Illinois General Assembly - Full Text of HB0085
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Full Text of HB0085  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 1/14/2021, by Rep. Mary E. Flowers


New Act
5 ILCS 140/7.5
30 ILCS 105/5.935 new

    Creates the Wage Insurance Act. Requires the Department of Employment Security to establish a Wage Insurance Program. Provides that an individual is eligible for wage insurance benefits if the individual is a claimant under the Unemployment Insurance Act at the time the individual obtains reemployment and is not employed by the employer from which the individual was last separated. Provides that benefits shall be paid in an amount sufficient to pay the difference between the wage received by the individual at the time of separation and the wages received by the individual from reemployment. Imposes a 0.4% payroll tax on employees beginning January 1, 2022. Provides that claims for wage insurance benefits may be filed beginning June 1, 2022. Contains provisions concerning the recovery of erroneous payments; hearings; civil penalties; unpaid taxes; rules; and other matters. Creates the Wage Insurance Fund as a special fund in the State treasury. Amends the State Finance Act to include the Wage Insurance Fund. Amends the Freedom of Information Act. Exempts from inspection and copying information that is exempt from disclosure under the Wage Insurance Act.

LRB102 03806 KTG 13819 b






HB0085LRB102 03806 KTG 13819 b

1    AN ACT concerning employment.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 1. Short title. This Act may be cited as the Wage
5Insurance Act.
6    Section 5. Definitions. As used in this Act:
7    "Department" means the Department of Employment Security.
8    "Director" means the Director of Employment Security.
9    "Employer" means (1) any person, partnership, corporation,
10association, or other business entity that employs one or more
11employees for each working day during each of 20 or more
12calendar workweeks; and (2) the State of Illinois and any
13other unit of local government.
14    "Wage insurance benefits" means the benefits payable under
15this Act.
16    "Tax" means the tax imposed under Section 25 of this Act.
17    Section 10. Wage Insurance Program.
18    (a) The Department shall establish and administer a Wage
19Insurance Program.
20    (b) The Department shall establish procedures and forms
21for filing claims for benefits under this Act.
22    (c) Information contained in the files and records



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1pertaining to an employee under this Act is confidential and
2not open to public inspection, other than to public employees
3in the performance of their official duties. However, the
4employee or an authorized representative of an employee may
5review the records or receive specific information from the
6records on the presentation of the signed authorization of the
7employee. An employer or the employer's duly authorized
8representative may review the records of an employee employed
9by the employer in connection with a pending claim. At the
10Department's discretion, other persons may review records when
11such persons are rendering assistance to the Department at any
12stage of the proceedings on any matter pertaining to the
13administration of this Act.
14    An employer must keep at its place of business records of
15employment from which the information needed by the Department
16for purposes of this Act may be obtained. The records shall at
17all times be open to the inspection of the Department pursuant
18to rules adopted by the Department.
19    (d) The Department shall develop and implement an outreach
20program to ensure that individuals who may be eligible to
21receive wage insurance benefits under this Act are made aware
22of these benefits. Outreach information shall explain, in an
23easy-to-understand format, eligibility requirements, the
24claims process, weekly benefit amounts, maximum benefits
25payable, notice requirements, reinstatement and
26nondiscrimination rights, confidentiality, and coordination of



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1benefits under this Act and other laws, collective bargaining
2agreements, and employer policies. Outreach information shall
3be available in English and in languages other than English
4that are spoken as a primary language by a significant portion
5of the State's population, as determined by the Department.
6    Section 15. Eligibility for benefits.
7    (a) Benefits under this Act are payable to an individual
8who is a claimant under the Unemployment Insurance Act at the
9time the individual obtains reemployment and who is not
10employed by the employer from which the individual was last
12    (b) The Department may require that a claim for wage
13insurance benefits under this Act be supported by a
14certification of wages issued by the individual's employer.
15    Section 20. Disqualification from benefits.
16    (a) An individual is disqualified from wage insurance
17benefits under this Act if the individual willfully makes a
18false statement or misrepresentation regarding a material
19fact, or willfully fails to disclose a material fact, to
20obtain benefits.
21    (b) A disqualification for wage insurance benefits is for
22a period of 2 years, and commences on the first day of the
23calendar week in which the individual filed a claim for
24benefits under this Act. An individual who is disqualified for



