Determination date" means June 1, 1982, December 1, 1982
and December 1 of each succeeding calendar year thereafter.
However, if as of June 30, 1982, or any June 30 thereafter,
the net amount standing to the credit of this State's account
in the unemployment trust fund (less all outstanding advances
to that account, including advances pursuant to Title XII of
the federal Social Security Act) is greater than
$100,000,000, "determination date" shall mean December 1 of
that year and June 1 of the succeeding year. Notwithstanding
the preceding sentence, for the purposes of this Act only,
there shall be no June 1 determination date in any year after
1986.
"Determination period" means, with respect to each June 1
determination date, the 12 consecutive calendar months ending
on the immediately preceding December 31 and, with respect to
each December 1 determination date, the 12 consecutive
calendar months ending on the immediately preceding June 30.
"Benefit period" means the 12 consecutive calendar month
period beginning on the first day of the first calendar month
immediately following a determination date, except that, with
respect to any calendar year in which there is a June 1
determination date, "benefit period" shall mean the 6
consecutive calendar month period beginning on the first day
of the first calendar month immediately following the
preceding December 1 determination date and the 6 consecutive
calendar month period beginning on the first day of the first
calendar month immediately following the June 1 determination
date. Notwithstanding the foregoing sentence, the 6 calendar
months beginning January 1, 1982 and ending June 30, 1982
shall be deemed a benefit period with respect to which the
determination date shall be June 1, 1981.
"Gross wages" means all the wages paid to individuals
during the determination period immediately preceding a
determination date for insured work, and reported to the
Director by employers prior to the first day of the third
calendar month preceding that date.
"Covered employment" for any calendar month means the
total number of individuals, as determined by the Director,
engaged in insured work at mid-month.
"Average monthly covered employment" means one-twelfth of
the sum of the covered employment for the 12 months of a
determination period.
"Statewide average annual wage" means the quotient,
obtained by dividing gross wages by average monthly covered
employment for the same determination period, rounded (if not
already a multiple of one cent) to the nearest cent.
"Statewide average weekly wage" means the quotient,
obtained by dividing the statewide average annual wage by 52,
rounded (if not already a multiple of one cent) to the
nearest cent. Notwithstanding any provisions of this Section
to the contrary, the statewide average weekly wage for the
benefit period beginning July 1, 1982 and ending December 31,
1982 shall be the statewide average weekly wage in effect for
the immediately preceding benefit period plus one-half of the
result obtained by subtracting the statewide average weekly
wage for the immediately preceding benefit period from the
statewide average weekly wage for the benefit period
beginning July 1, 1982 and ending December 31, 1982 as such
statewide average weekly wage would have been determined but
for the provisions of this paragraph. Notwithstanding any
provisions of this Section to the contrary, the statewide
average weekly wage for the benefit period beginning April
24, 1983 and ending January 31, 1984 shall be $321 and for
the benefit period beginning February 1, 1984 and ending
December 31, 1986 shall be $335, and for the benefit period
beginning January 1, 1987, and ending December 31, 1987,
shall be $350, except that for an individual who has
established a benefit year beginning before April 24, 1983,
the statewide average weekly wage used in determining
benefits, for any week beginning on or after April 24, 1983,
claimed with respect to that benefit year, shall be $334.80,
except that, for the purpose of determining the minimum
weekly benefit amount under subsection B(1) for the benefit
period beginning January 1, 1987, and ending December 31,
1987, the statewide average weekly wage shall be $335; for
the benefit periods January 1, 1988 through December 31,
1988, January 1, 1989 through December 31, 1989, and January
1, 1990 through December 31, 1990, the statewide average
weekly wage shall be $359, $381, and $406, respectively.
Notwithstanding the preceding sentences of this paragraph,
for the benefit period of calendar year 1991, the statewide
average weekly wage shall be $406 plus (or minus) an amount
equal to the percentage change in the statewide average
weekly wage, as computed in accordance with the preceding
sentences of this paragraph, between the benefit periods of
calendar years 1989 and 1990, multiplied by $406; and, for
the benefit periods of calendar years 1992 through 2003 1999
and calendar year 2005 2001 and each calendar year
thereafter, the statewide average weekly wage, shall be the
statewide average weekly wage, as determined in accordance
with this sentence, for the immediately preceding benefit
period plus (or minus) an amount equal to the percentage
change in the statewide average weekly wage, as computed in
accordance with the preceding sentences of this paragraph,
between the 2 immediately preceding benefit periods,
multiplied by the statewide average weekly wage, as
determined in accordance with this sentence, for the
immediately preceding benefit period. For the benefit period
of 2004 2000, the statewide average weekly wage shall be $600
$524. Provided however, that for any benefit period after
December 31, 1990, if 2 of the following 3 factors occur,
then the statewide average weekly wage shall be the statewide
average weekly wage in effect for the immediately preceding
benefit period: (a) the average contribution rate for all
employers in this State for the calendar year 2 years prior
to the benefit period, as a ratio of total contribution
payments (including payments in lieu of contributions) to
total wages reported by employers in this State for that same
period is 0.2% greater than the national average of this
ratio, the foregoing to be determined in accordance with
rules promulgated by the Director; (b) the balance in this
State's account in the unemployment trust fund, as of March
31 of the prior calendar year, is less than $250,000,000; or
(c) the number of first payments of initial claims, as
determined in accordance with rules promulgated by the
Director, for the one year period ending on June 30 of the
prior year, has increased more than 25% over the average
number of such payments during the 5 year period ending that
same June 30; and provided further that if (a), (b) and (c)
occur, then the statewide average weekly wage, as determined
in accordance with the preceding sentence, shall be 10% less
than it would have been but for these provisions. If the
reduced amount, computed in accordance with the preceding
sentence, is not already a multiple of one dollar, it shall
be rounded to the nearest dollar. The 10% reduction in the
statewide average weekly wage in the preceding sentence shall
not be in effect for more than 2 benefit periods of any 5
consecutive benefit periods. This 10% reduction shall not be
cumulative from year to year. Neither the freeze nor the
reduction shall be considered in the determination of
subsequent years' calculations of statewide average weekly
wage. However, for purposes of the Workers' Compensation Act,
the statewide average weekly wage will be computed using June
1 and December 1 determination dates of each calendar year
and such determination shall not be subject to the limitation
of $321, $335, $350, $359, $381, $406 or the statewide
average weekly wage as computed in accordance with the
preceding 7 sentences of this paragraph.
