Bill Text: IL HB1014 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Creates the Wage Insurance Act. Requires the Department of Employment Security to establish a Wage Insurance Program. Provides that an individual is eligible for wage insurance benefits if the individual is a claimant under the Unemployment Insurance Act at the time the individual obtains reemployment and is not employed by the employer from which the individual was last separated. Provides that benefits shall be paid in an amount sufficient to pay the difference between the wage received by the individual at the time of separation and the wages received by the individual from reemployment. Imposes a 0.4% payroll tax on employees beginning January 1, 2024. Provides that claims for wage insurance benefits may be filed beginning June 1, 2024. Contains provisions concerning the recovery of erroneous payments; hearings; civil penalties; unpaid taxes; rules; and other matters. Creates the Wage Insurance Fund as a special fund in the State treasury. Amends the State Finance Act to include the Wage Insurance Fund. Amends the Freedom of Information Act. Exempts from inspection and copying information that is exempt from disclosure under the Wage Insurance Act.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2023-01-12 - Referred to Rules Committee [HB1014 Detail]

Download: Illinois-2023-HB1014-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1014 Introduced , by Rep. Mary E. Flowers SYNOPSIS AS INTRODUCED:
New Act
5 ILCS 140/7.5
30 ILCS 105/5.990 new
Creates the Wage Insurance Act. Requires the Department of Employment Security to establish a Wage Insurance Program. Provides that an individual is eligible for wage insurance benefits if the individual is a claimant under the Unemployment Insurance Act at the time the individual obtains reemployment and is not employed by the employer from which the individual was last separated. Provides that benefits shall be paid in an amount sufficient to pay the difference between the wage received by the individual at the time of separation and the wages received by the individual from reemployment. Imposes a 0.4% payroll tax on employees beginning January 1, 2024. Provides that claims for wage insurance benefits may be filed beginning June 1, 2024. Contains provisions concerning the recovery of erroneous payments; hearings; civil penalties; unpaid taxes; rules; and other matters. Creates the Wage Insurance Fund as a special fund in the State treasury. Amends the State Finance Act to include the Wage Insurance Fund. Amends the Freedom of Information Act. Exempts from inspection and copying information that is exempt from disclosure under the Wage Insurance Act.
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A BILL FOR
HB1014 LRB103 04939 SPS 49950 b
AN ACT concerning employment.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the Wage
Insurance Act.
Section 5. Definitions. As used in this Act:
"Department" means the Department of Employment Security.
"Director" means the Director of Employment Security.
"Employer" means (1) any person, partnership, corporation,
association, or other business entity that employs one or more
employees for each working day during each of 20 or more
calendar workweeks; and (2) the State of Illinois and any
other unit of local government.
"Wage insurance benefits" means the benefits payable under
this Act.
"Tax" means the tax imposed under Section 25 of this Act.
Section 10. Wage Insurance Program.
(a) The Department shall establish and administer a Wage
Insurance Program.
(b) The Department shall establish procedures and forms
for filing claims for benefits under this Act.
(c) Information contained in the files and records

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pertaining to an employee under this Act is confidential and
not open to public inspection, other than to public employees
in the performance of their official duties. However, the
employee or an authorized representative of an employee may
review the records or receive specific information from the
records on the presentation of the signed authorization of the
employee. An employer or the employer's duly authorized
representative may review the records of an employee employed
by the employer in connection with a pending claim. At the
Department's discretion, other persons may review records when
such persons are rendering assistance to the Department at any
stage of the proceedings on any matter pertaining to the
administration of this Act.
An employer must keep at its place of business records of
employment from which the information needed by the Department
for purposes of this Act may be obtained. The records shall at
all times be open to the inspection of the Department pursuant
to rules adopted by the Department.
(d) The Department shall develop and implement an outreach
program to ensure that individuals who may be eligible to
receive wage insurance benefits under this Act are made aware
of these benefits. Outreach information shall explain, in an
easy-to-understand format, eligibility requirements, the
claims process, weekly benefit amounts, maximum benefits
payable, notice requirements, reinstatement and
nondiscrimination rights, confidentiality, and coordination of

