Rep. Frank J. Mautino

Filed: 5/22/2014

 

 


 

 


 
09800SB3530ham002LRB098 17883 JLS 60038 a

1
AMENDMENT TO SENATE BILL 3530

2    AMENDMENT NO. ______. Amend Senate Bill 3530 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Civil Administrative Code of Illinois is
5amended by adding Section 5-126 as follows:
 
6    (20 ILCS 5/5-126 new)
7    Sec. 5-126. In the Department of Employment Security.
8Assistant Director of Employment Security.
 
9    Section 10. The Department of Employment Security Law of
10the Civil Administrative Code of Illinois is amended by
11changing Section 1005-47 as follows:
 
12    (20 ILCS 1005/1005-47)
13    Sec. 1005-47. IllinoisJobLink.com.
14    (a) The Department of Employment Security, through its

 

 

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1IllinoisJobLink.com System, or a successor system, shall
2maintain a web site that allows job seekers to search online
3for employment opportunities that match the skills of the
4person seeking employment.
5    (b) Each executive branch State agency and any individual
6or entity that is party to a contract with an executive branch
7State agency, except those individuals or entities that are
8party to a contract with a bona fide labor organization and
9perform construction or construction-related services as
10defined in Section 1-15.20 of the Illinois Procurement Code,
11must either (i) post employment vacancies on the Department's
12IllinoisJobLink.com System or its successor system or (ii)
13provide an online link to its employment vacancies so that this
14link is accessible through the web page of the
15IllinoisJobLink.com System or its successor system. "State
16agency" has the meaning as defined in Section 1-5 of the State
17Officials and Employees Ethics Act and, for purposes of this
18Section, includes community colleges. "Contract" has the
19meaning given to that term in Section 1-15.30 of the Illinois
20Procurement Code. The Department of Central Management
21Services shall comply with this Section on behalf of executive
22branch State agencies with one or more positions subject to any
23jurisdiction of the Personnel Code.
24    This Section does not apply to positions exempt from the
25requirements of the Rutan decision or to construction-related
26services as defined in Section 1-15.20 of the Illinois

 

 

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1Procurement Code.
2    (c) All units of local government, school districts, and
3other public and private employers not subject to subsection
4(b) may, and are encouraged to, post employment vacancies on
5the IllinoisJobLink.com System or successor system.
6    (d) The Department may not charge any employer or any
7person seeking employment a fee for using the
8IllinoisJobLink.com System or successor system.
9    (e) The Department is authorized to adopt all rules
10necessary to implement and administer the IllinoisJobLink.com
11System or any successor system under this Section.
12(Source: P.A. 98-107, eff. 7-23-13.)
 
13    Section 15. The Public Employment Office Act is amended by
14changing Section 7 as follows:
 
15    (20 ILCS 1015/7)  (from Ch. 48, par. 183)
16    Sec. 7. No fee or compensation shall be charged or received
17directly or indirectly from persons applying for employment or
18help through said free employment offices, and any officer or
19employee of the Department of Employment Security who shall
20accept, directly or indirectly any fee or compensation from any
21applicant or from his or her representative shall be guilty of
22a Class C misdemeanor, except that this Section does not
23prohibit referral of an individual to an apprenticeship program
24that is approved by and registered with the United States

 

 

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1Department of Labor, Bureau of Apprenticeship and Training and
2charges an application fee of $50 or less.
3(Source: P.A. 83-1503.)
 
4    Section 20. The Unemployment Insurance Act is amended by
5changing Sections 206.1, 702, 1402, 2101, 2201, 2201.1, 2401,
6and 2403 and by adding Sections 502 and 1402.1 as follows:
 
7    (820 ILCS 405/206.1)
8    Sec. 206.1. Employment; employee leasing company.
9    A. For purposes of this Section:
10        1. "Client" means an individual or entity which has
11    contracted with an employee leasing company to supply it
12    with or assume responsibility for personnel management of
13    one or more workers to perform services 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        2. "Employee leasing company" means an individual or
17    entity which contracts with a client to supply or assume
18    responsibility for personnel management of one or more
19    workers to perform services for the client on an on-going
20    basis rather than under a temporary help arrangement, as
21    defined in Section 15 of the Employee Leasing Company Act.
22    B. Subject to subsection C, services performed by an
23individual under a contract between an employee leasing company
24and client, including but not limited to services performed in

 

 

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1the capacity of a corporate officer of the client, are services
2in "employment" of the employee leasing company and are not
3services in "employment" of the client if all of the following
4conditions are met:
5        1. The employee leasing company pays the individual for
6    the services directly from its own accounts; and
7        2. The employee leasing company, exclusively or in
8    conjunction with the client, retains the right to direct
9    and control the individual in the performance of the
10    services; and
11        3. The employee leasing company, exclusively or in
12    conjunction with the client, retains the right to hire and
13    terminate the individual; and
14        4. The employee leasing company reports each client in
15    the manner the Director prescribes by regulation; and .
16        5. The employee leasing company has provided, and there
17    remains in effect, such irrevocable indemnification, as
18    the Director may require by rule, to create a primary
19    obligation on the part of the provider to the Illinois
20    Department of Employment Security for obligations of the
21    employee leasing company accrued and final under this Act.
22    The rule may prescribe the form the indemnification shall
23    take including, but not limited to, a surety bond or an
24    irrevocable standby letter of credit. The obligation
25    required pursuant to the rule shall not exceed $1,000,000.
26    C. Notwithstanding subsection B, services performed by an

 

 

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1individual under a contract between an employee leasing company
2and client, including but not limited to services performed in
3the capacity of a corporate officer of the client, are services
4in "employment" of the client and are not services in
5"employment" of the employee leasing company if:
6        1. The contribution rate, or, where applicable, the
7    amended contribution rate, of the client is greater than
8    the sum of the fund building rate established for the year
9    pursuant to Section 1506.3 of this Act plus the greater of
10    2.7% or 2.7% times the adjusted state experience factor for
11    the year; and
12        2. The contribution rate, or, where applicable, the
13    amended contribution rate, of the employee leasing company
14    is less than the contribution rate, or, where applicable,
15    the amended contribution rate of the client by more than
16    1.5% absolute.
17    D. Except as provided in this Section and notwithstanding
18any other provision of this Act to the contrary, services
19performed by an individual under a contract between an employee
20leasing company and client, including but not limited to
21services performed in the capacity of a corporate officer of
22the client, are services in "employment" of the client and are
23not services in "employment" of the employee leasing company.
24    E. Nothing in this Section shall be construed or used to
25effect the existence of an employment relationship other than
26for purposes of this Act.

