Bill Text: IL SB2217 | 2023-2024 | 103rd General Assembly | Introduced
Bill Title: Creates the Paid Family Leave Insurance Program Act. Requires the Department of Employment Security to establish and administer a Family Leave Insurance Program that provides family leave insurance benefits to eligible employees. Sets forth eligibility requirements for benefits under the Act. Provides that a self-employed individual may elect to be covered under the Act. Contains provisions concerning disqualification from benefits; compensation for family leave; the amount and duration of benefits; employer equivalent plans; an annual report by the Department; hearings; penalties; notice; the coordination of family leave; and rules. Amends the State Finance Act. Creates the State Benefits Fund. Effective immediately, except that provisions concerning the State Benefits Fund take effect June 1, 2024 and provisions concerning the amount and duration of paid family leave take effect June 1, 2025.
Spectrum: Partisan Bill (Democrat 10-0)
Status: (Introduced) 2023-05-16 - Added as Co-Sponsor Sen. Mike Simmons [SB2217 Detail]
Download: Illinois-2023-SB2217-Introduced.html
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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 1. Short title. This Act may be cited as the Paid | |||||||||||||||||||||
5 | Family Leave Insurance Program Act.
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6 | Section 5. Declaration of policy and intent.
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7 | (a) Many employees do not have access to family and | |||||||||||||||||||||
8 | medical leave programs, and those who do may not be in a | |||||||||||||||||||||
9 | financial position to take family or medical leave that is | |||||||||||||||||||||
10 | unpaid, and employer-paid benefits meet only a relatively | |||||||||||||||||||||
11 | small part of this need. It is the public policy of this State | |||||||||||||||||||||
12 | to protect working families against the economic hardship | |||||||||||||||||||||
13 | caused by the need to take time off from work to care for | |||||||||||||||||||||
14 | themselves or family members who are suffering from serious | |||||||||||||||||||||
15 | illness or to care for a newborn or a newly adopted child.
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16 | Moreover, many women are single mothers or the primary | |||||||||||||||||||||
17 | breadwinners for their families. If any of these women take | |||||||||||||||||||||
18 | unpaid maternity leave, their families and Illinois suffer. | |||||||||||||||||||||
19 | The United States is the only industrialized nation in the | |||||||||||||||||||||
20 | world that does not have a mandatory workplace-based program | |||||||||||||||||||||
21 | for such income support.
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22 | It is therefore desirable and necessary to develop systems | |||||||||||||||||||||
23 | that help families adapt to the competing interests of work |
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1 | and home and that not only benefit workers but also benefit | ||||||
2 | employers by reducing employee turnover and increasing worker | ||||||
3 | productivity.
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4 | (b) It is the intent of the General Assembly to create a | ||||||
5 | paid family leave program to relieve the serious menace to the | ||||||
6 | health, morals, and welfare of Illinois families, to increase | ||||||
7 | workplace productivity, and to alleviate the enormous and | ||||||
8 | growing stress on working families of balancing the demands of | ||||||
9 | work and family needs.
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10 | Section 10. Definitions.
As used in this Act:
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11 | "Assisted reproduction" means a method of achieving a | ||||||
12 | pregnancy through the handling of human oocytes, sperm, | ||||||
13 | zygotes, or embryos for the purpose of establishing a | ||||||
14 | pregnancy. "Assisted reproduction" includes, but is not | ||||||
15 | limited to, methods of artificial insemination, in vitro | ||||||
16 | fertilization, embryo transfer, zygote transfer, embryo | ||||||
17 | biopsy, preimplantation genetic diagnosis, embryo | ||||||
18 | cryopreservation, oocyte, gamete, zygote, and embryo donation, | ||||||
19 | and gestational surrogacy.
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20 | "Average weekly wage" means the amount derived by dividing | ||||||
21 | by 12 an employee's total earnings,
including wages, | ||||||
22 | gratuities, bonuses, commissions, and any other compensation | ||||||
23 | that constitutes
remuneration, earned during the quarter with | ||||||
24 | the highest earnings in the applicable benefit
year, or the | ||||||
25 | amount derived by dividing by 12 an employee's total earnings, |
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1 | including wages,
gratuities, bonuses, commissions, and any | ||||||
2 | other compensation that constitutes remuneration, to
fulfill a | ||||||
3 | contract for a covered business entity, earned in the quarter | ||||||
4 | with the highest earnings in
the applicable benefit year, or | ||||||
5 | for individuals not currently employed or under contract, the
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6 | amount derived by dividing by 12 an individual's total | ||||||
7 | earnings, including wages, gratuities,
bonuses, commissions, | ||||||
8 | and any other compensation that constitutes remuneration,
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9 | earned during the quarter with the highest earnings earned in | ||||||
10 | the 4 quarters prior to the last
day of employment or the end | ||||||
11 | of the contract.
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12 | "Base hours" means the hours of work for which an employee | ||||||
13 | receives compensation. "Base hours" includes overtime hours | ||||||
14 | for which the employee is paid additional or overtime | ||||||
15 | compensation and hours for which the employee receives | ||||||
16 | workers' compensation benefits. "Base hours" also includes | ||||||
17 | hours an employee would have worked except for having been in | ||||||
18 | military service. At the option of the employer, "base hours" | ||||||
19 | may include hours for which the employee receives other types | ||||||
20 | of compensation, such as administrative, personal, vacation, | ||||||
21 | or paid leave.
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22 | "Care" includes, but is not limited to, physical care, | ||||||
23 | emotional support, visitation, arranging for a change in care, | ||||||
24 | assistance with essential daily living matters, and personal | ||||||
25 | attendant services.
