Full Text of SB2540 97th General Assembly
SB2540 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 SB2540 Introduced 12/13/2011, by Sen. Kyle McCarter SYNOPSIS AS INTRODUCED: |
| 820 ILCS 405/610 | from Ch. 48, par. 440 | 820 ILCS 405/611 | from Ch. 48, par. 441 |
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Amends the Unemployment Insurance Act. Provides that payments made pursuant to a collective bargaining agreement to an individual as vacation pay, vacation pay allowance, pay in lieu of vacation, or as standby pay during a period of shutdown for the taking of inventory or for vacation purposes shall be deemed "wages." Makes changes concerning what constitutes "disqualifying income."
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| | A BILL FOR |
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| 1 | | AN ACT concerning employment.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Unemployment Insurance Act is amended by | 5 | | changing Sections 610 and 611 as follows:
| 6 | | (820 ILCS 405/610) (from Ch. 48, par. 440)
| 7 | | Sec. 610. Vacation pay. A. Whenever an employer has | 8 | | announced a
period of shutdown for the taking of inventory or | 9 | | for vacation purposes,
or both, and (1) at the time of or | 10 | | during such shutdown makes a payment or
becomes obligated or | 11 | | holds himself ready to make such payment to an
individual as | 12 | | vacation pay, or as vacation pay allowance, or as pay in
lieu | 13 | | of vacation, or as standby pay, or (2) has, pursuant to a | 14 | | collective bargaining agreement, made a payment to an | 15 | | individual as vacation pay, vacation pay allowance, pay in lieu | 16 | | of vacation, or as standby pay with respect to a period, such | 17 | | sum shall be deemed "wages" as
defined in Section 234, and | 18 | | shall be treated as provided in subsection C
of this Section.
| 19 | | B. Whenever in connection with any
separation or layoff of | 20 | | an individual, his employer makes a payment or
payments to him, | 21 | | or becomes obligated and holds himself ready to make
such | 22 | | payment to him as, or in the nature of, vacation pay, or | 23 | | vacation
pay allowance, or as pay in lieu of vacation, and |
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| 1 | | within 10 calendar
days after notification of the filing of his | 2 | | claim, designates (by
notice to the Director) the period to | 3 | | which such payment shall be
allocated (provided, that if such | 4 | | designated period is extended by the
employer, he may again | 5 | | similarly designate an extended period, by giving
notice | 6 | | thereof not later than the beginning of the extension of such
| 7 | | period, with the same effect as if such period of extension | 8 | | were
included in the original designation), the amount of any | 9 | | such payment,
or obligation to make payment, shall be deemed | 10 | | "wages" as defined in
Section 234, and shall be treated as | 11 | | provided in subsection C of this
Section.
| 12 | | C. If the employer has not designated the period provided | 13 | | for in
subsection B within the prescribed time limits, the | 14 | | wages referred to in
subsection B shall not be attributed or be | 15 | | deemed payable to such
individual with respect to any week | 16 | | after such separation or layoff. Of
the wages described in | 17 | | subsection A (whether or not the employer has
designated the | 18 | | period therein described), or of the wages described in
| 19 | | subsection B if the period therein described has been | 20 | | designated by the
employer as therein provided, a sum equal to | 21 | | such individual's wages for
a normal work day shall be | 22 | | attributed to, or deemed to be payable to him
with respect to, | 23 | | the first and each subsequent work day except paid
holidays in | 24 | | such period until such amount so paid or owing is exhausted.
If | 25 | | an employee is entitled to receive and receives holiday pay for | 26 | | any
work day in such designated period, such pay shall be |
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| 1 | | deemed "wages" and
the period herein designated shall be | 2 | | extended by such paid holiday.
Any individual receiving or | 3 | | entitled to receive wages as provided in
this Section shall be | 4 | | ineligible for benefits for any week in which the
sums, so | 5 | | designated or attributed to such normal work days, equal or
| 6 | | exceed his weekly benefit amount. If no amount is so paid or | 7 | | owing, or
if in any week the amount so paid or owing is | 8 | | insufficient to attribute
any sum as wages, or if the amount so | 9 | | designated or attributed as wages
is less than such | 10 | | individual's weekly benefit amount, he shall be deemed
| 11 | | "unemployed" as defined in Section 239.
| 12 | | (Source: P.A. 81-1521.)
