Full Text of SB3530 98th General Assembly
SB3530enr 98TH GENERAL ASSEMBLY |
| | SB3530 Enrolled | | LRB098 17883 JLS 55703 b |
|
| 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 10. The Public Employment Office Act is amended by | 5 | | changing Section 7 as follows:
| 6 | | (20 ILCS 1015/7) (from Ch. 48, par. 183)
| 7 | | Sec. 7.
No fee or compensation shall be charged or received | 8 | | directly or
indirectly from persons applying for employment or | 9 | | help through said free
employment offices, and any officer or | 10 | | employee of the Department of
Employment Security who shall | 11 | | accept, directly or indirectly any fee or
compensation from any | 12 | | applicant or from his or her representative shall be
guilty of | 13 | | a Class C misdemeanor , except that this Section does not | 14 | | prohibit referral of an individual to an apprenticeship program | 15 | | that is approved by and registered with the United States | 16 | | Department of Labor, Bureau of Apprenticeship and Training and | 17 | | charges an application fee of $50 or less .
| 18 | | (Source: P.A. 83-1503.)
| 19 | | Section 15. The Unemployment Insurance Act is amended by | 20 | | changing Sections 206.1, 225, 245, 702, 1402, 2101, 2201, | 21 | | 2201.1, and 2401 and by adding Sections 502 and 1402.1 as | 22 | | follows:
|
| | | SB3530 Enrolled | - 2 - | LRB098 17883 JLS 55703 b |
|
| 1 | | (820 ILCS 405/206.1)
| 2 | | Sec. 206.1. Employment; employee leasing company.
| 3 | | A. For purposes of this Section:
| 4 | | 1. "Client" means an individual or entity which has
| 5 | | contracted with an employee leasing company to supply it
| 6 | | with or assume responsibility for personnel management
of | 7 | | one or more workers to perform services on an on-going | 8 | | basis rather than
under a temporary help
arrangement, as | 9 | | defined in Section 15 of the Employee
Leasing Company Act.
| 10 | | 2. "Employee leasing company" means an individual or
| 11 | | entity which contracts with a client to supply or assume
| 12 | | responsibility for personnel management of one or more
| 13 | | workers to perform services for the client on an on-going | 14 | | basis rather than
under a temporary help
arrangement, as | 15 | | defined in Section 15 of the Employee
Leasing Company Act.
| 16 | | B. Subject to subsection C, services performed by an
| 17 | | individual under a contract between an employee leasing
company | 18 | | and client, including but not limited to services
performed in | 19 | | the capacity of a corporate officer of the
client, are services | 20 | | in "employment" of the employee
leasing company and are not | 21 | | services in "employment" of
the client if all of the following | 22 | | conditions are met:
| 23 | | 1. The employee leasing company pays the individual
for | 24 | | the services directly from its own accounts; and
| 25 | | 2. The employee leasing company, exclusively or in
|
| | | SB3530 Enrolled | - 3 - | LRB098 17883 JLS 55703 b |
|
| 1 | | conjunction with the client, retains the right to direct
| 2 | | and control the individual in the performance of the
| 3 | | services; and
| 4 | | 3. The employee leasing company, exclusively or in
| 5 | | conjunction with the client, retains the right to hire
and | 6 | | terminate the individual; and
| 7 | | 4. The employee leasing company reports each client in | 8 | | the manner the
Director prescribes by regulation ; and . | 9 | | 5. The employee leasing company has provided, and there | 10 | | remains in effect, such irrevocable indemnification, as | 11 | | the Director may require by rule, to create a primary | 12 | | obligation on the part of the provider to the Illinois | 13 | | Department of Employment Security for obligations of the | 14 | | employee leasing company accrued and final under this Act. | 15 | | The rule may prescribe the form the indemnification shall | 16 | | take including, but not limited to, a surety bond or an | 17 | | irrevocable standby letter of credit. The obligation | 18 | | required pursuant to the rule shall not exceed $1,000,000.
| 19 | | C. Notwithstanding subsection B, services performed by
an | 20 | | individual under a contract between an employee leasing
company | 21 | | and client, including but not limited to services
performed in | 22 | | the capacity of a corporate officer of the
client, are services | 23 | | in "employment" of the client and are
not services in | 24 | | "employment" of the employee leasing
company if:
| 25 | | 1. The contribution rate, or, where applicable, the
| 26 | | amended contribution rate, of the client is greater than
|
| | | SB3530 Enrolled | - 4 - | LRB098 17883 JLS 55703 b |
|
| 1 | | the sum of the fund building rate established for the
year | 2 | | pursuant to Section 1506.3 of this Act plus the
greater of | 3 | | 2.7% or 2.7% times the adjusted state
experience factor for | 4 | | the year; and
| 5 | | 2. The contribution rate, or, where applicable, the
| 6 | | amended contribution rate, of the employee leasing
company | 7 | | is less than the contribution rate, or, where
applicable, | 8 | | the amended contribution rate of the client
by more than | 9 | | 1.5% absolute.
| 10 | | D. Except as provided in this Section and
notwithstanding | 11 | | any other provision of this Act to the
contrary, services | 12 | | performed by an individual under a
contract between an employee | 13 | | leasing company and client,
including but not limited to | 14 | | services performed in the
capacity of a corporate officer of | 15 | | the client, are services
in "employment" of the client and are | 16 | | not services in
"employment" of the employee leasing company.
| 17 | | E. Nothing in this Section shall be construed or used to | 18 | | effect the
existence of an employment relationship other than | 19 | | for purposes of this Act.
| 20 | | (Source: P.A. 91-890, eff. 7-6-00.)
| 21 | | (820 ILCS 405/225) (from Ch. 48, par. 335)
| 22 | | Sec. 225.
This Section, and not Section 212 of this Act, | 23 | | controls the determination of employment status
for services | 24 | | performed by individuals in the delivery or distribution of | 25 | | newspapers or shopping news. |
| | | SB3530 Enrolled | - 5 - | LRB098 17883 JLS 55703 b |
|
| 1 | | (A) The term "employment" shall not include services | 2 | | performed
by an
individual under the age of eighteen in the | 3 | | delivery or distribution of
newspapers or shopping news.
| 4 | | (B) The term "employment" does not include the performance | 5 | | of
freelance editorial or photographic work for a newspaper.
| 6 | | (B-5) The employment status of individuals engaged in the | 7 | | delivery of newspapers or shopping news shall
be determined as | 8 | | provided in this subsection. The term "employment" does not | 9 | | include the delivery or
distribution of newspapers or shopping | 10 | | news if at least one of the following 4 elements is present: | 11 | | (1) The individual performing the services gains the | 12 | | profits and bears the losses of the
services. | 13 | | (2) The person or firm for whom the services are | 14 | | performed does not represent the
individual as an employee | 15 | | to its customers. | 16 | | (3) The individual hires his or her own helpers or | 17 | | employees, without the need for
approval from the person or | 18 | | firm for whom the services are performed, and
pays them | 19 | | without reimbursement from that person or firm. | 20 | | (4) Once the individual leaves the premises of the | 21 | | person or firm for whom the
services are performed or the | 22 | | printing plant, the individual operates free from
the | 23 | | direction and control of the person or firm, except as is | 24 | | necessary for the
person or firm to ensure quality control | 25 | | of the newspapers or shopping news,
including, but not | 26 | | limited to, the condition of the newspapers or shopping
|
| | | SB3530 Enrolled | - 6 - | LRB098 17883 JLS 55703 b |
|
| 1 | | news upon delivery and the location and timing of delivery | 2 | | of the newspapers
or shopping news. | 3 | | (C) Notwithstanding subsection (B-5), the The term | 4 | | "employment" does not include the delivery or distribution of
| 5 | | newspapers or shopping news to the ultimate consumer if:
| 6 | | (1) substantially all of the remuneration for the | 7 | | performance of the
services is directly related to sales, | 8 | | "per piece" fees, or other output,
rather than to the | 9 | | number of hours worked; and
| 10 | | (2) the services are performed under a written contract | 11 | | between the
individual and the person or firm for whom the | 12 | | services are performed, and
the contract provides that the | 13 | | individual will not be treated as an
employee for federal | 14 | | tax purposes.