With respect to any week beginning on or after April 24,
1983 and before January 3, 1988, "maximum weekly benefit
amount" means 48% of the statewide average weekly wage,
rounded (if not already a multiple of one dollar) to the
nearest dollar, provided however, that the maximum weekly
benefit amount for an individual who has established a
benefit year beginning before April 24, 1983, shall be
determined, for weeks beginning on or after April 24, 1983
claimed with respect to that benefit year, as provided under
this Act as amended and in effect on November 30, 1982,
except that the statewide average weekly wage used in such
determination shall be $334.80.
With respect to any week beginning after January 2, 1988
and before January 1, 1993, "maximum weekly benefit amount"
with respect to each week beginning within a benefit period
means 49% of the statewide average weekly wage, rounded (if
not already a multiple of one dollar) to the next higher
dollar.
With respect to any week beginning on or after January 3,
1993, "maximum weekly benefit amount" with respect to each
week beginning within a benefit period means 49.5% of the
statewide average weekly wage, rounded (if not already a
multiple of one dollar) to the next higher dollar.
C. With respect to any week beginning on or after April
24, 1983 and before January 3, 1988, an individual to whom
benefits are payable with respect to any week shall, in
addition to such benefits, be paid, with respect to such
week, as follows: in the case of an individual with a
nonworking spouse, 7% of his prior average weekly wage,
rounded (if not already a multiple of one dollar) to the
higher dollar; provided, that the total amount payable to the
individual with respect to a week shall not exceed 55% of the
statewide average weekly wage, rounded (if not already a
multiple of one dollar) to the nearest dollar; and in the
case of an individual with a dependent child or dependent
children, 14.4% of his prior average weekly wage, rounded (if
not already a multiple of one dollar) to the higher dollar;
provided, that the total amount payable to the individual
with respect to a week shall not exceed 62.4% of the
statewide average weekly wage, rounded (if not already a
multiple of one dollar) to the next higher dollar with
respect to the benefit period beginning January 1, 1987 and
ending December 31, 1987, and otherwise to the nearest
dollar. However, for an individual with a nonworking spouse
or with a dependent child or children who has established a
benefit year beginning before April 24, 1983, the amount of
additional benefits payable on account of the nonworking
spouse or dependent child or children shall be determined,
for weeks beginning on or after April 24, 1983 claimed with
respect to that benefit year, as provided under this Act as
in effect on November 30, 1982, except that the statewide
average weekly wage used in such determination shall be
$334.80.
With respect to any week beginning on or after January 2,
1988 and before January 1, 1991 and any week beginning on or
after January 1, 1992, and before January 1, 1993, an
individual to whom benefits are payable with respect to any
week shall, in addition to those benefits, be paid, with
respect to such week, as follows: in the case of an
individual with a nonworking spouse, 8% of his prior average
weekly wage, rounded (if not already a multiple of one
dollar) to the next higher dollar, provided, that the total
amount payable to the individual with respect to a week
shall not exceed 57% of the statewide average weekly wage,
rounded (if not already a multiple of one dollar) to the next
higher dollar; and in the case of an individual with a
dependent child or dependent children, 15% of his prior
average weekly wage, rounded (if not already a multiple of
one dollar) to the next higher dollar, provided that the
total amount payable to the individual with respect to a week
shall not exceed 64% of the statewide average weekly wage,
rounded (if not already a multiple of one dollar) to the next
higher dollar.
With respect to any week beginning on or after January 1,
1991 and before January 1, 1992, an individual to whom
benefits are payable with respect to any week shall, in
addition to the benefits, be paid, with respect to such week,
as follows: in the case of an individual with a nonworking
spouse, 8.3% of his prior average weekly wage, rounded (if
not already a multiple of one dollar) to the next higher
dollar, provided, that the total amount payable to the
individual with respect to a week shall not exceed 57.3% of
the statewide average weekly wage, rounded (if not already a
multiple of one dollar) to the next higher dollar; and in the
case of an individual with a dependent child or dependent
children, 15.3% of his prior average weekly wage, rounded (if
not already a multiple of one dollar) to the next higher
dollar, provided that the total amount payable to the
individual with respect to a week shall not exceed 64.3% of
the statewide average weekly wage, rounded (if not already a
multiple of one dollar) to the next higher dollar.