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26 | "Child" means a biological, adopted, or foster child, |
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1 | stepchild, or legal ward of an eligible employee, child of a | ||||||
2 | spouse of the eligible employee, child of a legal parent, or | ||||||
3 | child of a civil union partner of the eligible employee, who is | ||||||
4 | less than 18 years of age or is 18 years of age or older, but | ||||||
5 | incapable of self-care because of a mental or physical | ||||||
6 | impairment.
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7 | "Civil union" means a civil union as defined in the | ||||||
8 | Illinois Religious Freedom Protection and Civil
Union Act.
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9 | "Consecutive leave" means leave that is taken without | ||||||
10 | interruption based upon an employee's regular work schedule | ||||||
11 | and does not include breaks in employment in which an employee | ||||||
12 | is not regularly scheduled to work.
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13 | "Covered business entity" means a business or trade
that | ||||||
14 | contracts with one or more individuals for services and is | ||||||
15 | required to report the payment of
services to such individuals | ||||||
16 | on IRS Form 1099-MISC or IRS Form 1099-K for more than 25% of | ||||||
17 | its
Illinois workforce. Such individuals are included in the | ||||||
18 | covered business entity's workforce if the
contracts for | ||||||
19 | services include, but are not limited to, oral or written | ||||||
20 | contracts, and services
arranged through application software | ||||||
21 | designed to run on smartphones and other mobile
devices and | ||||||
22 | software designed to run inside a web browser. | ||||||
23 | "Day and temporary labor service agency" has the meaning | ||||||
24 | set forth in Section 5 of the Day and
Temporary Labor Services | ||||||
25 | Act. | ||||||
26 | "Department" means the Department of Employment Security.
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1 | "Director" means the Director of Employment Security.
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2 | "Domestic violence" has the same meaning as provided in | ||||||
3 | Section 103 of the Illinois Domestic
Violence Act.
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4 | "Domestic worker" has the meaning set forth in
Section 10 | ||||||
5 | of the Domestic Workers' Bill of Rights Act. | ||||||
6 | "Eligible employee" means an employee, other than an | ||||||
7 | employee of the State of Illinois, its political subdivisions, | ||||||
8 | or instrumentalities, employed in the State of Illinois for 12 | ||||||
9 | months or more who has worked 1,200 or more base hours during | ||||||
10 | the preceding 12-month period. An employee is considered to be | ||||||
11 | employed in the State of Illinois if:
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12 | (A) the employee works in Illinois; or
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13 | (B) the employee routinely performs some work in | ||||||
14 | Illinois and the employee's base of operations or the | ||||||
15 | place from which the work is directed and controlled is in | ||||||
16 | Illinois.
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17 | "Eligible employee" includes domestic workers. | ||||||
18 | "Employer" means any partnership, association, trust, | ||||||
19 | estate, joint-stock company, insurance company, or | ||||||
20 | corporation, whether domestic or foreign, or the receiver, | ||||||
21 | trustee in bankruptcy, trustee, or person that has in its | ||||||
22 | employ one or more employees performing services for it within | ||||||
23 | this State.
"Employer" also includes any employer subject to | ||||||
24 | the Unemployment Insurance Act, except the State, its | ||||||
25 | political subdivisions, and any instrumentality of the State. | ||||||
26 | "Employer" includes a day and temporary labor service agency
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1 | that provides employees on a temporary basis to its customers | ||||||
2 | and its customers.
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3 | "Family member" means an eligible employee's child, | ||||||
4 | spouse, party to a civil union, parent, or any other | ||||||
5 | individual related by blood or whose close relationship with | ||||||
6 | the employee is the equivalent of a family relationship.
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7 | "Family leave benefits" means any payments that are | ||||||
8 | payable to an eligible employee for all or part of a period of | ||||||
9 | paid family leave.
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10 | "Health care provider" means any person licensed under | ||||||
11 | federal, State, or local law or the laws of a foreign nation to | ||||||
12 | provide health care services or any other person who has been | ||||||
13 | authorized to provide health care by a licensed health care | ||||||
14 | provider.
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15 | "Intermittent leave" means a non-consecutive leave | ||||||
16 | consisting of intervals, each of which is at least one, but | ||||||
17 | fewer than 12, weeks within a consecutive 12-month period.
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18 | "Legal Parent" means the parent of a child listed on the | ||||||
19 | certificate of birth.
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20 | "Medical procedure" means a course of action intended to | ||||||
21 | achieve a result in the delivery of healthcare.
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22 | "Miscarriage" means the loss of a pregnancy before 20 | ||||||
23 | weeks of gestation.
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24 | "Paid family leave" means leave taken by an eligible | ||||||
25 | employee from work with an employer:
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26 | (A) to participate in the providing of care, including |
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1 | physical or psychological care, for the employee or a | ||||||
2 | family member of the eligible employee made necessary by a | ||||||
3 | serious health condition or medical procedure of the | ||||||
4 | family member;
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5 | (B) to be with a child during the first 12 months after | ||||||
6 | the child's birth, if the employee, the employee's spouse, | ||||||
7 | or the party to a civil union with the employee, is a | ||||||
8 | biological parent of the child, or the first 12 months | ||||||
9 | after the placement of the child for adoption or foster | ||||||
10 | care with the employee;
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11 | (C) for the employee's own serious health condition | ||||||
12 | including stillbirth or miscarriage;
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13 | (D) for the employee's own reproductive health care;
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14 | (E) as a result of the employee being subjected to | ||||||
15 | domestic violence; or
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16 | (F) because of any qualifying exigency as interpreted | ||||||
17 | under the Family and Medical Leave Act of
1993 (29 U.S.C. | ||||||
18 | 2612(a)(1)(E) and 29 CFR 825.126) arising out of the fact | ||||||
19 | that the spouse, party to a civil union, child, parent of | ||||||
20 | the employee, or any other individual related by blood or | ||||||
21 | whose close relationship with the employee is equivalent | ||||||
22 | to a family relationship is on active duty (or has been | ||||||
23 | notified of an impending call or order to active duty) in | ||||||
24 | the armed forces as of the United States.