| 15 | | (3) Delivery or distribution to the ultimate consumer | 16 | | does not include:
| 17 | | (i) delivery or distribution for sale or resale, | 18 | | including, but not
limited to, distribution to a | 19 | | newsrack or newsbox, salesperson, newsstand
or retail | 20 | | establishment;
| 21 | | (ii) distribution for further distribution, | 22 | | regardless of subsequent sale or resale.
| 23 | | (D) Subsections (B-5) and Subsection (C) shall not apply in | 24 | | the case of any individual who
provides delivery or | 25 | | distribution services for a newspaper pursuant to the
terms of | 26 | | a collective bargaining agreement and shall not be construed to
|
| | | SB3530 Enrolled | - 7 - | LRB098 17883 JLS 55703 b |
|
| 1 | | alter or amend the application or interpretation of any | 2 | | existing collective
bargaining agreement. Further, subsections | 3 | | (B-5) and subsection (C) shall not be construed as
evidence of | 4 | | the existence or non-existence of an employment relationship
| 5 | | under any other Sections of this Act or
other existing laws.
| 6 | | (E) Subsections (B) , (B-5), and (C) shall not apply to | 7 | | services that are required
to be covered as a condition of | 8 | | approval of this Act by the United States
Secretary of Labor | 9 | | under Section 3304 (a)(6)(A) of the Federal Unemployment Tax
| 10 | | Act.
| 11 | | (Source: P.A. 87-1178.)
| 12 | | (820 ILCS 405/245) (from Ch. 48, par. 370)
| 13 | | Sec. 245. Coordination with Federal Unemployment Tax Act. | 14 | | Notwithstanding any provisions of this Act to the contrary, | 15 | | excepting
the exemptions from the definition of employment | 16 | | contained in Sections
212.1, 217.1, 217.2, 226, and 231 and | 17 | | subsections (B), (B-5), and (C) B and C of Section 225:
| 18 | | A. The term "employer" includes any employing unit which is | 19 | | an
"employer" under the provisions of the Federal Unemployment | 20 | | Tax Act, or
which is required, pursuant to such Act, to be an | 21 | | "employer" under this Act
as a condition for the Federal | 22 | | approval of this Act requisite to the full
tax credit, against | 23 | | the tax imposed by the Federal Act, for contributions
paid by | 24 | | employers pursuant to this Act.
| 25 | | B. The term "employment" includes any services performed |
| | | SB3530 Enrolled | - 8 - | LRB098 17883 JLS 55703 b |
|
| 1 | | within the
State which constitute "employment" under the | 2 | | provisions of the Federal
Unemployment Tax Act, or which are | 3 | | required, pursuant to such Act, to be
"employment" under this | 4 | | Act as a condition for the Federal approval of this
Act | 5 | | requisite to the full tax credit, against the tax imposed by | 6 | | the
Federal Act, for contributions paid by employers pursuant | 7 | | to this Act.
| 8 | | C. The term "wages" includes any remuneration for services | 9 | | performed
within this State which is subject to the payment of | 10 | | taxes under the
provisions of the Federal Unemployment Tax Act.
| 11 | | (Source: P.A. 89-252, eff. 8-8-95; 89-649, eff. 8-9-96.)
| 12 | | (820 ILCS 405/502 new) | 13 | | Sec. 502. Eligibility for benefits under the Short-Time | 14 | | Compensation Program. | 15 | | A. The Director may by rule establish a short-time | 16 | | compensation program consistent with this Section. No | 17 | | short-time compensation shall be payable except as authorized | 18 | | by rule. | 19 | | B. As used in this Section: | 20 | | "Affected unit" means a specified plant, department, | 21 | | shift, or other definable unit that includes 2 or more workers | 22 | | to which an approved short-time compensation plan applies. | 23 | | "Health and retirement benefits" means employer-provided | 24 | | health benefits and retirement benefits under a defined benefit | 25 | | pension plan (as defined in Section 414(j) of the Internal |
| | | SB3530 Enrolled | - 9 - | LRB098 17883 JLS 55703 b |
|
| 1 | | Revenue Code) or contributions under a defined contribution | 2 | | plan (defined in Section 414(i) of the Internal Revenue Code), | 3 | | which are incidents of employment in addition to the cash | 4 | | remuneration earned. | 5 | | "Short-time compensation" means the unemployment benefits | 6 | | payable to employees in an affected unit under an approved | 7 | | short-time compensation plan, as distinguished from the | 8 | | unemployment benefits otherwise payable under this Act. | 9 | | "Short-time compensation plan" means a plan submitted by an | 10 | | employer, for approval by the Director, under which the | 11 | | employer requests the payment of short-time compensation to | 12 | | workers in an affected unit of the employer to avert layoffs. | 13 | | "Usual weekly hours of work" means the usual hours of work | 14 | | for full-time or part-time employees in the affected unit when | 15 | | that unit is operating on its regular basis, not to exceed 40 | 16 | | hours and not including hours of overtime work. | 17 | | "Unemployment insurance" means the unemployment benefits | 18 | | payable under this Act other than short-time compensation and | 19 | | includes any amounts payable pursuant to an agreement under any | 20 | | Federal law providing for compensation, assistance, or | 21 | | allowances with respect to unemployment. | 22 | | C. An employer wishing to participate in the short-time | 23 | | compensation program shall submit a signed written short-time | 24 | | compensation plan to the Director for approval. The Director | 25 | | shall develop an application form to request approval of a | 26 | | short-time compensation plan and an approval process. The |
| | | SB3530 Enrolled | - 10 - | LRB098 17883 JLS 55703 b |
|
| 1 | | application shall include: | 2 | | 1. The employer's unemployment insurance account | 3 | | number, the affected unit covered by the plan, including | 4 | | the number of full-time or part-time workers in such unit, | 5 | | the percentage of workers in the affected unit covered by | 6 | | the plan, identification of each individual employee in the | 7 | | affected unit by name and social security number, and any | 8 | | other information required by the Director to identify plan | 9 | | participants. | 10 | | 2. A description of how workers in the affected unit | 11 | | will be notified of the employer's participation in the | 12 | | short-time compensation plan if such application is | 13 | | approved, including how the employer will notify those | 14 | | workers in a collective bargaining unit as well as any | 15 | | workers in the affected unit who are not in a collective | 16 | | bargaining unit. If the employer will not provide advance | 17 | | notice to workers in the affected unit, the employer shall | 18 | | explain in a statement in the application why it is not | 19 | | feasible to provide such notice. | 20 | | 3. The employer's certification that it has the | 21 | | approval of the plan from all collective bargaining | 22 | | representatives of employees in the affected unit and has | 23 | | notified all employees in the affected unit who are not in | 24 | | a collective bargaining unit of the plan. | 25 | | 4. The employer's certification that it will not hire | 26 | | additional part-time or full-time employees for, or |
| | | SB3530 Enrolled | - 11 - | LRB098 17883 JLS 55703 b |
|