With respect to any week beginning on or after January 3,
1993, an individual to whom benefits are payable with respect
to any week shall, in addition to those benefits, be paid,
with respect to such week, as follows: in the case of an
individual with a nonworking spouse, 9% of his prior average
weekly wage, rounded (if not already a multiple of one
dollar) to the next higher dollar, provided, that the total
amount payable to the individual with respect to a week
shall not exceed 58.5% of the statewide average weekly wage,
rounded (if not already a multiple of one dollar) to the next
higher dollar; and in the case of an individual with a
dependent child or dependent children, 16% of his prior
average weekly wage, rounded (if not already a multiple of
one dollar) to the next higher dollar, provided that the
total amount payable to the individual with respect to a week
shall not exceed 65.5% of the statewide average weekly wage,
rounded (if not already a multiple of one dollar) to the next
higher dollar.
For the purposes of this subsection:
"Dependent" means a child or a nonworking spouse.
"Child" means a natural child, stepchild, or adopted
child of an individual claiming benefits under this Act or a
child who is in the custody of any such individual by court
order, for whom the individual is supplying and, for at least
90 consecutive days (or for the duration of the parental
relationship if it has existed for less than 90 days)
immediately preceding any week with respect to which the
individual has filed a claim, has supplied more than one-half
the cost of support, or has supplied at least 1/4 of the cost
of support if the individual and the other parent, together,
are supplying and, during the aforesaid period, have supplied
more than one-half the cost of support, and are, and were
during the aforesaid period, members of the same household;
and who, on the first day of such week (a) is under 18 years
of age, or (b) is, and has been during the immediately
preceding 90 days, unable to work because of illness or other
disability: provided, that no person who has been determined
to be a child of an individual who has been allowed benefits
with respect to a week in the individual's benefit year shall
be deemed to be a child of the other parent, and no other
person shall be determined to be a child of such other
parent, during the remainder of that benefit year.
"Nonworking spouse" means the lawful husband or wife of
an individual claiming benefits under this Act, for whom more
than one-half the cost of support has been supplied by the
individual for at least 90 consecutive days (or for the
duration of the marital relationship if it has existed for
less than 90 days) immediately preceding any week with
respect to which the individual has filed a claim, but only
if the nonworking spouse is currently ineligible to receive
benefits under this Act by reason of the provisions of
Section 500E.
An individual who was obligated by law to provide for the
support of a child or of a nonworking spouse for the
aforesaid period of 90 consecutive days, but was prevented by
illness or injury from doing so, shall be deemed to have
provided more than one-half the cost of supporting the child
or nonworking spouse for that period.
(Source: P.A. 89-633, eff. 1-1-97; 90-554, eff. 12-12-97.)
(820 ILCS 405/901) (from Ch. 48, par. 491)
Sec. 901. Fraud - Repayment - Ineligibility. An
individual who, for the purpose of obtaining benefits,
knowingly makes a false statement or knowingly fails to
disclose a material fact, and thereby obtains any sum as
benefits for which he is not eligible:
A. Shall be required to repay such sum in cash, or the
amount thereof may be recovered or recouped pursuant to the
provisions of Section 900.
B. Shall be ineligible, except to the extent that such
benefits are subject to recoupment pursuant to this Section,
for benefits for the week in which he or she has been
notified of the determination of the claims adjudicator
referred to in Section 702 that he or she has committed is
ineligible for benefits by reason of the offense described in
the first paragraph and, thereafter, for 6 weeks (with
respect to each of which he or she would be eligible for
benefits but for the provisions of this paragraph, not
including weeks for which such benefits are subject to
recoupment pursuant to this Section) for the first offense,
and for 2 additional weeks (with respect to each of which he
or she would be eligible for benefits but for the provisions
of this paragraph, not including weeks for which such
benefits are subject to recoupment pursuant to this Section)
for each subsequent offense. For the purposes of this
paragraph, a separate offense shall be deemed to have been
committed in each week for which such an individual has
received a sum as benefits for which he or she was not
eligible. No ineligibility under the provisions of this
paragraph shall accrue with respect to any week beginning
after whichever of the following occurs first: (1) 26 weeks
(with respect to each of which the individual would be
eligible for benefits but for the provisions of this
paragraph, not including weeks for which such benefits are
subject to recoupment pursuant to this Section) have elapsed
since the date that he or she is notified of the
determination of the claims adjudicator referred to in
Section 702 that he or she has committed the offense
described in the first paragraph his ineligibility began
pursuant to this paragraph, or (2) 2 years have elapsed since
the date that he or she is notified of the determination of
the claims adjudicator referred to in Section 702 that he or
she has committed the offense described in the first
paragraph his ineligibility began pursuant to this paragraph.
(Source: P.A. 80-2dSS-1.)
(820 ILCS 405/1500) (from Ch. 48, par. 570)
Sec. 1500. Rate of contribution.
A. For the six months' period beginning July 1, 1937,
and for each of the calendar years 1938 to 1959, inclusive,
each employer shall pay contributions on wages at the
percentages specified in or determined in accordance with the
provisions of this Act as amended and in effect on July 11,
1957.
B. For the calendar years 1960 through 1983, each
employer shall pay contributions equal to 2.7 percent with
respect to wages for insured work paid during each such
calendar year, except that the contribution rate of each
employer who has incurred liability for the payment of
contributions within each of the three calendar years
immediately preceding the calendar year for which a rate is
being determined, shall be determined as provided in Sections
1501 to 1507, inclusive.
