Illinois General Assembly - Full Text of SB1723
Illinois General Assembly

Previous General Assemblies

Full Text of SB1723  101st General Assembly

SB1723 101ST GENERAL ASSEMBLY

  
  

 


 
101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB1723

 

Introduced 2/15/2019, by Sen. Ram Villivalam

 

SYNOPSIS AS INTRODUCED:
 
New Act
30 ILCS 105/5.891 new

    Creates the Family Leave Insurance Program Act. Requires the Department of Labor to establish and administer a Family Leave Insurance Program that provides family leave insurance benefits to eligible employees who take unpaid family leave to care for a newborn child, a newly adopted or newly placed foster child, or a family member with a serious health condition. Sets forth eligibility requirements for benefits under the Act including that the employee must (i) establish that he or she has been employed for at least 680 hours in employment during the employee's qualifying year and (ii) document that he or she has provided the employer with written notice of the employee's intention to take family leave. Defines "employer" to mean (a) any person, partnership, corporation, association, or other business entity that employs 50 or more employees for each working day during each of 20 or more calendar workweeks in the year in which the leave is to be taken or in the year immediately preceding the year in which the leave is to be taken; and (b) the State of Illinois and any other unit of local government. Contains provisions concerning disqualification from benefits; premium payments; the amount and duration of benefits; the recovery of erroneous payments; hearings; defaulted premium payments; elective coverage; employment protection; coordination of family leave; defined terms; and other matters. Amends the State Finance Act. Creates the Family Leave Insurance Account Fund. Provides phase-in periods for collection of moneys and claims for benefits under the Act. Effective January 1, 2020.


LRB101 08318 JLS 53387 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1723LRB101 08318 JLS 53387 b

1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the Family
5and Medical Leave Insurance Act.
 
6    Section 5. Declaration of policy and intent.
7    (a) Many workers do not have access to family and medical
8leave programs, and those who do may not be in a financial
9position to take family or medical leave that is unpaid, and
10employer-paid benefits meet only a relatively small part of
11this need. It is the public policy of this State to protect
12working families against the economic hardship caused by the
13need to take time off from work to care for themselves or
14family members who are suffering from a serious illness or to
15care for a newborn or a newly adopted child.
16    Moreover, many women are single mothers or the primary
17breadwinners for their families. If any of these women take an
18unpaid maternity leave, her whole family, and Illinois,
19suffers.
20    The United States is the only industrialized nation in the
21world that does not have a mandatory workplace-based program
22for such income support.
23    It is therefore desirable and necessary to develop systems

 

 

SB1723- 2 -LRB101 08318 JLS 53387 b

1that help families adapt to the competing interests of work and
2home which not only benefit workers, but also benefit employers
3by reducing employee turnover and increasing worker
4productivity.
5    (b) It is the intent of the General Assembly to create a
6family and medical leave program to relieve the serious menace
7to health, morals, and welfare of Illinois families, to
8increase workplace productivity, and to alleviate the enormous
9and growing stress on working families of balancing the demands
10of work and family needs.
 
11    Section 10. Definitions. In this Act:
12    (1) "Average weekly wage" means the amount derived by
13dividing by 12 an employee's total wages, including gratuities
14and commissions that constitute remuneration, earned during
15the 12 weeks preceding application for family and medical leave
16benefits, or the most recent 12 weeks of employment if the
17individual is not currently employed.
18    (2) "Base hours" means the hours of work for which an
19employee receives compensation. "Base hours" includes overtime
20hours for which the employee is paid additional or overtime
21compensation and hours for which the employee receives workers'
22compensation benefits. "Base hours" also includes hours an
23employee would have worked except for having been in military
24service. "Base hours" also includes hours for which the
25employee receives other types of compensation, such as

 

 

SB1723- 3 -LRB101 08318 JLS 53387 b

1administrative, personal leave, vacation or sick leave, or paid
2time off.
3    (3) "Care" includes, but is not limited to, physical care,
4emotional support, visitation, arranging for a change in care,
5assistance with essential daily living matters, and personal
6attendant services.
7    (4) "Child" means a biological, adopted, or foster child,
8stepchild, or legal ward of an employee, or a child for whom an
9employee is standing in loco parentis, a child of the spouse of
10an employee, or a child of a party to a civil union, or any
11other individual whose close association with the employee is
12the equivalent of a child.
13    (5) "Civil union" means a civil union as defined in the
14Illinois Religious Freedom Protection and Civil Union Act.
15    (6) "Consecutive leave" means leave that is taken without
16interruption based upon an employee's regular work schedule and
17does not include breaks in employment in which an employee is
18not regularly scheduled to work. For example, when an employee
19is normally scheduled to work from September through June and
20is not scheduled to work during July and August, a leave taken
21continuously during May, June, and September shall be
22considered a consecutive leave.
23    (7) "Covered employee" means (a) an individual employed by
24the same employer, as defined in paragraph (12), in the State
25of Illinois for 12 weeks or more who has worked 240 or more
26base hours. This threshold must be met annually, however, once

 

 