| 1 | | transfer employees to, the affected unit, while the program | 2 | | is in operation. | 3 | | 5. A requirement that the employer identify the usual | 4 | | weekly hours of work for employees in the affected unit and | 5 | | the specific percentage by which their hours will be | 6 | | reduced during all weeks covered by the plan. An | 7 | | application shall specify the percentage of reduction for | 8 | | which a short-time compensation application may be | 9 | | approved which shall be not less than 20% and not more than | 10 | | 60%. If the plan includes any week for which the employer | 11 | | regularly provides no work (due to a holiday or other plant | 12 | | closing), then such week shall be identified in the | 13 | | application. | 14 | | 6. Certification by the employer that, if the employer | 15 | | provides health and retirement benefits to any employee | 16 | | whose usual weekly hours of work are reduced under the | 17 | | program, such benefits will continue to be provided to the | 18 | | employee participating in the short-time compensation | 19 | | program under the same terms and conditions as though the | 20 | | usual weekly hours of work of such employee had not been | 21 | | reduced or to the same extent as other employees not | 22 | | participating in the short-time compensation program. For | 23 | | defined benefit retirement plans, the hours that are | 24 | | reduced under the short-time compensation plan shall be | 25 | | credited for purposes of participation, vesting, and | 26 | | accrual of benefits as though the usual weekly hours of |
| | | SB3530 Enrolled | - 12 - | LRB098 17883 JLS 55703 b |
|
| 1 | | work had not been reduced. The dollar amount of employer | 2 | | contributions to a defined contribution plan that are based | 3 | | on a percentage of compensation may be less due to the | 4 | | reduction in the employee's compensation. Notwithstanding | 5 | | any other provision to the contrary, a certification that a | 6 | | reduction in health and retirement benefits is scheduled to | 7 | | occur during the duration of the plan and will be | 8 | | applicable equally to employees who are not participating | 9 | | in the short-time compensation program and to those | 10 | | employees who are participating satisfies this paragraph. | 11 | | 7. Certification by the employer that the aggregate | 12 | | reduction in work hours is in lieu of layoffs (temporary or | 13 | | permanent layoffs, or both). The application shall include | 14 | | an estimate of the number of workers who would have been | 15 | | laid off in the absence of the short-time compensation | 16 | | plan. | 17 | | 8. Agreement by the employer to: furnish reports to the | 18 | | Director relating to the proper conduct of the plan; allow | 19 | | the Director or his or her authorized representatives | 20 | | access to all records necessary to approve or disapprove | 21 | | the plan application, and after approval of a plan, to | 22 | | monitor and evaluate the plan; and follow any other | 23 | | directives the Director deems necessary for the agency to | 24 | | implement the plan and which are consistent with the | 25 | | requirements for plan applications. | 26 | | 9. Certification by the employer that participation in |
| | | SB3530 Enrolled | - 13 - | LRB098 17883 JLS 55703 b |
|
| 1 | | the short-time compensation plan and its implementation is | 2 | | consistent with the employer's obligations under | 3 | | applicable Federal and Illinois laws. | 4 | | 10. The effective date and duration of the plan, which | 5 | | shall expire no later than the end of the 12th full | 6 | | calendar month after the effective date. | 7 | | 11. Any other provision added to the application by the | 8 | | Director that the United States Secretary of Labor | 9 | | determines to be appropriate for purposes of a short-time | 10 | | compensation program. | 11 | | D. The Director shall approve or disapprove a short-time | 12 | | compensation plan in writing within 45 days of its receipt and | 13 | | promptly communicate the decision to the employer. A decision | 14 | | disapproving the plan shall clearly identify the reasons for | 15 | | the disapproval. The disapproval shall be final, but the | 16 | | employer shall be allowed to submit another short-time | 17 | | compensation plan for approval not earlier than 30 days from | 18 | | the date of the disapproval. | 19 | | E. The short-time compensation plan shall be effective on | 20 | | the mutually agreed upon date by the employer and the Director, | 21 | | which shall be specified in the notice of approval to the | 22 | | employer. The plan shall expire on the date specified in the | 23 | | notice of approval, which shall be mutually agreed on by the | 24 | | employer and Director but no later than the end of the 12th | 25 | | full calendar month after its effective date. However, if a | 26 | | short-time compensation plan is revoked by the Director, the |
| | | SB3530 Enrolled | - 14 - | LRB098 17883 JLS 55703 b |
|
| 1 | | plan shall terminate on the date specified in the Director's | 2 | | written order of revocation. An employer may terminate a | 3 | | short-time compensation plan at any time upon written notice to | 4 | | the Director. Upon receipt of such notice from the employer, | 5 | | the Director shall promptly notify each member of the affected | 6 | | unit of the termination date. An employer may submit a new | 7 | | application to participate in another short-time compensation | 8 | | plan at any time after the expiration or termination date. | 9 | | F. The Director may revoke approval of a short-time | 10 | | compensation plan for good cause at any time, including upon | 11 | | the request of any of the affected unit's employees or their | 12 | | collective bargaining representative. The revocation order | 13 | | shall be in writing and shall specify the reasons for the | 14 | | revocation and the date the revocation is effective. The | 15 | | Director may periodically review the operation of each | 16 | | employer's short-time compensation plan to assure that no good | 17 | | cause exists for revocation of the approval of the plan. Good | 18 | | cause shall include, but not be limited to, failure to comply | 19 | | with the assurances given in the plan, termination of the | 20 | | approval of the plan by a collective bargaining representative | 21 | | of employees in the affected unit, unreasonable revision of | 22 | | productivity standards for the affected unit, conduct or | 23 | | occurrences tending to defeat the intent and effective | 24 | | operation of the short-time compensation plan, and violation of | 25 | | any criteria on which approval of the plan was based. | 26 | | G. An employer may request a modification of an approved |
| | | SB3530 Enrolled | - 15 - | LRB098 17883 JLS 55703 b |
|
| 1 | | plan by filing a written request to the Director. The request | 2 | | shall identify the specific provisions proposed to be modified | 3 | | and provide an explanation of why the proposed modification is | 4 | | appropriate for the short-time compensation plan. The Director | 5 | | shall approve or disapprove the proposed modification in | 6 | | writing within 30 days of receipt and promptly communicate the | 7 | | decision to the employer. The Director, in his or her | 8 | | discretion, may approve a request for modification of the plan | 9 | | based on conditions that have changed since the plan was | 10 | | approved provided that the modification is consistent with and | 11 | | supports the purposes for which the plan was initially | 12 | | approved. A modification may not extend the expiration date of | 13 | | the original plan, and the Director must promptly notify the | 14 | | employer whether the plan modification has been approved and, | 15 | | if approved, the effective date of modification. An employer is | 16 | | not required to request approval of plan modification from the | 17 | | Director if the change is not substantial, but the employer | 18 | | must report every change to plan to the Director promptly and | 19 | | in writing. The Director may terminate an employer's plan if | 20 | | the employer fails to meet this reporting requirement. If the | 21 | | Director determines that the reported change is substantial, | 22 | | the Director shall require the employer to request a | 23 | | modification to the plan. | 24 | | H. An individual is eligible to receive short-time | 25 | | compensation with respect to any week only if the individual is | 26 | | eligible for unemployment insurance pursuant to subsection E of |
