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1 | AN ACT concerning employment.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Unemployment Insurance Act is amended by | |||||||||||||||||||
5 | adding Section 407.5 as follows: | |||||||||||||||||||
6 | (820 ILCS 405/407.5 new) | |||||||||||||||||||
7 | Sec. 407.5. Shared Work Benefits. | |||||||||||||||||||
8 | A. In order to provide an economic climate conducive to the | |||||||||||||||||||
9 | retention of skilled workers in industries adversely affected | |||||||||||||||||||
10 | by general economic downturns and to supplement depressed | |||||||||||||||||||
11 | buying power of employees affected by such downturns, the | |||||||||||||||||||
12 | General Assembly finds that the public interest would be served | |||||||||||||||||||
13 | by the enactment of laws providing greater flexibility in the | |||||||||||||||||||
14 | payment of unemployment insurance benefits in situations where | |||||||||||||||||||
15 | qualified employers elect to retain employees at reduced hours | |||||||||||||||||||
16 | rather than instituting layoffs. | |||||||||||||||||||
17 | B. Definitions. As used in this Section: | |||||||||||||||||||
18 | (1) "Affected employee" means a specified employee, to | |||||||||||||||||||
19 | which an approved shared work compensation plan applies. | |||||||||||||||||||
20 | (2) "Employers' association" means an association | |||||||||||||||||||
21 | which is a party to a collective bargaining agreement under | |||||||||||||||||||
22 | which there is a shared work compensation plan. | |||||||||||||||||||
23 | (3) "Fringe benefits" include health insurance, |
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1 | retirement benefits, paid vacation and holidays, and sick | ||||||
2 | leave which are incidents of employment in addition to cash | ||||||
3 | remuneration. | ||||||
4 | (4) "Shared work benefits" means the benefits payable | ||||||
5 | to an affected employee under an approved shared work | ||||||
6 | compensation plan as distinguished from the benefits | ||||||
7 | otherwise payable under this Act. | ||||||
8 | (5) "Shared work compensation plan" means a plan of an | ||||||
9 | employer, or of an employers' association, under which | ||||||
10 | there is a reduction in the number of hours worked by | ||||||
11 | employees rather than temporary layoffs. | ||||||
12 | (6) "Shared work employer" means an employer, one or | ||||||
13 | more of whose employees are covered by a shared work | ||||||
14 | compensation plan. | ||||||
15 | (7) "Unemployment insurance" means the benefits | ||||||
16 | payable under this Act other than shared work benefits and | ||||||
17 | includes any amounts payable pursuant to an agreement under | ||||||
18 | federal law providing for compensation, assistance, or | ||||||
19 | allowances with respect to unemployment. | ||||||
20 | (8) "Usual weekly hours of work" means the normal | ||||||
21 | number of hours of work for the affected employee when he | ||||||
22 | or she is working on a full-time basis, not to exceed 40 | ||||||
23 | hours and not including overtime. | ||||||
24 | C. An employer or employers' association wishing to | ||||||
25 | participate in a shared work compensation program shall submit | ||||||
26 | a written and signed shared work compensation plan to the |
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1 | Director of Employment Security for approval. The Director | ||||||
2 | shall approve a shared work compensation plan only if the | ||||||
3 | following criteria are met: | ||||||
4 | (1) the plan identifies the affected employees to which | ||||||
5 | it applies; | ||||||
6 | (2) each affected employee is identified by name, | ||||||
7 | social security number, and any other information required | ||||||
8 | by the Director; | ||||||
9 | (3) the usual weekly hours of work for each affected | ||||||
10 | employee are reduced by not less than 10% and not more than | ||||||
11 | 50%; | ||||||
12 | (4) fringe benefits will continue to be provided on the | ||||||
13 | same basis as before the reduction in work hours; in no | ||||||
14 | event shall the level of health benefits be reduced due to | ||||||
15 | a reduction in hours; | ||||||
16 | (5) the plan certifies that the aggregate reduction in | ||||||
17 | work hours for each affected employee is in lieu of | ||||||
18 | temporary layoffs which would have resulted in an | ||||||
19 | equivalent reduction in work hours; | ||||||
20 | (6) the plan is approved in writing by the collective | ||||||
21 | bargaining agent for each collective bargaining agreement | ||||||
22 | covering any affected employee; | ||||||
23 | (7) the plan will not subsidize seasonal employers | ||||||
24 | during the off season nor subsidize employers who have | ||||||
25 | traditionally used part-time employees; and | ||||||
26 | (8) the employer agrees to furnish reports necessary |
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1 | for the proper administration of the plan and to permit | ||||||
2 | access by the Director to all records necessary to verify | ||||||
