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91_HB3260enr
HB3260 Enrolled LRB9110325WHcs
1 AN ACT to amend the Unemployment Insurance Act by adding
2 Section 206.1.
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 adding Section 206.1 as follows:
7 (820 ILCS 405/206.1 new)
8 Sec. 206.1. Employment; employee leasing company.
9 A. For purposes of this Section:
10 1. "Client" means an individual or entity which has
11 contracted with an employee leasing company to supply it
12 with or assume responsibility for personnel management of
13 one or more workers to perform services on an on-going
14 basis rather than under a temporary help arrangement, as
15 defined in Section 15 of the Employee Leasing Company
16 Act.
17 2. "Employee leasing company" means an individual
18 or entity which contracts with a client to supply or
19 assume responsibility for personnel management of one or
20 more workers to perform services for the client on an
21 on-going basis rather than under a temporary help
22 arrangement, as defined in Section 15 of the Employee
23 Leasing Company Act.
24 B. Subject to subsection C, services performed by an
25 individual under a contract between an employee leasing
26 company and client, including but not limited to services
27 performed in the capacity of a corporate officer of the
28 client, are services in "employment" of the employee leasing
29 company and are not services in "employment" of the client if
30 all of the following conditions are met:
31 1. The employee leasing company pays the individual
HB3260 Enrolled -2- LRB9110325WHcs
1 for the services directly from its own accounts; and
2 2. The employee leasing company, exclusively or in
3 conjunction with the client, retains the right to direct
4 and control the individual in the performance of the
5 services; and
6 3. The employee leasing company, exclusively or in
7 conjunction with the client, retains the right to hire
8 and terminate the individual; and
9 4. The employee leasing company reports each client
10 in the manner the Director prescribes by regulation.
11 C. Notwithstanding subsection B, services performed by
12 an individual under a contract between an employee leasing
13 company and client, including but not limited to services
14 performed in the capacity of a corporate officer of the
15 client, are services in "employment" of the client and are
16 not services in "employment" of the employee leasing company
17 if:
18 1. The contribution rate, or, where applicable, the
19 amended contribution rate, of the client is greater than
20 the sum of the fund building rate established for the
21 year pursuant to Section 1506.3 of this Act plus the
22 greater of 2.7% or 2.7% times the adjusted state
23 experience factor for the year; and
24 2. The contribution rate, or, where applicable, the
25 amended contribution rate, of the employee leasing
26 company is less than the contribution rate, or, where
27 applicable, the amended contribution rate of the client
28 by more than 1.5% absolute.
29 D. Except as provided in this Section and
30 notwithstanding any other provision of this Act to the
31 contrary, services performed by an individual under a
32 contract between an employee leasing company and client,
33 including but not limited to services performed in the
34 capacity of a corporate officer of the client, are services
HB3260 Enrolled -3- LRB9110325WHcs
1 in "employment" of the client and are not services in
2 "employment" of the employee leasing company.
3 E. Nothing in this Section shall be construed or used to
4 effect the existence of an employment relationship other than
5 for purposes of this Act.
6 Section 99. Effective date. This Act takes effect upon
7 becoming law.
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