SB1723- 4 -LRB101 08318 JLS 53387 b

1the annual threshold is met, the covered employee shall be able
2to use family and medical leave. A covered employee is
3considered to be employed in the State of Illinois if (i) the
4individual works in Illinois; (ii) the individual performs some
5work in Illinois and the employer's base of operations or the
6place from which the work is directed and controlled is in
7Illinois; or (iii) the base of operations or place from which
8the work is directed or controlled is not in any state in which
9some part of the work is performed, but the individual's
10residence is in this state.
11    (8) "Department" means the Department of Employment
12Security.
13    (9) "Director" means the Director of Employment Security
14and any transaction or exercise of authority by the Director
15shall be deemed to be performed by the Department.
16    (10)"Employ" means to suffer or permit to work.
17    (11)"Employee" means any person who works for an employer
18for wage, remuneration, or other compensation. This includes
19persons working any number of hours, including full-time or
20part-time status. "Employee" does not include any person who
21the employer establishes:
22        (A) has been and will continue to be free from control
23    and direction over the performance of their work, both
24    under a contract of service and in fact;
25        (B) is engaged in an independently established trade,
26    occupation, profession or business; or

 

 

SB1723- 5 -LRB101 08318 JLS 53387 b

1        (C) is deemed a legitimate sole proprietor or
2    partnership. A sole proprietor or partnership shall be
3    deemed to be legitimate if the employer establishes that:
4            (i) the sole proprietor or partnership is
5        performing the service free from the direction or
6        control over the means and manner of providing the
7        service, subject only to the right of the employer for
8        whom the service is provided to specify the desired
9        result;
10            (ii) the sole proprietor or partnership is not
11        subject to cancellation or destruction upon severance
12        of the relationship with the employer;
13            (iii) the sole proprietor or partnership has a
14        substantial investment of capital in the sole
15        proprietorship or partnership beyond the ordinary
16        tools and equipment and a personal vehicle;
17            (iv) the sole proprietor or partnership owns the
18        capital goods and gains the profits and bears the
19        losses of the sole proprietorship or partnership;
20            (v) the sole proprietor or partnership makes its
21        services available to the general public on a
22        continuing basis;
23            (vi) the sole proprietor or partnership includes
24        services rendered on a federal Income Tax Schedule as
25        an independent business or profession;
26            (vii) the sole proprietor or partnership performs

 

 

SB1723- 6 -LRB101 08318 JLS 53387 b

1        services for the contractor under the sole proprietor
2        or partnership's name;
3            (viii) when the services being provided require a
4        license or permit, the sole proprietor or partnership
5        obtains and pays for the license or permit in the sole
6        proprietorship's or partnership's name;
7            (ix) the sole proprietor or partnership furnishes
8        the tools and equipment necessary to provide the
9        service;
10            (x) if necessary, the sole proprietor or
11        partnership hires its own employees without approval
12        of the employer, pays the employees without
13        reimbursement from the employer and reports the
14        employees' income to the Internal Revenue Service;
15            (xi) the employer does not represent the sole
16        proprietorship or partnership as an employee of the
17        employer to the public; and
18            (xii) the sole proprietor or partnership has the
19        right to perform similar services for others on
20        whatever basis and whenever it chooses.
21    (12) "Employer" means any individual, person, partnership,
22association, limited liability company, trust, estate,
23joint-stock company, insurance company, employment and labor
24placement agency, or business where wages are made directly or
25indirectly by the agency or business for work undertaken by the
26employee under hire to a third party pursuant to a contract

 

 

SB1723- 7 -LRB101 08318 JLS 53387 b

1between the agency or business with the third party, or
2corporation, whether domestic or foreign, or the receiver,
3trustee in bankruptcy, trustee, or person that has in its
4employ one or more employees performing services for it as a
5covered employee. "Employer" also includes any employer
6subject to the Unemployment Insurance Act, except the State,
7its political subdivisions, and any instrumentality of the
8State. All employees performing services within this State for
9any employing unit that maintains 2 or more separate
10establishments within this State shall be deemed to be employed
11by a single employing unit for all purposes of this Act.
12    (13) "Family member" means an employee's child, spouse,
13party to a civil union, parent, or any other individual related
14by blood or whose close relationship with the employee is the
15equivalent of a family relationship, as determined by the
16employee.
17    (14) "Family and medical leave" means leave taken by a
18covered employee from work with an employer:
19        (A) to participate in the providing of care, including
20    physical or psychological care, for a family member of the
21    covered employee made necessary by a serious health
22    condition of the family member;
23        (B) to be with a child during the first 12 months after
24    the child's birth, if the employee, the employee's spouse,
25    or the party to a civil union with the employee, is a
26    biological parent of the child, or the first 12 months

 

 