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benefits under this Act and other laws, collective bargaining
agreements, and employer policies. Outreach information shall
be available in English and in languages other than English
that are spoken as a primary language by a significant portion
of the State's population, as determined by the Department.
Section 15. Eligibility for benefits.
(a) Benefits under this Act are payable to an individual
who is a claimant under the Unemployment Insurance Act at the
time the individual obtains reemployment and who is not
employed by the employer from which the individual was last
separated.
(b) The Department may require that a claim for wage
insurance benefits under this Act be supported by a
certification of wages issued by the individual's employer.
Section 20. Disqualification from benefits.
(a) An individual is disqualified from wage insurance
benefits under this Act if the individual willfully makes a
false statement or misrepresentation regarding a material
fact, or willfully fails to disclose a material fact, to
obtain benefits.
(b) A disqualification for wage insurance benefits is for
a period of 2 years, and commences on the first day of the
calendar week in which the individual filed a claim for
benefits under this Act. An individual who is disqualified for

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benefits is liable to the Department for a penalty in an amount
equal to 15% of the amount of benefits received by the
individual.
Section 25. Payroll tax.
(a) There is imposed a tax upon employees in the amount of
0.4% of wages as defined in Section 235 of the Unemployment
Insurance Act. The Department shall by rule provide for the
collection of this tax.
(b) Moneys collected pursuant to subsection (a), and any
accrued cash balances, shall be deposited into the Wage
Insurance Fund for payment of benefits and the expenditures of
the Department in carrying out the functions and duties of the
Department under this Act.
Section 30. Duration of benefits; amount of benefits.
(a) Wage insurance benefits are payable for a maximum of 2
years.
(b) The first payment of wage insurance benefits shall be
made to an employee within 2 weeks after the claim is filed.
Subsequent payments shall be made twice a month thereafter.
(c) Wage insurance benefits shall be paid in an amount
sufficient to pay to the individual the difference between the
wage received by the individual at the time of the separation
from the employer by which the individual was employed
immediately before becoming a claimant under this Act and the

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wages received by the individual from reemployment.
(d) The Department shall provide a tax form to each
individual who has received wage insurance benefits for the
individual's use in paying federal income tax on the benefits
and shall advise an individual filing a new claim for wage
insurance benefits, at the time of filing the claim, that:
(1) benefits are subject to federal income tax;
(2) requirements exist pertaining to estimated tax
payments;
(3) the individual may elect to have federal income
tax deducted and withheld from the individual's payment of
benefits at the amount specified in the federal Internal
Revenue Code; and
(4) the individual is permitted to change a previously
elected withholding status.
Amounts deducted and withheld from benefits must remain in
the Wage Insurance Fund until transferred to the federal
taxing authority as a payment of income tax.
The Director shall follow all procedures specified by the
federal Internal Revenue Service pertaining to the deducting
and withholding of income tax.
Section 35. Recovery of erroneous payments.
(a) If an individual receives any wage insurance benefits
under Section 30 to which the employee is not entitled:
(1) the individual is liable to the Department for the

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amount of benefits received; and
(2) the amount of benefits received may be deducted by
the Department from any future benefits otherwise payable
to the individual under Section 30.
(b) If the Department decides that an individual has been
paid wage insurance benefits to which the individual is not
entitled because of an error, and that the individual is not
subject to disqualification under Section 20, the amounts
received in error may be recovered by the Department only by
deductions from benefits otherwise payable to the employee
under Section 30 during the 52 weeks following the date on
which the order establishing the amount of the erroneous
payment becomes final. If amounts determined to be recoverable
have not been paid within that time, the liability shall be
canceled by the Department and charged against the Wage
Insurance Fund.
(c) Except as provided in subsection (d), if benefits
determined to be recoverable under this Section have not been
paid within 3 years after the date that the order of the
Department establishing the liability of the individual
becomes final, and no payments have been received on the
liability for at least 3 months, the liability shall be
canceled by the Department and charged against the Wage
Insurance Fund.
(d) Any amount due under this Section may be collected by
the Department in a civil action against the individual