 

 

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1(Source: P.A. 91-890, eff. 7-6-00.)
 
2    (820 ILCS 405/502 new)
3    Sec. 502. Eligibility for benefits under the Short-Time
4Compensation Program.
5    A. The Director may by rule establish a short-time
6compensation program consistent with this Section. No
7short-time compensation shall be payable except as authorized
8by rule.
9    B. As used in this Section:
10    "Affected unit" means a specified plant, department,
11shift, or other definable unit that includes 2 or more workers
12to which an approved short-time compensation plan applies.
13    "Health and retirement benefits" means employer-provided
14health benefits and retirement benefits under a defined benefit
15pension plan (as defined in Section 414(j) of the Internal
16Revenue Code) or contributions under a defined contribution
17plan (defined in Section 414(i) of the Internal Revenue Code),
18which are incidents of employment in addition to the cash
19remuneration earned.
20    "Short-time compensation" means the unemployment benefits
21payable to employees in an affected unit under an approved
22short-time compensation plan, as distinguished from the
23unemployment benefits otherwise payable under this Act.
24    "Short-time compensation plan" means a plan submitted by an
25employer, for approval by the Director, under which the

 

 

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1employer requests the payment of short-time compensation to
2workers in an affected unit of the employer to avert layoffs.
3    "Usual weekly hours of work" means the usual hours of work
4for full-time or part-time employees in the affected unit when
5that unit is operating on its regular basis, not to exceed 40
6hours and not including hours of overtime work.
7    "Unemployment insurance" means the unemployment benefits
8payable under this Act other than short-time compensation and
9includes any amounts payable pursuant to an agreement under any
10Federal law providing for compensation, assistance, or
11allowances with respect to unemployment.
12    C. An employer wishing to participate in the short-time
13compensation program shall submit a signed written short-time
14compensation plan to the Director for approval. The Director
15shall develop an application form to request approval of a
16short-time compensation plan and an approval process. The
17application shall include:
18        1. The employer's unemployment insurance account
19    number, the affected unit covered by the plan, including
20    the number of full-time or part-time workers in such unit,
21    the percentage of workers in the affected unit covered by
22    the plan, identification of each individual employee in the
23    affected unit by name and social security number, and any
24    other information required by the Director to identify plan
25    participants.
26        2. A description of how workers in the affected unit

 

 

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1    will be notified of the employer's participation in the
2    short-time compensation plan if such application is
3    approved, including how the employer will notify those
4    workers in a collective bargaining unit as well as any
5    workers in the affected unit who are not in a collective
6    bargaining unit. If the employer will not provide advance
7    notice to workers in the affected unit, the employer shall
8    explain in a statement in the application why it is not
9    feasible to provide such notice.
10        3. The employer's certification that it has the
11    approval of the plan from all collective bargaining
12    representatives of employees in the affected unit and has
13    notified all employees in the affected unit who are not in
14    a collective bargaining unit of the plan.
15        4. The employer's certification that it will not hire
16    additional part-time or full-time employees for, or
17    transfer employees to, the affected unit, while the program
18    is in operation.
19        5. A requirement that the employer identify the usual
20    weekly hours of work for employees in the affected unit and
21    the specific percentage by which their hours will be
22    reduced during all weeks covered by the plan. An
23    application shall specify the percentage of reduction for
24    which a short-time compensation application may be
25    approved which shall be not less than 20% and not more than
26    60%. If the plan includes any week for which the employer

 

 

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1    regularly provides no work (due to a holiday or other plant
2    closing), then such week shall be identified in the
3    application.
4        6. Certification by the employer that, if the employer
5    provides health and retirement benefits to any employee
6    whose usual weekly hours of work are reduced under the
7    program, such benefits will continue to be provided to the
8    employee participating in the short-time compensation
9    program under the same terms and conditions as though the
10    usual weekly hours of work of such employee had not been
11    reduced or to the same extent as other employees not
12    participating in the short-time compensation program. For
13    defined benefit retirement plans, the hours that are
14    reduced under the short-time compensation plan shall be
15    credited for purposes of participation, vesting, and
16    accrual of benefits as though the usual weekly hours of
17    work had not been reduced. The dollar amount of employer
18    contributions to a defined contribution plan that are based
19    on a percentage of compensation may be less due to the
20    reduction in the employee's compensation. Notwithstanding
21    any other provision to the contrary, a certification that a
22    reduction in health and retirement benefits is scheduled to
23    occur during the duration of the plan and will be
24    applicable equally to employees who are not participating
25    in the short-time compensation program and to those
26    employees who are participating satisfies this paragraph.

 

 

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1        7. Certification by the employer that the aggregate
2    reduction in work hours is in lieu of layoffs (temporary or
3    permanent layoffs, or both). The application shall include
4    an estimate of the number of workers who would have been
5    laid off in the absence of the short-time compensation
6    plan.
7        8. Agreement by the employer to: furnish reports to the
8    Director relating to the proper conduct of the plan; allow
9    the Director or his or her authorized representatives
10    access to all records necessary to approve or disapprove
11    the plan application, and after approval of a plan, to
12    monitor and evaluate the plan; and follow any other
13    directives the Director deems necessary for the agency to
14    implement the plan and which are consistent with the
15    requirements for plan applications.
16        9. Certification by the employer that participation in
17    the short-time compensation plan and its implementation is
18    consistent with the employer's obligations under
19    applicable Federal and Illinois laws.
20        10. The effective date and duration of the plan, which
21    shall expire no later than the end of the 12th full
22    calendar month after the effective date.
23        11. Any other provision added to the application by the
24    Director that the United States Secretary of Labor
25    determines to be appropriate for purposes of a short-time
26    compensation program.