SB1723- 8 -LRB101 08318 JLS 53387 b

1    after the placement of the child for adoption or foster
2    care with the employee, the first 12 months after the child
3    becomes the legal ward of the employee, the employee's
4    spouse, or the party to a civil union with the employee, or
5    the first 12 months after the employee, the employee's
6    spouse, or the party to a civil union with the employee
7    acquires loco parentis status of the child;
8        (C) for the employee's own serious health condition;
9        (D) because of any qualifying exigency as interpreted
10    under the Family and Medical Leave Act of 1993 (29 U.S.C.
11    2612(a)(1)(E) and 29 CFR) as of the effective date of this
12    Act arising out of the fact that the spouse, party to a
13    civil union, child, parent of the employee, or any other
14    individual related by blood or whose close relationship
15    with the employee is equivalent to a family relationship is
16    on active duty (or has been notified of an impending call
17    or order to active duty) in the armed forces as of the
18    United States; or
19        (E) because the employee or the employee's family
20    member is the victim of domestic violence as defined in
21    Section 103(3) of the Illinois Domestic Violence Act of
22    1986, or sexual violence, which means: (1) any conduct
23    proscribed by Article 11 of the Criminal Code of 2012
24    except Sections 11-35 and 11-45; (ii) Sections 12-7.3,
25    12-7.4, and 12-7.5 of the Illinois Criminal Code of 2012;
26    or (iii) a similar provision of the Criminal Code of 1961.

 

 

SB1723- 9 -LRB101 08318 JLS 53387 b

1    "Family and medical leave" does not include any period of
2    time during which an employee is paid benefits pursuant to
3    the Workers' Compensation Act because the employee is
4    unable to perform the duties of the employee's employment
5    due to the employee's own disability, or paid benefits
6    pursuant to the Unemployment Insurance Act. Act because the
7    employee is unable to perform the duties of the employee's
8    employment due to the employee's own disability.
9    (15) "Family and medical leave benefits" means any payments
10that are payable to a covered employee for all or part of a
11period of family and medical leave.
12    (16) "Health care provider" means any person licensed under
13federal, State, or local law or the laws of a foreign nation to
14provide health care services or any other person who has been
15authorized to provide health care by a licensed health care
16provider.
17    (17) "Intermittent leave" means a non-consecutive leave
18consisting of intervals, each of which is at least one, but
19fewer than 12, weeks within a consecutive 12-month period.
20    (18) "Parent" means a biological parent, foster parent,
21adoptive parent, or stepparent of the employee or a person who
22was a legal guardian of, or who stood in loco parentis to, the
23employee when the employee was a child, or any other individual
24whose close association with the employee is the equivalent of
25a parent.
26    (19) "Placement for adoption" means the time when an

 

 

SB1723- 10 -LRB101 08318 JLS 53387 b

1employee adopts a child or becomes responsible for a child
2pending adoption by the eligible employee.
3    (20) "Serious health condition" means an illness, injury,
4impairment, or physical or mental condition that requires
5inpatient care in a hospital, hospice, or residential medical
6care facility or continuing medical treatment or continuing
7supervision by a health care provider.
8    (21) "12-month period" means, with respect to an employee
9who establishes a valid claim for family and medical leave
10benefits during a period of family and medical leave, the 365
11consecutive days that begin with the first day that the
12employee first establishes the claim.
13    (22) "Victim services organization" means a nonprofit,
14nongovernmental organization that provides assistance to
15victims of domestic or sexual violence, including rape crisis
16centers, organizations carrying out a domestic violence
17program, organizations operating a shelter or providing
18counseling services, or a legal services organization or other
19organization providing assistance through the legal process.
 
20    Section 15. Family and medical leave insurance program.
21    (a) The Department shall establish and administer a family
22and medical leave insurance program.
23    (b) The Department shall establish procedures and forms for
24filing claims for benefits under this Act.
25    (c) The Department shall use information sharing and

 

 

SB1723- 11 -LRB101 08318 JLS 53387 b

1integration technology to facilitate the disclosure of
2relevant information or records by the Department.
3    (d) Information contained in the files and records
4pertaining to an employee under this Act is confidential and
5not open to public inspection, other than to public employees
6in the performance of their official duties. However, the
7employee or an authorized representative of an employee may
8review the records or receive specific information from the
9records on the presentation of the signed authorization of the
10employee. An employer or the employer's duly authorized
11representative may review the records of an employee employed
12by the employer in connection with a pending claim. At the
13Department's discretion, other persons may review records when
14such persons are rendering assistance to the Department at any
15stage of the proceedings on any matter pertaining to the
16administration of this Act.
17    An employer must keep at its place of business records of
18employment from which the information needed by the Department
19for purposes of this Act may be obtained. The records shall at
20all times be open to the inspection of the Department pursuant
21to rules adopted by the Department.
22    (e) The Department shall develop and implement an outreach
23program to ensure that individuals who may be eligible to
24receive family and medical leave benefits under this Act are
25made aware of these benefits. Outreach information shall
26explain, in an easy to understand format, eligibility

 

 

SB1723- 12 -LRB101 08318 JLS 53387 b

1requirements, the claims process, weekly benefit amounts,
2maximum benefits payable, notice requirements, reinstatement
3and nondiscrimination rights, confidentiality, and
4coordination of leave under this Act and other laws, collective
5bargaining agreements, and employer policies. Outreach
6information shall be available in English and in languages
7other than English that are spoken as a primary language by a
8significant portion of the State's population, as determined by
9the Department.
10    (d) A covered employee may make a claim for benefits under
11this Act on and after January 1 of the year one year after the
12Department begins collecting employee payroll premium
13deductions and employer premium contributions under this Act.
 