| | | SB3530 Enrolled | - 16 - | LRB098 17883 JLS 55703 b |
|
| 1 | | Section 500, not otherwise disqualified for unemployment | 2 | | insurance, and: | 3 | | 1. During the week, the individual is employed as a | 4 | | member of an affected unit under an approved short-time | 5 | | compensation plan, which was approved prior to that week, | 6 | | and the plan is in effect with respect to the week for | 7 | | which short-time compensation is claimed. | 8 | | 2. Notwithstanding any other provision of this Act | 9 | | relating to availability for work and actively seeking | 10 | | work, the individual is available for the individual's | 11 | | usual hours of work with the short-time compensation | 12 | | employer, which may include, for purposes of this Section, | 13 | | participating in training to enhance job skills that is | 14 | | approved by the Director, including but not limited to as | 15 | | employer-sponsored training or training funded under the | 16 | | Workforce Investment Act of 1998. | 17 | | 3. Notwithstanding any other provision of law, an | 18 | | individual covered by a short-time compensation plan is | 19 | | deemed unemployed in any week during the duration of such | 20 | | plan if the individual's remuneration as an employee in an | 21 | | affected unit is reduced based on a reduction of the | 22 | | individual's usual weekly hours of work under an approved | 23 | | short-time compensation plan. | 24 | | I. The short-time compensation weekly benefit amount shall | 25 | | be the product of the percentage of reduction in the | 26 | | individual's usual weekly hours of work multiplied by the sum |
| | | SB3530 Enrolled | - 17 - | LRB098 17883 JLS 55703 b |
|
| 1 | | of the regular weekly benefit amount for a week of total | 2 | | unemployment plus any applicable dependent allowance pursuant | 3 | | to subsection C of Section 401. | 4 | | 1. An individual may be eligible for short-time | 5 | | compensation or unemployment insurance, as appropriate, | 6 | | except that no individual shall be eligible for combined | 7 | | benefits (excluding any payments attributable to a | 8 | | dependent allowance pursuant to subsection C of Section | 9 | | 401) in any benefit year in an amount more than the maximum | 10 | | benefit amount, nor shall an individual be paid short-time | 11 | | compensation benefits for more than 52 weeks under a | 12 | | short-time compensation plan. | 13 | | 2. The short-time compensation paid to an individual | 14 | | (excluding any payments attributable to a dependent | 15 | | allowance pursuant to subsection C of Section 401) shall be | 16 | | deducted from the maximum benefit amount established for | 17 | | that individual's benefit year. | 18 | | 3. Provisions applicable to unemployment insurance | 19 | | claimants shall apply to short-time compensation claimants | 20 | | to the extent that they are not inconsistent with | 21 | | short-time compensation provisions. An individual who | 22 | | files an initial claim for short-time compensation | 23 | | benefits shall receive a monetary determination. | 24 | | 4. The following provisions apply to individuals who | 25 | | work for both a short-time compensation employer and | 26 | | another employer during weeks covered by the approved |
| | | SB3530 Enrolled | - 18 - | LRB098 17883 JLS 55703 b |
|
| 1 | | short-time compensation plan: | 2 | | i. If combined hours of work in a week for both | 3 | | employers do not result in a reduction of at least 20% | 4 | | of the usual weekly hours of work with the short-time | 5 | | compensation employer, the individual shall not be | 6 | | entitled to benefits under this Section. | 7 | | ii. If combined hours of work for both employers | 8 | | results in a reduction equal to or greater than 20% of | 9 | | the usual weekly hours of work for the short-time | 10 | | compensation employer, the short-time compensation | 11 | | benefit amount payable to the individual is reduced for | 12 | | that week and is determined by multiplying the | 13 | | percentage by which the combined hours of work have | 14 | | been reduced by the sum of the weekly benefit amount | 15 | | for a week of total unemployment plus any applicable | 16 | | dependent allowance pursuant to subsection C of | 17 | | Section 401. A week for which benefits are paid under | 18 | | this subparagraph shall be reported as a week of | 19 | | short-time compensation. | 20 | | iii. If an individual worked the reduced | 21 | | percentage of the usual weekly hours of work for the | 22 | | short-time compensation employer and is available for | 23 | | all his or her usual hours of work with the short-time | 24 | | compensation employer, and the individual did not work | 25 | | any hours for the other employer either because of the | 26 | | lack of work with that employer or because the |
| | | SB3530 Enrolled | - 19 - | LRB098 17883 JLS 55703 b |
|
| 1 | | individual is excused from work with the other | 2 | | employer, the individual shall be eligible for | 3 | | short-time compensation for that week. The benefit | 4 | | amount for such week shall be calculated as provided in | 5 | | the introductory clause of this subsection I. | 6 | | iv. An individual who is not provided any work | 7 | | during a week by the short-time compensation employer, | 8 | | or any other employer, and who is otherwise eligible | 9 | | for unemployment insurance shall be eligible for the | 10 | | amount of regular unemployment insurance determined | 11 | | without regard to this Section. | 12 | | v. An individual who is not provided any work by | 13 | | the short-time compensation employer during a week, | 14 | | but who works for another employer and is otherwise | 15 | | eligible may be paid unemployment insurance for that | 16 | | week subject to the disqualifying income and other | 17 | | provisions applicable to claims for regular | 18 | | unemployment insurance. | 19 | | J. Short-time compensation shall be charged to employers in | 20 | | the same manner as unemployment insurance is charged under | 21 | | Illinois law. Employers liable for payments in lieu of | 22 | | contributions shall have short-time compensation attributed to | 23 | | service in their employ in the same manner as unemployment | 24 | | insurance is attributed. Notwithstanding any other provision | 25 | | to the contrary, to the extent that short-term compensation | 26 | | payments under this Section are reimbursed by the federal |
| | | SB3530 Enrolled | - 20 - | LRB098 17883 JLS 55703 b |
|
| 1 | | government, no benefit charges or payments in lieu of | 2 | | contributions shall be accrued by a participating employer. | 3 | | K. A short-time compensation plan shall not be approved for | 4 | | an employer that is delinquent in the filing of any reports | 5 | | required or the payment of contributions, payments in lieu of | 6 | | contributions, interest, or penalties due under this Act | 7 | | through the date of the employer's application. | 8 | | L. Overpayments of other benefits under this Act may be | 9 | | recovered from an individual receiving short-time compensation | 10 | | under this Act in the manner provided under Sections 900 and | 11 | | 901. Overpayments under the short-time compensation plan may be | 12 | | recovered from an individual receiving other benefits under | 13 | | this Act in the manner provided under Sections 900 and 901. | 14 | | M. An individual who has received all of the short-time | 15 | | compensation or combined unemployment insurance and short-time | 16 | | compensation available in a benefit year shall be considered an | 17 | | exhaustee for purposes of extended benefits, as provided under | 18 | | the provisions of Section 409, and, if otherwise eligible under | 19 | | those provisions, shall be eligible to receive extended | 20 | | benefits.