 

 

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1    D. The Director shall approve or disapprove a short-time
2compensation plan in writing within 45 days of its receipt and
3promptly communicate the decision to the employer. A decision
4disapproving the plan shall clearly identify the reasons for
5the disapproval. The disapproval shall be final, but the
6employer shall be allowed to submit another short-time
7compensation plan for approval not earlier than 30 days from
8the date of the disapproval.
9    E. The short-time compensation plan shall be effective on
10the mutually agreed upon date by the employer and the Director,
11which shall be specified in the notice of approval to the
12employer. The plan shall expire on the date specified in the
13notice of approval, which shall be mutually agreed on by the
14employer and Director but no later than the end of the 12th
15full calendar month after its effective date. However, if a
16short-time compensation plan is revoked by the Director, the
17plan shall terminate on the date specified in the Director's
18written order of revocation. An employer may terminate a
19short-time compensation plan at any time upon written notice to
20the Director. Upon receipt of such notice from the employer,
21the Director shall promptly notify each member of the affected
22unit of the termination date. An employer may submit a new
23application to participate in another short-time compensation
24plan at any time after the expiration or termination date.
25    F. The Director may revoke approval of a short-time
26compensation plan for good cause at any time, including upon

 

 

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1the request of any of the affected unit's employees or their
2collective bargaining representative. The revocation order
3shall be in writing and shall specify the reasons for the
4revocation and the date the revocation is effective. The
5Director may periodically review the operation of each
6employer's short-time compensation plan to assure that no good
7cause exists for revocation of the approval of the plan. Good
8cause shall include, but not be limited to, failure to comply
9with the assurances given in the plan, termination of the
10approval of the plan by a collective bargaining representative
11of employees in the affected unit, unreasonable revision of
12productivity standards for the affected unit, conduct or
13occurrences tending to defeat the intent and effective
14operation of the short-time compensation plan, and violation of
15any criteria on which approval of the plan was based.
16    G. An employer may request a modification of an approved
17plan by filing a written request to the Director. The request
18shall identify the specific provisions proposed to be modified
19and provide an explanation of why the proposed modification is
20appropriate for the short-time compensation plan. The Director
21shall approve or disapprove the proposed modification in
22writing within 30 days of receipt and promptly communicate the
23decision to the employer. The Director, in his or her
24discretion, may approve a request for modification of the plan
25based on conditions that have changed since the plan was
26approved provided that the modification is consistent with and

 

 

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1supports the purposes for which the plan was initially
2approved. A modification may not extend the expiration date of
3the original plan, and the Director must promptly notify the
4employer whether the plan modification has been approved and,
5if approved, the effective date of modification. An employer is
6not required to request approval of plan modification from the
7Director if the change is not substantial, but the employer
8must report every change to plan to the Director promptly and
9in writing. The Director may terminate an employer's plan if
10the employer fails to meet this reporting requirement. If the
11Director determines that the reported change is substantial,
12the Director shall require the employer to request a
13modification to the plan.
14    H. An individual is eligible to receive short-time
15compensation with respect to any week only if the individual is
16eligible for unemployment insurance pursuant to subsection E of
17Section 500, not otherwise disqualified for unemployment
18insurance, and:
19        1. During the week, the individual is employed as a
20    member of an affected unit under an approved short-time
21    compensation plan, which was approved prior to that week,
22    and the plan is in effect with respect to the week for
23    which short-time compensation is claimed.
24        2. Notwithstanding any other provision of this Act
25    relating to availability for work and actively seeking
26    work, the individual is available for the individual's

 

 

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1    usual hours of work with the short-time compensation
2    employer, which may include, for purposes of this Section,
3    participating in training to enhance job skills that is
4    approved by the Director, including but not limited to as
5    employer-sponsored training or training funded under the
6    Workforce Investment Act of 1998.
7        3. Notwithstanding any other provision of law, an
8    individual covered by a short-time compensation plan is
9    deemed unemployed in any week during the duration of such
10    plan if the individual's remuneration as an employee in an
11    affected unit is reduced based on a reduction of the
12    individual's usual weekly hours of work under an approved
13    short-time compensation plan.
14    I. The short-time compensation weekly benefit amount shall
15be the product of the percentage of reduction in the
16individual's usual weekly hours of work multiplied by the sum
17of the regular weekly benefit amount for a week of total
18unemployment plus any applicable dependent allowance pursuant
19to subsection C of Section 401.
20        1. An individual may be eligible for short-time
21    compensation or unemployment insurance, as appropriate,
22    except that no individual shall be eligible for combined
23    benefits (excluding any payments attributable to a
24    dependent allowance pursuant to subsection C of Section
25    401) in any benefit year in an amount more than the maximum
26    benefit amount, nor shall an individual be paid short-time

 

 

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1    compensation benefits for more than 52 weeks under a
2    short-time compensation plan.
3        2. The short-time compensation paid to an individual
4    (excluding any payments attributable to a dependent
5    allowance pursuant to subsection C of Section 401) shall be
6    deducted from the maximum benefit amount established for
7    that individual's benefit year.
8        3. Provisions applicable to unemployment insurance
9    claimants shall apply to short-time compensation claimants
10    to the extent that they are not inconsistent with
11    short-time compensation provisions. An individual who
12    files an initial claim for short-time compensation
13    benefits shall receive a monetary determination.
14        4. The following provisions apply to individuals who
15    work for both a short-time compensation employer and
16    another employer during weeks covered by the approved
17    short-time compensation plan:
18            i. If combined hours of work in a week for both
19        employers do not result in a reduction of at least 20%
20        of the usual weekly hours of work with the short-time
21        compensation employer, the individual shall not be
22        entitled to benefits under this Section.
23            ii. If combined hours of work for both employers
24        results in a reduction equal to or greater than 20% of
25        the usual weekly hours of work for the short-time
26        compensation employer, the short-time compensation

 

 