14    Section 20. Eligibility for benefits.
15    (a) The Department may require that a claim for family and
16medical leave benefits under this Act be supported by a
17certification. For a claim for family and medical leave under
18paragraph (A), (B), or (C) of item (14) of Section 10, the
19certification shall be issued by a health care provider of the
20employee's choosing who is providing care to the employee or
21the employee's family member if applicable. For a claim for
22family and medical leave under paragraph (E) of item (14) of
23Section 10, any one of the following is acceptable for
24certification, and only one of the following documents shall be
25required: a police report, court document, document issued by a

 

 

SB1723- 13 -LRB101 08318 JLS 53387 b

1healthcare provider, or a signed statement from an attorney, a
2member of the clergy, or a victim services organization or
3advocate. It is up to the employee to determine which
4documentation to submit. If a document has been submitted, the
5Department or the employer shall not request or require any
6other document if the reason for the initial or subsequent
7claims for family and medical leave is related to the same
8incident of violence or the same perpetrator of the violence.
9    (b) The eligibility of an employee for benefits is not
10affected by a strike or lockout at the factory, establishment,
11or other premises at which the employee is or was last
12employed.
13    (c) An employee who has received benefits under this Act
14may not lose any other employment benefits, including seniority
15or pension rights, accrued before the date that family and
16medical leave commenced. The employer shall maintain during any
17period of family and medical leave taken the health benefits of
18the employee and, if applicable, the employee's dependents, in
19force at the time a request for family and medical leave was
20made, for the duration of such leave as if the employee had
21continued to work from the date the employee commenced the
22family and medical leave until the date the employee returns to
23work. However, this Section does not entitle an employee to
24accrue employment benefits during a period of family and
25medical leave or to a right, benefit, or position of employment
26other than a right, benefit, or position to which the employee

 

 

SB1723- 14 -LRB101 08318 JLS 53387 b

1would have been entitled had the employee not taken family and
2medical leave.
3    (d) This Act does not diminish an employer's obligation to
4comply with a collective bargaining agreement or an employment
5benefits program or plan that provides greater benefits to
6employees than the benefits provided under this Section.
7    (e) An agreement by an employee to waive the employee's
8rights under this Section is void as contrary to public policy.
9The benefits under this Act may not be diminished by a
10collective bargaining agreement or another employment benefits
11program or plan entered into or renewed after the effective
12date of this Act.
13    (f) Nothing in this Act shall be deemed to affect the
14validity or change the terms of bona fide collective bargaining
15agreements in force on the effective date of this Act. After
16that date, requirements of this Act may be waived in a bona
17fide collective bargaining agreement, but only if the waiver is
18set forth explicitly in such agreement in clear and unambiguous
19terms.
 
20    Section 25. Elective coverage; self-employed.
21    (a) For benefits payable beginning January 1, 2021, any
22self-employed person, including a sole proprietor, independent
23contractor, partner, or joint venturer, who has
24self-employment income for work performed in Illinois in
25accordance with the definition of covered employee under item

 

 

SB1723- 15 -LRB101 08318 JLS 53387 b

1(7) of Section 10 may elect coverage for an initial period of
2not less than 3 years and subsequent periods of not less than
3one year immediately following a period of coverage. Those
4electing coverage under this Act are responsible for payment of
5100% of all premiums assessed to any employee and employer
6under this Act. The self-employed person must file a notice of
7election in writing with the Department, in a manner as
8required by the Department in rule. The self-employed person is
9eligible for family and medical leave benefits after working at
10least 12 weeks in the state following the date of filing the
11notice.
12    (b) A self-employed person who has elected coverage may
13withdraw from coverage within 30 days after the end of each
14period of coverage, or at such other times as the Department
15may adopt by rule, by filing a notice of withdrawal in writing
16with the Department, such withdrawal to take effect not sooner
17than 30 days after the filing the notice with the Department.
18    (c) The Department may cancel elective coverage if the
19self-employed person fails to make required payments or file
20reports. The Department may collect due and unpaid premiums and
21may levy additional premium for the remainder of the period of
22coverage. The cancellation shall be effective no later than 30
23days from the date of the notice in writing advising the
24self-employed person of the cancellation.
25    (d) Those electing coverage are considered employees or
26employers where the context dictates so.

 

 

SB1723- 16 -LRB101 08318 JLS 53387 b

1    (e) In this Section, "independent contractor" means an
2individual excluded from employment under the definition of
3"employee" under Section 10 of this Act.
 
4    Section 30. Disqualification from benefits.
5    (a) An employee is disqualified from family and medical
6leave benefits under this Act if the employee:
7        (1) willfully makes a false statement or
8    misrepresentation regarding a material fact, or willfully
9    fails to disclose a material fact, to obtain benefits;
10        (2) seeks benefits based on a serious health condition
11    that resulted from the employee's commission of a felony.
12    (b) A disqualification for family and medical leave
13benefits is for a period of 2 years, and commences on the first
14day of the calendar week in which the employee filed a claim
15for benefits under this Act. An employee who is disqualified
16for benefits is liable to the Department for a penalty in an
17amount equal to 15% of the amount of benefits received by the
18employee.
 