| 21 | | (820 ILCS 405/702) (from Ch. 48, par. 452)
| 22 | | Sec. 702. Determinations. The claims adjudicator shall for | 23 | | each week
with respect to which the claimant claims benefits or | 24 | | waiting period
credit, make a "determination" which shall state | 25 | | whether or not the
claimant is eligible for such benefits or |
| | | SB3530 Enrolled | - 21 - | LRB098 17883 JLS 55703 b |
|
| 1 | | waiting period credit and the
sum to be paid the claimant with | 2 | | respect to such week. The claims
adjudicator shall promptly | 3 | | notify the claimant and such employing unit
as shall, within | 4 | | the time and in the manner prescribed by the Director,
have | 5 | | filed a sufficient allegation that the claimant is ineligible | 6 | | to
receive benefits or waiting period credit for said week, of | 7 | | his
"determination" and the reasons therefor. The Director may, | 8 | | by rule adopted with the advice and aid of the Employment | 9 | | Security Advisory Board, require that an employing unit with 25 | 10 | | 50 or more individuals in its employ during a the prior | 11 | | calendar year, or an entity representing 5 or more employing | 12 | | units during a the prior calendar year, file an allegation of | 13 | | ineligibility electronically in a manner prescribed by the | 14 | | Director for the one year period commencing on July 1 of the | 15 | | immediately succeeding calendar year and ending on June 30 of | 16 | | the second succeeding calendar year . In making his
| 17 | | "determination," the claims adjudicator shall give | 18 | | consideration to the
information, if any, contained in the | 19 | | employing unit's allegation,
whether or not the allegation is | 20 | | sufficient. The claims adjudicator
shall deem an employing | 21 | | unit's allegation sufficient only if it contains
a reason or | 22 | | reasons therefor (other than general conclusions of
law, and | 23 | | statements such as "not actively seeking work" or "not | 24 | | available
for work" shall be deemed, for this purpose, to be | 25 | | conclusions of law).
If the claims adjudicator deems an | 26 | | allegation insufficient, he shall make a
decision accordingly, |
| | | SB3530 Enrolled | - 22 - | LRB098 17883 JLS 55703 b |
|
| 1 | | and shall notify the employing unit of such
decision and the | 2 | | reasons therefor. Such decision may be appealed by the
| 3 | | employing unit to a Referee within the time limits prescribed | 4 | | by Section
800 for appeal from a "determination". Any such | 5 | | appeal, and any appeal
from the Referee's decision thereon, | 6 | | shall be governed by the applicable
provisions of Sections 801, | 7 | | 803, 804 and 805.
| 8 | | (Source: P.A. 97-621, eff. 11-18-11.)
| 9 | | (820 ILCS 405/1402) (from Ch. 48, par. 552)
| 10 | | Sec. 1402. Penalties. | 11 | | A. If any employer fails, within the time prescribed in | 12 | | this Act as
amended and in effect on October 5, 1980, and the | 13 | | regulations of the
Director, to file a report of wages paid to | 14 | | each of his workers, or to file
a sufficient report of such | 15 | | wages after having been notified by the
Director to do so, for | 16 | | any period which begins prior to January 1, 1982, he
shall pay | 17 | | to the Department as a penalty a sum determined in accordance | 18 | | with
the provisions of this Act as amended and in effect on | 19 | | October 5, 1980.
| 20 | | B. Except as otherwise provided in this Section, any | 21 | | employer who
fails to file a report of wages paid to each of | 22 | | his
workers for any period which begins on or after January 1, | 23 | | 1982, within the
time prescribed by the provisions of this Act | 24 | | and the regulations of the
Director, or, if the Director | 25 | | pursuant to such regulations extends the time
for filing the |
| | | SB3530 Enrolled | - 23 - | LRB098 17883 JLS 55703 b |
|
| 1 | | report, fails to file it within the extended time, shall, in
| 2 | | addition to any sum otherwise payable by him under the | 3 | | provisions of this
Act, pay to the Department as a penalty a | 4 | | sum equal to the lesser of (1) $5
for each $10,000 or fraction | 5 | | thereof of the total wages for insured work
paid by him during | 6 | | the period or (2) $2,500, for each month
or part thereof of | 7 | | such failure to file the report. With respect to an employer | 8 | | who has elected to file reports of wages on an annual basis | 9 | | pursuant to Section 1400.2, in assessing penalties for the | 10 | | failure to submit all reports by the due date established | 11 | | pursuant to that Section, the 30-day period immediately | 12 | | following the due date shall be considered as one month.
| 13 | | If the Director deems an employer's report of wages paid to | 14 | | each of his
workers for any period which begins on or after | 15 | | January 1, 1982,
insufficient, he shall notify the employer to | 16 | | file a sufficient report. If
the employer fails to file such | 17 | | sufficient report within 30 days after the
mailing of the | 18 | | notice to him, he shall, in addition to any sum otherwise
| 19 | | payable by him under the provisions of this Act, pay to the | 20 | | Department as a
penalty a sum determined in accordance with the | 21 | | provisions of the first
paragraph of this subsection, for each | 22 | | month or part thereof of such
failure to file such sufficient | 23 | | report after the date of the notice.
| 24 | | For wages paid in calendar years prior to 1988, the penalty | 25 | | or
penalties which accrue under the two foregoing paragraphs
| 26 | | with respect to a report for any period shall not be less than |
| | | SB3530 Enrolled | - 24 - | LRB098 17883 JLS 55703 b |
|
| 1 | | $100, and
shall not exceed the lesser of
(1) $10 for each | 2 | | $10,000 or fraction thereof
of the total wages for insured work | 3 | | paid during the period or (2) $5,000.
For wages paid in | 4 | | calendar years after 1987, the penalty or penalties which
| 5 | | accrue under the 2 foregoing paragraphs with respect to a | 6 | | report for any
period shall not be less than $50, and shall not | 7 | | exceed the lesser of (1)
$10 for each $10,000 or fraction of | 8 | | the total wages for insured work
paid during the period or (2) | 9 | | $5,000.
With respect to an employer who has elected to file | 10 | | reports of wages on an annual basis pursuant to Section 1400.2, | 11 | | for purposes of calculating the minimum penalty prescribed by | 12 | | this Section for failure to file the reports on a timely basis, | 13 | | a calendar year shall constitute a single period. For reports | 14 | | of wages paid after 1986, the Director shall not,
however, | 15 | | impose a penalty pursuant to either of the two foregoing
| 16 | | paragraphs on any employer who can prove within 30 working days | 17 | | after the
mailing of a notice of his failure to file such a | 18 | | report, that (1) the
failure to file the report is his first | 19 | | such failure during the previous 20
consecutive calendar | 20 | | quarters, and (2) the amount of the total
contributions due for | 21 | | the calendar quarter of such report (or, in the case of an | 22 | | employer who is required to file the reports on a monthly | 23 | | basis, the amount of the total contributions due for the | 24 | | calendar quarter that includes the month of such report) is | 25 | | less than $500.
| 26 | | For any month which begins on or after January 1, 2013, a |
| | | SB3530 Enrolled | - 25 - | LRB098 17883 JLS 55703 b |
|
| 1 | | report of the wages paid to each of an employer's workers shall | 2 | | be due on or before the last day of the month next following | 3 | | the calendar month in which the wages were paid if the employer | 4 | | is required to report such wages electronically pursuant to the | 5 | | regulations of the Director; otherwise a report of the wages | 6 | | paid to each of the employer's workers shall be due on or | 7 | | before the last day of the month next following the calendar | 8 | | quarter in which the wages were paid. | 9 | | Any employer who willfully wilfully fails to pay any | 10 | | contribution or part
thereof, based upon wages paid prior to | 11 | | 1987,
when required by the provisions of this Act and the | 12 | | regulations of the
Director, with intent to defraud the | 13 | | Director, shall in addition to such
contribution or part | 14 | | thereof pay to the Department a penalty equal to 50 percent
of | 15 | | the amount of such contribution or part thereof, as the case | 16 | | may
be, provided that the penalty shall not be less than $200.
