97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB2082

 

Introduced 2/22/2011, by Rep. Lou Lang

 

SYNOPSIS AS INTRODUCED:
 
820 ILCS 405/407.5 new

    Amends the Unemployment Insurance Act. Provides for the creation of a program of shared work benefits, under which an individual is deemed unemployed in any week if the individual works less than his or her normal hours or number of days in a week for the individual's regular employer and the Director of Employment Security finds that the regular employer has reduced or restricted the individual's hours or days of work or has rehired an individual previously laid off and reduced that individual's hours or days of work from those previously worked as the result of a plan by the regular employer to reduce unemployment and stabilize the work force through a program of sharing the work remaining after a reduction in total hours of work and a corresponding reduction in wages, among not less than 10% of the employer's regular permanent work force involved in the affected work unit or units. Provides for: computation of benefits; limits on benefits; determinations; reduction of benefits; payments; submission of forms and certifications; requirements; administration; creation of a Shared Work Benefits Fund; and other matters. Effective July 1, 2011.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 10. The Unemployment Insurance Act is amended by
5adding Section 407.5 as follows:
 
6    (820 ILCS 405/407.5 new)
7    Sec. 407.5. Shared Work Benefits.
8    A. Notwithstanding any other provision of this Act, for the
9purposes of this Section an individual is "unemployed" in any
10week if the individual works less than his or her normal hours
11or number of days in a week for the individual's regular
12employer, and the Director finds that the regular employer has
13reduced or restricted the individual's hours or days of work,
14or has rehired an individual previously laid off and reduced
15that individual's hours or days of work from those previously
16worked, as the result of a plan by the regular employer to
17reduce unemployment and stabilize the work force through a
18program of sharing the work remaining after a reduction in
19total hours of work and a corresponding reduction in wages,
20among not less than 10% of the employer's regular permanent
21work force involved in the affected work unit or units.
22    B. Except as otherwise provided in this Section, each
23individual eligible under this Act who is "unemployed" in any

 

 

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1week shall be paid with respect to that week a weekly shared
2work benefit amount equal to the percentage of reduction of the
3individual's wages resulting from reduced hours or days of
4work, rounded to the nearest 10%, multiplied by 50% of the
5lesser of the individual's current full time weekly wage
6rounded to the next higher dollar or the Statewide average
7weekly wage as defined in paragraph 2 of subsection B of
8Section 401 of this Act, except that this provision shall apply
9only if the percentage of reduction is 10% or more. The shared
10work benefit amount shall be rounded (if not already a multiple
11of one dollar) to the next higher dollar.
12    C. No individual shall be paid any benefits under this
13Section in excess of 20 weeks of benefits during a period of 52
14consecutive weeks, beginning with the first week of benefits
15paid under this Section. An individual shall be ineligible for
16benefits under this Section for any week with respect to which
17the individual has made a claim for unemployment insurance
18benefits pursuant to any other Section of this Act or under an
19unemployment insurance law of any other State or Canada or
20under an unemployment insurance system established by an Act of
21Congress; provided, however, that if the appropriate agency
22finally determines that the individual is not entitled to
23unemployment insurance benefits for the week or weeks involved
24and that determination has become final and unappealable, the
25ineligibility arising from the making of a claim under this
26subsection shall not apply.

 

 

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1    D. Any amount payable under this Section shall be reduced
2by the amount of any and all compensation payable for personal
3services whether performed as an employee or an independent
4contractor or as a juror or as a witness, except compensation
5payable by the regular employer not in excess of compensation
6payable for reduced hours of work assigned an individual by the
7regular employer under a shared work plan.
8    E. All benefits payable under this Section shall be paid
9from the Shared Work Benefits Fund which is hereby created.
10Following any biweekly period or periods, participating
11employers shall submit to the Department, on forms provided by
12the Director, a list of those employees who, during any prior
13biweekly period or periods, are entitled to shared work
14benefits, the week or weeks for which they are entitled, and
15the amount of such benefits to be paid to each employee.
16Additional information shall be submitted as may be required by
17the Director. The completed form shall be accompanied by the
18employer's payment in an amount equal to all benefits to be
19paid for the biweekly period or periods pursuant to this
20Section. The employer's form shall also be accompanied by the
21certifications, on forms provided by the Director, of each
22employee entitled to receive shared work benefits for the
23biweekly period or periods. The employee certification form
24shall include such information as may be required by the
25Director. All amounts collected pursuant to this Section shall
26be deposited into the Shared Work Benefits Fund. No benefits

 

 

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1may be paid under this Section to an employee of an employer
2for any period for which the employer has not submitted the
3necessary forms or payments.
4    F. Except as otherwise provided by or inconsistent with
5this Section, all provisions of this Act and authorized
6regulations apply to benefits under this Section. Authorized
7regulations may, to the extent permitted by federal law, make
8such distinctions and requirements as may be necessary in the
9procedures and provisions applicable to unemployed individuals
10to carry out the purposes of this Section. No employee shall be
11required to register for work or actively seek work as a
12condition of receiving benefits under this Section.
13    G. The Department, in the administration of the program
14created by this Section, shall establish guidelines which
15ensure the equitable and consistent administration of the
16program.
17    H. The program created by this Section shall not affect any
18pension or insurance benefit of employees participating in the
19program.
20    I. Employees shall not be eligible to receive any benefits
21under this Section unless their employer agrees, in writing,
22and their bargaining agent pursuant to any applicable
23collective bargaining agreement agrees, in writing, to
24voluntarily participate in the shared work program approved by
25the Director.
26    J. The Director shall receive and hold, as custodian, all

 

 

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1moneys paid to the Shared Work Benefits Fund in a
2nonappropriated local account. The moneys in such account
3(which shall be kept separate and apart from all other public
4moneys) shall be expended solely for the payment of benefits
5under the provisions of this Act and in accordance with any
6guidelines the Director may subsequently develop. The General
7Assembly shall appropriate funds for the administration of the
8Shared Work Program. In the event that the funds appropriated
9for the administration of the Shared Work Program are
10insufficient for the proper administration of this Program, as
11determined by the Director, the Program and any benefits
12payable pursuant to this Section shall terminate until such
13time as the Director determines that a sufficient appropriation
14is available.
 
15    Section 99. Effective date. This Act takes effect July 1,
162011.