State of Illinois
91^st General Assembly
Public Acts

Public Act 91-0890

HB3260 Enrolled                                LRB9110325WHcs

    AN ACT to amend the Unemployment Insurance Act by  adding
Section 206.1.

    Be  it  enacted  by  the People of the State of Illinois,
represented in the General Assembly:

    Section 5. The Unemployment Insurance Act is  amended  by
adding Section 206.1 as follows:

    (820 ILCS 405/206.1 new)
    Sec. 206.1.  Employment; employee leasing company.
    A.  For purposes of this Section:
         1.  "Client" means an individual or entity which has
    contracted  with an employee leasing company to supply it
    with or assume responsibility for personnel management of
    one or more workers to perform services  on  an  on-going
    basis  rather than under a temporary help arrangement, as
    defined in Section 15 of  the  Employee  Leasing  Company
    Act.
         2.  "Employee  leasing  company" means an individual
    or entity which contracts with  a  client  to  supply  or
    assume  responsibility for personnel management of one or
    more workers to perform services for  the  client  on  an
    on-going   basis  rather  than  under  a  temporary  help
    arrangement, as defined in Section  15  of  the  Employee
    Leasing Company Act.
    B.  Subject  to  subsection  C,  services performed by an
individual under  a  contract  between  an  employee  leasing
company  and  client,  including  but not limited to services
performed in the capacity  of  a  corporate  officer  of  the
client,  are services in "employment" of the employee leasing
company and are not services in "employment" of the client if
all of the following conditions are met:
         1.  The employee leasing company pays the individual
    for the services directly from its own accounts; and
         2.  The employee leasing company, exclusively or  in
    conjunction  with the client, retains the right to direct
    and control the individual  in  the  performance  of  the
    services; and
         3.  The  employee leasing company, exclusively or in
    conjunction with the client, retains the  right  to  hire
    and terminate the individual; and
         4.  The employee leasing company reports each client
    in the manner the Director prescribes by regulation.
    C.  Notwithstanding  subsection  B, services performed by
an individual under a contract between  an  employee  leasing
company  and  client,  including  but not limited to services
performed in the capacity  of  a  corporate  officer  of  the
client,  are  services  in "employment" of the client and are
not services in "employment" of the employee leasing  company
if:
         1.  The contribution rate, or, where applicable, the
    amended  contribution rate, of the client is greater than
    the sum of the fund building  rate  established  for  the
    year  pursuant  to  Section  1506.3  of this Act plus the
    greater  of  2.7%  or  2.7%  times  the  adjusted   state
    experience factor for the year; and
         2.  The contribution rate, or, where applicable, the
    amended   contribution  rate,  of  the  employee  leasing
    company is less than the  contribution  rate,  or,  where
    applicable,  the  amended contribution rate of the client
    by more than 1.5% absolute.
    D.  Except   as   provided   in    this    Section    and
notwithstanding  any  other  provision  of  this  Act  to the
contrary,  services  performed  by  an  individual  under   a
contract  between  an  employee  leasing  company and client,
including but  not  limited  to  services  performed  in  the
capacity  of  a corporate officer of the client, are services
in "employment"  of  the  client  and  are  not  services  in
"employment" of the employee leasing company.
    E.  Nothing in this Section shall be construed or used to
effect the existence of an employment relationship other than
for purposes of this Act.

    Section  99.  Effective  date. This Act takes effect upon
becoming law.