| 17 | | Any employer who willfully fails to pay any contribution or | 18 | | part
thereof, based upon wages paid in 1987 and in each | 19 | | calendar year
thereafter, when required by the
provisions of | 20 | | this Act and the regulations of the Director, with intent to
| 21 | | defraud the Director, shall in addition to such contribution or | 22 | | part
thereof pay to the Department a penalty equal to 60% of | 23 | | the amount of such
contribution or part thereof, as the case | 24 | | may be, provided that the penalty
shall not be less than $400.
| 25 | | However, all or part of any penalty may be waived by the | 26 | | Director for
good cause shown.
|
| | | SB3530 Enrolled | - 26 - | LRB098 17883 JLS 55703 b |
|
| 1 | | C. With regard to an employer required to report monthly | 2 | | pursuant to this Section, in addition to each employee's name, | 3 | | social security number, and wages for insured work paid during | 4 | | the period, the Director may, by rule, require a report to | 5 | | provide the following information concerning each employee: | 6 | | the employee's occupation, hours worked during the period, | 7 | | hourly wage, if applicable, and work location if the employer | 8 | | has more than one physical location. Notwithstanding any other | 9 | | provision of any other law to the contrary, information | 10 | | obtained pursuant to this subsection shall not be disclosed to | 11 | | any other public official or agency of this State or any other | 12 | | state to the extent it relates to a specifically identified | 13 | | individual or entity or to the extent that the identity of a | 14 | | specific individual or entity may be discerned from such | 15 | | information. The additional data elements required to be | 16 | | reported pursuant to the rule authorized by this subsection may | 17 | | be reported in the same electronic format as in the system | 18 | | maintained by the employer or employer's agent and need not be | 19 | | reformatted. | 20 | | (Source: P.A. 97-689, eff. 6-14-12; 97-791, eff. 1-1-13; | 21 | | 98-463, eff. 8-16-13.)
| 22 | | (820 ILCS 405/1402.1 new) | 23 | | Sec. 1402.1. Processing fee. | 24 | | A. The Director may, by rule, establish a processing fee of | 25 | | $50 with regard to a report of contributions due that is not |
| | | SB3530 Enrolled | - 27 - | LRB098 17883 JLS 55703 b |
|
| 1 | | required to be submitted electronically if the employer fails | 2 | | to submit the report on the form designated by the Director or | 3 | | otherwise provide all of the information required by the form | 4 | | designated by the Director. With respect to the first instance | 5 | | of such a failure after the effective date of the rule, the | 6 | | Director shall issue the employer a written warning instead of | 7 | | a processing fee, and no such processing fee shall be assessed | 8 | | unless the Director has issued the employer a written warning | 9 | | for a prior failure. | 10 | | B. The Director may, by rule, establish a processing fee of | 11 | | $50 with regard to any payment of contributions, payment in | 12 | | lieu of contributions, interest, or penalty that is not made | 13 | | through electronic funds transfer if the employer fails to | 14 | | enclose the payment coupon provided by the Director with its | 15 | | payment or otherwise provide all of the information the coupon | 16 | | would provide, regardless of the amount due. With respect to | 17 | | the first instance of such a failure after the effective date | 18 | | of the rule, the Director shall issue the employer a written | 19 | | warning instead of a processing fee, and no such processing fee | 20 | | shall be assessed unless the Director has issued the employer a | 21 | | written warning for a prior failure.
| 22 | | (820 ILCS 405/2101) (from Ch. 48, par. 661)
| 23 | | Sec. 2101. Special administrative account. Except as | 24 | | provided in Section 2100, all interest and penalties collected
| 25 | | pursuant to this Act shall be deposited in the special |
| | | SB3530 Enrolled | - 28 - | LRB098 17883 JLS 55703 b |
|
| 1 | | administrative
account. The amount in this account in excess of | 2 | | $100,000 on the close of
business of the last day of each | 3 | | calendar quarter shall be immediately
transferred to this | 4 | | State's account in the unemployment trust fund. However, | 5 | | subject to Section 2101.1,
such funds shall not be transferred | 6 | | where it is determined by the Director
that it is necessary to | 7 | | accumulate funds in the account in order to have
sufficient | 8 | | funds to pay interest that may become due under the terms of
| 9 | | Section 1202 (b) of the Federal Social Security Act, as | 10 | | amended, upon advances
made to the Illinois Unemployment | 11 | | Insurance Trust Fund under Title XII of
the Federal Social | 12 | | Security Act or where it is determined by the Director
that it | 13 | | is necessary to accumulate funds in the special administrative
| 14 | | account in order to have sufficient funds to expend for any | 15 | | other purpose
authorized by this Section. The balance of funds | 16 | | in the special administrative account that are in excess of | 17 | | $100,000 on the first day of each calendar quarter and not | 18 | | transferred to this State's account in the unemployment trust | 19 | | fund, minus the amount reasonably anticipated to be needed to | 20 | | make payments from the special administrative account pursuant | 21 | | to subsections C through I, shall be certified by the Director | 22 | | and transferred by the State Comptroller to the Title III | 23 | | Social Security and Employment Fund in the State Treasury | 24 | | within 30 days of the first day of the calendar quarter. The | 25 | | Director may certify and the State Comptroller shall transfer | 26 | | such funds to the Title III Social Security and Employment Fund |
| | | SB3530 Enrolled | - 29 - | LRB098 17883 JLS 55703 b |
|
| 1 | | on a more frequent basis. The moneys available in the special
| 2 | | administrative account shall be expended upon the direction of | 3 | | the Director
whenever it appears to him that such expenditure | 4 | | is necessary for:
| 5 | | A. 1. The proper administration of this Act and no Federal | 6 | | funds are
available for the specific purpose for which such | 7 | | expenditure is to be
made, provided the moneys are not | 8 | | substituted for appropriations from
Federal funds, which in the | 9 | | absence of such moneys would be available and
provided the | 10 | | monies are appropriated by the General Assembly.
| 11 | | 2. The proper administration of this Act for which purpose
| 12 | | appropriations from Federal funds have been requested but not | 13 | | yet received,
provided the special administrative account will | 14 | | be reimbursed upon receipt
of the requested Federal | 15 | | appropriation.
| 16 | | B. To the extent possible, the repayment to the fund | 17 | | established for
financing the cost of administration of this | 18 | | Act of moneys found by the
Secretary of Labor of the United | 19 | | States of America, or other appropriate
Federal agency, to have | 20 | | been lost or expended for purposes other than, or
in amounts in | 21 | | excess of, those found necessary by the Secretary of Labor,
or | 22 | | other appropriate Federal agency, for the administration of | 23 | | this Act.
| 24 | | C. The payment of refunds or adjustments of interest or | 25 | | penalties, paid
pursuant to Sections 901 or 2201.
| 26 | | D. The payment of interest on refunds of erroneously paid
|
| | | SB3530 Enrolled | - 30 - | LRB098 17883 JLS 55703 b |
|
| 1 | | contributions, penalties and interest pursuant to Section | 2 | | 2201.1.
| 3 | | E. The payment or transfer of interest or penalties to any | 4 | | Federal or
State agency, pursuant to reciprocal arrangements | 5 | | entered into by the
Director under the provisions of Section | 6 | | 2700E.
