Full Text of SB3530 98th General Assembly
SB3530ham001 98TH GENERAL ASSEMBLY | Rep. Frank J. Mautino Filed: 5/16/2014
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| 1 | | AMENDMENT TO SENATE BILL 3530
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 3530 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Unemployment Insurance Act is amended by | 5 | | adding Section 502 as follows: | 6 | | (820 ILCS 405/502 new) | 7 | | Sec. 502. Eligibility for benefits under the Short-Time | 8 | | Compensation Program. | 9 | | A. The Director may by rule establish a short-time | 10 | | compensation program consistent with this Section. No | 11 | | short-time compensation shall be payable except as authorized | 12 | | by rule. | 13 | | B. As used in this Section: | 14 | | "Affected unit" means a specified plant, department, | 15 | | shift, or other definable unit that includes 2 or more workers | 16 | | to which an approved short-time compensation plan applies. |
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| 1 | | "Health and retirement benefits" means employer-provided | 2 | | health benefits and retirement benefits under a defined benefit | 3 | | pension plan (as defined in Section 414(j) of the Internal | 4 | | Revenue Code) or contributions under a defined contribution | 5 | | plan (defined in Section 414(i) of the Internal Revenue Code), | 6 | | which are incidents of employment in addition to the cash | 7 | | remuneration earned. | 8 | | "Short-time compensation" means the unemployment benefits | 9 | | payable to employees in an affected unit under an approved | 10 | | short-time compensation plan, as distinguished from the | 11 | | unemployment benefits otherwise payable under this Act. | 12 | | "Short-time compensation plan" means a plan submitted by an | 13 | | employer, for approval by the Director, under which the | 14 | | employer requests the payment of short-time compensation to | 15 | | workers in an affected unit of the employer to avert layoffs. | 16 | | "Usual weekly hours of work" means the usual hours of work | 17 | | for full-time or part-time employees in the affected unit when | 18 | | that unit is operating on its regular basis, not to exceed 40 | 19 | | hours and not including hours of overtime work. | 20 | | "Unemployment insurance" means the unemployment benefits | 21 | | payable under this Act other than short-time compensation and | 22 | | includes any amounts payable pursuant to an agreement under any | 23 | | Federal law providing for compensation, assistance, or | 24 | | allowances with respect to unemployment. | 25 | | C. An employer wishing to participate in the short-time | 26 | | compensation program shall submit a signed written short-time |
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| 1 | | compensation plan to the Director for approval. The Director | 2 | | shall develop an application form to request approval of a | 3 | | short-time compensation plan and an approval process. The | 4 | | application shall include: | 5 | | 1. The employer's unemployment insurance account | 6 | | number, the affected unit covered by the plan, including | 7 | | the number of full-time or part-time workers in such unit, | 8 | | the percentage of workers in the affected unit covered by | 9 | | the plan, identification of each individual employee in the | 10 | | affected unit by name and social security number, and any | 11 | | other information required by the Director to identify plan | 12 | | participants. | 13 | | 2. A description of how workers in the affected unit | 14 | | will be notified of the employer's participation in the | 15 | | short-time compensation plan if such application is | 16 | | approved, including how the employer will notify those | 17 | | workers in a collective bargaining unit as well as any | 18 | | workers in the affected unit who are not in a collective | 19 | | bargaining unit. If the employer will not provide advance | 20 | | notice to workers in the affected unit, the employer shall | 21 | | explain in a statement in the application why it is not | 22 | | feasible to provide such notice. | 23 | | 3. The employer's certification that it has the | 24 | | approval of the plan from all collective bargaining | 25 | | representatives of employees in the affected unit and has | 26 | | notified all employees in the affected unit who are not in |
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| 1 | | a collective bargaining unit of the plan. | 2 | | 4. The employer's certification that it will not hire | 3 | | additional part-time or full-time employees for, or | 4 | | transfer employees to, the affected unit, while the program | 5 | | is in operation. | 6 | | 5. A requirement that the employer identify the usual | 7 | | weekly hours of work for employees in the affected unit and | 8 | | the specific percentage by which their hours will be | 9 | | reduced during all weeks covered by the plan. An | 10 | | application shall specify the percentage of reduction for | 11 | | which a short-time compensation application may be | 12 | | approved which shall be not less than 20% and not more than | 13 | | 60%. If the plan includes any week for which the employer | 14 | | regularly provides no work (due to a holiday or other plant | 15 | | closing), then such week shall be identified in the | 16 | | application. | 17 | | 6. Certification by the employer that, if the employer | 18 | | provides health and retirement benefits to any employee | 19 | | whose usual weekly hours of work are reduced under the | 20 | | program, such benefits will continue to be provided to the | 21 | | employee participating in the short-time compensation | 22 | | program under the same terms and conditions as though the | 23 | | usual weekly hours of work of such employee had not been | 24 | | reduced or to the same extent as other employees not | 25 | | participating in the short-time compensation program. For | 26 | | defined benefit retirement plans, the hours that are |