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25 | "Paid family leave" does not include any period of time | ||||||
26 | during which an eligible employee is paid benefits pursuant to |
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1 | the Workers' Compensation Act or the Unemployment Insurance | ||||||
2 | Act because the employee is unable to perform the duties of the | ||||||
3 | employee's employment due to the employee's own disability.
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4 | "Parent of an eligible employee" means a biological | ||||||
5 | parent, foster parent, adoptive parent, or stepparent of the | ||||||
6 | eligible employee or a person who was a legal guardian of, or | ||||||
7 | who stood in loco parentis to, the eligible employee when the | ||||||
8 | eligible employee was a child.
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9 | "Placement for adoption" means the time when an eligible | ||||||
10 | employee adopts a child or becomes responsible for a child | ||||||
11 | pending adoption by the eligible employee.
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12 | "Reproductive health care" means health care offered, | ||||||
13 | arranged, or furnished for the purpose of preventing | ||||||
14 | pregnancy, terminating a pregnancy, managing pregnancy loss, | ||||||
15 | or improving maternal health and birth outcomes. "Reproductive | ||||||
16 | health care" includes, but is not limited to, contraception, | ||||||
17 | sterilization, preconception care, assisted reproduction, | ||||||
18 | maternity care, abortion care, and counseling regarding | ||||||
19 | reproductive health care.
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20 | "Self-employed individual" means an individual who | ||||||
21 | receives self-employment income as defined in Section 1402(b) | ||||||
22 | of the Internal Revenue Code. "Self-employed individual" also | ||||||
23 | includes
independent contractors, sole proprietors, and | ||||||
24 | partnerships who engage in domestic work as
defined in Section | ||||||
25 | 10 of the Domestic Workers' Bill of Rights Act.
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26 | "Serious health condition" means an illness, injury, |
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1 | impairment, or physical or mental condition that requires | ||||||
2 | inpatient care in a hospital, hospice, or residential medical | ||||||
3 | care facility or continuing medical treatment or continuing | ||||||
4 | supervision by a health care provider.
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5 | "Stillbirth" means the loss of a pregnancy at 20 weeks of | ||||||
6 | gestation or later.
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7 | "12-month period" means, with respect to an employee who | ||||||
8 | establishes a valid claim for paid family leave benefits | ||||||
9 | during a period of paid family leave, the 365 consecutive days | ||||||
10 | that begin with the first day that the employee first | ||||||
11 | establishes the claim.
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12 | Section 15. Paid family leave program.
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13 | (a) The Department shall establish and administer a paid | ||||||
14 | family leave program.
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15 | (b) The Department shall establish procedures and forms | ||||||
16 | for filing claims for benefits under this Act.
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17 | (c) The Department shall use information sharing and | ||||||
18 | integration technology to facilitate the disclosure of | ||||||
19 | relevant information or records by the Department of | ||||||
20 | Employment Security.
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21 | (d) Information contained in the files and records | ||||||
22 | pertaining to an employee under this Act is confidential and | ||||||
23 | not open to public inspection, other than to public employees | ||||||
24 | in the performance of their official duties. An employer must | ||||||
25 | keep at its place of business records of employment from which |
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1 | the information needed by the Department for purposes of this | ||||||
2 | Act may be obtained. The records shall at all times be open to | ||||||
3 | the inspection of the Department pursuant to rules adopted by | ||||||
4 | the Department.
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5 | (e) The Department shall develop and implement an outreach | ||||||
6 | program to ensure that individuals who may be eligible to | ||||||
7 | receive family leave benefits under this Act are made aware of | ||||||
8 | these benefits.
Outreach information shall explain, in an easy | ||||||
9 | to understand format, eligibility requirements, the claims | ||||||
10 | process, weekly benefit amounts, maximum benefits payable, | ||||||
11 | notice requirements, reinstatement and nondiscrimination | ||||||
12 | rights, confidentiality, and coordination of leave under this | ||||||
13 | Act and other laws, collective bargaining agreements, and | ||||||
14 | employer policies. Outreach information shall be available in
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15 | English and in languages other than English that are spoken as | ||||||
16 | a primary language by a significant portion of the State's | ||||||
17 | population, as determined by the Department.
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18 | (f) Any local, county, or municipal ordinance that | ||||||
19 | provides for paid family and medical leave enacted or amended | ||||||
20 | on or after the effective date of this Act must comply with the | ||||||
21 | requirements of this Act.
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22 | Section 20. Eligibility for benefits.
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23 | (a) The Department may require that a claim for family | ||||||
24 | leave benefits under this Section be supported by a | ||||||
25 | certification issued by a health care provider who is |
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1 | providing care to the employee or the employee's family member | ||||||
2 | if applicable.
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3 | (b) An employee is not eligible for family leave benefits | ||||||
4 | under this Section for any week for which the employee | ||||||
5 | receives any paid leave from their employer. If an employer | ||||||
6 | provides paid leave, the employee may elect whether first to | ||||||
7 | use the paid leave or to receive family leave benefits under | ||||||
8 | this Section. An employee may not be required to use paid leave | ||||||
9 | to which the employee is entitled before receiving family | ||||||
10 | leave benefits under this Section.
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11 | (c) This Section does not limit an employee's right to | ||||||
12 | take leave from employment under other laws or employer | ||||||
13 | policy.
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14 | (d) The eligibility of an employee for benefits is not | ||||||
15 | affected by a strike or lockout at the factory, establishment, | ||||||
16 | or other premises at which the employee is or was last | ||||||
17 | employed.