19    Section 35. Family and Medical Leave Insurance Fund.
20    (a) The Family and Medical Leave Insurance Fund is created
21as a special fund in the State treasury. Moneys in the Fund may
22be used for the payment of family and medical leave benefits
23and for the administration of this Act. All interest and other
24earnings that accrue from investment of moneys in the Fund

 

 

SB1723- 17 -LRB101 08318 JLS 53387 b

1shall be credited to the Fund.
2    (b) An employer shall retain from all employees a payroll
3premium deduction in the amount of 0.15% of wages as defined in
4Section 235 of the Unemployment Insurance Act. An employer
5shall pay an amount equal to the payroll premium deduction,
6known as the employer's premium contribution. The Department
7shall by rule provide for the collection of this payroll
8premium deduction and the employer's premium contribution.
9    The amount of the payroll premium deduction and the
10employer's premium contribution imposed under this Section,
11less refunds authorized by this Act, and all assessments and
12penalties collected under this Act shall be deposited into and
13credited to the Fund.
14    (c) A separate account, to be known as the Family and
15Medical Leave Insurance Administration Account, shall be
16maintained in the Fund. An amount determined by the Department
17sufficient for proper administration, not to exceed, however,
180.05% of additional payroll premium deductions and of employer
19premium contributions as defined in this Section, shall be
20collected and credited to the Administration Account. The
21expenses of the Department in administering the Fund and its
22accounts shall be charged against the Administration Account.
23The costs of administration of this Act shall be charged to the
24Administration Account.
25    (d) A separate account, to be known as the Family and
26Medical Leave Benefits Account, shall be maintained in the

 

 

SB1723- 18 -LRB101 08318 JLS 53387 b

1Fund. The account shall be charged with all benefit payments.
2Prior to July 1 of each calendar year, the Department shall
3determine the average rate of interest and other earnings on
4all investments of the Fund for the preceding calendar year. If
5there is an accumulated deficit in the Family and Medical Leave
6Benefits Account in excess of $200,000 at the end of any
7calendar year after interest and other earnings have been
8credited as provided in this Section, the Department shall
9determine the ratio of the deficit to the total of all taxable
10wages paid during the preceding calendar year and shall make an
11assessment against all employers in an amount equal to the
12taxable wages paid by them during the preceding calendar year
13to employees, multiplied by the ratio, but in no event shall
14any such assessment exceed 0.1% of such wages. The amounts
15shall be collectible by the Department in the same manner as
16provided for the collection of employer contributions under the
17Unemployment Insurance Act. In making this assessment, the
18Department shall furnish to each affected employer a brief
19summary of the determination of the assessment. The amount of
20such assessments collected by the Department shall be credited
21to the Family and Medical Leave Benefits Account. As used in
22this Section, "wages" means wages as provided in Section 235 of
23the Unemployment Insurance Act.
24    (e) A board of trustees, consisting of the State Treasurer,
25the Secretary of State, the Director of Labor, the Director of
26Employment Security, and the State Comptroller, is hereby

 

 

SB1723- 19 -LRB101 08318 JLS 53387 b

1created. The board shall invest and reinvest all moneys in the
2Fund in excess of its cash requirements in obligations legal
3for savings banks.
4    (f) The Department may adjust rates, not to exceed the
5amount established in subsection (b) of this Section, for the
6collection of premiums pursuant to subsection (b) of this
7Section. The Department shall set rates for premiums in a
8manner that minimizes the volatility of the rates assessed and
9so that at the end of the period for which the rates are
10effective, the cash balance shall be an amount approximating 12
11months of projected expenditures from the Fund, considering the
12functions and duties of the Department under this Act.
13    (g) An employer required to make employee premium
14deductions and pay employer premium contributions under this
15Section shall make and file a report of employee hours worked
16and amounts due under this Section upon a combined report form
17prescribed by the Department. The report shall be filed with
18the Department at the times and in the manner prescribed by the
19Department.
20    (h) If the employer is a temporary employment agency that
21provides employees on a temporary basis to its customers, the
22temporary employment agency is considered the employer for
23purposes of this Act.
24    (i) When an employer goes out of business or sells out,
25exchanges, or otherwise disposes of the business or stock of
26goods, any premiums payable under this Section are immediately

 

 

SB1723- 20 -LRB101 08318 JLS 53387 b

1due and payable, and the employer shall, within 10 days
2thereafter, pay the premiums due. A person who becomes a
3successor to the business is liable for the full amount of the
4premiums and shall withhold from the purchase price a sum
5sufficient to pay any premiums due from the employer until the
6employer produces a receipt from the Department showing payment
7in full of any premiums due or a certificate that no premium is
8due. If the premiums are not paid by the employer within 10
9days after the date of the sale, exchange, or disposal, the
10successor is liable for the payment of the full amount of the
11premiums. The successor's payment of the premiums are, to the
12extent of the payment, a payment upon the purchase price, and
13if the payment is greater in amount than the purchase price,
14the amount of the difference is a debt due the successor from
15the employer.
16    A successor is not liable for any premiums due from the
17person from whom the successor has acquired a business or stock
18of goods if the successor gives written notice to the
19Department of the acquisition and no assessment is issued by
20the Department within one year after receipt of the notice
21against the former operator of the business.
22    (j) This Section is inoperative before January 1 of the
23year after this Act becomes law. At that time, the Department
24shall collect the amounts due under this Section.
 