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| 1 | | reduced under the short-time compensation plan shall be | 2 | | credited for purposes of participation, vesting, and | 3 | | accrual of benefits as though the usual weekly hours of | 4 | | work had not been reduced. The dollar amount of employer | 5 | | contributions to a defined contribution plan that are based | 6 | | on a percentage of compensation may be less due to the | 7 | | reduction in the employee's compensation. Notwithstanding | 8 | | any other provision to the contrary, a certification that a | 9 | | reduction in health and retirement benefits is scheduled to | 10 | | occur during the duration of the plan and will be | 11 | | applicable equally to employees who are not participating | 12 | | in the short-time compensation program and to those | 13 | | employees who are participating satisfies this paragraph. | 14 | | 7. Certification by the employer that the aggregate | 15 | | reduction in work hours is in lieu of layoffs (temporary or | 16 | | permanent layoffs, or both). The application shall include | 17 | | an estimate of the number of workers who would have been | 18 | | laid off in the absence of the short-time compensation | 19 | | plan. | 20 | | 8. Agreement by the employer to: furnish reports to the | 21 | | Director relating to the proper conduct of the plan; allow | 22 | | the Director or his or her authorized representatives | 23 | | access to all records necessary to approve or disapprove | 24 | | the plan application, and after approval of a plan, to | 25 | | monitor and evaluate the plan; and follow any other | 26 | | directives the Director deems necessary for the agency to |
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| 1 | | implement the plan and which are consistent with the | 2 | | requirements for plan applications. | 3 | | 9. Certification by the employer that participation in | 4 | | the short-time compensation plan and its implementation is | 5 | | consistent with the employer's obligations under | 6 | | applicable Federal and Illinois laws. | 7 | | 10. The effective date and duration of the plan, which | 8 | | shall expire no later than the end of the 12th full | 9 | | calendar month after the effective date. | 10 | | 11. Any other provision added to the application by the | 11 | | Director that the United States Secretary of Labor | 12 | | determines to be appropriate for purposes of a short-time | 13 | | compensation program. | 14 | | D. The Director shall approve or disapprove a short-time | 15 | | compensation plan in writing within 45 days of its receipt and | 16 | | promptly communicate the decision to the employer. A decision | 17 | | disapproving the plan shall clearly identify the reasons for | 18 | | the disapproval. The disapproval shall be final, but the | 19 | | employer shall be allowed to submit another short-time | 20 | | compensation plan for approval not earlier than 30 days from | 21 | | the date of the disapproval. | 22 | | E. The short-time compensation plan shall be effective on | 23 | | the mutually agreed upon date by the employer and the Director, | 24 | | which shall be specified in the notice of approval to the | 25 | | employer. The plan shall expire on the date specified in the | 26 | | notice of approval, which shall be mutually agreed on by the |
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| 1 | | employer and Director but no later than the end of the 12th | 2 | | full calendar month after its effective date. However, if a | 3 | | short-time compensation plan is revoked by the Director, the | 4 | | plan shall terminate on the date specified in the Director's | 5 | | written order of revocation. An employer may terminate a | 6 | | short-time compensation plan at any time upon written notice to | 7 | | the Director. Upon receipt of such notice from the employer, | 8 | | the Director shall promptly notify each member of the affected | 9 | | unit of the termination date. An employer may submit a new | 10 | | application to participate in another short-time compensation | 11 | | plan at any time after the expiration or termination date. | 12 | | F. The Director may revoke approval of a short-time | 13 | | compensation plan for good cause at any time, including upon | 14 | | the request of any of the affected unit's employees or their | 15 | | collective bargaining representative. The revocation order | 16 | | shall be in writing and shall specify the reasons for the | 17 | | revocation and the date the revocation is effective. The | 18 | | Director may periodically review the operation of each | 19 | | employer's short-time compensation plan to assure that no good | 20 | | cause exists for revocation of the approval of the plan. Good | 21 | | cause shall include, but not be limited to, failure to comply | 22 | | with the assurances given in the plan, termination of the | 23 | | approval of the plan by a collective bargaining representative | 24 | | of employees in the affected unit, unreasonable revision of | 25 | | productivity standards for the affected unit, conduct or | 26 | | occurrences tending to defeat the intent and effective |
