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1
HOUSE RESOLUTION

 
2    WHEREAS, Small businesses are the engine for job recovery
3in the State of Illinois; and
 
4    WHEREAS, Adding a new employee for a small business is one
5of the most important decisions a small business owner can
6make; and
 
7    WHEREAS, Letting an employee go, either for cause or
8because of a poor fit, affects the experience rating of an
9employer, which determines the unemployment insurance tax rate
10the employer pays; and
 
11    WHEREAS, The experience rating calculation affects a small
12business that lets a single employee go disproportionately more
13than a large business that lets a single employee go, as a
14single employee is a much larger percentage of the workforce of
15a small business than a large business; and
 
16    WHEREAS, Small businesses are particularly leery of a
17higher experience rating, as that will lead to a higher
18unemployment insurance tax rate; and
 
19    WHEREAS, Current law only permits employers 30 working days
20to review the performance of a new employee before that

 

 

HR1316- 2 -LRB097 23473 GRL 72402 r

1employee impacts the experience rating of the employer; and
 
2    WHEREAS, Many small business employers believe that 30 days
3is not enough time to properly review whether a new employee is
4the right fit for a company; and
 
5    WHEREAS, The relatively short period of time before an
6employer is liable for a higher experience rating to pay the
7unemployment benefits of a former employee is a disincentive to
8hiring; and
 
9    WHEREAS, A more reasonable period of time, such as 90 days,
10would lessen this disincentive to hiring; and
 
11    WHEREAS, This period of time before the experience rating
12of an employer is affected for an employee that does not work
13out is unrelated to the question of how many weeks of benefits
14an employee is entitled to; therefore, be it
 
15    RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE
16NINETY-SEVENTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that
17all stakeholders in the State's unemployment insurance system
18are encouraged to consider the best amount of time to give
19employers to decide whether an employee is a good fit before
20their experience rating is affected, in order to encourage job
21growth.