25    Section 40. Compensation for family and medical leave.

 

 

SB1723- 21 -LRB101 08318 JLS 53387 b

1    (a) An individual's weekly benefit rate shall be determined
2as follows: if the employee's average weekly wage is (a) 50% or
3less of the statewide average weekly wage, the employee's
4weekly benefit is 90% of the employee's average weekly wage or
5(b) greater than 50% of the statewide average weekly wage, the
6employee's weekly benefit is the sum of (i) 90% of the
7employee's average weekly wage up to 50% of the statewide
8average weekly wage; and (ii) 50% of the statewide average
9weekly wage that is greater than 50% of the employee's average
10weekly wage. The individual's benefit rate shall be computed to
11the next lower multiple of $1 if not already a multiple
12thereof. The amount of benefits for each day of family and
13medical leave for which benefits are payable shall be
14one-seventh of the corresponding weekly benefit amount;
15provided that the total benefits for a fractional part of a
16week shall be computed to the next lower multiple of $1 if not
17already a multiple thereof.
18    (b) The maximum weekly benefit for family and medical leave
19shall be $1,000, adjusted annually after the first year to 90%
20of the statewide average weekly wage.
21    (c) With respect to any period of family and medical leave
22taken by a covered employee, family and medical leave benefits
23not in excess of the employee's maximum benefits shall be
24payable with respect to the first day of family and medical
25leave taken after a waiting period consisting of the first 7
26calendar days of family and medical leave following the

 

 

SB1723- 22 -LRB101 08318 JLS 53387 b

1commencement of the period of family and medical leave and each
2subsequent day of family and medical leave during that period
3of family and medical leave; and if benefits become payable on
4any day after the first 3 weeks in which leave is taken, then
5benefits shall also be payable with respect to any leave taken
6during the first one-week period in which leave is taken. The
7waiting period need only be served once every application year.
8The maximum total benefits payable to any covered employee
9commencing on or after the effective date of this Act shall be
1012 times the employee's weekly benefit amount, provided that
11the maximum amount shall be computed in the next lower multiple
12of $1 if not already a multiple thereof.
13    (d) The first payment of benefits must be made to an
14employee within 14 calendar days after the claim is filed and
15subsequent payments must be made no later than semi-monthly
16thereafter. If the employer contests an initial application for
17family and medical leave benefits, the employer must notify the
18employee and the Department in a manner prescribed by the
19Director within 10 calendar days of receipt of notice from the
20Department of the employee's filing of an application for
21benefits.
22    Nothing in this Act shall be construed to prohibit the
23establishment by an employer, without approval by the
24Department, of a supplementary plan or plans providing for the
25payment to employees, or to any class or classes of employees,
26of benefits in addition to the benefits provided by this Act.

 

 

SB1723- 23 -LRB101 08318 JLS 53387 b

1The rights, duties, and responsibilities of all interested
2parties under the supplementary plans shall be unaffected by
3any provision of this Act.
 
4    Section 45. Family and medical leave; duration. A covered
5employee may take up to 12 weeks of family and medical leave
6within any 12-month period in order to provide care made
7necessary by reasons identified in Section 10. A covered
8employee may take family and medical leave on an intermittent
9schedule in which all of the leave authorized under this Act is
10not taken sequentially.
 
11    Section 50. Annual reports; contents.
12    (a) The Department shall issue and make available to the
13public, not later than July 1, 2023 and July 1 of each
14subsequent year, annual reports providing data on family and
15medical leave benefits claims including separate data for each
16of the following categories of claims: the employee's own
17serious illness; care of newborn children; care of newly
18adopted children; care of seriously ill family members, because
19of family members on active duty in the armed forces of the
20U.S.; and for domestic or sexual violence The reports shall
21include, for each category of claims, the number of workers
22receiving the benefits, the amount of benefits paid, the
23average duration of benefits, the average weekly benefit, and
24any reported amount of sick leave, vacation, or other fully

 

 

SB1723- 24 -LRB101 08318 JLS 53387 b

1paid time which resulted in reduced benefit duration. The
2report shall provide data by gender and by any other
3demographic factors determined to be relevant by the
4Department. The reports shall also provide, for all family and
5medical leave benefits, the total costs of benefits and the
6total cost of administration, the portion of benefits for
7claims during family and medical leave, and the total revenues
8from employer assessments, where applicable; employee
9assessments; and other sources.
10    (b) The Department may, in its discretion, conduct surveys
11and other research regarding, and include in the annual reports
12descriptions and evaluations of the impact and potential future
13impact of the costs and benefits resulting from the provisions
14of this Act for:
15        (1) employees and their families, including surveys
16    and evaluations of what portion of the total number of
17    employees taking family and medical leave would not have
18    taken leave, or would have taken less leave, without the
19    availability of benefits; what portion of employees return
20    to work after receiving benefits and what portion are not
21    permitted to return to work; and what portion of employees
22    who are eligible for benefits do not claim or receive them
23    and why they do not;
24        (2) employers, including benefits such as reduced
25    training and other costs related to reduced turnover of
26    personnel, and increased affordability of family and

 

 

SB1723- 25 -LRB101 08318 JLS 53387 b

1    medical leave through the State, with special attention
2    given to small businesses; and
3        (3) the public, including savings caused by any
4    reduction in the number of people receiving public
5    assistance.
6    (c) The total amount of any expenses that the Department
7determines are necessary to carry out its duties pursuant to
8this Section shall be charged to the Administration Account of
9the Fund.
 