For the calendar year 1984 and each calendar year
thereafter, each employer shall pay contributions at a
percentage rate equal to the greatest of 2.7%, or 2.7%
multiplied by the current adjusted State experience factor,
as determined for each calendar year by the Director in
accordance with the provisions of Sections 1504 and 1505, or
the average contribution rate for his major classification in
the Standard Industrial Code, or another classification
sanctioned by the United States Department of Labor and
prescribed by the Director by rule, with respect to wages for
insured work paid during such year. The Director of
Employment Security shall determine for calendar year 1984
and each calendar year thereafter by a method pursuant to
adopted rules each individual employer's industrial code and
the average contribution rate for each major classification
in the Standard Industrial Code, or each other classification
sanctioned by the United States Department of Labor and
prescribed by the Director by rule. Notwithstanding the
preceding provisions of this paragraph, the contribution rate
for calendar years 1984, 1985 and 1986 of each employer who
has incurred liability for the payment of contributions
within each of the two calendar years immediately preceding
the calendar year for which a rate is being determined, and
the contribution rate for calendar year 1987 and each
calendar year thereafter of each employer who has incurred
liability for the payment of contributions within each of the
three calendar years immediately preceding the calendar year
for which a rate is being determined shall be determined as
provided in Sections 1501 to 1507, inclusive. Provided,
however, that the contribution rate for calendar years 1989
and 1990 of each employer who has had experience with the
risk of unemployment for at least 13 consecutive months
ending June 30 of the preceding calendar year shall be a rate
determined in accordance with this Section or a rate
determined as if it had been calculated in accordance with
Sections 1501 through 1507, inclusive, whichever is greater,
except that for purposes of calculating the benefit wage
ratio as provided in Section 1503, such benefit wage ratio
shall be a percentage equal to the total of benefit wages for
the 12 consecutive calendar month period ending on the above
preceding June 30, divided by the total wages for insured
work subject to the payment of contributions under Sections
234, 235 and 245 for the same period and provided, further,
however, that the contribution rate for calendar year 1991
and for each calendar year thereafter of each employer who
has had experience with the risk of unemployment for at least
13 consecutive months ending June 30 of the preceding
calendar year shall be a rate determined in accordance with
this Section or a rate determined as if it had been
calculated in accordance with Sections 1501 through 1507,
inclusive, whichever is greater, except that for purposes of
calculating the benefit ratio as provided in Section 1503.1,
such benefit ratio shall be a percentage equal to the total
of benefit charges for the 12 consecutive calendar month
period ending on the above preceding June 30, multiplied by
the benefit conversion factor applicable to such year,
divided by the total wages for insured work subject to the
payment of contributions under Sections 234, 235 and 245 for
the same period.
C. Except as expressly provided in this Act, the
provisions of Sections 1500 to 1510, inclusive, do not apply
to any nonprofit organization for any period with respect to
which it does not incur liability for the payment of
contributions by reason of having elected to make payments in
lieu of contributions, or to any political subdivision or
municipal corporation for any period with respect to which it
is not subject to payments in lieu of contributions under the
provisions of paragraph 1 of Section 302C by reason of having
elected to make payments in lieu of contributions under
paragraph 2 of that Section or to any governmental entity
referred to in clause (B) of Section 211.1. Wages paid to an
individual which are subject to contributions under Section
1405 A, or on the basis of which benefits are paid to him
which are subject to payment in lieu of contributions under
Sections 1403, 1404, or 1405 B, or under paragraph 2 of
Section 302C, shall not become benefit wages or benefit
charges under the provisions of Sections 1501 or 1501.1,
respectively, except for purposes of determining a rate of
contribution for 1984 and each calendar year thereafter for
any governmental entity referred to in clause (B) of Section
211.1 which does not elect to make payments in lieu of
contributions.
D. If an employer's business is closed solely because of
the entrance of one or more of the owners, partners,
officers, or the majority stockholder into the armed forces
of the United States, or of any of its allies, or of the
United Nations, and, if the business is resumed within two
years after the discharge or release of such person or
persons from active duty in the armed forces, the employer
will be deemed to have incurred liability for the payment of
contributions continuously throughout such period. Such an
employer, for the purposes of Section 1506.1, will be deemed
to have paid contributions upon wages for insured work during
the applicable period specified in Section 1503 on or before
the date designated therein, provided that no wages became
benefit wages during the applicable period specified in
Section 1503.
(Source: P.A. 85-956.)
(820 ILCS 405/1506.3) (from Ch. 48, par. 576.3)
Sec. 1506.3. Fund building rates - Temporary
Administrative Funding.
A. Notwithstanding any other provision of this Act, the
following fund building rates shall be in effect for the
following calendar years:
For each employer whose contribution rate for 1988, 1989,
1990, the first, third, and fourth quarters of 1991, 1992,
1993, 1994, 1995, and 1997 and any calendar year thereafter
would, in the absence of this Section, be 0.2% or higher, a
contribution rate which is the sum of such rate and 0.4%;
For each employer whose contribution rate for the second
quarter of 1991 would, in the absence of this Section, be
0.2% or higher, a contribution rate which is the sum of such
rate and 0.3%;
For each employer whose contribution rate for 1996 would,
in the absence of this Section, be 0.1% or higher, a
contribution rate which is the sum of such rate and 0.4%;
Notwithstanding the preceding paragraphs of this Section
or any other provision of this Act, except for the provisions
contained in Section 1500 pertaining to rates applicable to
employers classified under the Standard Industrial Code, or
another classification system sanctioned by the United States
Department of Labor and prescribed by the Director by rule,
no employer whose total wages for insured work paid by him
during any calendar quarter in 1988 and any calendar year
thereafter are less than $50,000 shall pay contributions at a
rate with respect to such quarter which exceeds the
following: with respect to calendar year 1988, 5%; with
respect to 1989 and any calendar year thereafter, 5.4%.