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| 1 | | operation of the short-time compensation plan, and violation of | 2 | | any criteria on which approval of the plan was based. | 3 | | G. An employer may request a modification of an approved | 4 | | plan by filing a written request to the Director. The request | 5 | | shall identify the specific provisions proposed to be modified | 6 | | and provide an explanation of why the proposed modification is | 7 | | appropriate for the short-time compensation plan. The Director | 8 | | shall approve or disapprove the proposed modification in | 9 | | writing within 30 days of receipt and promptly communicate the | 10 | | decision to the employer. The Director, in his or her | 11 | | discretion, may approve a request for modification of the plan | 12 | | based on conditions that have changed since the plan was | 13 | | approved provided that the modification is consistent with and | 14 | | supports the purposes for which the plan was initially | 15 | | approved. A modification may not extend the expiration date of | 16 | | the original plan, and the Director must promptly notify the | 17 | | employer whether the plan modification has been approved and, | 18 | | if approved, the effective date of modification. An employer is | 19 | | not required to request approval of plan modification from the | 20 | | Director if the change is not substantial, but the employer | 21 | | must report every change to plan to the Director promptly and | 22 | | in writing. The Director may terminate an employer's plan if | 23 | | the employer fails to meet this reporting requirement. If the | 24 | | Director determines that the reported change is substantial, | 25 | | the Director shall require the employer to request a | 26 | | modification to the plan. |
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| 1 | | H. An individual is eligible to receive short-time | 2 | | compensation with respect to any week only if the individual is | 3 | | eligible for unemployment insurance pursuant to subsection E of | 4 | | Section 500, not otherwise disqualified for unemployment | 5 | | insurance, and: | 6 | | 1. During the week, the individual is employed as a | 7 | | member of an affected unit under an approved short-time | 8 | | compensation plan, which was approved prior to that week, | 9 | | and the plan is in effect with respect to the week for | 10 | | which short-time compensation is claimed. | 11 | | 2. Notwithstanding any other provision of this Act | 12 | | relating to availability for work and actively seeking | 13 | | work, the individual is available for the individual's | 14 | | usual hours of work with the short-time compensation | 15 | | employer, which may include, for purposes of this Section, | 16 | | participating in training to enhance job skills that is | 17 | | approved by the Director, including but not limited to as | 18 | | employer-sponsored training or training funded under the | 19 | | Workforce Investment Act of 1998. | 20 | | 3. Notwithstanding any other provision of law, an | 21 | | individual covered by a short-time compensation plan is | 22 | | deemed unemployed in any week during the duration of such | 23 | | plan if the individual's remuneration as an employee in an | 24 | | affected unit is reduced based on a reduction of the | 25 | | individual's usual weekly hours of work under an approved | 26 | | short-time compensation plan. |
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| 1 | | I. The short-time compensation weekly benefit amount shall | 2 | | be the product of the percentage of reduction in the | 3 | | individual's usual weekly hours of work multiplied by the sum | 4 | | of the regular weekly benefit amount for a week of total | 5 | | unemployment plus any applicable dependent allowance pursuant | 6 | | to subsection C of Section 401. | 7 | | 1. An individual may be eligible for short-time | 8 | | compensation or unemployment insurance, as appropriate, | 9 | | except that no individual shall be eligible for combined | 10 | | benefits (excluding any payments attributable to a | 11 | | dependent allowance pursuant to subsection C of Section | 12 | | 401) in any benefit year in an amount more than the maximum | 13 | | benefit amount, nor shall an individual be paid short-time | 14 | | compensation benefits for more than 52 weeks under a | 15 | | short-time compensation plan. | 16 | | 2. The short-time compensation paid to an individual | 17 | | (excluding any payments attributable to a dependent | 18 | | allowance pursuant to subsection C of Section 401) shall be | 19 | | deducted from the maximum benefit amount established for | 20 | | that individual's benefit year. | 21 | | 3. Provisions applicable to unemployment insurance | 22 | | claimants shall apply to short-time compensation claimants | 23 | | to the extent that they are not inconsistent with | 24 | | short-time compensation provisions. An individual who | 25 | | files an initial claim for short-time compensation | 26 | | benefits shall receive a monetary determination. |