| 7 | | F. The payment of any costs incurred, pursuant to Section | 8 | | 1700.1.
| 9 | | G. Beginning January 1, 1989, for the payment for the legal | 10 | | services
authorized by subsection B of Section 802, up to | 11 | | $1,000,000 per year for
the representation of the individual | 12 | | claimants and up to $1,000,000 per
year for the representation | 13 | | of "small employers".
| 14 | | H. The payment of any fees for collecting past due | 15 | | contributions,
payments in lieu of contributions, penalties, | 16 | | and interest shall be paid
(without an appropriation) from | 17 | | interest and penalty monies received from
collection agents | 18 | | that have contracted with the Department under Section
2206 to | 19 | | collect such amounts, provided however, that the amount of such
| 20 | | payment shall not exceed the amount of past due interest and | 21 | | penalty collected.
| 22 | | I. The payment of interest that may become due under the | 23 | | terms of Section
1202 (b) of the Federal Social Security Act, | 24 | | as amended, for advances made
to the Illinois Unemployment | 25 | | Insurance Trust Fund.
| 26 | | The Director shall annually on or before the first day of |
| | | SB3530 Enrolled | - 31 - | LRB098 17883 JLS 55703 b |
|
| 1 | | March report
in writing to the Employment Security Advisory | 2 | | Board concerning the
expenditures made from the special | 3 | | administrative account and the purposes
for which funds are | 4 | | being accumulated.
| 5 | | If Federal legislation is enacted which will permit the use | 6 | | by the
Director of some part of the contributions collected or | 7 | | to be collected
under this Act, for the financing of | 8 | | expenditures incurred in the proper
administration of this Act, | 9 | | then, upon the availability of such
contributions for such | 10 | | purpose, the provisions of this Section shall be
inoperative | 11 | | and interest and penalties collected pursuant to this Act shall
| 12 | | be deposited in and be deemed a part of the clearing account. | 13 | | In the event
of the enactment of the foregoing Federal | 14 | | legislation, and within 90 days
after the date upon which | 15 | | contributions become available for expenditure
for costs of | 16 | | administration, the total amount in the special administrative
| 17 | | account shall be transferred to the clearing account, and after | 18 | | clearance
thereof shall be deposited with the Secretary of the | 19 | | Treasury of the United
States of America to the credit of the | 20 | | account of this State in the
unemployment trust fund, | 21 | | established and maintained pursuant to the Federal
Social | 22 | | Security Act, as amended.
| 23 | | (Source: P.A. 94-1083, eff. 1-19-07.)
| 24 | | (820 ILCS 405/2201) (from Ch. 48, par. 681)
| 25 | | Sec. 2201. Refund or adjustment of contributions. Not |
| | | SB3530 Enrolled | - 32 - | LRB098 17883 JLS 55703 b |
|
| 1 | | later than 3 years after the date upon which the Director first | 2 | | notifies any contributions,
interest or penalties thereon were | 3 | | paid, an employing unit that it which has paid
such | 4 | | contributions, interest or penalties thereon erroneously, the | 5 | | employing unit may file a
claim with the Director for an | 6 | | adjustment thereof in connection with
subsequent contribution | 7 | | payments, or for a refund thereof where such
adjustment cannot | 8 | | be made; provided, however, that no refund or adjustment
shall | 9 | | be made of any contribution, the amount of which has been | 10 | | determined
and assessed by the Director, if such contribution | 11 | | was paid after the
determination and assessment of the Director | 12 | | became final, and provided,
further, that any such adjustment | 13 | | or refund, involving contributions with
respect to wages on the | 14 | | basis of which benefits have been paid, shall be
reduced by the | 15 | | amount of benefits so paid. Upon receipt of a claim the
| 16 | | Director shall make his determination, either allowing such | 17 | | claim in whole
or in part, or ordering that it be denied, and | 18 | | serve notice upon the
claimant of such determination. Such | 19 | | determination of the Director shall be
final at the expiration | 20 | | of 20 days from the date of service of such notice
unless the | 21 | | claimant shall have filed with the Director a written protest
| 22 | | and a petition for hearing, specifying his objections thereto. | 23 | | Upon receipt
of such petition within the 20 days allowed, the | 24 | | Director shall fix the
time and place for a hearing and shall | 25 | | notify the claimant thereof. At any
hearing held as herein | 26 | | provided, the determination of the Director shall be
prima |
| | | SB3530 Enrolled | - 33 - | LRB098 17883 JLS 55703 b |
|
| 1 | | facie correct and the burden shall be upon the protesting | 2 | | employing
unit to prove that it is incorrect. All of the | 3 | | provisions of this Act
applicable to hearings conducted | 4 | | pursuant to Section 2200 shall be
applicable to hearings | 5 | | conducted pursuant to this Section. Upon the
conclusion of such | 6 | | hearing, a decision shall be made by the Director and
notice | 7 | | thereof given to the claimant. If the Director shall decide | 8 | | that the
claim be allowed in whole or in part, or if such | 9 | | allowance be ordered by
the Court pursuant to Section 2205 and | 10 | | the judgment of said Court has
become final, the Director | 11 | | shall, if practicable, make adjustment without
interest in | 12 | | connection with subsequent contribution payments by the
| 13 | | claimant, and if adjustments thereof cannot practicably be made | 14 | | in
connection with such subsequent contribution payments, then | 15 | | the Director
shall refund to the claimant the amount so | 16 | | allowed, without interest
except as otherwise provided in | 17 | | Section 2201.1 from
moneys in the benefit account established | 18 | | by this Act. Nothing herein
contained shall prohibit the | 19 | | Director from making adjustment or refund upon
his own | 20 | | initiative, within the time allowed for filing claim therefor,
| 21 | | provided that the Director shall make no refund or adjustment | 22 | | of any
contribution, the amount of which he has previously | 23 | | determined and
assessed, if such contribution was paid after | 24 | | the determination and
assessment became final.
| 25 | | If this State should not be certified for any year by the | 26 | | Secretary of
Labor of the United States of America, or other |
| | | SB3530 Enrolled | - 34 - | LRB098 17883 JLS 55703 b |
|
| 1 | | appropriate Federal agency,
under Section 3304 of the Federal | 2 | | Internal Revenue Code of 1954, the
Director shall refund | 3 | | without interest to any instrumentality of the United
States | 4 | | subject to this Act by virtue of permission granted in an Act | 5 | | of
Congress, the amount of contributions paid by such | 6 | | instrumentality with
respect to such year.
| 7 | | The Director may by regulation provide that, if there is a | 8 | | total credit
balance of less than $2 in an employer's account | 9 | | with respect to contributions,
interest, and penalties, the | 10 | | amount may be disregarded by the Director; once
disregarded, | 11 | | the amount shall not be considered a credit balance in the
| 12 | | account and shall not be subject to either an adjustment or a | 13 | | refund.
| 14 | | (Source: P.A. 90-554, eff. 12-12-97.)
| 15 | | (820 ILCS 405/2201.1) (from Ch. 48, par. 681.1)
| 16 | | Sec. 2201.1.