Notwithstanding the preceding paragraph of this Section,
or any other provision of this Act, no employer's
contribution rate with respect to calendar years 1993 through
1995 shall exceed 5.4% if the employer ceased operations at
an Illinois manufacturing facility in 1991 and remained
closed at that facility during all of 1992, and the employer
in 1993 commits to invest at least $5,000,000 for the purpose
of resuming operations at that facility, and the employer
rehires during 1993 at least 250 of the individuals employed
by it at that facility during the one year period prior to
the cessation of its operations, provided that, within 30
days after the effective date of this amendatory Act of 1993,
the employer makes application to the Department to have the
provisions of this paragraph apply to it. The immediately
preceding sentence shall be null and void with respect to an
employer which by December 31, 1993 has not satisfied the
rehiring requirement specified by this paragraph or which by
December 31, 1994 has not made the investment specified by
this paragraph.
B. Notwithstanding any other provision of this Act, for
the second quarter of 1991, the contribution rate of each
employer as determined in accordance with Sections 1500,
1506.1, and subsection A of this Section shall be equal to
the sum of such rate and 0.1%; provided that this subsection
shall not apply to any employer whose rate computed under
Section 1506.1 for such quarter is between 5.1% and 5.3%,
inclusive, and who qualifies for the 5.4% rate ceiling
imposed by the last paragraph of subsection A for such
quarter. All payments made pursuant to this subsection shall
be deposited in the Employment Security Administrative Fund
established under Section 2103.1 and used for the
administration of this Act.
C. Payments received by the Director which are
insufficient to pay the total contributions due under the Act
shall be first applied to satisfy the amount due pursuant to
subsection B.
D. All provisions of this Act applicable to the
collection or refund of any contribution due under this Act
shall be applicable to the collection or refund of amounts
due pursuant to subsection B.
(Source: P.A. 88-518; 89-446, eff. 2-8-96.)
(820 ILCS 405/1507) (from Ch. 48, par. 577)
Sec. 1507. Contribution rates of successor and
predecessor employing units.
A. Whenever any employing unit succeeds to substantially
all of the employing enterprises of another employing unit,
then in determining contribution rates for any calendar year,
the experience rating record of the predecessor prior to the
succession shall be transferred to the successor and
thereafter it shall not be treated as the experience rating
record of the predecessor, except as provided in subsection
B. For the purposes of this Section, such experience rating
record shall consist of all years during which liability for
the payment of contributions was incurred by the predecessor
prior to the succession, all benefit wages based upon wages
paid by the predecessor prior to the succession, all benefit
charges based on benefits paid by the predecessor prior to
the succession, and all wages for insured work paid by the
predecessor prior to the succession.
B. The provisions of this subsection shall be applicable
only to the determination of contribution rates for the
calendar year 1956 and for each calendar year thereafter.
Whenever any employing unit has succeeded to substantially
all of the employing enterprises of another employing unit,
but the predecessor employing unit has retained a distinct
severable portion of its employing enterprises or whenever
any employing unit has succeeded to a distinct severable
portion which is less than substantially all of the employing
enterprises of another employing unit, the successor
employing unit shall acquire the experience rating record
attributable to the portion to which it has succeeded, and
the predecessor employing unit shall retain the experience
rating record attributable to the portion which it has
retained, if--
1. The employing unit which desires to acquire or
retain such a distinct severable portion of such
experience rating record has filed such reports giving
notice of the transfer as may be required by the Director
within 120 days of such transfer; and
2. It files a written application for such
experience rating record which is joined in by the
employing unit which is then entitled to such experience
rating record; and
2. 3. The joint application contains such
information as the Director shall by regulation prescribe
which will show that such experience rating record is
identifiable and segregable and, therefore, capable of
being transferred; and
3. 4. The joint application is filed prior to
whichever of the following dates is the latest: (a) July
1, 1956; (b) one year after the date of the succession;
or (c) the date that the rate determination of the
employing unit which has applied for such experience
rating record has become final for the calendar year
immediately following the calendar year in which the
succession occurs. The filing of a timely joint
application shall not affect any rate determination which
has become final, as provided by Section 1509.
If all of the foregoing requirements are met, then the
Director shall transfer such experience rating record to the
employing unit which has applied therefor, and it shall not
be treated as the experience rating record of the employing
unit which has joined in the application.
Whenever any employing unit is reorganized into two or
more employing units, and any of such employing units are
owned or controlled by the same interests which owned or
controlled the predecessor prior to the reorganization, and
the provisions of this subsection become applicable thereto,
then such affiliated employing units during the period of
their affiliation shall be treated as a single employing unit
for the purpose of determining their rates of contributions.
C. For the calendar year in which a succession occurs
which results in the total or partial transfer of a
predecessor's experience rating record, the contribution
rates of the parties thereto shall be determined in the
following manner:
1. If any of such parties had a contribution rate
applicable to it for that calendar year, it shall
continue with such contribution rate.
2. If any successor had no contribution rate
applicable to it for that calendar year, and only one
predecessor is involved, then the contribution rate of
the successor shall be the same as that of its
predecessor.