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1benefits is liable to the Department for a penalty in an amount
2equal to 15% of the amount of benefits received by the
4    Section 25. Payroll tax.
5    (a) There is imposed a tax upon employees in the amount of
60.4% of wages as defined in Section 235 of the Unemployment
7Insurance Act. The Department shall by rule provide for the
8collection of this tax.
9    (b) Moneys collected pursuant to subsection (a), and any
10accrued cash balances, shall be deposited into the Wage
11Insurance Fund for payment of benefits and the expenditures of
12the Department in carrying out the functions and duties of the
13Department under this Act.
14    Section 30. Duration of benefits; amount of benefits.
15    (a) Wage insurance benefits are payable for a maximum of 2
17    (b) The first payment of wage insurance benefits shall be
18made to an employee within 2 weeks after the claim is filed.
19Subsequent payments shall be made twice a month thereafter.
20    (c) Wage insurance benefits shall be paid in an amount
21sufficient to pay to the individual the difference between the
22wage received by the individual at the time of the separation
23from the employer by which the individual was employed
24immediately before becoming a claimant under this Act and the



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1wages received by the individual from reemployment.
2    (d) The Department shall provide a tax form to each
3individual who has received wage insurance benefits for the
4individual's use in paying federal income tax on the benefits
5and shall advise an individual filing a new claim for wage
6insurance benefits, at the time of filing the claim, that:
7        (1) benefits are subject to federal income tax;
8        (2) requirements exist pertaining to estimated tax
9    payments;
10        (3) the individual may elect to have federal income
11    tax deducted and withheld from the individual's payment of
12    benefits at the amount specified in the federal Internal
13    Revenue Code; and
14        (4) the individual is permitted to change a previously
15    elected withholding status.
16    Amounts deducted and withheld from benefits must remain in
17the Wage Insurance Fund until transferred to the federal
18taxing authority as a payment of income tax.
19    The Director shall follow all procedures specified by the
20federal Internal Revenue Service pertaining to the deducting
21and withholding of income tax.
22    Section 35. Recovery of erroneous payments.
23    (a) If an individual receives any wage insurance benefits
24under Section 30 to which the employee is not entitled:
25        (1) the individual is liable to the Department for the



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1    amount of benefits received; and
2        (2) the amount of benefits received may be deducted by
3    the Department from any future benefits otherwise payable
4    to the individual under Section 30.
5    (b) If the Department decides that an individual has been
6paid wage insurance benefits to which the individual is not
7entitled because of an error, and that the individual is not
8subject to disqualification under Section 20, the amounts
9received in error may be recovered by the Department only by
10deductions from benefits otherwise payable to the employee
11under Section 30 during the 52 weeks following the date on
12which the order establishing the amount of the erroneous
13payment becomes final. If amounts determined to be recoverable
14have not been paid within that time, the liability shall be
15canceled by the Department and charged against the Wage
16Insurance Fund.
17    (c) Except as provided in subsection (d), if benefits
18determined to be recoverable under this Section have not been
19paid within 3 years after the date that the order of the
20Department establishing the liability of the individual
21becomes final, and no payments have been received on the
22liability for at least 3 months, the liability shall be
23canceled by the Department and charged against the Wage
24Insurance Fund.
25    (d) Any amount due under this Section may be collected by
26the Department in a civil action against the individual



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1brought in the name of the Department.
2    (e) Interest on any benefits recoverable under this
3Section shall be paid and collected at the same time repayment
4of benefits is made by the individual. Interest on an amount
5recoverable under this Section accrues at the rate specified
6in Section 2-1303 of the Code of Civil Procedure, beginning on
7the first day of the month following 60 days after entry of the
8order establishing the amount recoverable.
9    (f) Any amount collected under this Section by the
10Department shall be paid into the Wage Insurance Fund.
11    Section 40. Hearings. A person aggrieved by a decision of
12the Department under this Act may request a hearing. The
13Department shall adopt rules governing hearings and the
14issuance of final orders under this Act in accordance with the
15provisions of the Illinois Administrative Procedure Act. All
16final administrative decisions of the Department under this
17Act are subject to judicial review under the Administrative
18Review Law.
19    Section 45. Civil penalty.
20    (a) The Department may assess a civil penalty not to
21exceed $5,000 against an employer that:
22        (1) fails to pay when due the taxes imposed under
23    Section 25; or
24        (2) fails to comply with this Act or any rules adopted



