Bill Text: IL SB3530 | 2013-2014 | 98th General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Unemployment Insurance Act. Provides for the creation of a program of shared work benefits, under which an individual is deemed unemployed in any week if the individual works less than his or her normal hours or number of days in a week for the individual's employer and the Director of Employment Security finds that the employer has reduced or restricted the individual's hours or days of work or has rehired an individual previously laid off and reduced that individual's hours or days of work from those previously worked as the result of a plan by the employer to reduce unemployment and stabilize the work force through a program of sharing the work remaining after a reduction in total hours of work and a corresponding reduction in wages, among not less than 10% of the employer's permanent work force involved in the affected work unit or units. Provides for: computation of benefits; limits on benefits; determinations; reduction of benefits; payments; submission of forms and certifications; requirements; administration; creation of a Shared Work Benefits Fund; and other matters. Effective immediately.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Passed) 2014-12-23 - Public Act . . . . . . . . . 98-1133 [SB3530 Detail]

Download: Illinois-2013-SB3530-Amended.html

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Rep. Frank J. Mautino

Filed: 5/16/2014

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AMENDMENT TO SENATE BILL 3530
AMENDMENT NO. ______. Amend Senate Bill 3530 by replacing
everything after the enacting clause with the following:
"Section 5. The Unemployment Insurance Act is amended by
adding Section 502 as follows:
(820 ILCS 405/502 new)
Sec. 502. Eligibility for benefits under the Short-Time
Compensation Program.
A. The Director may by rule establish a short-time
compensation program consistent with this Section. No
short-time compensation shall be payable except as authorized
by rule.
B. As used in this Section:
"Affected unit" means a specified plant, department,
shift, or other definable unit that includes 2 or more workers
to which an approved short-time compensation plan applies.

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"Health and retirement benefits" means employer-provided
health benefits and retirement benefits under a defined benefit
pension plan (as defined in Section 414(j) of the Internal
Revenue Code) or contributions under a defined contribution
plan (defined in Section 414(i) of the Internal Revenue Code),
which are incidents of employment in addition to the cash
remuneration earned.
"Short-time compensation" means the unemployment benefits
payable to employees in an affected unit under an approved
short-time compensation plan, as distinguished from the
unemployment benefits otherwise payable under this Act.
"Short-time compensation plan" means a plan submitted by an
employer, for approval by the Director, under which the
employer requests the payment of short-time compensation to
workers in an affected unit of the employer to avert layoffs.
"Usual weekly hours of work" means the usual hours of work
for full-time or part-time employees in the affected unit when
that unit is operating on its regular basis, not to exceed 40
hours and not including hours of overtime work.
"Unemployment insurance" means the unemployment benefits
payable under this Act other than short-time compensation and
includes any amounts payable pursuant to an agreement under any
Federal law providing for compensation, assistance, or
allowances with respect to unemployment.
C. An employer wishing to participate in the short-time
compensation program shall submit a signed written short-time

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compensation plan to the Director for approval. The Director
shall develop an application form to request approval of a
short-time compensation plan and an approval process. The
application shall include:
1. The employer's unemployment insurance account
number, the affected unit covered by the plan, including
the number of full-time or part-time workers in such unit,
the percentage of workers in the affected unit covered by
the plan, identification of each individual employee in the
affected unit by name and social security number, and any
other information required by the Director to identify plan
participants.
2. A description of how workers in the affected unit
will be notified of the employer's participation in the
short-time compensation plan if such application is
approved, including how the employer will notify those
workers in a collective bargaining unit as well as any
workers in the affected unit who are not in a collective
bargaining unit. If the employer will not provide advance
notice to workers in the affected unit, the employer shall
explain in a statement in the application why it is not
feasible to provide such notice.
3. The employer's certification that it has the
approval of the plan from all collective bargaining
representatives of employees in the affected unit and has
notified all employees in the affected unit who are not in

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a collective bargaining unit of the plan.
4. The employer's certification that it will not hire
additional part-time or full-time employees for, or
transfer employees to, the affected unit, while the program
is in operation.
5. A requirement that the employer identify the usual
weekly hours of work for employees in the affected unit and
the specific percentage by which their hours will be
reduced during all weeks covered by the plan. An
application shall specify the percentage of reduction for
which a short-time compensation application may be
approved which shall be not less than 20% and not more than
60%. If the plan includes any week for which the employer
regularly provides no work (due to a holiday or other plant
closing), then such week shall be identified in the
application.
6. Certification by the employer that, if the employer
provides health and retirement benefits to any employee
whose usual weekly hours of work are reduced under the
program, such benefits will continue to be provided to the
employee participating in the short-time compensation
program under the same terms and conditions as though the
usual weekly hours of work of such employee had not been
reduced or to the same extent as other employees not
participating in the short-time compensation program. For
defined benefit retirement plans, the hours that are