3. If any successor had no contribution rate
applicable to it for that calendar year, and two or more
predecessors are involved, then the contribution rate of
the successor shall be computed, on the combined
experience rating records of the predecessors or on the
appropriate part of such records if any partial transfer
is involved, as provided in Sections 1500 to 1507,
inclusive.
4. Notwithstanding the provisions of paragraphs 2
and 3 of this subsection, if any succession occurs prior
to the calendar year 1956 and the successor acquires part
of the experience rating record of the predecessor as
provided in subsection B of this Section, then the
contribution rate of that successor for the calendar year
in which such succession occurs shall be 2.7 percent.
(Source: P.A. 90-554, eff. 12-12-97.)
(820 ILCS 405/1900) (from Ch. 48, par. 640)
Sec. 1900. Disclosure of information.
A. Except as provided in this Section, information
obtained from any individual or employing unit during the
administration of this Act shall:
1. be confidential,
2. not be published or open to public inspection,
3. not be used in any court in any pending action
or proceeding,
4. not be admissible in evidence in any action or
proceeding other than one arising out of this Act.
B. No finding, determination, decision, ruling or order
(including any finding of fact, statement or conclusion made
therein) issued pursuant to this Act shall be admissible or
used in evidence in any action other than one arising out of
this Act, nor shall it be binding or conclusive except as
provided in this Act, nor shall it constitute res judicata,
regardless of whether the actions were between the same or
related parties or involved the same facts.
C. Any officer or employee of this State, any officer or
employee of any entity authorized to obtain information
pursuant to this Section, and any agent of this State or of
such entity who, except with authority of the Director under
this Section, shall disclose information shall be guilty of a
Class B misdemeanor and shall be disqualified from holding
any appointment or employment by the State.
D. An individual or his duly authorized agent may be
supplied with information from records only to the extent
necessary for the proper presentation of his claim for
benefits or with his existing or prospective rights to
benefits. Discretion to disclose this information belongs
solely to the Director and is not subject to a release or
waiver by the individual. Notwithstanding any other provision
to the contrary, an individual or his or her duly authorized
agent may be supplied with a statement of the amount of
benefits paid to the individual during the 18 months
preceding the date of his or her request.
E. An employing unit may be furnished with information,
only if deemed by the Director as necessary to enable it to
fully discharge its obligations or safeguard its rights under
the Act. Discretion to disclose this information belongs
solely to the Director and is not subject to a release or
waiver by the employing unit.
F. The Director may furnish any information that he may
deem proper to any public officer or public agency of this or
any other State or of the federal government dealing with:
1. the administration of relief,
2. public assistance,
3. unemployment compensation,
4. a system of public employment offices,
5. wages and hours of employment, or
6. a public works program.
The Director may make available to the Illinois
Industrial Commission information regarding employers for the
purpose of verifying the insurance coverage required under
the Workers' Compensation Act and Workers' Occupational
Diseases Act.
G. The Director may disclose information submitted by
the State or any of its political subdivisions, municipal
corporations, instrumentalities, or school or community
college districts, except for information which specifically
identifies an individual claimant.
H. The Director shall disclose only that information
required to be disclosed under Section 303 of the Social
Security Act, as amended, including:
1. any information required to be given the United
States Department of Labor under Section 303(a)(6); and
2. the making available upon request to any agency
of the United States charged with the administration of
public works or assistance through public employment, the
name, address, ordinary occupation and employment status
of each recipient of unemployment compensation, and a
statement of such recipient's right to further
compensation under such law as required by Section
303(a)(7); and
3. records to make available to the Railroad
Retirement Board as required by Section 303(c)(1); and
4. information that will assure reasonable
cooperation with every agency of the United States
charged with the administration of any unemployment
compensation law as required by Section 303(c)(2); and
5. information upon request and on a reimbursable
basis to the United States Department of Agriculture and
to any State food stamp agency concerning any information
required to be furnished by Section 303(d); and
6. any wage information upon request and on a
reimbursable basis to any State or local child support
enforcement agency required by Section 303(e); and
7. any information required under the income
eligibility and verification system as required by
Section 303(f); and
8. information that might be useful in locating an
absent parent or that parent's employer, establishing
paternity or establishing, modifying, or enforcing child
support orders for the purpose of a child support
enforcement program under Title IV of the Social Security
Act upon the request of and on a reimbursable basis to
the public agency administering the Federal Parent
Locator Service as required by Section 303(h); and
9. information, upon request, to representatives of
any federal, State or local governmental public housing
agency with respect to individuals who have signed the
appropriate consent form approved by the Secretary of
Housing and Urban Development and who are applying for or
participating in any housing assistance program
administered by the United States Department of Housing
and Urban Development as required by Section 303(i).
I. The Director, upon the request of a public agency of
Illinois, of the federal government or of any other state
charged with the investigation or enforcement of Section 10-5
of the Criminal Code of 1961 (or a similar federal law or
similar law of another State), may furnish the public agency
information regarding the individual specified in the request
as to:
1. the current or most recent home address of the
individual, and
2. the names and addresses of the individual's
employers.
J. Nothing in this Section shall be deemed to interfere
with the disclosure of certain records as provided for in
Section 1706 or with the right to make available to the
Internal Revenue Service of the United States Department of
the Treasury, or the Department of Revenue of the State of
Illinois, information obtained under this Act.
K. The Department shall make available to the Illinois
Student Assistance Commission, upon request, information in
the possession of the Department that may be necessary or
useful to the Commission in the collection of defaulted or
delinquent student loans which the Commission administers.