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1        benefit amount payable to the individual is reduced for
2        that week and is determined by multiplying the
3        percentage by which the combined hours of work have
4        been reduced by the sum of the weekly benefit amount
5        for a week of total unemployment plus any applicable
6        dependent allowance pursuant to subsection C of
7        Section 401. A week for which benefits are paid under
8        this subparagraph shall be reported as a week of
9        short-time compensation.
10            iii. If an individual worked the reduced
11        percentage of the usual weekly hours of work for the
12        short-time compensation employer and is available for
13        all his or her usual hours of work with the short-time
14        compensation employer, and the individual did not work
15        any hours for the other employer either because of the
16        lack of work with that employer or because the
17        individual is excused from work with the other
18        employer, the individual shall be eligible for
19        short-time compensation for that week. The benefit
20        amount for such week shall be calculated as provided in
21        the introductory clause of this subsection I.
22            iv. An individual who is not provided any work
23        during a week by the short-time compensation employer,
24        or any other employer, and who is otherwise eligible
25        for unemployment insurance shall be eligible for the
26        amount of regular unemployment insurance determined

 

 

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1        without regard to this Section.
2            v. An individual who is not provided any work by
3        the short-time compensation employer during a week,
4        but who works for another employer and is otherwise
5        eligible may be paid unemployment insurance for that
6        week subject to the disqualifying income and other
7        provisions applicable to claims for regular
8        unemployment insurance.
9    J. Short-time compensation shall be charged to employers in
10the same manner as unemployment insurance is charged under
11Illinois law. Employers liable for payments in lieu of
12contributions shall have short-time compensation attributed to
13service in their employ in the same manner as unemployment
14insurance is attributed. Notwithstanding any other provision
15to the contrary, to the extent that short-term compensation
16payments under this Section are reimbursed by the federal
17government, no benefit charges or payments in lieu of
18contributions shall be accrued by a participating employer.
19    K. A short-time compensation plan shall not be approved for
20an employer that is delinquent in the filing of any reports
21required or the payment of contributions, payments in lieu of
22contributions, interest, or penalties due under this Act
23through the date of the employer's application.
24    L. Overpayments of other benefits under this Act may be
25recovered from an individual receiving short-time compensation
26under this Act in the manner provided under Sections 900 and

 

 

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1901. Overpayments under the short-time compensation plan may be
2recovered from an individual receiving other benefits under
3this Act in the manner provided under Sections 900 and 901.
4    M. An individual who has received all of the short-time
5compensation or combined unemployment insurance and short-time
6compensation available in a benefit year shall be considered an
7exhaustee for purposes of extended benefits, as provided under
8the provisions of Section 409, and, if otherwise eligible under
9those provisions, shall be eligible to receive extended
10benefits.
 
11    (820 ILCS 405/702)  (from Ch. 48, par. 452)
12    Sec. 702. Determinations. The claims adjudicator shall for
13each week with respect to which the claimant claims benefits or
14waiting period credit, make a "determination" which shall state
15whether or not the claimant is eligible for such benefits or
16waiting period credit and the sum to be paid the claimant with
17respect to such week. The claims adjudicator shall promptly
18notify the claimant and such employing unit as shall, within
19the time and in the manner prescribed by the Director, have
20filed a sufficient allegation that the claimant is ineligible
21to receive benefits or waiting period credit for said week, of
22his "determination" and the reasons therefor. The Director may,
23by rule adopted with the advice and aid of the Employment
24Security Advisory Board, require that an employing unit with 25
2550 or more individuals in its employ during a the prior

 

 

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1calendar year, or an entity representing 5 or more employing
2units during a the prior calendar year, file an allegation of
3ineligibility electronically in a manner prescribed by the
4Director for the one year period commencing on July 1 of the
5immediately succeeding calendar year and ending on June 30 of
6the second succeeding calendar year. In making his
7"determination," the claims adjudicator shall give
8consideration to the information, if any, contained in the
9employing unit's allegation, whether or not the allegation is
10sufficient. The claims adjudicator shall deem an employing
11unit's allegation sufficient only if it contains a reason or
12reasons therefor (other than general conclusions of law, and
13statements such as "not actively seeking work" or "not
14available for work" shall be deemed, for this purpose, to be
15conclusions of law). If the claims adjudicator deems an
16allegation insufficient, he shall make a decision accordingly,
17and shall notify the employing unit of such decision and the
18reasons therefor. Such decision may be appealed by the
19employing unit to a Referee within the time limits prescribed
20by Section 800 for appeal from a "determination". Any such
21appeal, and any appeal from the Referee's decision thereon,
22shall be governed by the applicable provisions of Sections 801,
23803, 804 and 805.
24(Source: P.A. 97-621, eff. 11-18-11.)
 
25    (820 ILCS 405/1402)  (from Ch. 48, par. 552)

 

 

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1    Sec. 1402. Penalties.
2    A. If any employer fails, within the time prescribed in
3this Act as amended and in effect on October 5, 1980, and the
4regulations of the Director, to file a report of wages paid to
5each of his workers, or to file a sufficient report of such
6wages after having been notified by the Director to do so, for
7any period which begins prior to January 1, 1982, he shall pay
8to the Department as a penalty a sum determined in accordance
9with the provisions of this Act as amended and in effect on
10October 5, 1980.
11    B. Except as otherwise provided in this Section, any
12employer who fails to file a report of wages paid to each of
13his workers for any period which begins on or after January 1,
141982, within the time prescribed by the provisions of this Act
15and the regulations of the Director, or, if the Director
16pursuant to such regulations extends the time for filing the
17report, fails to file it within the extended time, shall, in
18addition to any sum otherwise payable by him under the
19provisions of this Act, pay to the Department as a penalty a
20sum equal to the lesser of (1) $5 for each $10,000 or fraction
21thereof of the total wages for insured work paid by him during
22the period or (2) $2,500, for each month or part thereof of
23such failure to file the report. With respect to an employer
24who has elected to file reports of wages on an annual basis
25pursuant to Section 1400.2, in assessing penalties for the
26failure to submit all reports by the due date established

 

 