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18 | (e) An employee who has received benefits under this | ||||||
19 | Section may not lose any other employment benefits, including | ||||||
20 | seniority or pension rights, accrued before the date that paid | ||||||
21 | family leave commenced. However, this Section does not entitle | ||||||
22 | an employee to accrue employment benefits during a period of | ||||||
23 | paid family leave or to a right, benefit, or position of | ||||||
24 | employment other than a right, benefit, or position to which | ||||||
25 | the employee would have been entitled had the employee not | ||||||
26 | taken paid family leave.
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1 | (f) Nothing in this Act shall be deemed to interfere with, | ||||||
2 | impede, or in any way diminish the right of employees to | ||||||
3 | bargain collectively with their employers through | ||||||
4 | representatives of their own choosing in order to establish | ||||||
5 | wages or other conditions of work in excess of the applicable | ||||||
6 | minimum standards established in this Act. The paid family | ||||||
7 | leave requirements of this Act may be waived in a bona fide | ||||||
8 | collective bargaining agreement, but only if the waiver is set | ||||||
9 | forth explicitly in such agreement in clear and unambiguous | ||||||
10 | terms.
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11 | (g) Nothing in this Act shall be deemed to affect the | ||||||
12 | validity or change the terms of bona fide collective | ||||||
13 | bargaining agreements in force on the effective date of this | ||||||
14 | Act. After that date, requirements of this Act may be waived in | ||||||
15 | a bona fide collective bargaining agreement, but only if the | ||||||
16 | waiver is set forth explicitly in such agreement in clear and | ||||||
17 | unambiguous terms.
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18 | (h) This Section does not create a continuing entitlement | ||||||
19 | or contractual right.
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20 | (i) Nothing in the Section shall limit the eligibility of | ||||||
21 | an employee for benefits upon the change of employment as long | ||||||
22 | as the employee remains an eligible employee.
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23 | Section 25. Self-employed benefits.
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24 | (a) A self-employed individual or individual who contracts | ||||||
25 | to perform
services with a covered business entity may elect |
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1 | to be covered under this Act. The self-employed individual or | ||||||
2 | individual who contracts to perform
services with a covered | ||||||
3 | business entity must file a notice of election in writing with | ||||||
4 | the Department and contribute to the State Benefits Fund as | ||||||
5 | described in Section 35. The self-employed individual or | ||||||
6 | individual who contracts to perform
services with a covered | ||||||
7 | business entity must agree to supply any information | ||||||
8 | concerning taxable income that the Department deems necessary.
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9 | (b) A self-employed individual who has elected to be | ||||||
10 | covered or an individual who has elected to be covered and who | ||||||
11 | contracts to perform
services with a covered business entity | ||||||
12 | may terminate coverage by filing written notice with the | ||||||
13 | Department at such times as the Director prescribes by rule, | ||||||
14 | including at the time of a change in the employment status of | ||||||
15 | the self-employed individual or individual who contracts to | ||||||
16 | perform
services with a covered business entity employment | ||||||
17 | status. The termination may not take effect sooner than 30 | ||||||
18 | days after the notice is filed.
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19 | (c) A self-employed individual who has elected to be | ||||||
20 | covered or an individual who has elected to be covered and who | ||||||
21 | contracts to perform
services with a covered business entity | ||||||
22 | may terminate coverage on the date of the filing of a voluntary | ||||||
23 | or involuntary bankruptcy petition. The selective coverage of | ||||||
24 | a self-employed individual or individual who contracts to | ||||||
25 | perform
services with a covered business entity terminates on | ||||||
26 | the date the self-employed individual or individual who |
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1 | contracts to perform
services with a covered business entity | ||||||
2 | provides to the Department documentation to support the | ||||||
3 | bankruptcy petition filing of the self-employed individual or | ||||||
4 | individual who contracts to perform
services with a covered | ||||||
5 | business entity and files written notice with the Director. At | ||||||
6 | any time thereafter, the self-employed individual or | ||||||
7 | individual who contracts to perform
services with a covered | ||||||
8 | business entity may re-elect coverage under this Section.
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9 | Section 30. Disqualification from benefits.
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10 | (a) An employee is disqualified from family leave benefits | ||||||
11 | under this Act if the employee:
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12 | (1) willfully makes a false statement to obtain | ||||||
13 | benefits; or
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14 | (2) seeks benefits based on a serious health condition | ||||||
15 | that resulted from the employee's
commission of a felony.
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16 | (b) A disqualification for family leave benefits is for a | ||||||
17 | period of 2 years, and commences on the first day of the | ||||||
18 | calendar week in which the employee filed a claim for benefits | ||||||
19 | under this Act. An employee who is disqualified for benefits | ||||||
20 | is liable to the Department for a penalty in an amount equal to | ||||||
21 | 15% of the amount of benefits received by the employee.
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22 | Section 35. State Benefits Fund.
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23 | (a) The State Benefits Fund is created as a special fund in | ||||||
24 | the State treasury. Moneys in the Fund may be used for the |
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1 | payment of family leave benefits and for the administration of | ||||||
2 | this Act. All interest and other earnings that accrue from | ||||||
3 | investment of moneys in the Fund shall be credited to the Fund.
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4 | (b) An employer shall retain from all employees a payroll | ||||||
5 | premium deduction in the amount of 0.3% of wages as defined in | ||||||
6 | subsection (b) of Section 235 of the Unemployment Insurance | ||||||
7 | Act. The Department shall provide for the collection of this | ||||||
8 | payroll premium deduction by rule. The amount of the payroll | ||||||
9 | premium imposed under this Section, less refunds authorized by | ||||||
10 | this Act, and all assessments and penalties collected under | ||||||
11 | this Act shall be deposited into and credited to the Fund. | ||||||
12 | Nothing in this Act shall be construed to prohibit an employer | ||||||
13 | from providing additional voluntary employer contributions | ||||||
14 | toward the cost of benefits provided under this Act. These | ||||||
15 | voluntary contributions may be in addition to employee payroll | ||||||
16 | deductions or used to replace in whole or in part employee | ||||||
17 | payroll deductions.