10    Section 55. Prohibited acts; enforcement.
11    (a) No employer, temporary employment agency, employment
12agency, employee organization, or other person shall
13discharge, expel, or otherwise retaliate or discriminate
14against a person because the person has requested family and
15medical leave, attempted to claim family and medical leave
16benefits, taken family and medical leave, filed or communicated
17to the employer an intent to file a claim, a complaint, or an
18appeal, or has testified or is about to testify or has assisted
19in any proceeding, under this Act, at any time.
20    (b) Any person who violates subsection (a) shall be liable
21to the individual employed by such a person who is affected by
22the violation for damages equal to the sum of:
23        (1) the amount of:
24            (A) any wages, salary, employment benefits, or
25        other compensation denied or lost to such individual by

 

 

SB1723- 26 -LRB101 08318 JLS 53387 b

1        reason of the violation; or
2            (B) in a case in which wages, salary, employment
3        benefits, or other compensation have not been denied or
4        lost to the individual, any actual monetary losses
5        sustained by the individual as a direct violation, such
6        as the cost of providing care, up to a sum equal to 60
7        calendar days of wages or salary for the individual;
8        and
9        (2) the interest on the amount described under item (A)
10    calculated at the prevailing rate; and
11        (3) an additional amount as liquidated damages equal to
12    the sum of the amount described in item (1) and the
13    interest described in item (2), except if a person who has
14    violated subsection (a) proves to the satisfaction of the
15    court that the act or omission was in good faith and that
16    the person had reasonable grounds for believing that the
17    act or omission was not a violation of subsection (a), the
18    court may, in the discretion of the court, reduce the
19    amount of the liability to the amount and interest
20    determined under item (A) and (B), respectively.
21    In addition, a court may order such equitable relief as may
22be appropriate, including employment, reinstatement, and
23promotion.
24    (c) An action to recover the damages or obtain equitable
25relief subsection (a) may be maintained against any person in
26any court on behalf of:

 

 

SB1723- 27 -LRB101 08318 JLS 53387 b

1        (1) the individual; or
2        (2) the individual or other individuals similarly
3    situated.
4    (d) The court in such an action shall, in addition to any
5judgment awarded to the plaintiff, allow a reasonable
6attorney's fee, reasonable expert witness fees, and other costs
7of the action to be paid by the defendant.
8    (e) The right under subsection (c) to bring an action by or
9on behalf of any individual shall terminate:
10        (1) on the filing of a complaint by the Department in
11    an action in which restraint is sought of any further delay
12    in the payment of the amount described in item (1) of
13    subsection (b) to such individual by the person responsible
14    under subsection (a) for the payment; or
15        (2) on the filing of a complaint by the Department in
16    an action under subsection (f) in which a recovery is
17    sought of the damages described in item (1) of subsection
18    (b) owing to an individual by a person liable under
19    subsection (a).
20    (f) Action by the Department.
21        (1) The Department may bring an action in any court to
22    recover the damages described in item (1) of subsection
23    (b).
24        (2) Any sums recovered pursuant to item (1) of this
25    subsection shall be held in a special deposit account and
26    shall be paid, on order of the Department, directly to each

 

 

SB1723- 28 -LRB101 08318 JLS 53387 b

1    individual affected. Any such sums not paid to an
2    individual because of inability to do so within a period of
3    3 years shall be deposited into the Fund.
4        (3) An action may be brought under this subsection not
5    later than 3 years after the date of the last event
6    constituting the alleged violation for which the action is
7    brought.
8        (4) An action brought by the Department under this
9    subsection shall be considered to be commenced on the date
10    when the complaint is filed.
11        (5) The Department may bring an action to restrain
12    violations of subsection (a), including the restraint of
13    any withholding of payment of wages, salary, employment
14    benefits, or other compensation, plus interest, found by
15    the court to be due to the individual, or to award such
16    other equitable relief as may be appropriate, including
17    employment, reinstatement, and promotion.
18    (g) A person aggrieved by a decision of the Department
19under this Act may request a hearing. The Department shall
20adopt rules governing hearings and the issuance of final orders
21under this Act in accordance with the provisions of the
22Illinois Administrative Procedure Act. All final
23administrative decisions of the Department under this Act are
24subject to judicial review under the Administrative Review Law.
 
25    Section 60. Penalties.

 

 

SB1723- 29 -LRB101 08318 JLS 53387 b

1    (a) Persons who make a false statement or representation,
2knowing it to be false, or knowingly fails to disclose a
3material fact to obtain or increase any family and medical
4leave benefit during a period of family and medical leave,
5either for themselves or for any other person, shall be liable
6for a civil penalty of $250 to be paid to the Fund. Each such
7false statement or representation or failure to disclose a
8material fact shall constitute a separate offense. Upon refusal
9to pay such civil penalty, the civil penalty shall be recovered
10in a civil action by the Attorney General on behalf the
11Department in the name of the State of Illinois. If, in any
12case in which liability for the payment of a civil penalty has
13been determined, any person who has received any benefits under
14this Act by reason of the making of such false statements or
15representations or failure to disclose a material fact shall
16not be entitled to any benefits under this Act for any leave
17occurring prior to the time he or she has discharged his or her
18liability to pay the civil penalty.
19    (b) A person who willfully violates any provision of this
20Act or any rule adopted under this Act for which a civil
21penalty is neither prescribed in this Act nor provided by any
22other applicable law shall be subject to a civil penalty of
23$500 to be paid to the Fund. Upon the refusal to pay such civil
24penalty, the civil penalty shall be recovered in a civil action
25by the Attorney General on behalf of the Department in the name
26of the State of Illinois.