| 13 | | (820 ILCS 405/611) (from Ch. 48, par. 441)
| 14 | | Sec. 611. Retirement , severance pay , and payments in lieu | 15 | | of wages . | 16 | | A. For the purposes of this Section
"disqualifying income" | 17 | | means:
| 18 | | 1. the The entire amount which an individual has | 19 | | received or will
receive with respect to a week in the form | 20 | | of a retirement payment (a)
from an individual or | 21 | | organization (i) for which he
performed services during his | 22 | | base period or which is liable for benefit
charges or | 23 | | payments in lieu of contributions as a result of the | 24 | | payment of
benefits to such individual and (ii) which pays
| 25 | | all of the cost of such retirement payment, or (b) from a |
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| 1 | | trust, annuity
or insurance fund or under an annuity or | 2 | | insurance contract, to or under
which an individual or | 3 | | organization for which he
performed services during his | 4 | | base period or which is liable for benefit
charges or | 5 | | payments in lieu of contributions as a result of the | 6 | | payment of
benefits to such individual pays or has paid
all | 7 | | of the premiums or contributions; and
| 8 | | 2. one-half One-half the amount which an individual has | 9 | | received or will
receive with respect to a week in the form | 10 | | of a retirement payment (a)
from an individual or | 11 | | organization (i) for which he
performed services during his | 12 | | base period or which is liable for benefit
charges or | 13 | | payments in lieu of contributions as a result of the | 14 | | payment of
benefits to such individual and (ii) which pays
| 15 | | some, but not all, of the cost of such retirement payment, | 16 | | or (b) from a
trust, annuity or insurance fund (including | 17 | | primary social security old
age and disability retirement | 18 | | benefits, including those based on
self-employment) or | 19 | | under an annuity or insurance
contract, to or under which | 20 | | an individual or organization for which he performed
| 21 | | services during his base period or which is liable for | 22 | | benefit charges or
payments in lieu of contributions as a | 23 | | result of the payment of benefits to
such individual pays | 24 | | or has paid some, but not all, of the premiums or
| 25 | | contributions ; and .
| 26 | | 3. the entire amount which an individual has received |
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| 1 | | or will receive with respect to a week in the form of a | 2 | | severance payment or payment in lieu of wages from the | 3 | | employing unit, unless the employing unit waives the | 4 | | application of this subsection in writing. If payment is | 5 | | made by lump sum by the employing unit, a sum equal to | 6 | | one-fifth of such individual's weekly benefit amount shall | 7 | | be attributed to, or deemed to be payable to him or her | 8 | | with respect to, the first and each subsequent work day | 9 | | following the individual's separation from the employing | 10 | | unit and the date on which the payment is made until such | 11 | | amount so paid is exhausted. Notwithstanding paragraph 1 | 12 | | and 2 above, the
entire amount which an individual has | 13 | | received or will
receive, with respect to any week which | 14 | | begins after March 31, 1980, of
any governmental or other | 15 | | pension, retirement, or retired pay, annuity
or any other | 16 | | similar periodic payment which is based on any previous | 17 | | work
of such individual during his base period or which is | 18 | | liable for benefit
charges or payments in lieu of | 19 | | contributions as a result of the payment of
benefits to | 20 | | such individual. This paragraph shall be in effect only if | 21 | | it is
required as a condition for full tax credit against | 22 | | the tax imposed by
the Federal Unemployment Tax Act.
| 23 | | B. Whenever an individual has received or will receive a | 24 | | retirement
payment for a month, an amount shall be deemed to | 25 | | have been paid him for
each day equal to one-thirtieth of such | 26 | | retirement payment. If the
retirement payment is for a |
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| 1 | | half-month, an amount shall be deemed to
have been paid the | 2 | | individual for each day equal to one-fifteenth of
such | 3 | | retirement payment. If the retirement payment is for any other
| 4 | | period, an amount shall be deemed to have been paid the | 5 | | individual for
each day in such period equal to the retirement | 6 | | payment divided by the
number of days in the period.
| 7 | | C. An individual shall be ineligible for benefits for any | 8 | | week with
respect to which his disqualifying income equals or | 9 | | exceeds his weekly
benefit amount. If such disqualifying income | 10 | | with respect to a week
totals less than the benefits for which | 11 | | he would otherwise be eligible
under this Act, he shall be | 12 | | paid, with respect to such week, benefits
reduced by the amount | 13 | | of such disqualifying income.
| 14 | | D. To assure full tax credit to the employers of this State | 15 | | against
the tax imposed by the Federal Unemployment Tax Act, | 16 | | the Director shall
take any action as may be necessary in the | 17 | | administration of paragraph 3
of subsection A of this Section | 18 | | to insure that the application of its provisions
conform to the | 19 | | requirements of such Federal Act as interpreted by the United
| 20 | | States Secretary of Labor or other appropriate Federal agency.
| 21 | | (Source: P.A. 86-3.)
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