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1    by the Department relating to reports or other
2    requirements necessary to carry out the purposes of this
3    Act.
4    (b) All civil penalties collected under this Section shall
5be applied first toward reimbursement of the costs incurred in
6investigating violations, conducting hearings, and assessing
7and collecting penalties. All remaining amounts shall be paid
8into the Wage Insurance Fund.
9    Section 50. Unpaid tax.
10    (a) If an employer defaults with respect to any tax
11payment required to be made by the employer tax under Section
1225, a person described in subsection (b) of this Section who,
13as an officer, member, partner, or employee, is under a duty to
14perform the actions required by employers under this Act shall
15be personally liable for amounts due under Section 25. More
16than one person may be jointly and severally liable under this
18    (b) This Section applies only to a person who is one or
19more of the following:
20        (1) An officer or employee of a corporation.
21        (2) A member or an employee of a limited liability
22    corporation.
23        (3) A partner in or an employee of a limited liability
24    partnership.
25    (c) If the Director determines that an amount is due under



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1this Section, the Director shall issue a notice of assessment
2to the person liable under this Section mailed to the person's
3last-known address of record with the Director.
4    Section 55. Wage Insurance Fund. The Wage Insurance Fund
5is created as a special fund in the State treasury. All moneys
6received under this Act shall be deposited into the Fund. This
7Section constitutes a continuing appropriation from the Fund
8of all amounts necessary for the purposes authorized by this
9Act. Any interest earned on moneys in the Wage Insurance Fund
10shall be deposited into the Fund.
11    Section 60. Rules. The Department may adopt any rules
12necessary to implement this Act.
13    Section 65. Commencement date.
14    (a) Employers shall first withhold taxes from employees'
15earnings for quarters worked beginning January 1, 2022.
16    (b) Individuals may first file claims for wage insurance
17benefits under this Act on or after June 1, 2022.
18    Section 70. Authority to contract. The Department may
19contract or enter into interagency agreements with other State
20agencies for the initial administration of the Wage Insurance



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1    Section 905. The Freedom of Information Act is amended by
2changing Section 7.5 as follows:
3    (5 ILCS 140/7.5)
4    Sec. 7.5. Statutory exemptions. To the extent provided for
5by the statutes referenced below, the following shall be
6exempt from inspection and copying:
7        (a) All information determined to be confidential
8    under Section 4002 of the Technology Advancement and
9    Development Act.
10        (b) Library circulation and order records identifying
11    library users with specific materials under the Library
12    Records Confidentiality Act.
13        (c) Applications, related documents, and medical
14    records received by the Experimental Organ Transplantation
15    Procedures Board and any and all documents or other
16    records prepared by the Experimental Organ Transplantation
17    Procedures Board or its staff relating to applications it
18    has received.
19        (d) Information and records held by the Department of
20    Public Health and its authorized representatives relating
21    to known or suspected cases of sexually transmissible
22    disease or any information the disclosure of which is
23    restricted under the Illinois Sexually Transmissible
24    Disease Control Act.
25        (e) Information the disclosure of which is exempted



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1    under Section 30 of the Radon Industry Licensing Act.
2        (f) Firm performance evaluations under Section 55 of
3    the Architectural, Engineering, and Land Surveying
4    Qualifications Based Selection Act.
5        (g) Information the disclosure of which is restricted
6    and exempted under Section 50 of the Illinois Prepaid
7    Tuition Act.
8        (h) Information the disclosure of which is exempted
9    under the State Officials and Employees Ethics Act, and
10    records of any lawfully created State or local inspector
11    general's office that would be exempt if created or
12    obtained by an Executive Inspector General's office under
13    that Act.
14        (i) Information contained in a local emergency energy
15    plan submitted to a municipality in accordance with a
16    local emergency energy plan ordinance that is adopted
17    under Section 11-21.5-5 of the Illinois Municipal Code.
18        (j) Information and data concerning the distribution
19    of surcharge moneys collected and remitted by carriers
20    under the Emergency Telephone System Act.
21        (k) Law enforcement officer identification information
22    or driver identification information compiled by a law
23    enforcement agency or the Department of Transportation
24    under Section 11-212 of the Illinois Vehicle Code.
25        (l) Records and information provided to a residential
26    health care facility resident sexual assault and death