 

 

SB1723- 30 -LRB101 08318 JLS 53387 b

1    (c) A person, employing unit, employer, or entity violating
2any provision of this Section with intent to defraud the
3Department is guilty of a Class C misdemeanor. The fine upon
4conviction shall be payable to the Fund. Any penalties imposed
5by this subsection shall be in addition to those otherwise
6prescribed in this Section.
 
7    Section 65. Leave and employment protection.
8    (a) During a period in which an employee receives family
9leave benefits under this Act, the employee is entitled to
10family leave and, at the established ending date of leave, to
11be restored to a position of employment with the employer from
12whom leave was taken as provided under subsection (b).
13    (b) Except as provided in subsection (f), an employee who
14receives family and medical leave benefits under this Act for
15the intended purpose of the family and medical leave is
16entitled, on return from the leave:
17        (1) to be restored by the employer to the position of
18    employment held by the employee when the family and medical
19    leave commenced; or
20        (2) to be restored to an equivalent position with
21    equivalent employment benefits, pay, and other terms and
22    conditions of employment at a workplace within 5 miles of
23    the employee's workplace when the family and medical leave
24    commenced.
25    (c) The taking of family and medical leave under this Act

 

 

SB1723- 31 -LRB101 08318 JLS 53387 b

1may not result in the loss of any employment benefits accrued
2before the date on which the family and medical leave
3commenced.
4    (d) Nothing in this Section entitles a restored employee
5to:
6        (1) the accrual of any seniority or employment benefits
7    during any period of family and medical leave; or
8        (2) any right, benefit, or position of employment other
9    than any right, benefit, or position to which the employee
10    would have been entitled to had the employee not taken the
11    family and medical leave.
12    (e) Nothing in this Section prohibits an employer from
13requiring an employee on family and medical leave to report
14periodically to the employer on the status and intention of the
15employee to return to work.
16    (f) An employer may deny restoration under subsection (b)
17to a salaried employee who is among the highest paid 10% of the
18employees employed by the employer within 75 miles of the
19facility at which the employee is employed if:
20        (1) denial is necessary to prevent substantial and
21    grievous economic injury to the operations of the employer;
22        (2) the employer notifies the employee of the intent of
23    the employer to deny restoration on such basis at the time
24    the employer determines that the injury would occur; and
25        (3) the family and medical leave has commenced and the
26    employee elects not to return to employment after receiving

 

 

SB1723- 32 -LRB101 08318 JLS 53387 b

1    the notice.
 
2    Section 70. Notice to employer.
3    (a) If the necessity for family and medical leave for the
4birth or placement of a child or for any other reason under
5item (14) of Section 10 is foreseeable, the employee shall
6provide the employer with not less than 30 days' notice, before
7the date the leave is to begin, of the employee's intention to
8take leave for the birth or placement of a child or for any
9other reason under item (14) of Section 10, except that if the
10expected date requires leave to begin in less than 30 days, the
11employee shall provide such notice as is practical.
 
12    Section 75. Employment by same employer. If spouses or
13parties to a civil union who are entitled to leave under this
14Act are employed by the same employer, the employer may not
15require that spouses or parties to a civil union not take such
16leave concurrently.
 
17    Section 80. Coordination of leave.
18    (a) Family and medical leave taken under this Act must be
19taken concurrently with any leave taken under the federal
20Family and Medical Leave Act of 1993.
21    (b) An employer may require that family and medical leave
22taken under this Act be taken concurrently with leave allowed
23under the terms of a collective bargaining agreement or

 

 

SB1723- 33 -LRB101 08318 JLS 53387 b

1employer policy. The employer must give employees written
2notice of this requirement.
 
3    Section 85. Rules. The Department may adopt any rules
4necessary to implement the provisions of this Act. In adopting
5rules, the Department shall maintain consistency with the
6regulations adopted to implement the Federal Family and Medical
7Leave Act of 1993 as of the effective date of this Act to the
8extent such regulations are not in conflict with this Act.
 
9    Section 90. Authority to contract. The Department may
10contract or enter into interagency agreements with other State
11agencies for the initial administration of the Family and
12Medical Leave Insurance Act
 
13    Section 175. Severability. The provisions of this Act are
14severable under Section 1.31 of the Statute on Statutes.
 
15    Section 900. The State Finance Act is amended by adding
16Section 5.891 as follows:
 
17    (30 ILCS 105/5.891 new)
18    Sec. 5.891. The Family and Medical Leave Insurance Fund.
 
19    Section 999. Effective date. This Act takes effect January
201, 2020.