Interest on Overpaid Contributions, Penalties | 17 | | and
Interest. The Director shall semi-annually quarterly | 18 | | furnish each employer with a
statement of credit balances in | 19 | | the employer's account where the balances
with respect to all | 20 | | contributions, interest and penalties combined equal or
exceed | 21 | | $2. Under regulations
prescribed by the Director and subject to | 22 | | the limitations of Section 2201,
the employer may file a | 23 | | request for an adjustment or refund of the amount
erroneously | 24 | | paid. Interest shall be paid on refunds of erroneously paid
| 25 | | contributions, penalties and interest imposed by this Act, |
| | | SB3530 Enrolled | - 35 - | LRB098 17883 JLS 55703 b |
|
| 1 | | except that if
any refund is mailed by the Director within 90 | 2 | | days after the date of the
refund claim, no interest shall be | 3 | | due or paid. The interest shall begin
to accrue as of the date | 4 | | of the refund claim and shall be paid at the rate
of 1.5% per | 5 | | month computed at the rate of 12/365 of 1.5% for each day or
| 6 | | fraction thereof. Interest paid pursuant to this Section shall | 7 | | be paid from
monies in the special administrative account | 8 | | established by Sections 2100
and 2101. This Section shall apply | 9 | | only to refunds of contributions,
penalties and interest which | 10 | | were paid as the result of wages paid after
January 1, 1988.
| 11 | | (Source: P.A. 90-554, eff. 12-12-97.)
| 12 | | (820 ILCS 405/2401) (from Ch. 48, par. 721)
| 13 | | (Text of Section after amendment by P.A. 98-107 )
| 14 | | Sec. 2401. Recording and release of lien. A. The lien | 15 | | created by Section 2400 shall be invalid only as to any
| 16 | | innocent purchaser for value of stock in trade of any employer | 17 | | in the usual
course of such employer's business, and shall be | 18 | | invalid as to any innocent
purchaser for value of any of the | 19 | | other assets to which such lien has
attached, unless notice | 20 | | thereof has been filed by the Director in the
office of the | 21 | | recorder of the county within which the property
subject to the | 22 | | lien is situated. The Director may, in his discretion, for
good | 23 | | cause shown and upon the reimbursement of any recording fees | 24 | | paid by the Director with respect to the lien , issue a | 25 | | certificate of withdrawal of notice of lien filed
against any |
| | | SB3530 Enrolled | - 36 - | LRB098 17883 JLS 55703 b |
|
| 1 | | employer, which certificate shall be recorded in the same
| 2 | | manner as herein provided for the recording of notice of liens. | 3 | | Such
withdrawal of notice of lien shall invalidate such lien as | 4 | | against any
person acquiring any of such employer's property or | 5 | | any interest therein,
subsequent to the recordation of the | 6 | | withdrawal of notice of lien, but
shall not otherwise affect | 7 | | the validity of such lien, nor shall it prevent
the Director | 8 | | from re-recording notice of such lien. In the event notice of
| 9 | | such lien is re-recorded, such notice shall be effective as | 10 | | against third
persons only as of the date of such | 11 | | re-recordation.
| 12 | | B. The recorder of each county shall procure at the expense | 13 | | of
the county a file labeled "Unemployment Compensation | 14 | | Contribution Lien
Notice" and an index book labeled | 15 | | "Unemployment Compensation Contribution
Lien Index." When a | 16 | | notice of any such lien is presented to him for filing,
he | 17 | | shall file it in numerical order in the file and shall enter it
| 18 | | alphabetically in the index. The entry shall show the name and | 19 | | last known
business address of the employer named in the | 20 | | notice, the serial number of
the notice, the date and hour of | 21 | | filing, and the amount of contribution,
interest and penalty | 22 | | thereon due and unpaid. When a certificate of complete
or | 23 | | partial release of such lien issued by the Director is | 24 | | presented for
filing in the office of the recorder where a | 25 | | notice of lien was
filed, the recorder shall permanently attach | 26 | | the certificate of release to
the notice of lien and shall |
| | | SB3530 Enrolled | - 37 - | LRB098 17883 JLS 55703 b |
|
| 1 | | enter the certificate of release and the date
in the | 2 | | Unemployment Compensation Contribution Lien Index on the line | 3 | | where
the notice of lien is entered. In case title to land to | 4 | | be affected by the
Notice of Lien is registered under the | 5 | | provisions of "An Act Concerning
Land Titles", approved May 1, | 6 | | 1897, as amended, such notice shall be
filed in the office of | 7 | | the Registrar of Titles of the county within which
the property | 8 | | subject to the lien is situated and shall be entered upon the
| 9 | | register of titles as a memorial or charge upon each folium of | 10 | | the register
of title affected by such notice, and the Director | 11 | | shall not have a
preference over the rights of any bona fide | 12 | | purchaser, mortgagee, judgment
creditor or other lien holder | 13 | | arising prior to the registration of such
notice.
| 14 | | C. The Director shall have the power to issue a certificate | 15 | | of partial
release of any part of the property subject to the | 16 | | lien , upon the reimbursement of any recording fees paid by the | 17 | | Director with respect to the lien, if he shall find
that the | 18 | | fair market value of that part of such property remaining | 19 | | subject
to the lien is at least equal to the amount of all | 20 | | prior liens upon such
property plus double the amount of the | 21 | | liability for contributions,
interest and penalties thereon | 22 | | remaining unsatisfied.
| 23 | | D. Where the amount of or the liability for the payment of | 24 | | any
contribution, interest or penalty is contested by any | 25 | | employing unit
against whose property a lien has attached, and | 26 | | the determination of the
Director with reference to such |
| | | SB3530 Enrolled | - 38 - | LRB098 17883 JLS 55703 b |
|
| 1 | | contribution has not become final, the
Director may issue a | 2 | | certificate of release of lien upon the reimbursement of any | 3 | | recording fees paid by the Director with respect to the lien | 4 | | and the furnishing of
bond by such employing unit in 125% the | 5 | | amount of the sum of such
contribution, interest and penalty, | 6 | | for which lien is claimed, with good
and sufficient surety to | 7 | | be approved by the Director conditioned upon the
prompt payment | 8 | | of such contribution, together with interest and penalty
| 9 | | thereon, by such employing unit to the Director immediately | 10 | | upon the
decision of the Director in respect to the liability | 11 | | for such contribution,
interest and penalty becoming final.
| 12 | | E. When a lien obtained pursuant to this Act has been | 13 | | satisfied and upon the reimbursement of any recording fees paid | 14 | | by the Director with respect to the lien , the
Department shall | 15 | | issue a release to the person, or his agent, against whom
the | 16 | | lien was obtained and such release shall contain in legible | 17 | | letters a
statement as follows:
| 18 | | FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL
| 19 | | BE FILED WITH THE RECORDER OR THE REGISTRAR
| 20 | | OF TITLES, IN WHOSE OFFICE, THE LIEN WAS FILED.
| 21 | | F. The Director may, by rule, require, as a condition of | 22 | | withdrawing, releasing, or partially releasing a lien recorded | 23 | | pursuant to this Section, that the employer reimburse the | 24 | | Department for any recording fees paid with respect to the | 25 | | lien. | 26 | | (Source: P.A. 98-107, eff. 7-1-14.)
|
| | | SB3530 Enrolled | - 39 - | LRB098 17883 JLS 55703 b |
|
| 1 | | (820 ILCS 405/1704.1 rep.)
| 2 | | Section 20. The Unemployment Insurance Act is amended by | 3 | | repealing Section 1704.1.
| 4 | | Section 99. Effective date. This Act takes effect July 1, | 5 | | 2014, except that the changes to Sections 2201 and 2201.1 of | 6 | | the Unemployment Insurance Act take effect January 1, 2015.
|
|