L. The Department shall make available to the State
Employees' Retirement System, the State Universities
Retirement System, and the Teachers' Retirement System of the
State of Illinois, upon request, information in the
possession of the Department that may be necessary or useful
to the System for the purpose of determining whether any
recipient of a disability benefit from the System is
gainfully employed.
M. This Section shall be applicable to the information
obtained in the administration of the State employment
service, except that the Director may publish or release
general labor market information and may furnish information
that he may deem proper to an individual, public officer or
public agency of this or any other State or the federal
government (in addition to those public officers or public
agencies specified in this Section) as he prescribes by Rule.
N. The Director may require such safeguards as he deems
proper to insure that information disclosed pursuant to this
Section is used only for the purposes set forth in this
Section.
O. (Blank).
P. Within 30 days after the effective date of this
amendatory Act of 1993 and annually thereafter, the
Department shall provide to the Department of Financial
Institutions a list of individuals or entities that, for the
most recently completed calendar year, report to the
Department as paying wages to workers. The lists shall be
deemed confidential and may not be disclosed to any other
person.
Q. The Director shall make available to an elected
federal official the name and address of an individual or
entity that is located within the jurisdiction from which the
official was elected and that, for the most recently
completed calendar year, has reported to the Department as
paying wages to workers, where the information will be used
in connection with the official duties of the official and
the official requests the information in writing, specifying
the purposes for which it will be used. For purposes of this
subsection, the use of information in connection with the
official duties of an official does not include use of the
information in connection with the solicitation of
contributions or expenditures, in money or in kind, to or on
behalf of a candidate for public or political office or a
political party or with respect to a public question, as
defined in Section 1-3 of the Election Code, or in connection
with any commercial solicitation. Any elected federal
official who, in submitting a request for information covered
by this subsection, knowingly makes a false statement or
fails to disclose a material fact, with the intent to obtain
the information for a purpose not authorized by this
subsection, shall be guilty of a Class B misdemeanor.
R. The Director may provide to any State or local child
support agency, upon request and on a reimbursable basis,
information that might be useful in locating an absent parent
or that parent's employer, establishing paternity, or
establishing, modifying, or enforcing child support orders.
(Source: P.A. 89-446, eff. 2-8-96; 89-493, eff. 1-1-97;
90-425, eff. 8-15-97; 90-488, eff. 8-17-97; 90-655, eff.
7-30-98.)
(820 ILCS 405/2100) (from Ch. 48, par. 660)
Sec. 2100. Handling of funds - Bond - Accounts.
A. All contributions and payments in lieu of
contributions collected under this Act together with any
interest thereon; all penalties collected pursuant to this
Act; any property or securities acquired through the use
thereof; all moneys advanced to this State's account in the
unemployment trust fund pursuant to the provisions of Title
XII of the Social Security Act, as amended; all moneys
received from the federal tax avoidance surcharge established
by Section 1506.4; all moneys received from the Federal
government as reimbursements pursuant to Section 204 of the
Federal-State Extended Unemployment Compensation Act of 1970,
as amended; all moneys credited to this State's account in
the unemployment trust fund pursuant to Section 903 of the
Federal Social Security Act, as amended; and all earnings of
such property or securities and any interest earned upon any
such moneys shall be paid or turned over to and held by the
Director, as ex-officio custodian of the clearing account,
the unemployment trust fund account and the benefit account,
and by the State Treasurer, as ex-officio custodian of the
special administrative account, separate and apart from all
public moneys or funds of this State, as hereinafter
provided. Such moneys shall be administered by the Director
exclusively for the purposes of this Act.
No such moneys shall be paid or expended except upon the
direction of the Director in accordance with such regulations
as he shall prescribe pursuant to the provisions of this Act.
The State Treasurer shall be liable on his general
official bond for the faithful performance of his duties in
connection with the moneys in the special administrative
account provided for under this Act. Such liability on his
official bond shall exist in addition to the liability upon
any separate bond given by him. All sums recovered for
losses sustained by the account shall be deposited in that
account.
The Director shall be liable on his general official bond
for the faithful performance of his duties in connection with
the moneys in the clearing account, the benefit account and
unemployment trust fund account provided for under this Act.
Such liability on his official bond shall exist in addition
to the liability upon any separate bond given by him. All
sums recovered for losses sustained by any one of the
accounts shall be deposited in the account that sustained
such loss.
The Treasurer shall maintain for such moneys a special
administrative account. The Director shall maintain for such
moneys 3 separate accounts: a clearing account, a benefit
account and an unemployment trust fund account. All moneys
payable under this Act (except moneys requisitioned from this
State's account in the unemployment trust fund and deposited
in the benefit account), upon receipt thereof by the
Director, shall be immediately deposited in the clearing
account; provided, however, that, except as is otherwise
provided in this Section, interest and penalties shall not be
deemed a part of the clearing account but shall be
transferred immediately upon clearance thereof to the special
administrative account.
After clearance thereof, all other moneys in the clearing
account shall be immediately deposited by the Director with
the Secretary of the Treasury of the United States of America
to the credit of the account of this State in the
unemployment trust fund, established and maintained pursuant
to the Federal Social Security Act, as amended.