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| 1 | | 4. The following provisions apply to individuals who | 2 | | work for both a short-time compensation employer and | 3 | | another employer during weeks covered by the approved | 4 | | short-time compensation plan: | 5 | | i. If combined hours of work in a week for both | 6 | | employers do not result in a reduction of at least 20% | 7 | | of the usual weekly hours of work with the short-time | 8 | | compensation employer, the individual shall not be | 9 | | entitled to benefits under this Section. | 10 | | ii. If combined hours of work for both employers | 11 | | results in a reduction equal to or greater than 20% of | 12 | | the usual weekly hours of work for the short-time | 13 | | compensation employer, the short-time compensation | 14 | | benefit amount payable to the individual is reduced for | 15 | | that week and is determined by multiplying the | 16 | | percentage by which the combined hours of work have | 17 | | been reduced by the sum of the weekly benefit amount | 18 | | for a week of total unemployment plus any applicable | 19 | | dependent allowance pursuant to subsection C of | 20 | | Section 401. A week for which benefits are paid under | 21 | | this subparagraph shall be reported as a week of | 22 | | short-time compensation. | 23 | | iii. If an individual worked the reduced | 24 | | percentage of the usual weekly hours of work for the | 25 | | short-time compensation employer and is available for | 26 | | all his or her usual hours of work with the short-time |
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| 1 | | compensation employer, and the individual did not work | 2 | | any hours for the other employer either because of the | 3 | | lack of work with that employer or because the | 4 | | individual is excused from work with the other | 5 | | employer, the individual shall be eligible for | 6 | | short-time compensation for that week. The benefit | 7 | | amount for such week shall be calculated as provided in | 8 | | the introductory clause of this subsection I. | 9 | | iv. An individual who is not provided any work | 10 | | during a week by the short-time compensation employer, | 11 | | or any other employer, and who is otherwise eligible | 12 | | for unemployment insurance shall be eligible for the | 13 | | amount of regular unemployment insurance determined | 14 | | without regard to this Section. | 15 | | v. An individual who is not provided any work by | 16 | | the short-time compensation employer during a week, | 17 | | but who works for another employer and is otherwise | 18 | | eligible may be paid unemployment insurance for that | 19 | | week subject to the disqualifying income and other | 20 | | provisions applicable to claims for regular | 21 | | unemployment insurance. | 22 | | J. Short-time compensation shall be charged to employers in | 23 | | the same manner as unemployment insurance is charged under | 24 | | Illinois law. Employers liable for payments in lieu of | 25 | | contributions shall have short-time compensation attributed to | 26 | | service in their employ in the same manner as unemployment |
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| 1 | | insurance is attributed. Notwithstanding any other provision | 2 | | to the contrary, to the extent that short-term compensation | 3 | | payments under this Section are reimbursed by the federal | 4 | | government, no benefit charges or payments in lieu of | 5 | | contributions shall be accrued by a participating employer. | 6 | | K. A short-time compensation plan shall not be approved for | 7 | | an employer that is delinquent in the filing of any reports | 8 | | required or the payment of contributions, payments in lieu of | 9 | | contributions, interest, or penalties due under this Act | 10 | | through the date of the employer's application. | 11 | | L. Overpayments of other benefits under this Act may be | 12 | | recovered from an individual receiving short-time compensation | 13 | | under this Act in the manner provided under Sections 900 and | 14 | | 901. Overpayments under the short-time compensation plan may be | 15 | | recovered from an individual receiving other benefits under | 16 | | this Act in the manner provided under Sections 900 and 901. | 17 | | M. An individual who has received all of the short-time | 18 | | compensation or combined unemployment insurance and short-time | 19 | | compensation available in a benefit year shall be considered an | 20 | | exhaustee for purposes of extended benefits, as provided under | 21 | | the provisions of Section 409, and, if otherwise eligible under | 22 | | those provisions, shall be eligible to receive extended | 23 | | benefits.
| 24 | | Section 99. Effective date. This Act takes effect upon | 25 | | becoming law.".
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