Voluntary employer contributions may | ||||||
18 | result in eligibility to apply for any established Paid Family
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19 | Medical Leave tax credit.
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20 | (c) A separate account, to be known as the Administration | ||||||
21 | Account, shall be maintained in the Fund.
An amount determined | ||||||
22 | by the Department sufficient for proper administration, not to | ||||||
23 | exceed, however,
0.1% of wages as defined in this Section, | ||||||
24 | shall be credited to the Administration Account. The expenses | ||||||
25 | of the Department in administering the Fund and its accounts | ||||||
26 | shall be charged against the Administration Account. The costs |
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1 | of administration of this Act shall be charged to the | ||||||
2 | Administration
Account.
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3 | (d) A separate account, to be known as the Family Leave | ||||||
4 | Benefits Account, shall be maintained in the Fund. The account | ||||||
5 | shall be charged with all benefit payments. Prior to July 1 of | ||||||
6 | each calendar year, the Department shall determine the average | ||||||
7 | rate of interest and other earnings on all investments of the | ||||||
8 | Fund for the preceding calendar year. If there is an | ||||||
9 | accumulated deficit in the Family Leave Benefits
Account in | ||||||
10 | excess of $200,000 at the end of any calendar year after | ||||||
11 | interest and other earnings have been credited as provided in | ||||||
12 | this Section, the Department shall determine the ratio of the | ||||||
13 | deficit to the total of all taxable wages paid during the | ||||||
14 | preceding calendar year and shall increase the employee | ||||||
15 | payroll premium for the next calendar year. In no event shall | ||||||
16 | such increase exceed .01%. Once the accumulated deficit has | ||||||
17 | been cured, the employee payroll premium shall be reduced to | ||||||
18 | the premium outlined in (b) and (c) of this Section.
| ||||||
19 | (e) A board of trustees, consisting of the State | ||||||
20 | Treasurer, the Secretary of State, the Director of Labor, the | ||||||
21 | Director of Employment Security, and the State Comptroller, is | ||||||
22 | hereby created. The board shall invest and reinvest all moneys | ||||||
23 | in the Fund in excess of its cash requirements in obligations | ||||||
24 | legal for savings banks.
| ||||||
25 | (f) The Department may adjust rates, not to exceed the | ||||||
26 | amount established in subsection (b) of this
Section, for the |
| |||||||
| |||||||
1 | collection of premiums pursuant to subsection (b) of this | ||||||
2 | Section. The Department shall set rates for premiums in a | ||||||
3 | manner that minimizes the volatility of the rates assessed and | ||||||
4 | so that at the end of the period for which the rates are | ||||||
5 | effective, the cash balance shall be an amount approximating
| ||||||
6 | 12 months of projected expenditures from the Fund, considering | ||||||
7 | the functions and duties of the Department under this Act.
| ||||||
8 | Section 40. Compensation for family leave.
| ||||||
9 | (a) An eligible employee's weekly benefit rate shall be | ||||||
10 | two-thirds of his or her average weekly wage, subject to a | ||||||
11 | maximum of the Statewide average weekly wage paid to workers | ||||||
12 | by employers, as determined pursuant to Section 401 of the | ||||||
13 | Unemployment Insurance Act, provided that the employee's | ||||||
14 | benefit rate shall be computed to the next lower multiple of $1 | ||||||
15 | if not already a multiple thereof. The amount of benefits for | ||||||
16 | each day of paid family leave for which benefits are payable | ||||||
17 | shall be one-seventh of the corresponding weekly benefit | ||||||
18 | amount, provided that the total benefits for a fractional part | ||||||
19 | of a week shall be computed to the next lower multiple of $1 if | ||||||
20 | not already a multiple thereof.
| ||||||
21 | (b) With respect to any period of paid family leave and | ||||||
22 | while an individual is an eligible employee, family
benefits | ||||||
23 | not in excess of the eligible employee's maximum benefits | ||||||
24 | shall be payable with respect to the first day of leave taken | ||||||
25 | after the first one-week period following the commencement of |
| |||||||
| |||||||
1 | the period of paid family leave and each subsequent day of paid | ||||||
2 | family leave during that period of paid family leave; and if | ||||||
3 | benefits become
payable on any day after the first 3 weeks in | ||||||
4 | which leave is taken, then benefits shall also be payable with | ||||||
5 | respect to any leave taken during the first one-week period in | ||||||
6 | which leave is taken. The maximum total benefits payable to | ||||||
7 | any eligible employee commencing on or after the effective | ||||||
8 | date of this Act shall be 12 times the eligible employee's | ||||||
9 | weekly benefit amount or one-third of his or her total wages in | ||||||
10 | his or her base year, whichever is the lesser; provided that | ||||||
11 | the maximum amount shall be computed in the next lower | ||||||
12 | multiple of $1 if not already a multiple thereof.
| ||||||
13 | (c) All of the family leave benefits paid to an eligible | ||||||
14 | employee during a period of paid family leave with respect to | ||||||
15 | any one birth or adoption shall be for a single continuous | ||||||
16 | period of time, except that the employer of the eligible | ||||||
17 | employee may permit the eligible employee to receive the paid | ||||||
18 | family leave benefits during non-consecutive weeks in a manner | ||||||
19 | mutually agreed to by the employer and the eligible employee | ||||||
20 | and disclosed to the Department by the employer.