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reduced under the short-time compensation plan shall be
credited for purposes of participation, vesting, and
accrual of benefits as though the usual weekly hours of
work had not been reduced. The dollar amount of employer
contributions to a defined contribution plan that are based
on a percentage of compensation may be less due to the
reduction in the employee's compensation. Notwithstanding
any other provision to the contrary, a certification that a
reduction in health and retirement benefits is scheduled to
occur during the duration of the plan and will be
applicable equally to employees who are not participating
in the short-time compensation program and to those
employees who are participating satisfies this paragraph.
7. Certification by the employer that the aggregate
reduction in work hours is in lieu of layoffs (temporary or
permanent layoffs, or both). The application shall include
an estimate of the number of workers who would have been
laid off in the absence of the short-time compensation
plan.
8. Agreement by the employer to: furnish reports to the
Director relating to the proper conduct of the plan; allow
the Director or his or her authorized representatives
access to all records necessary to approve or disapprove
the plan application, and after approval of a plan, to
monitor and evaluate the plan; and follow any other
directives the Director deems necessary for the agency to

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implement the plan and which are consistent with the
requirements for plan applications.
9. Certification by the employer that participation in
the short-time compensation plan and its implementation is
consistent with the employer's obligations under
applicable Federal and Illinois laws.
10. The effective date and duration of the plan, which
shall expire no later than the end of the 12th full
calendar month after the effective date.
11. Any other provision added to the application by the
Director that the United States Secretary of Labor
determines to be appropriate for purposes of a short-time
compensation program.
D. The Director shall approve or disapprove a short-time
compensation plan in writing within 45 days of its receipt and
promptly communicate the decision to the employer. A decision
disapproving the plan shall clearly identify the reasons for
the disapproval. The disapproval shall be final, but the
employer shall be allowed to submit another short-time
compensation plan for approval not earlier than 30 days from
the date of the disapproval.
E. The short-time compensation plan shall be effective on
the mutually agreed upon date by the employer and the Director,
which shall be specified in the notice of approval to the
employer. The plan shall expire on the date specified in the
notice of approval, which shall be mutually agreed on by the

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employer and Director but no later than the end of the 12th
full calendar month after its effective date. However, if a
short-time compensation plan is revoked by the Director, the
plan shall terminate on the date specified in the Director's
written order of revocation. An employer may terminate a
short-time compensation plan at any time upon written notice to
the Director. Upon receipt of such notice from the employer,
the Director shall promptly notify each member of the affected
unit of the termination date. An employer may submit a new
application to participate in another short-time compensation
plan at any time after the expiration or termination date.
F. The Director may revoke approval of a short-time
compensation plan for good cause at any time, including upon
the request of any of the affected unit's employees or their
collective bargaining representative. The revocation order
shall be in writing and shall specify the reasons for the
revocation and the date the revocation is effective. The
Director may periodically review the operation of each
employer's short-time compensation plan to assure that no good
cause exists for revocation of the approval of the plan. Good
cause shall include, but not be limited to, failure to comply
with the assurances given in the plan, termination of the
approval of the plan by a collective bargaining representative
of employees in the affected unit, unreasonable revision of
productivity standards for the affected unit, conduct or
occurrences tending to defeat the intent and effective

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operation of the short-time compensation plan, and violation of
any criteria on which approval of the plan was based.
G. An employer may request a modification of an approved
plan by filing a written request to the Director. The request
shall identify the specific provisions proposed to be modified
and provide an explanation of why the proposed modification is
appropriate for the short-time compensation plan. The Director
shall approve or disapprove the proposed modification in
writing within 30 days of receipt and promptly communicate the
decision to the employer. The Director, in his or her
discretion, may approve a request for modification of the plan
based on conditions that have changed since the plan was
approved provided that the modification is consistent with and
supports the purposes for which the plan was initially
approved. A modification may not extend the expiration date of
the original plan, and the Director must promptly notify the
employer whether the plan modification has been approved and,
if approved, the effective date of modification. An employer is
not required to request approval of plan modification from the
Director if the change is not substantial, but the employer
must report every change to plan to the Director promptly and
in writing. The Director may terminate an employer's plan if
the employer fails to meet this reporting requirement. If the
Director determines that the reported change is substantial,
the Director shall require the employer to request a
modification to the plan.