The benefit account shall consist of all moneys
requisitioned from this State's account in the unemployment
trust fund. The moneys in the benefit account shall be
expended in accordance with regulations prescribed by the
Director and solely for the payment of benefits, refunds of
contributions, interest and penalties under the provisions of
the Act, the payment of health insurance in accordance with
Section 410 of this Act, and the transfer or payment of funds
to any Federal or State agency pursuant to reciprocal
arrangements entered into by the Director under the
provisions of Section 2700E, except that moneys credited to
this State's account in the unemployment trust fund pursuant
to Section 903 of the Federal Social Security Act, as
amended, shall be used exclusively as provided in subsection
B. The Director shall, from time to time, requisition from
the unemployment trust fund such amounts, not exceeding the
amounts standing to the State's account therein, as he deems
necessary solely for the payment of such benefits, refunds,
and funds, for a reasonable future period. The Director, as
ex-officio custodian of the benefit account, which shall be
kept separate and apart from all other public moneys, shall
issue his checks for the payment of such benefits, refunds,
health insurance and funds solely from the moneys so received
into the benefit account. However, after January 1, 1987, no
check shall be drawn on such benefit account unless at the
time of drawing there is sufficient money in the account to
pay the check. The Director shall retain in the clearing
account an amount of interest and penalties equal to the
amount of interest and penalties to be refunded from the
benefit account. After clearance thereof, the amount so
retained shall be immediately deposited by the Director, as
are all other moneys in the clearing account, with the
Secretary of the Treasury of the United States. If, at any
time, an insufficient amount of interest and penalties is
available for retention in the clearing account, no refund of
interest or penalties shall be made from the benefit account
until a sufficient amount is available for retention and is
so retained, or until the State Treasurer, upon the direction
of the Director, transfers to the Director a sufficient
amount from the special administrative account, for immediate
deposit in the benefit account.
Any balance of moneys requisitioned from the unemployment
trust fund which remains unclaimed or unpaid in the benefit
account after the expiration of the period for which such
sums were requisitioned shall either be deducted from
estimates of and may be utilized for authorized expenditures
during succeeding periods, or, in the discretion of the
Director, shall be redeposited with the Secretary of the
Treasury of the United States to the credit of the State's
account in the unemployment trust fund.
Moneys in the clearing, benefit and special
administrative accounts shall not be commingled with other
State funds but they shall be deposited as required by law
and maintained in separate accounts on the books of a savings
and loan association or bank.
No bank or savings and loan association shall receive
public funds as permitted by this Section, unless it has
complied with the requirements established pursuant to
Section 6 of "An Act relating to certain investments of
public funds by public agencies", approved July 23, 1943, as
now or hereafter amended.
B. Moneys credited to the account of this State in the
unemployment trust fund by the Secretary of the Treasury of
the United States pursuant to Section 903 of the Social
Security Act may not be requisitioned from this State's
account or and used as authorized by Section 903 except for
the payment of benefits and for the payment of expenses
incurred for the administration of this Act. Any interest
required to be paid on advances under Title XII of the Social
Security Act shall be paid in a timely manner and shall not
be paid, directly or indirectly, by an equivalent reduction
in contributions or payments in lieu of contributions from
amounts in this State's account in the unemployment trust
fund. Such moneys may be requisitioned pursuant to
subsection A for the payment of benefits. Such moneys may
also be requisitioned and used for the payment of expenses
incurred for the administration of this Act, but only
pursuant to a specific appropriation by the General Assembly
and only if the expenses are incurred and the moneys are
requisitioned after the enactment of an appropriation law
which:
1. Specifies the purpose or purposes for which such
moneys are appropriated and the amount or amounts
appropriated therefor;
2. Limits the period within which such moneys may
be obligated to a period ending not more than 2 years
after the date of the enactment of the appropriation law;
and
3. Limits the amount which may be obligated during
any fiscal year to an amount which does not exceed the
amount by which (a) the aggregate of the amounts
transferred to the account of this State pursuant to
Section 903 of the Social Security Act exceeds (b) the
aggregate of the amounts used by this State pursuant to
this Act and charged against the amounts transferred to
the account of this State.
For purposes of paragraph (3) above, amounts obligated
for administrative purposes pursuant to an appropriation
shall be chargeable against transferred amounts at the exact
time the obligation is entered into. The appropriation,
obligation, and expenditure or other disposition of money
appropriated under this subsection shall be accounted for in
accordance with standards established by the United States
Secretary of Labor.
Moneys appropriated as provided herein for the payment of
expenses of administration shall be requisitioned by the
Director as needed for the payment of obligations incurred
under such appropriation. Upon requisition, such moneys shall
be deposited with the State Treasurer, who shall hold such
moneys, as ex-officio custodian thereof, in accordance with
the requirements of Section 2103 and, upon the direction of
the Director, shall make payments therefrom pursuant to such
appropriation. Moneys so deposited shall, until expended,
remain a part of the unemployment trust fund and, if any will
not be expended, shall be returned promptly to the account of
this State in the unemployment trust fund.
C. The Governor is authorized to apply to the United
States Secretary of Labor for an advance or advances to this
State's account in the unemployment trust fund pursuant to
the conditions set forth in Title XII of the Federal Social
Security Act, as amended. The amount of any such advance may
be repaid from this State's account in the unemployment trust
fund provided that if the federal penalty tax avoidance
surcharge established by Section 1506.4 is in effect for that
year, any outstanding advance shall first be repaid from
amounts in this State's account in the unemployment trust
fund which were received from such surcharge by November 9 of
each year.
(Source: P.A. 86-3; 87-122.)
Section 99. This Section and the changes to Sections 235
and 401 of the Unemployment Insurance Act take effect upon
becoming law.
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