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1
SENATE RESOLUTION

 
2    WHEREAS, There have been growing concerns that an
3increasing number of workers in the State of Illinois are being
4misclassified by their employers, but limited data currently
5exists to support or abate these concerns; and
 
6    WHEREAS, Employee misclassification creates a host of
7issues that deny workers in Illinois basic labor standards,
8including, but not limited to, wage and hour protections,
9discrimination protections, health and safety standards,
10workers' compensation, retirement security, and unemployment
11insurance; and
 
12    WHEREAS, The misclassification of workers also enables
13unscrupulous employers and hiring entities to gain an unfair
14advantage over other employers that obey the law and permits
15such employers to shift the cost of providing benefits, such as
16a safe workplace, retirement security, and unemployment
17insurance, to governmental bodies and, ultimately, the
18taxpayers; and
 
19    WHEREAS, The harms caused by misclassification are only
20exacerbated in times of economic downturn, such as the current
21state of the global economy in the wake of the COVID-19
22pandemic; and
 

 

 

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1    WHEREAS, The spread of COVID-19 has resulted in
2unprecedented job loss and an increase in unemployment
3insurance claims in the State; and
 
4    WHEREAS, The Department of Employment Security previously
5adopted the practice of verifying employment classification
6when processing claims for unemployment insurance benefits;
7and
 
8    WHEREAS, Through this process, the Department of
9Employment Security has the capability of identifying employee
10misclassification, however, only where workers voluntarily
11seek regular unemployment benefits from the Department; and
 
12    WHEREAS, Federal unemployment insurance programs, such as
13Pandemic Unemployment Assistance, have recently expanded
14eligibility to workers who were previously ineligible to
15receive unemployment insurance benefits, including individuals
16who are self-employed, independent contractors, and sole
17proprietors; and
 
18    WHEREAS, Workers who are self-employed, independent
19contractors, and sole proprietors, and their hiring entities
20have not traditionally been required to contribute to federal
21or state unemployment insurance programs; and
 

 

 

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1    WHEREAS, The Department of Employment Security is
2presently receiving and processing claims for unemployment
3benefits under both the State and federal programs, gaining
4access to information and data from a larger sample of the
5workforce in the State, including those thought to be
6non-employees; and
 
7    WHEREAS, Absent the Pandemic Unemployment Insurance
8program providing assistance to workers who are self-employed,
9independent contractors, or sole proprietors, it is difficult
10to collect data about this type of employment and earnings;
11therefore, be it
 
12    RESOLVED, BY THE SENATE OF THE ONE HUNDRED FIRST GENERAL
13ASSEMBLY OF THE STATE OF ILLINOIS, that the Department of
14Employment Security is urged to collect data, where
15practicable, regarding incidents of employer
16misclassification, including, but not limited to, job titles,
17employment industry, wages, hours, and dollar amount of
18unemployment benefits paid from the state unemployment fund;
19"Employer misclassification" in this paragraph shall mean a
20case in which a worker is classified by his or her employer as
21an independent contractor and paid 1099 wages but is later
22deemed by IDES to qualify as an employee, based upon the legal
23standard applicable to State of Illinois unemployment law; and

 

 

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1be it further
 
2    RESOLVED, That the Department of Employment Security is
3urged to collect data, where practicable, regarding applicants
4who are found by the Department to qualify for Pandemic
5Unemployment Assistance as self-employed, independent
6contractors, and sole proprietors, including, but not limited
7to, job titles, employment industry, hours, and wages or
8earnings; and be it further
 
9    RESOLVED, That such data, to the greatest extent permitted
10under the law, should be presented in a meaningful and workable
11electronic format that excludes private and personally
12identifying information of Unemployment Insurance applicants
13to be shared with the members of the Senate of the One Hundred
14First General Assembly of the State of Illinois on or before
15the last day of the 101st General Assembly; and be it further
 
16    RESOLVED, That suitable copies of this resolution be
17delivered to Governor JB Pritzker and Thomas Chan, Acting
18Director of the Department of Employment Security.