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H. An individual is eligible to receive short-time
compensation with respect to any week only if the individual is
eligible for unemployment insurance pursuant to subsection E of
Section 500, not otherwise disqualified for unemployment
insurance, and:
1. During the week, the individual is employed as a
member of an affected unit under an approved short-time
compensation plan, which was approved prior to that week,
and the plan is in effect with respect to the week for
which short-time compensation is claimed.
2. Notwithstanding any other provision of this Act
relating to availability for work and actively seeking
work, the individual is available for the individual's
usual hours of work with the short-time compensation
employer, which may include, for purposes of this Section,
participating in training to enhance job skills that is
approved by the Director, including but not limited to as
employer-sponsored training or training funded under the
Workforce Investment Act of 1998.
3. Notwithstanding any other provision of law, an
individual covered by a short-time compensation plan is
deemed unemployed in any week during the duration of such
plan if the individual's remuneration as an employee in an
affected unit is reduced based on a reduction of the
individual's usual weekly hours of work under an approved
short-time compensation plan.

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I. The short-time compensation weekly benefit amount shall
be the product of the percentage of reduction in the
individual's usual weekly hours of work multiplied by the sum
of the regular weekly benefit amount for a week of total
unemployment plus any applicable dependent allowance pursuant
to subsection C of Section 401.
1. An individual may be eligible for short-time
compensation or unemployment insurance, as appropriate,
except that no individual shall be eligible for combined
benefits (excluding any payments attributable to a
dependent allowance pursuant to subsection C of Section
401) in any benefit year in an amount more than the maximum
benefit amount, nor shall an individual be paid short-time
compensation benefits for more than 52 weeks under a
short-time compensation plan.
2. The short-time compensation paid to an individual
(excluding any payments attributable to a dependent
allowance pursuant to subsection C of Section 401) shall be
deducted from the maximum benefit amount established for
that individual's benefit year.
3. Provisions applicable to unemployment insurance
claimants shall apply to short-time compensation claimants
to the extent that they are not inconsistent with
short-time compensation provisions. An individual who
files an initial claim for short-time compensation
benefits shall receive a monetary determination.

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4. The following provisions apply to individuals who
work for both a short-time compensation employer and
another employer during weeks covered by the approved
short-time compensation plan:
i. If combined hours of work in a week for both
employers do not result in a reduction of at least 20%
of the usual weekly hours of work with the short-time
compensation employer, the individual shall not be
entitled to benefits under this Section.
ii. If combined hours of work for both employers
results in a reduction equal to or greater than 20% of
the usual weekly hours of work for the short-time
compensation employer, the short-time compensation
benefit amount payable to the individual is reduced for
that week and is determined by multiplying the
percentage by which the combined hours of work have
been reduced by the sum of the weekly benefit amount
for a week of total unemployment plus any applicable
dependent allowance pursuant to subsection C of
Section 401. A week for which benefits are paid under
this subparagraph shall be reported as a week of
short-time compensation.
iii. If an individual worked the reduced
percentage of the usual weekly hours of work for the
short-time compensation employer and is available for
all his or her usual hours of work with the short-time

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compensation employer, and the individual did not work
any hours for the other employer either because of the
lack of work with that employer or because the
individual is excused from work with the other
employer, the individual shall be eligible for
short-time compensation for that week. The benefit
amount for such week shall be calculated as provided in
the introductory clause of this subsection I.
iv. An individual who is not provided any work
during a week by the short-time compensation employer,
or any other employer, and who is otherwise eligible
for unemployment insurance shall be eligible for the
amount of regular unemployment insurance determined
without regard to this Section.
v. An individual who is not provided any work by
the short-time compensation employer during a week,
but who works for another employer and is otherwise
eligible may be paid unemployment insurance for that
week subject to the disqualifying income and other
provisions applicable to claims for regular
unemployment insurance.
J. Short-time compensation shall be charged to employers in
the same manner as unemployment insurance is charged under
Illinois law. Employers liable for payments in lieu of
contributions shall have short-time compensation attributed to
service in their employ in the same manner as unemployment

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insurance is attributed. Notwithstanding any other provision
to the contrary, to the extent that short-term compensation
payments under this Section are reimbursed by the federal
government, no benefit charges or payments in lieu of
contributions shall be accrued by a participating employer.
K. A short-time compensation plan shall not be approved for
an employer that is delinquent in the filing of any reports
required or the payment of contributions, payments in lieu of
contributions, interest, or penalties due under this Act
through the date of the employer's application.
L. Overpayments of other benefits under this Act may be
recovered from an individual receiving short-time compensation
under this Act in the manner provided under Sections 900 and
901. Overpayments under the short-time compensation plan may be
recovered from an individual receiving other benefits under
this Act in the manner provided under Sections 900 and 901.
M. An individual who has received all of the short-time
compensation or combined unemployment insurance and short-time
compensation available in a benefit year shall be considered an
exhaustee for purposes of extended benefits, as provided under
the provisions of Section 409, and, if otherwise eligible under
those provisions, shall be eligible to receive extended
benefits.
Section 99. Effective date. This Act takes effect upon
becoming law.".