3 | the plan before approval and after approval to evaluate the | ||||||
4 | application of the plan. | ||||||
5 | In addition to subdivisions (1) through (8) of this | ||||||
6 | subsection C, the Director shall take into account any other | ||||||
7 | factors which may be pertinent. | ||||||
8 | D. The Director shall approve or reject a shared work | ||||||
9 | compensation plan in writing within 15 days of its receipt. The | ||||||
10 | reasons for the rejection shall be final and nonappealable, but | ||||||
11 | the rejection shall not prevent an employer from submitting | ||||||
12 | another plan for approval not earlier than 15 days after the | ||||||
13 | date of a previous written rejection. | ||||||
14 | E. If an approved plan or any representation for | ||||||
15 | implementation of the plan is intentionally and substantially | ||||||
16 | misleading or false, any individual who participated in any | ||||||
17 | such misrepresentation has committed a Class B misdemeanor and | ||||||
18 | is personally liable for any amount of benefits deemed by the | ||||||
19 | Director to have been improperly paid from the fund as a result | ||||||
20 | thereof. This provision for personal liability is in addition | ||||||
21 | to any remedy against individual claimants for collection of | ||||||
22 | overpayment of benefits if such claimants participated in or | ||||||
23 | were otherwise at fault in the overpayment. | ||||||
24 | F. A shared work compensation plan shall be effective on | ||||||
25 | the date agreed upon by the Director and the employer but no | ||||||
26 | later than the first day of the second calendar week after the |
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1 | date of the Director's approval, unless a later date is | ||||||
2 | requested by the employer. The plan shall expire at the end of | ||||||
3 | the twelfth full calendar month after its effective date, or on | ||||||
4 | the date specified in the plan if that date is earlier, unless | ||||||
5 | the plan is revoked before that date by the Director. If a plan | ||||||
6 | is revoked by the Director, it shall terminate on the date | ||||||
7 | specified in the Director's order of revocation. | ||||||
8 | G. The Director may revoke approval of a shared work | ||||||
9 | compensation plan for good cause. The revocation order shall be | ||||||
10 | in writing and shall specify the date the revocation is | ||||||
11 | effective and the reasons for the revocation. Good cause for | ||||||
12 | revocation shall include but is not limited to failure to | ||||||
13 | comply with the assurances given in the plan, unreasonable | ||||||
14 | revision of productivity standards, conduct or occurrences | ||||||
15 | tending to defeat the intent and effective operation of the | ||||||
16 | plan, and violation of the criteria on which approval of the | ||||||
17 | plan was based. | ||||||
18 | An action to revoke approval of a shared work compensation | ||||||
19 | plan may be initiated at any time by the Director on his or her | ||||||
20 | own motion, on the motion of any of the affected employees, or | ||||||
21 | on the motion of the appropriate collective bargaining agents. | ||||||
22 | The Director shall review each plan at least once within the | ||||||
23 | 12-month period the plan is in effect to assure that it | ||||||
24 | continues to meet the requirements of this Section. | ||||||
25 | H. An approved shared work compensation plan in effect may | ||||||
26 | be modified with the approval of the Director. If the hours of |
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1 | work are increased or decreased beyond the level in the | ||||||
2 | original plan, or any other condition is changed, the employer | ||||||
3 | shall promptly notify the Director. If the changes meet the | ||||||
4 | requirements for approval of a plan, the Director shall approve | ||||||
5 | the modifications. This approval shall not change the | ||||||
6 | expiration date of the original plan. If the modifications do | ||||||
7 | not meet the requirements for approval, the Director shall | ||||||
8 | revoke the plan as specified in subsection G. | ||||||
9 | I. An individual is eligible to receive shared work | ||||||
10 | benefits with respect to any week only if, in addition to | ||||||
11 | meeting the conditions of eligibility for other benefits under | ||||||
12 | this Act, the Director finds that: | ||||||
13 | (1) the individual was employed during that week as an | ||||||
14 | affected employee under an approved shared work | ||||||
15 | compensation plan which was in effect for that week; and | ||||||
16 | (2) the individual was able to work and was available | ||||||
17 | for additional hours of work and for full-time work with | ||||||
18 | the shared work employer. | ||||||
19 | Notwithstanding any other provision of this Act, an | ||||||
20 | individual is deemed to have been unemployed in any week for | ||||||
21 | which remuneration is payable to him or her as an affected | ||||||
22 | employee for less than his or her normal weekly hours of work | ||||||
