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| [ Introduced ] | [ Engrossed ] | [ House Amendment 001 ] |
| [ Senate Amendment 001 ] |
91_HB3260enr HB3260 Enrolled LRB9110325WHcs 1 AN ACT to amend the Unemployment Insurance Act by adding 2 Section 206.1. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Unemployment Insurance Act is amended by 6 adding Section 206.1 as follows: 7 (820 ILCS 405/206.1 new) 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 16 Act. 17 2. "Employee leasing company" means an individual 18 or entity which contracts with a client to supply or 19 assume responsibility for personnel management of one or 20 more workers to perform services for the client on an 21 on-going basis rather than under a temporary help 22 arrangement, as defined in Section 15 of the Employee 23 Leasing Company Act. 24 B. Subject to subsection C, services performed by an 25 individual under a contract between an employee leasing 26 company and client, including but not limited to services 27 performed in the capacity of a corporate officer of the 28 client, are services in "employment" of the employee leasing 29 company and are not services in "employment" of the client if 30 all of the following conditions are met: 31 1. The employee leasing company pays the individual HB3260 Enrolled -2- LRB9110325WHcs 1 for the services directly from its own accounts; and 2 2. The employee leasing company, exclusively or in 3 conjunction with the client, retains the right to direct 4 and control the individual in the performance of the 5 services; and 6 3. The employee leasing company, exclusively or in 7 conjunction with the client, retains the right to hire 8 and terminate the individual; and 9 4. The employee leasing company reports each client 10 in the manner the Director prescribes by regulation. 11 C. Notwithstanding subsection B, services performed by 12 an individual under a contract between an employee leasing 13 company and client, including but not limited to services 14 performed in the capacity of a corporate officer of the 15 client, are services in "employment" of the client and are 16 not services in "employment" of the employee leasing company 17 if: 18 1. The contribution rate, or, where applicable, the 19 amended contribution rate, of the client is greater than 20 the sum of the fund building rate established for the 21 year pursuant to Section 1506.3 of this Act plus the 22 greater of 2.7% or 2.7% times the adjusted state 23 experience factor for the year; and 24 2. The contribution rate, or, where applicable, the 25 amended contribution rate, of the employee leasing 26 company is less than the contribution rate, or, where 27 applicable, the amended contribution rate of the client 28 by more than 1.5% absolute. 29 D. Except as provided in this Section and 30 notwithstanding any other provision of this Act to the 31 contrary, services performed by an individual under a 32 contract between an employee leasing company and client, 33 including but not limited to services performed in the 34 capacity of a corporate officer of the client, are services HB3260 Enrolled -3- LRB9110325WHcs 1 in "employment" of the client and are not services in 2 "employment" of the employee leasing company. 3 E. Nothing in this Section shall be construed or used to 4 effect the existence of an employment relationship other than 5 for purposes of this Act. 6 Section 99. Effective date. This Act takes effect upon 7 becoming law.