09800SB3530ham002- 22 -LRB098 17883 JLS 60038 a

1pursuant to that Section, the 30-day period immediately
2following the due date shall be considered as one month.
3    If the Director deems an employer's report of wages paid to
4each of his workers for any period which begins on or after
5January 1, 1982, insufficient, he shall notify the employer to
6file a sufficient report. If the employer fails to file such
7sufficient report within 30 days after the mailing of the
8notice to him, he shall, in addition to any sum otherwise
9payable by him under the provisions of this Act, pay to the
10Department as a penalty a sum determined in accordance with the
11provisions of the first paragraph of this subsection, for each
12month or part thereof of such failure to file such sufficient
13report after the date of the notice.
14    For wages paid in calendar years prior to 1988, the penalty
15or penalties which accrue under the two foregoing paragraphs
16with respect to a report for any period shall not be less than
17$100, and shall not exceed the lesser of (1) $10 for each
18$10,000 or fraction thereof of the total wages for insured work
19paid during the period or (2) $5,000. For wages paid in
20calendar years after 1987, the penalty or penalties which
21accrue under the 2 foregoing paragraphs with respect to a
22report for any period shall not be less than $50, and shall not
23exceed the lesser of (1) $10 for each $10,000 or fraction of
24the total wages for insured work paid during the period or (2)
25$5,000. With respect to an employer who has elected to file
26reports of wages on an annual basis pursuant to Section 1400.2,

 

 

09800SB3530ham002- 23 -LRB098 17883 JLS 60038 a

1for purposes of calculating the minimum penalty prescribed by
2this Section for failure to file the reports on a timely basis,
3a calendar year shall constitute a single period. For reports
4of wages paid after 1986, the Director shall not, however,
5impose a penalty pursuant to either of the two foregoing
6paragraphs on any employer who can prove within 30 working days
7after the mailing of a notice of his failure to file such a
8report, that (1) the failure to file the report is his first
9such failure during the previous 20 consecutive calendar
10quarters, and (2) the amount of the total contributions due for
11the calendar quarter of such report (or, in the case of an
12employer who is required to file the reports on a monthly
13basis, the amount of the total contributions due for the
14calendar quarter that includes the month of such report) is
15less than $500.
16    For any month which begins on or after January 1, 2013, a
17report of the wages paid to each of an employer's workers shall
18be due on or before the last day of the month next following
19the calendar month in which the wages were paid if the employer
20is required to report such wages electronically pursuant to the
21regulations of the Director; otherwise a report of the wages
22paid to each of the employer's workers shall be due on or
23before the last day of the month next following the calendar
24quarter in which the wages were paid.
25    Any employer who willfully wilfully fails to pay any
26contribution or part thereof, based upon wages paid prior to

 

 

09800SB3530ham002- 24 -LRB098 17883 JLS 60038 a

11987, when required by the provisions of this Act and the
2regulations of the Director, with intent to defraud the
3Director, shall in addition to such contribution or part
4thereof pay to the Department a penalty equal to 50 percent of
5the amount of such contribution or part thereof, as the case
6may be, provided that the penalty shall not be less than $200.
7    Any employer who willfully fails to pay any contribution or
8part thereof, based upon wages paid in 1987 and in each
9calendar year thereafter, when required by the provisions of
10this Act and the regulations of the Director, with intent to
11defraud the Director, shall in addition to such contribution or
12part thereof pay to the Department a penalty equal to 60% of
13the amount of such contribution or part thereof, as the case
14may be, provided that the penalty shall not be less than $400.
15    However, all or part of any penalty may be waived by the
16Director for good cause shown.
17    C. With regard to an employer required to report monthly
18pursuant to this Section, in addition to each employee's name,
19social security number, and wages for insured work paid during
20the period, the Director may, by rule, require a report to
21provide the following information concerning each employee:
22the employee's occupation, hours worked during the period,
23hourly wage, if applicable, and work location if the employer
24has more than one physical location. Notwithstanding any other
25provision of any other law to the contrary, information
26obtained pursuant to this subsection shall not be disclosed to

 

 

09800SB3530ham002- 25 -LRB098 17883 JLS 60038 a

1any other public official or agency of this State or any other
2state to the extent it relates to a specifically identified
3individual or entity or to the extent that the identity of a
4specific individual or entity may be discerned from such
5information. The additional data elements required to be
6reported pursuant to the rule authorized by this subsection may
7be reported in the same electronic format as in the system
8maintained by the employer or employer's agent and need not be
9reformatted.
10(Source: P.A. 97-689, eff. 6-14-12; 97-791, eff. 1-1-13;
1198-463, eff. 8-16-13.)
 
12    (820 ILCS 405/1402.1 new)
13    Sec. 1402.1. Processing fee.
14    A. The Director may, by rule, establish a processing fee of
15$50 with regard to a report of contributions due that is not
16required to be submitted electronically if the employer fails
17to submit the report on the form designated by the Director or
18otherwise provide all of the information required by the form
19designated by the Director. With respect to the first instance
20of such a failure after the effective date of the rule, the
21Director shall issue the employer a written warning instead of
22a processing fee, and no such processing fee shall be assessed
23unless the Director has issued the employer a written warning
24for a prior failure.
25    B. The Director may, by rule, establish a processing fee of

 

 

09800SB3530ham002- 26 -LRB098 17883 JLS 60038 a

1$50 with regard to any payment of contributions, payment in
2lieu of contributions, interest, or penalty that is not made
3through electronic funds transfer if the employer fails to
4enclose the payment coupon provided by the Director with its
5payment or otherwise provide all of the information the coupon
6would provide, regardless of the amount due. With respect to
7the first instance of such a failure after the effective date
8of the rule, the Director shall issue the employer a written
9warning instead of a processing fee, and no such processing fee
10shall be assessed unless the Director has issued the employer a
11written warning for a prior failure.
 