23 | as specified under the approved shared work compensation plan | ||||||
24 | in effect for that week. | ||||||
25 | J. Benefits. | ||||||
26 | (1) The shared work weekly benefit amount shall be the |
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1 | product of the weekly benefit amount, as determined in | ||||||
2 | accordance with Section 401, multiplied by the percentage | ||||||
3 | of reduction in the individual's usual weekly hours of | ||||||
4 | work. | ||||||
5 | (2) No individual is eligible in any benefit year for | ||||||
6 | more than the maximum entitlement established for benefits | ||||||
7 | under this Act, including benefits under this Section. | ||||||
8 | (3) The shared work benefits paid an individual shall | ||||||
9 | be deducted from the maximum benefit amount established | ||||||
10 | pursuant to Section 403 for that individual's benefit year. | ||||||
11 | (4) Claims for shared work benefits shall be filed in | ||||||
12 | the same manner as claims for other benefits under this Act | ||||||
13 | or as prescribed by the Director by rule. | ||||||
14 | (5) Provisions otherwise applicable to unemployment | ||||||
15 | insurance claimants under this Act apply to shared work | ||||||
16 | claimants to the extent that they are not inconsistent with | ||||||
17 | this Section. | ||||||
18 | (6)(a) If an individual works in the same week for an | ||||||
19 | employer other than the shared work employer and his or her | ||||||
20 | combined hours of work for both employers are equal to or | ||||||
21 | greater than the usual weekly hours of work with the shared | ||||||
22 | work employer, the individual shall not be entitled to | ||||||
23 | benefits under this Section. | ||||||
24 | (b) If an individual works in the same week for both | ||||||
25 | the shared work employer and another employer and his or | ||||||
26 | her combined hours of work for both employers are less than |
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1 | his or her usual weekly hours of work, the benefit amount | ||||||
2 | payable for that week shall be the weekly benefit amount, | ||||||
3 | as determined in accordance with Section 401, reduced by | ||||||
4 | the same percentage that the combined hours are of the | ||||||
5 | usual weekly hours of work. | ||||||
6 | (7) An individual who does not work during a week for | ||||||
7 | the shared work employer, and is otherwise eligible, shall | ||||||
8 | be paid his or her full weekly benefit amount. | ||||||
9 | (8) An individual who does not work for the shared work | ||||||
10 | employer during a week but works for another employer, and | ||||||
11 | is otherwise eligible, shall be paid benefits for that week | ||||||
12 | under the provisions of Section 402. | ||||||
13 | K. Shared work benefits shall be charged to employers' | ||||||
14 | experience rating records in the same manner as other benefits | ||||||
15 | under this Act are charged. Employers liable for payments in | ||||||
16 | lieu of contributions shall have shared work benefits | ||||||
17 | attributed to their records in the same manner as other | ||||||
18 | benefits under this Act are attributed. | ||||||
19 | L. An individual who has received all of the shared work | ||||||
20 | benefits, or all of the combined unemployment insurance and | ||||||
21 | shared work benefits, available in a benefit year shall be | ||||||
22 | considered an exhaustee for purposes of the extended benefits | ||||||
23 | program under Section 409, and, if otherwise eligible under | ||||||
24 | that Section, shall be eligible to receive extended benefits. | ||||||
25 | M. Unless inconsistent with or otherwise provided by this | ||||||
26 | Section, this Act and rules adopted under this Act apply to |
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1 | shared work benefits. To the extent permitted by federal law, | ||||||
2 | those rules may make such distinctions and requirements as may | ||||||
3 | be necessary with respect to unemployed individuals to carry | ||||||
4 | out the purposes of this Section, including rules defining | ||||||
5 | usual hours, days, work week, wages, and the duration of plans | ||||||
6 | adopted under this Section. To the extent that any portion of | ||||||
7 | this Section may be inconsistent with the requirements of | ||||||
8 | federal law relating to the payment of unemployment insurance | ||||||
9 | benefits, the conflicting provisions or interpretations of | ||||||
10 | this Section shall be deemed inoperative, but only to the | ||||||
11 | extent of the conflict. If the Director determines that such a | ||||||
12 | conflict exists, a statement to that effect shall be filed with | ||||||
13 | the Governor's office for transmission to both houses of the | ||||||
14 | General Assembly. | ||||||
15 | N. The Director shall adopt such rules as are necessary to | ||||||
16 | carry out the purposes of this Section.
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17 | Section 99. Effective date. This Act takes effect July 1, | ||||||
18 | 2011.
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