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1    review team or the Executive Council under the Abuse
2    Prevention Review Team Act.
3        (m) Information provided to the predatory lending
4    database created pursuant to Article 3 of the Residential
5    Real Property Disclosure Act, except to the extent
6    authorized under that Article.
7        (n) Defense budgets and petitions for certification of
8    compensation and expenses for court appointed trial
9    counsel as provided under Sections 10 and 15 of the
10    Capital Crimes Litigation Act. This subsection (n) shall
11    apply until the conclusion of the trial of the case, even
12    if the prosecution chooses not to pursue the death penalty
13    prior to trial or sentencing.
14        (o) Information that is prohibited from being
15    disclosed under Section 4 of the Illinois Health and
16    Hazardous Substances Registry Act.
17        (p) Security portions of system safety program plans,
18    investigation reports, surveys, schedules, lists, data, or
19    information compiled, collected, or prepared by or for the
20    Regional Transportation Authority under Section 2.11 of
21    the Regional Transportation Authority Act or the St. Clair
22    County Transit District under the Bi-State Transit Safety
23    Act.
24        (q) Information prohibited from being disclosed by the
25    Personnel Record Review Act.
26        (r) Information prohibited from being disclosed by the



HB0085- 13 -LRB102 03806 KTG 13819 b

1    Illinois School Student Records Act.
2        (s) Information the disclosure of which is restricted
3    under Section 5-108 of the Public Utilities Act.
4        (t) All identified or deidentified health information
5    in the form of health data or medical records contained
6    in, stored in, submitted to, transferred by, or released
7    from the Illinois Health Information Exchange, and
8    identified or deidentified health information in the form
9    of health data and medical records of the Illinois Health
10    Information Exchange in the possession of the Illinois
11    Health Information Exchange Office due to its
12    administration of the Illinois Health Information
13    Exchange. The terms "identified" and "deidentified" shall
14    be given the same meaning as in the Health Insurance
15    Portability and Accountability Act of 1996, Public Law
16    104-191, or any subsequent amendments thereto, and any
17    regulations promulgated thereunder.
18        (u) Records and information provided to an independent
19    team of experts under the Developmental Disability and
20    Mental Health Safety Act (also known as Brian's Law).
21        (v) Names and information of people who have applied
22    for or received Firearm Owner's Identification Cards under
23    the Firearm Owners Identification Card Act or applied for
24    or received a concealed carry license under the Firearm
25    Concealed Carry Act, unless otherwise authorized by the
26    Firearm Concealed Carry Act; and databases under the



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1    Firearm Concealed Carry Act, records of the Concealed
2    Carry Licensing Review Board under the Firearm Concealed
3    Carry Act, and law enforcement agency objections under the
4    Firearm Concealed Carry Act.
5        (w) Personally identifiable information which is
6    exempted from disclosure under subsection (g) of Section
7    19.1 of the Toll Highway Act.
8        (x) Information which is exempted from disclosure
9    under Section 5-1014.3 of the Counties Code or Section
10    8-11-21 of the Illinois Municipal Code.
11        (y) Confidential information under the Adult
12    Protective Services Act and its predecessor enabling
13    statute, the Elder Abuse and Neglect Act, including
14    information about the identity and administrative finding
15    against any caregiver of a verified and substantiated
16    decision of abuse, neglect, or financial exploitation of
17    an eligible adult maintained in the Registry established
18    under Section 7.5 of the Adult Protective Services Act.
19        (z) Records and information provided to a fatality
20    review team or the Illinois Fatality Review Team Advisory
21    Council under Section 15 of the Adult Protective Services
22    Act.
23        (aa) Information which is exempted from disclosure
24    under Section 2.37 of the Wildlife Code.
25        (bb) Information which is or was prohibited from
26    disclosure by the Juvenile Court Act of 1987.