12    (820 ILCS 405/2101)  (from Ch. 48, par. 661)
13    Sec. 2101. Special administrative account. Except as
14provided in Section 2100, all interest and penalties collected
15pursuant to this Act shall be deposited in the special
16administrative account. The amount in this account in excess of
17$100,000 on the close of business of the last day of each
18calendar quarter shall be immediately transferred to this
19State's account in the unemployment trust fund. However,
20subject to Section 2101.1, such funds shall not be transferred
21where it is determined by the Director that it is necessary to
22accumulate funds in the account in order to have sufficient
23funds to pay interest that may become due under the terms of
24Section 1202 (b) of the Federal Social Security Act, as
25amended, upon advances made to the Illinois Unemployment

 

 

09800SB3530ham002- 27 -LRB098 17883 JLS 60038 a

1Insurance Trust Fund under Title XII of the Federal Social
2Security Act or where it is determined by the Director that it
3is necessary to accumulate funds in the special administrative
4account in order to have sufficient funds to expend for any
5other purpose authorized by this Section. The balance of funds
6in the special administrative account that are in excess of
7$100,000 on the first day of each calendar quarter and not
8transferred to this State's account in the unemployment trust
9fund, minus the amount reasonably anticipated to be needed to
10make payments from the special administrative account pursuant
11to subsections C through I, shall be certified by the Director
12and transferred by the State Comptroller to the Title III
13Social Security and Employment Fund in the State Treasury
14within 30 days of the first day of the calendar quarter. The
15Director may certify and the State Comptroller shall transfer
16such funds to the Title III Social Security and Employment Fund
17on a more frequent basis. The moneys available in the special
18administrative account shall be expended upon the direction of
19the Director whenever it appears to him that such expenditure
20is necessary for:
21    A. 1. The proper administration of this Act and no Federal
22funds are available for the specific purpose for which such
23expenditure is to be made, provided the moneys are not
24substituted for appropriations from Federal funds, which in the
25absence of such moneys would be available and provided the
26monies are appropriated by the General Assembly.

 

 

09800SB3530ham002- 28 -LRB098 17883 JLS 60038 a

1    2. The proper administration of this Act for which purpose
2appropriations from Federal funds have been requested but not
3yet received, provided the special administrative account will
4be reimbursed upon receipt of the requested Federal
5appropriation.
6    B. To the extent possible, the repayment to the fund
7established for financing the cost of administration of this
8Act of moneys found by the Secretary of Labor of the United
9States of America, or other appropriate Federal agency, to have
10been lost or expended for purposes other than, or in amounts in
11excess of, those found necessary by the Secretary of Labor, or
12other appropriate Federal agency, for the administration of
13this Act.
14    C. The payment of refunds or adjustments of interest or
15penalties, paid pursuant to Sections 901 or 2201.
16    D. The payment of interest on refunds of erroneously paid
17contributions, penalties and interest pursuant to Section
182201.1.
19    E. The payment or transfer of interest or penalties to any
20Federal or State agency, pursuant to reciprocal arrangements
21entered into by the Director under the provisions of Section
222700E.
23    F. The payment of any costs incurred, pursuant to Section
241700.1.
25    G. Beginning January 1, 1989, for the payment for the legal
26services authorized by subsection B of Section 802, up to

 

 

09800SB3530ham002- 29 -LRB098 17883 JLS 60038 a

1$1,000,000 per year for the representation of the individual
2claimants and up to $1,000,000 per year for the representation
3of "small employers".
4    H. The payment of any fees for collecting past due
5contributions, payments in lieu of contributions, penalties,
6and interest shall be paid (without an appropriation) from
7interest and penalty monies received from collection agents
8that have contracted with the Department under Section 2206 to
9collect such amounts, provided however, that the amount of such
10payment shall not exceed the amount of past due interest and
11penalty collected.
12    I. The payment of interest that may become due under the
13terms of Section 1202 (b) of the Federal Social Security Act,
14as amended, for advances made to the Illinois Unemployment
15Insurance Trust Fund.
16    The Director shall annually on or before the first day of
17March report in writing to the Employment Security Advisory
18Board concerning the expenditures made from the special
19administrative account and the purposes for which funds are
20being accumulated.
21    If Federal legislation is enacted which will permit the use
22by the Director of some part of the contributions collected or
23to be collected under this Act, for the financing of
24expenditures incurred in the proper administration of this Act,
25then, upon the availability of such contributions for such
26purpose, the provisions of this Section shall be inoperative

 

 

09800SB3530ham002- 30 -LRB098 17883 JLS 60038 a

1and interest and penalties collected pursuant to this Act shall
2be deposited in and be deemed a part of the clearing account.
3In the event of the enactment of the foregoing Federal
4legislation, and within 90 days after the date upon which
5contributions become available for expenditure for costs of
6administration, the total amount in the special administrative
7account shall be transferred to the clearing account, and after
8clearance thereof shall be deposited with the Secretary of the
9Treasury of the United States of America to the credit of the
10account of this State in the unemployment trust fund,
11established and maintained pursuant to the Federal Social
12Security Act, as amended.
13(Source: P.A. 94-1083, eff. 1-19-07.)
 
14    (820 ILCS 405/2201)  (from Ch. 48, par. 681)
15    Sec. 2201. Refund or adjustment of contributions. Not
16later than 3 years after the date upon which the Director first
17notifies any contributions, interest or penalties thereon were
18paid, an employing unit that it which has paid such
19contributions, interest or penalties thereon erroneously, the
20employing unit may file a claim with the Director for an
21adjustment thereof in connection with subsequent contribution
22payments, or for a refund thereof where such adjustment cannot
23be made; provided, however, that no refund or adjustment shall
24be made of any contribution, the amount of which has been
25determined and assessed by the Director, if such contribution

 

 