| ||||||
21 | (d) Nothing in this Act shall be construed to prohibit the | ||||||
22 | establishment by an employer, without approval by the | ||||||
23 | Department, of a supplementary plan or plans providing for the | ||||||
24 | payment to employees, or to any class or classes of employees, | ||||||
25 | of benefits in addition to the benefits provided by this Act or | ||||||
26 | to prohibit the collection or receipt of additional voluntary |
| |||||||
| |||||||
1 | contributions from employees toward the cost of the additional | ||||||
2 | benefits. The rights, duties, and responsibilities of all | ||||||
3 | interested parties under the supplementary plans shall be | ||||||
4 | unaffected by any provision of this Act.
| ||||||
5 | Section 45. Paid family leave; duration. An eligible | ||||||
6 | employee may take 12 weeks of paid family leave within any | ||||||
7 | 12-month period in order to provide care made necessary by | ||||||
8 | reasons identified in Section 10. An eligible employee may | ||||||
9 | take paid family leave on an intermittent schedule in which | ||||||
10 | all of the leave authorized under this Act is not taken | ||||||
11 | sequentially.
| ||||||
12 | Section 50. Employer equivalent plans.
| ||||||
13 | (a) An employer may apply to the Department for approval | ||||||
14 | of an employer-offered benefit plan that provides family and | ||||||
15 | medical leave insurance benefits to the employer's employees.
| ||||||
16 | (b) An employer that seeks approval of a plan shall submit | ||||||
17 | an application to the Department in the form and manner | ||||||
18 | prescribed by the Department by rule, accompanied by an | ||||||
19 | application fee not to exceed $250.
| ||||||
20 | (c) The Department shall review and approve an application | ||||||
21 | for a plan if the Director finds that:
| ||||||
22 | (1) the plan is made available to all employees who | ||||||
23 | have been continuously employed with an employer and meet | ||||||
24 | the definition of eligible employee under Section 10 of |
| |||||||
| |||||||
1 | this Act; and
| ||||||
2 | (2) the benefits afforded to employees covered under | ||||||
3 | the plan are equal to or greater than the weekly benefits | ||||||
4 | and the duration of leave that an eligible employee would | ||||||
5 | qualify for under this Act.
| ||||||
6 | (d) An employee covered under an employer plan is not | ||||||
7 | subject to the requirements of this Act and not required to | ||||||
8 | make the contributions pursuant to Section 35.
| ||||||
9 | (e) An employer may assume all or a part of the costs | ||||||
10 | related to a plan approved under this Section.
| ||||||
11 | (f) If an employer assumes only part of the costs, the | ||||||
12 | employer may deduct employee contributions from the wages of | ||||||
13 | employees to finance the costs related to the plan, except | ||||||
14 | that any contribution amounts deducted may not exceed the | ||||||
15 | amount that an eligible employee would otherwise be required | ||||||
16 | to contribute under Section 35.
| ||||||
17 | (g) Employee contributions received or retained by an | ||||||
18 | employer under this subsection must be used for plan expenses | ||||||
19 | and are not considered to be a part of an employer's assets for | ||||||
20 | any purpose.
| ||||||
21 | (h) An employee who takes leave pursuant to a plan | ||||||
22 | approved under this section shall provide notice to an | ||||||
23 | employer of such leave in the same manner as provided in | ||||||
24 | Section 80 of this Act.
| ||||||
25 | (i) An employer that offers a plan approved under this | ||||||
26 | Section shall:
|
| |||||||
| |||||||
1 | (1) maintain all reports, information and records | ||||||
2 | relating to the plan, including payroll and account | ||||||
3 | records that document employee contributions and expenses, | ||||||
4 | in the manner established by the Director by rule; and
| ||||||
5 | (2) provide written notice to employees that includes:
| ||||||
6 | (A) information about benefits available under the | ||||||
7 | approved plan, including the duration of leave;
| ||||||
8 | (B) the process for filing a claim to receive | ||||||
9 | benefits under the plan;
| ||||||
10 | (C) the process for employee deductions used to | ||||||
11 | finance the costs of the plan, if any;
| ||||||
12 | (D) the right to job protection and benefits | ||||||
13 | continuation, if applicable; and
| ||||||
14 | (E) a statement that discrimination and | ||||||
15 | retaliatory actions against an employee for inquiring | ||||||
16 | about the family and medical leave insurance program | ||||||
17 | established under this Act, giving notification of | ||||||
18 | leave under the program, taking leave under the | ||||||
19 | program, or claiming family and medical leave | ||||||
20 | insurance benefits are prohibited.
| ||||||
21 | (j) An employer may be subjected to penalties under | ||||||
22 | Section 70 where they fail to maintain an approved equivalency | ||||||
23 | plan or provide benefits to employees under an approved | ||||||
24 | equivalency plan that are inconsistent with this Act.
| ||||||
25 | Section 55. Annual reports; contents.
|
| |||||||
| |||||||
1 | (a) The Department shall issue and make available to the | ||||||
2 | public, not later than June 1, 2026 and June 1 of each | ||||||
3 | subsequent year, annual reports providing data on family leave | ||||||
4 | benefits including separate data for each of the paid family | ||||||
5 | leave category outlined in Section 10 of this Act. The reports | ||||||
6 | shall include, for each category of claims, the number of | ||||||
7 | workers receiving the benefits, the amount of benefits paid, | ||||||
8 | the average duration of benefits, the average weekly benefit, | ||||||
9 | and any reported amount of paid leave, vacation, or other | ||||||
10 | fully paid time which resulted in reduced benefit duration. | ||||||
11 | The report shall provide data by gender and by any other | ||||||
12 | demographic factors determined to be relevant by the | ||||||
13 | Department. The reports shall also provide, for all family | ||||||
14 | leave benefits, the total costs of benefits and the total cost | ||||||
15 | of administration, the portion of benefits for claims during | ||||||
16 | paid family leave, and the total revenues from employer | ||||||
17 | assessments, where applicable; employee assessments; and other | ||||||
18 | sources. Any and all data made available to the public shall be | ||||||
19 | de-identified and anonymized.