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1        (cc) Recordings made under the Law Enforcement
2    Officer-Worn Body Camera Act, except to the extent
3    authorized under that Act.
4        (dd) Information that is prohibited from being
5    disclosed under Section 45 of the Condominium and Common
6    Interest Community Ombudsperson Act.
7        (ee) Information that is exempted from disclosure
8    under Section 30.1 of the Pharmacy Practice Act.
9        (ff) Information that is exempted from disclosure
10    under the Revised Uniform Unclaimed Property Act.
11        (gg) Information that is prohibited from being
12    disclosed under Section 7-603.5 of the Illinois Vehicle
13    Code.
14        (hh) Records that are exempt from disclosure under
15    Section 1A-16.7 of the Election Code.
16        (ii) Information which is exempted from disclosure
17    under Section 2505-800 of the Department of Revenue Law of
18    the Civil Administrative Code of Illinois.
19        (jj) Information and reports that are required to be
20    submitted to the Department of Labor by registering day
21    and temporary labor service agencies but are exempt from
22    disclosure under subsection (a-1) of Section 45 of the Day
23    and Temporary Labor Services Act.
24        (kk) Information prohibited from disclosure under the
25    Seizure and Forfeiture Reporting Act.
26        (ll) Information the disclosure of which is restricted



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1    and exempted under Section 5-30.8 of the Illinois Public
2    Aid Code.
3        (mm) Records that are exempt from disclosure under
4    Section 4.2 of the Crime Victims Compensation Act.
5        (nn) Information that is exempt from disclosure under
6    Section 70 of the Higher Education Student Assistance Act.
7        (oo) Communications, notes, records, and reports
8    arising out of a peer support counseling session
9    prohibited from disclosure under the First Responders
10    Suicide Prevention Act.
11        (pp) Names and all identifying information relating to
12    an employee of an emergency services provider or law
13    enforcement agency under the First Responders Suicide
14    Prevention Act.
15        (qq) Information and records held by the Department of
16    Public Health and its authorized representatives collected
17    under the Reproductive Health Act.
18        (rr) Information that is exempt from disclosure under
19    the Cannabis Regulation and Tax Act.
20        (ss) Data reported by an employer to the Department of
21    Human Rights pursuant to Section 2-108 of the Illinois
22    Human Rights Act.
23        (tt) Recordings made under the Children's Advocacy
24    Center Act, except to the extent authorized under that
25    Act.
26        (uu) Information that is exempt from disclosure under



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1    Section 50 of the Sexual Assault Evidence Submission Act.
2        (vv) Information that is exempt from disclosure under
3    subsections (f) and (j) of Section 5-36 of the Illinois
4    Public Aid Code.
5        (ww) Information that is exempt from disclosure under
6    Section 16.8 of the State Treasurer Act.
7        (xx) Information that is exempt from disclosure or
8    information that shall not be made public under the
9    Illinois Insurance Code.
10        (yy) Information prohibited from being disclosed under
11    the Illinois Educational Labor Relations Act.
12        (zz) Information prohibited from being disclosed under
13    the Illinois Public Labor Relations Act.
14        (aaa) Information prohibited from being disclosed
15    under Section 1-167 of the Illinois Pension Code.
16        (bbb) Information that is exempt from disclosure under
17    Section 10 of the Wage Insurance Act.
18(Source: P.A. 100-20, eff. 7-1-17; 100-22, eff. 1-1-18;
19100-201, eff. 8-18-17; 100-373, eff. 1-1-18; 100-464, eff.
208-28-17; 100-465, eff. 8-31-17; 100-512, eff. 7-1-18; 100-517,
21eff. 6-1-18; 100-646, eff. 7-27-18; 100-690, eff. 1-1-19;
22100-863, eff. 8-14-18; 100-887, eff. 8-14-18; 101-13, eff.
236-12-19; 101-27, eff. 6-25-19; 101-81, eff. 7-12-19; 101-221,
24eff. 1-1-20; 101-236, eff. 1-1-20; 101-375, eff. 8-16-19;
25101-377, eff. 8-16-19; 101-452, eff. 1-1-20; 101-466, eff.
261-1-20; 101-600, eff. 12-6-19; 101-620, eff 12-20-19; 101-649,



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1eff. 7-7-20.)
2    Section 910. The State Finance Act is amended by adding
3Section 5.935 as follows:
4    (30 ILCS 105/5.935 new)
5    Sec. 5.935. The Wage Insurance Fund.