09800SB3530ham002- 31 -LRB098 17883 JLS 60038 a

1was paid after the determination and assessment of the Director
2became final, and provided, further, that any such adjustment
3or refund, involving contributions with respect to wages on the
4basis of which benefits have been paid, shall be reduced by the
5amount of benefits so paid. Upon receipt of a claim the
6Director shall make his determination, either allowing such
7claim in whole or in part, or ordering that it be denied, and
8serve notice upon the claimant of such determination. Such
9determination of the Director shall be final at the expiration
10of 20 days from the date of service of such notice unless the
11claimant shall have filed with the Director a written protest
12and a petition for hearing, specifying his objections thereto.
13Upon receipt of such petition within the 20 days allowed, the
14Director shall fix the time and place for a hearing and shall
15notify the claimant thereof. At any hearing held as herein
16provided, the determination of the Director shall be prima
17facie correct and the burden shall be upon the protesting
18employing unit to prove that it is incorrect. All of the
19provisions of this Act applicable to hearings conducted
20pursuant to Section 2200 shall be applicable to hearings
21conducted pursuant to this Section. Upon the conclusion of such
22hearing, a decision shall be made by the Director and notice
23thereof given to the claimant. If the Director shall decide
24that the claim be allowed in whole or in part, or if such
25allowance be ordered by the Court pursuant to Section 2205 and
26the judgment of said Court has become final, the Director

 

 

09800SB3530ham002- 32 -LRB098 17883 JLS 60038 a

1shall, if practicable, make adjustment without interest in
2connection with subsequent contribution payments by the
3claimant, and if adjustments thereof cannot practicably be made
4in connection with such subsequent contribution payments, then
5the Director shall refund to the claimant the amount so
6allowed, without interest except as otherwise provided in
7Section 2201.1 from moneys in the benefit account established
8by this Act. Nothing herein contained shall prohibit the
9Director from making adjustment or refund upon his own
10initiative, within the time allowed for filing claim therefor,
11provided that the Director shall make no refund or adjustment
12of any contribution, the amount of which he has previously
13determined and assessed, if such contribution was paid after
14the determination and assessment became final.
15    If this State should not be certified for any year by the
16Secretary of Labor of the United States of America, or other
17appropriate Federal agency, under Section 3304 of the Federal
18Internal Revenue Code of 1954, the Director shall refund
19without interest to any instrumentality of the United States
20subject to this Act by virtue of permission granted in an Act
21of Congress, the amount of contributions paid by such
22instrumentality with respect to such year.
23    The Director may by regulation provide that, if there is a
24total credit balance of less than $2 in an employer's account
25with respect to contributions, interest, and penalties, the
26amount may be disregarded by the Director; once disregarded,

 

 

09800SB3530ham002- 33 -LRB098 17883 JLS 60038 a

1the amount shall not be considered a credit balance in the
2account and shall not be subject to either an adjustment or a
3refund.
4(Source: P.A. 90-554, eff. 12-12-97.)
 
5    (820 ILCS 405/2201.1)  (from Ch. 48, par. 681.1)
6    Sec. 2201.1. Interest on Overpaid Contributions, Penalties
7and Interest. The Director shall semi-annually quarterly
8furnish each employer with a statement of credit balances in
9the employer's account where the balances with respect to all
10contributions, interest and penalties combined equal or exceed
11$2. Under regulations prescribed by the Director and subject to
12the limitations of Section 2201, the employer may file a
13request for an adjustment or refund of the amount erroneously
14paid. Interest shall be paid on refunds of erroneously paid
15contributions, penalties and interest imposed by this Act,
16except that if any refund is mailed by the Director within 90
17days after the date of the refund claim, no interest shall be
18due or paid. The interest shall begin to accrue as of the date
19of the refund claim and shall be paid at the rate of 1.5% per
20month computed at the rate of 12/365 of 1.5% for each day or
21fraction thereof. Interest paid pursuant to this Section shall
22be paid from monies in the special administrative account
23established by Sections 2100 and 2101. This Section shall apply
24only to refunds of contributions, penalties and interest which
25were paid as the result of wages paid after January 1, 1988.

 

 

09800SB3530ham002- 34 -LRB098 17883 JLS 60038 a

1(Source: P.A. 90-554, eff. 12-12-97.)
 
2    (820 ILCS 405/2401)  (from Ch. 48, par. 721)
3    (Text of Section after amendment by P.A. 98-107)
4    Sec. 2401. Recording and release of lien. A. The lien
5created by Section 2400 shall be invalid only as to any
6innocent purchaser for value of stock in trade of any employer
7in the usual course of such employer's business, and shall be
8invalid as to any innocent purchaser for value of any of the
9other assets to which such lien has attached, unless notice
10thereof has been filed by the Director in the office of the
11recorder of the county within which the property subject to the
12lien is situated. The Director may, in his discretion, for good
13cause shown and upon the reimbursement of any recording fees
14paid by the Director with respect to the lien, issue a
15certificate of withdrawal of notice of lien filed against any
16employer, which certificate shall be recorded in the same
17manner as herein provided for the recording of notice of liens.
18Such withdrawal of notice of lien shall invalidate such lien as
19against any person acquiring any of such employer's property or
20any interest therein, subsequent to the recordation of the
21withdrawal of notice of lien, but shall not otherwise affect
22the validity of such lien, nor shall it prevent the Director
23from re-recording notice of such lien. In the event notice of
24such lien is re-recorded, such notice shall be effective as
25against third persons only as of the date of such

 

 

09800SB3530ham002- 35 -LRB098 17883 JLS 60038 a

1re-recordation.
2    B. The recorder of each county shall procure at the expense
3of the county a file labeled "Unemployment Compensation
4Contribution Lien Notice" and an index book labeled
5"Unemployment Compensation Contribution Lien Index." When a
6notice of any such lien is presented to him for filing, he
7shall file it in numerical order in the file and shall enter it
8alphabetically in the index. The entry shall show the name and
9last known business address of the employer named in the
10notice, the serial number of the notice, the date and hour of
11filing, and the amount of contribution, interest and penalty
12thereon due and unpaid. When a certificate of complete or
13partial release of such lien issued by the Director is
14presented for filing in the office of the recorder where a
15notice of lien was filed, the recorder shall permanently attach
16the certificate of release to the notice of lien and shall
17enter the certificate of release and the date in the
18Unemployment Compensation Contribution Lien Index on the line
19where the notice of lien is entered. In case title to land to
20be affected by the Notice of Lien is registered under the
21provisions of "An Act Concerning Land Titles", approved May 1,
221897, as amended, such notice shall be filed in the office of
23the Registrar of Titles of the county within which the property
24subject to the lien is situated and shall be entered upon the
25register of titles as a memorial or charge upon each folium of
26the register of title affected by such notice, and the Director