| ||||||
20 | (b) The Department may, in its discretion, conduct surveys | ||||||
21 | and other research regarding, and include in the annual | ||||||
22 | reports descriptions and evaluations of the impact and | ||||||
23 | potential future impact of the costs and benefits resulting | ||||||
24 | from the provisions of this Act for:
| ||||||
25 | (1) employees and their families, including surveys | ||||||
26 | and evaluations of what portion of the total number of |
| |||||||
| |||||||
1 | employees taking leave would not have taken leave, or | ||||||
2 | would have taken less leave, without the availability of | ||||||
3 | benefits; what portion of employees return to work after | ||||||
4 | receiving benefits and what portion are not permitted to | ||||||
5 | return to work; and what portion of employees who are | ||||||
6 | eligible for benefits do not claim or receive them and why | ||||||
7 | they do not;
| ||||||
8 | (2) employers, including benefits such as reduced | ||||||
9 | training and other costs related to reduced turnover of | ||||||
10 | personnel, and increased affordability of paid family | ||||||
11 | leave through the State, with special attention given to | ||||||
12 | small businesses; and
| ||||||
13 | (3) the public, including savings caused by any | ||||||
14 | reduction in the number of people receiving public | ||||||
15 | assistance.
| ||||||
16 | (c) The total amount of any expenses that the Department | ||||||
17 | determines are necessary to carry out its duties pursuant to | ||||||
18 | this Section shall be charged to the Administration Account of | ||||||
19 | the Fund.
| ||||||
20 | Section 60. Hearings. A person aggrieved by a decision of | ||||||
21 | the Department under this Act may request a hearing. The | ||||||
22 | Department shall adopt rules governing hearings and the | ||||||
23 | issuance of final orders under this Act in accordance with the | ||||||
24 | provisions of the Illinois Administrative Procedure Act. All | ||||||
25 | final administrative decisions of the Department under this |
| |||||||
| |||||||
1 | Act are subject to judicial review under the
Administrative | ||||||
2 | Review Law.
| ||||||
3 | Section 65. Prohibited acts.
| ||||||
4 | (a) No employer, temporary employment agency, employment | ||||||
5 | agency, employee organization, or other person shall | ||||||
6 | discharge, expel, or otherwise discriminate against a person | ||||||
7 | because the person has filed or communicated to the employer | ||||||
8 | an intent to file a claim, a complaint, or an appeal or has | ||||||
9 | testified or is about to testify or has assisted in any | ||||||
10 | proceeding, under this Act, at any time.
| ||||||
11 | (b) It is unlawful for any employer to threaten to take or | ||||||
12 | to take any adverse action against an employee because the | ||||||
13 | employee (1) exercises rights or attempts to exercise rights | ||||||
14 | under this Act; (2) opposes practices which the employee | ||||||
15 | believes to be in violation of this Act; or (3) supports the | ||||||
16 | exercise of rights of another under this Act. It is unlawful | ||||||
17 | for any employer to consider the use of paid family and medical | ||||||
18 | leave by an employee as a negative factor in any employment | ||||||
19 | action that involves evaluating, promoting, disciplining, or | ||||||
20 | counting paid leave under a no-fault attendance policy. Such | ||||||
21 | retaliation shall subject an employer to civil penalties | ||||||
22 | pursuant to this Act.
| ||||||
23 | Section 70. Penalties.
| ||||||
24 | (a) A person who makes a false statement or |
| |||||||
| |||||||
1 | representation, knowing it to be false, or increase any paid | ||||||
2 | family leave benefit during a period of paid family leave, | ||||||
3 | either for himself or herself or for any other person, shall be | ||||||
4 | liable for a civil penalty of $250 to be paid to the | ||||||
5 | Department. Each such false statement or representation shall | ||||||
6 | constitute a separate offense. Upon refusal to pay such civil | ||||||
7 | penalty, the civil penalty shall be recovered in a civil | ||||||
8 | action by the Attorney General on behalf the Department in the | ||||||
9 | name of the State of Illinois. If, in any case in which | ||||||
10 | liability for the payment of a civil penalty has been | ||||||
11 | determined, any person who has received any benefits under | ||||||
12 | this Act by reason of the making of such false statements or | ||||||
13 | representations shall not be entitled to any benefits under | ||||||
14 | this Act for any leave occurring prior to the time he or she | ||||||
15 | has discharged his or her liability to pay the civil penalty.
| ||||||
16 | (b) A person, employing unit, employer, or entity who | ||||||
17 | willfully violates any provision of this Act or any rule | ||||||
18 | adopted under this Act for which a civil penalty is neither | ||||||
19 | prescribed in this Act nor provided by any other applicable | ||||||
20 | law shall be subject to a civil penalty of $500 to be paid to | ||||||
21 | the Department. Upon the refusal to pay such civil penalty, | ||||||
22 | the civil penalty shall be recovered in a civil action by the | ||||||
23 | Attorney
General on behalf of the Department in the name of the | ||||||
24 | State of Illinois.
| ||||||
25 | (c) A person, employing unit, employer, or entity | ||||||
26 | violating any provision of this Section with intent to defraud |
| |||||||
| |||||||
1 | the Department is guilty of a Class C misdemeanor. The fine | ||||||
2 | upon conviction shall be payable to the Fund. Any penalties | ||||||
3 | imposed by this subsection shall be in addition to those | ||||||
4 | otherwise prescribed in this Section.
| ||||||
5 | Section 75. Leave and employment protection.
