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1 | AN ACT concerning employment.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Unemployment Insurance Act is amended by | ||||||||||||||||||||||||
5 | adding Section 407.5 as follows: | ||||||||||||||||||||||||
6 | (820 ILCS 405/407.5 new) | ||||||||||||||||||||||||
7 | Sec. 407.5. Shared work benefits. | ||||||||||||||||||||||||
8 | A. Notwithstanding any other provision of this Act, for the | ||||||||||||||||||||||||
9 | purposes of this Section an individual is "unemployed" in any | ||||||||||||||||||||||||
10 | week if the individual works less than his or her normal hours | ||||||||||||||||||||||||
11 | or number of days in a week for the individual's employer and | ||||||||||||||||||||||||
12 | the Director finds that the employer has reduced or restricted | ||||||||||||||||||||||||
13 | the individual's hours or days of work, or has rehired an | ||||||||||||||||||||||||
14 | individual previously laid off and reduced that individual's | ||||||||||||||||||||||||
15 | hours or days of work from those previously worked as the | ||||||||||||||||||||||||
16 | result of a plan by the employer to reduce unemployment and | ||||||||||||||||||||||||
17 | stabilize the work force through a program of sharing the work | ||||||||||||||||||||||||
18 | remaining after a reduction in total hours of work and a | ||||||||||||||||||||||||
19 | corresponding reduction in wages among not less than 10% of the | ||||||||||||||||||||||||
20 | employer's permanent work force involved in the affected work | ||||||||||||||||||||||||
21 | unit or units. | ||||||||||||||||||||||||
22 | B. Except as otherwise provided in this Section, each | ||||||||||||||||||||||||
23 | individual eligible under this Act who is "unemployed" in any |
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1 | week shall be paid with respect to that week a weekly shared | ||||||
2 | work benefit amount equal to the percentage of reduction of the | ||||||
3 | individual's wages resulting from reduced hours or days of | ||||||
4 | work, rounded to the nearest 10%, multiplied by the | ||||||
5 | individual's weekly benefit amount as defined in Section 401 of | ||||||
6 | this Act, except that this provision shall apply only if the | ||||||
7 | percentage of reduction is between 10% and 50% of the | ||||||
8 | individual's full time weekly wage. The shared work benefit | ||||||
9 | amount shall be rounded (if not already a multiple of one | ||||||
10 | dollar) to the next higher dollar. | ||||||
11 | C. An individual shall be ineligible for benefits under | ||||||
12 | this Section for any week with respect to which the individual | ||||||
13 | has made a claim for unemployment insurance benefits pursuant | ||||||
14 | to any other Section of this Act or under an unemployment | ||||||
15 | insurance law of any other state or Canada or under an | ||||||
16 | unemployment insurance system established by an Act of | ||||||
17 | Congress; provided, however, that if the appropriate agency | ||||||
18 | finally determines that the individual is not entitled to | ||||||
19 | unemployment insurance benefits for the week or weeks involved | ||||||
20 | and that determination has become final and unappealable, the | ||||||
21 | ineligibility arising from the making of a claim under this | ||||||
22 | subsection shall not apply. | ||||||
23 | D. Any amount payable under this Section shall be reduced | ||||||
24 | by the amount of any and all compensation payable for personal | ||||||
25 | services whether performed as an employee or an independent | ||||||
26 | contractor or as a juror or as a witness, except compensation |
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1 | payable by the employer not in excess of compensation payable | ||||||
2 | for reduced hours of work assigned an individual by the | ||||||
3 | employer under a shared work plan. | ||||||
4 | E. All benefits payable under this Section shall be paid | ||||||
5 | from the Shared Work Benefits Fund which is hereby created. | ||||||
6 | Following any biweekly period or periods, participating | ||||||
7 | employers shall submit to the Department, on forms provided by | ||||||
8 | the Director, a list of those employees who, during any prior | ||||||
9 | biweekly period or periods, are entitled to shared work | ||||||
10 | benefits, the week or weeks for which they are entitled, and | ||||||
11 | the amount of such benefits to be paid to each employee. | ||||||
12 | Additional information shall be submitted as may be required by | ||||||
13 | the Director. The completed form shall be accompanied by the | ||||||
14 | employer's payment in an amount equal to all benefits to be | ||||||
15 | paid for the biweekly period or periods pursuant to this | ||||||
16 | Section. The employer's form shall also be accompanied by the | ||||||
17 | certifications, on forms provided by the Director, of each | ||||||
18 | employee entitled to receive shared work benefits for the | ||||||
19 | biweekly period or periods. The employee certification form | ||||||
20 | shall include such information as may be required by the | ||||||
21 | Director. All amounts collected pursuant to this Section shall | ||||||
22 | be deposited into the Shared Work Benefits Fund. No benefits | ||||||
23 | may be paid under this Section to an employee of an employer | ||||||
24 | for any period for which the employer has not submitted the | ||||||
25 | necessary forms or payments. | ||||||
26 | F. Except as otherwise provided by or inconsistent with |
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1 | this Section, all provisions of this Act and authorized | ||||||
2 | regulations apply to benefits under this Section. Authorized | ||||||
3 | regulations may, to the extent permitted by federal law, make | ||||||
4 | such distinctions and requirements as may be necessary in the | ||||||
5 | procedures and provisions applicable to unemployed individuals | ||||||
6 | to carry out the purposes of this Section. No employee shall be | ||||||
7 | required to register for work or actively seek work as a | ||||||
8 | condition of receiving benefits under this Section. | ||||||
9 | G. The Department, in the administration of the program | ||||||
10 | created by this Section, shall establish guidelines that ensure | ||||||
11 | the equitable and consistent administration of the program. | ||||||
12 | H. The program created by this Section shall not affect any | ||||||
13 | pension or insurance benefit of employees participating in the | ||||||
14 | program. | ||||||
15 | I. Employees shall not be eligible to receive any benefits | ||||||
16 | under this Section unless their employer agrees, in writing, | ||||||
17 | and their bargaining agent pursuant to any applicable | ||||||
18 | collective bargaining agreement agrees, in writing, to | ||||||
19 | voluntarily participate in the shared work program approved by | ||||||
20 | the Director. | ||||||
21 | J. The Director shall receive and hold, as custodian, all | ||||||
22 | moneys paid to the Shared Work Benefits Fund in a | ||||||
23 | nonappropriated local account. The moneys in such account | ||||||
24 | (which shall be kept separate and apart from all other public | ||||||
25 | moneys) shall be expended solely for the payment of benefits | ||||||
26 | under the provisions of this Act and in accordance with any |
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1 | guidelines the Director may subsequently develop. The General | ||||||
2 | Assembly shall appropriate funds for the administration of the | ||||||
3 | Shared Work Program. In the event that the funds appropriated | ||||||
4 | for the administration of the Shared Work Program are | ||||||
5 | insufficient for the proper administration of this Program, as | ||||||
6 | determined by the Director, the Program and any benefits | ||||||
7 | payable pursuant to this Section shall terminate until such | ||||||
8 | time as the Director determines that a sufficient appropriation | ||||||
9 | is available.
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10 | Section 99. Effective date. This Act takes effect upon | ||||||
11 | becoming law.
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