 

 

09800SB3530ham002- 36 -LRB098 17883 JLS 60038 a

1shall not have a preference over the rights of any bona fide
2purchaser, mortgagee, judgment creditor or other lien holder
3arising prior to the registration of such notice.
4    C. The Director shall have the power to issue a certificate
5of partial release of any part of the property subject to the
6lien, upon the reimbursement of any recording fees paid by the
7Director with respect to the lien, if he shall find that the
8fair market value of that part of such property remaining
9subject to the lien is at least equal to the amount of all
10prior liens upon such property plus double the amount of the
11liability for contributions, interest and penalties thereon
12remaining unsatisfied.
13    D. Where the amount of or the liability for the payment of
14any contribution, interest or penalty is contested by any
15employing unit against whose property a lien has attached, and
16the determination of the Director with reference to such
17contribution has not become final, the Director may issue a
18certificate of release of lien upon the reimbursement of any
19recording fees paid by the Director with respect to the lien
20and the furnishing of bond by such employing unit in 125% the
21amount of the sum of such contribution, interest and penalty,
22for which lien is claimed, with good and sufficient surety to
23be approved by the Director conditioned upon the prompt payment
24of such contribution, together with interest and penalty
25thereon, by such employing unit to the Director immediately
26upon the decision of the Director in respect to the liability

 

 

09800SB3530ham002- 37 -LRB098 17883 JLS 60038 a

1for such contribution, interest and penalty becoming final.
2    E. When a lien obtained pursuant to this Act has been
3satisfied and upon the reimbursement of any recording fees paid
4by the Director with respect to the lien, the Department shall
5issue a release to the person, or his agent, against whom the
6lien was obtained and such release shall contain in legible
7letters a statement as follows:
8    FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL
9    BE FILED WITH THE RECORDER OR THE REGISTRAR
10    OF TITLES, IN WHOSE OFFICE, THE LIEN WAS FILED.
11    F. The Director may, by rule, require, as a condition of
12withdrawing, releasing, or partially releasing a lien recorded
13pursuant to this Section, that the employer reimburse the
14Department for any recording fees paid with respect to the
15lien.
16(Source: P.A. 98-107, eff. 7-1-14.)
 
17    (820 ILCS 405/2403)  (from Ch. 48, par. 723)
18    Sec. 2403. Enforcement of lien. In addition and as an
19alternative to any other remedy provided by law, the Director
20may foreclose the lien created by Section 2400 by petition in
21the name of the People of the State of Illinois to the Circuit
22Court of the county wherein the property subject to the lien is
23situated, in the same manner as provided by law for the
24foreclosure of other liens, provided that no hearing or
25proceeding provided by this Act for the review of the liability

 

 

09800SB3530ham002- 38 -LRB098 17883 JLS 60038 a

1for the payment of the sums secured by such lien is pending and
2the time for taking thereof has expired. The process, practice
3and procedure for such foreclosure shall be the same as
4provided in the Civil Practice Law, as amended, except that in
5all such cases, it shall not be necessary that the petition
6describe the property to which the lien has attached. The
7employer against whom such petition has been filed shall file
8in the proceedings a full and complete schedule, under oath, of
9all property and rights thereto which he owned at the time the
10contributions, upon which the lien sought to be foreclosed is
11based, became due, or which he subsequently acquired, and if
12such employer fails to do so after having been so ordered by
13the court, he may be punished as in other cases of contempt of
14court.
15    The court in any proceeding commenced pursuant to the
16provisions of this Act may appoint a receiver with power to
17administer or liquidate the assets subject to the lien,
18pursuant to the order of the court.
19    Upon sale of the above stated property, the proceeds shall
20be applied to the payment of the costs incurred in the
21proceedings, and the satisfaction of such liens as have
22attached to the property in the order of their priority; the
23balance, if any, shall be paid to such parties as the court
24shall find to be entitled thereto. The Director is hereby
25empowered to bid at any sale conducted pursuant to the
26provisions of this Act.

 

 

09800SB3530ham002- 39 -LRB098 17883 JLS 60038 a

1    The Director may also enforce the lien created by this Act
2to the same extent and in the same manner as is provided by the
3Retailers' Occupation Tax Act, as amended, for the enforcement
4of the lien created by that Act, except that, notwithstanding
5any provision of that Act to the contrary, the Director may
6also enforce the lien created by this Act by using designated
7agents to serve and enforce bank levies. When a bank is served
8with a levy by the Director on the account of an employer, the
9bank may assert its right to "setoff" its loan to the employer
10only if the bank has declared the employer's loan to be in
11default prior to the service of the Director's levy and the
12bank has seized the funds from the employer's account and made
13them unavailable to the employer prior to the date of such
14service.
15    The Director's rights to redemption from a judicial sale or
16a sale for the enforcement of a judgment, or a judgment
17satisfying indebtedness secured by a mortgage on, any real
18estate which is subject to a lien created by this Act, which is
19inferior to the lien enforced or foreclosed by such sale, or
20the lien securing the indebtedness satisfied, as the case may
21be, shall be the same as those of the Department of Revenue
22with reference to the lien created by the Retailers' Occupation
23Tax Act, and the procedure provided by law for the termination
24of the rights of redemption by the Department of Revenue shall
25be applicable to the termination of the rights of redemption of
26the Director. The statutory notice required to be served upon

 

 

09800SB3530ham002- 40 -LRB098 17883 JLS 60038 a

1and endorsed by the Director of Revenue by the Retailers'
2Occupation Tax Act shall be served upon and endorsed by the
3Director.
4(Source: P.A. 88-655, eff. 9-16-94.)
 
5    (820 ILCS 405/1704.1 rep.)
6    Section 25. The Unemployment Insurance Act is amended by
7repealing Section 1704.1.
 
8    Section 99. Effective date. This Act takes effect July 1,
92014, except that the changes to Sections 2201 and 2201.1 of
10the Unemployment Insurance Act take effect January 1, 2015.".