| ||||||
6 | (a) During a period in which an employee receives family | ||||||
7 | leave benefits under this Act, the employee is entitled to | ||||||
8 | paid family leave and, at the established ending date of | ||||||
9 | leave, to be restored to a position of employment with the | ||||||
10 | employer from whom leave was taken as provided under | ||||||
11 | subsection (b).
| ||||||
12 | (b) Except as provided in subsection (f), an employee who | ||||||
13 | receives family leave benefits under this
Act for the intended | ||||||
14 | purpose of the paid family leave is entitled, on return from | ||||||
15 | the leave:
| ||||||
16 | (1) to be restored by the employer to the position of | ||||||
17 | employment held by the employee when the paid family leave | ||||||
18 | commenced; or
| ||||||
19 | (2) to be restored to an equivalent position with | ||||||
20 | equivalent employment benefits, pay, and other terms and | ||||||
21 | conditions of employment at the employee's workplace | ||||||
22 | immediately prior to when the paid family leave commenced.
| ||||||
23 | (c) The taking of paid family leave under this Act may not | ||||||
24 | result in the loss of any employment benefits accrued before | ||||||
25 | the date on which the paid family leave commenced.
|
| |||||||
| |||||||
1 | (d) Nothing in this Section entitles a restored employee | ||||||
2 | to:
| ||||||
3 | (1) the accrual of any seniority or employment | ||||||
4 | benefits during any period of paid family leave; or | ||||||
5 | (2) any right, benefit, or position of employment | ||||||
6 | other than any right, benefit, or position to which the | ||||||
7 | employee would have been entitled to had the employee not | ||||||
8 | taken the paid family leave.
| ||||||
9 | (e) Nothing in this Section prohibits an employer from | ||||||
10 | requiring an employee on paid family leave to report | ||||||
11 | periodically to the employer on the status and intention of | ||||||
12 | the employee to return to work.
| ||||||
13 | (f) During any period an employee takes paid family leave | ||||||
14 | under this Act, if the employer provides insurance for | ||||||
15 | employees, the employer shall maintain coverage for the | ||||||
16 | employee and any family member under any group health plan for | ||||||
17 | the duration of such leave at no less than the level and | ||||||
18 | conditions of coverage that would have been provided if the | ||||||
19 | employee had not taken the leave. The employer shall notify | ||||||
20 | the employee that the employee is still responsible for paying | ||||||
21 | the employee's share of the cost of the health care coverage, | ||||||
22 | if any.
| ||||||
23 | Section 80. Notice to employer.
| ||||||
24 | (a) If the necessity for paid family leave for the birth or | ||||||
25 | placement of a child is foreseeable based on an expected birth |
| |||||||
| |||||||
1 | or placement, the employee shall provide the employer with not | ||||||
2 | less than 30 days' notice, before the date the leave is to | ||||||
3 | begin, of the employee's intention to take leave for the birth | ||||||
4 | or placement of a child, except that if the date of the birth | ||||||
5 | or placement requires leave to begin in less than 30 days, the | ||||||
6 | employee shall provide such notice as is practicable.
| ||||||
7 | (b) If the necessity for paid family leave for an | ||||||
8 | employee's, a family member's serious health condition, | ||||||
9 | employee's own medical procedure or the employee's own | ||||||
10 | reproductive health care is foreseeable based on planned | ||||||
11 | medical treatment, the employee:
| ||||||
12 | (1) must make a reasonable effort to schedule the | ||||||
13 | treatment so as not to disrupt unduly the operations of | ||||||
14 | the employer; and
| ||||||
15 | (2) must provide the employer with not less than 30 | ||||||
16 | days' notice, before the date the leave is to begin, of the | ||||||
17 | employee's intention to take leave, except that if the | ||||||
18 | date of the treatment requires leave to begin in less than | ||||||
19 | 30 days, the employee must provide such notice as is | ||||||
20 | practicable.
| ||||||
21 | Section 85. Employment by same employer. If spouses who | ||||||
22 | are entitled to leave under this Act are employed by the same | ||||||
23 | employer, the employer may require that the spouses not take | ||||||
24 | more than 6 weeks of such leave concurrently.
|
| |||||||
| |||||||
1 | Section 90. Coordination of leave.
| ||||||
2 | (a) Paid family leave taken under this Act must be taken | ||||||
3 | concurrently with any leave taken under the federal Family and | ||||||
4 | Medical Leave Act of 1993, collective bargaining agreement, or | ||||||
5 | any local county or municipal ordinance.
| ||||||
6 | (b) An employer may require that paid family leave taken | ||||||
7 | under this Act be taken concurrently or otherwise coordinated | ||||||
8 | with leave allowed under the terms of a collective bargaining | ||||||
9 | agreement, local county or municipal ordinance, or employer | ||||||
10 | policy. The employer must give their employees written notice | ||||||
11 | of this requirement. In adopting rules, the Department shall | ||||||
12 | maintain consistency with the
regulations adopted to implement | ||||||
13 | the federal Family and Medical Leave Act of 1993 to the
extent | ||||||
14 | such regulations are not in conflict with this Act.
| ||||||
15 | Section 95. Rules. The Department shall adopt any rules | ||||||
16 | necessary to implement the provisions of this Act.
| ||||||
17 | Section 100. Authority to contract. The Department may | ||||||
18 | contract or enter into interagency agreements with other State | ||||||
19 | agencies for the initial administration of the Paid Family | ||||||
20 | Leave Program.
| ||||||
21 | Section 900. The State Finance Act is amended by adding | ||||||
22 | Section 5.990 as follows:
|
| |||||||
| |||||||
1 | (30 ILCS 105/5.990 new) | ||||||
2 | Sec. 5.990. The State Benefits Fund.
| ||||||
3 | Section 999. Effective date. This Act takes effect upon | ||||||
4 | becoming law, except that Section 35 becomes effective June 1, | ||||||
5 | 2024, and Sections 40 and 45 become
|