HB3820 104TH GENERAL ASSEMBLY

LRB104 12265 SPS 22377 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB3820

Introduced 2/18/2025, by Rep. Gregg Johnson

SYNOPSIS AS INTRODUCED:

820 ILCS 65/11 new

Amends the Illinois Worker Adjustment and Retraining Notification Act. Provides that an employer shall provide severance pay to a terminated employee equal to one week of pay for each full year of employment. Provides that, if the employer provides any employee with less than the number of days of notification required under the Act, the employer shall provide that employee with an additional 4 weeks of pay. Sets forth provisions concerning severance pay provided by the employer under a collective bargaining agreement and waiver of rights under the provisions.

A BILL FOR

AN ACT concerning employment.

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

Section 5. The Illinois Worker Adjustment and Retraining Notification Act is amended by adding Section 11 as follows:

(820 ILCS 65/11 new)

Sec. 11. Severance pay required.

(a) An employer shall provide severance pay to a terminated employee equal to one week of pay for each full year of employment. If the employer provides any employee with less than the number of days of notification required under Section 10, the employer shall provide that employee with an additional 4 weeks of pay. The rate of severance pay provided by the employer under this Section shall be the average regular rate of compensation received during the employee's preceding 3 years of employment with the employer or the final regular rate of compensation paid to the employee, whichever rate is higher.

(b) Severance under this Section shall be considered compensation due to an employee for back pay and losses associated with the termination of the employment relationship and earned in full upon the termination of the employment relationship, notwithstanding the calculation of the amount of the payment with reference to the employee's length of service.

(c) An employer shall provide an employee the greater of:

(1) the severance pay required under this subdivision; or

(2) any severance pay provided by the employer under a collective bargaining agreement or for any other reason.

(d) Any back pay provided by the employer to an employee under the Worker Adjustment and Retraining Notification Act, 29 U.S.C. Section 2101 et seq., shall be credited towards the severance pay requirements described in this Section.

(e) No waiver of the right to severance provided under this Section shall be effective without approval of the waiver by the Director of Labor or by a court of competent jurisdiction.