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brought in the name of the Department.
(e) Interest on any benefits recoverable under this
Section shall be paid and collected at the same time repayment
of benefits is made by the individual. Interest on an amount
recoverable under this Section accrues at the rate specified
in Section 2-1303 of the Code of Civil Procedure, beginning on
the first day of the month following 60 days after entry of the
order establishing the amount recoverable.
(f) Any amount collected under this Section by the
Department shall be paid into the Wage Insurance Fund.
Section 40. Hearings. A person aggrieved by a decision of
the Department under this Act may request a hearing. The
Department shall adopt rules governing hearings and the
issuance of final orders under this Act in accordance with the
provisions of the Illinois Administrative Procedure Act. All
final administrative decisions of the Department under this
Act are subject to judicial review under the Administrative
Review Law.
Section 45. Civil penalty.
(a) The Department may assess a civil penalty not to
exceed $5,000 against an employer that:
(1) fails to pay when due the taxes imposed under
Section 25; or
(2) fails to comply with this Act or any rules adopted

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by the Department relating to reports or other
requirements necessary to carry out the purposes of this
Act.
(b) All civil penalties collected under this Section shall
be applied first toward reimbursement of the costs incurred in
investigating violations, conducting hearings, and assessing
and collecting penalties. All remaining amounts shall be paid
into the Wage Insurance Fund.
Section 50. Unpaid tax.
(a) If an employer defaults with respect to any tax
payment required to be made by the employer tax under Section
25, a person described in subsection (b) of this Section who,
as an officer, member, partner, or employee, is under a duty to
perform the actions required by employers under this Act shall
be personally liable for amounts due under Section 25. More
than one person may be jointly and severally liable under this
Section.
(b) This Section applies only to a person who is one or
more of the following:
(1) An officer or employee of a corporation.
(2) A member or an employee of a limited liability
corporation.
(3) A partner in or an employee of a limited liability
partnership.
(c) If the Director determines that an amount is due under

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this Section, the Director shall issue a notice of assessment
to the person liable under this Section mailed to the person's
last-known address of record with the Director.
Section 55. Wage Insurance Fund. The Wage Insurance Fund
is created as a special fund in the State treasury. All moneys
received under this Act shall be deposited into the Fund. This
Section constitutes a continuing appropriation from the Fund
of all amounts necessary for the purposes authorized by this
Act. Any interest earned on moneys in the Wage Insurance Fund
shall be deposited into the Fund.
Section 60. Rules. The Department may adopt any rules
necessary to implement this Act.
Section 65. Commencement date.
(a) Employers shall first withhold taxes from employees'
earnings for quarters worked beginning January 1, 2024.
(b) Individuals may first file claims for wage insurance
benefits under this Act on or after June 1, 2024.
Section 70. Authority to contract. The Department may
contract or enter into interagency agreements with other State
agencies for the initial administration of the Wage Insurance
Program.

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Section 905. The Freedom of Information Act is amended by
changing Section 7.5 as follows:
(5 ILCS 140/7.5)
Sec. 7.5. Statutory exemptions. To the extent provided for
by the statutes referenced below, the following shall be
exempt from inspection and copying:
(a) All information determined to be confidential
under Section 4002 of the Technology Advancement and
Development Act.
(b) Library circulation and order records identifying
library users with specific materials under the Library
Records Confidentiality Act.
(c) Applications, related documents, and medical
records received by the Experimental Organ Transplantation
Procedures Board and any and all documents or other
records prepared by the Experimental Organ Transplantation
Procedures Board or its staff relating to applications it
has received.
(d) Information and records held by the Department of
Public Health and its authorized representatives relating
to known or suspected cases of sexually transmissible
disease or any information the disclosure of which is
restricted under the Illinois Sexually Transmissible
Disease Control Act.
(e) Information the disclosure of which is exempted

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under Section 30 of the Radon Industry Licensing Act.
(f) Firm performance evaluations under Section 55 of
the Architectural, Engineering, and Land Surveying
Qualifications Based Selection Act.
(g) Information the disclosure of which is restricted
and exempted under Section 50 of the Illinois Prepaid
Tuition Act.
(h) Information the disclosure of which is exempted
under the State Officials and Employees Ethics Act, and
records of any lawfully created State or local inspector
general's office that would be exempt if created or
obtained by an Executive Inspector General's office under
that Act.
(i) Information contained in a local emergency energy
plan submitted to a municipality in accordance with a
local emergency energy plan ordinance that is adopted
under Section 11-21.5-5 of the Illinois Municipal Code.
(j) Information and data concerning the distribution
of surcharge moneys collected and remitted by carriers
under the Emergency Telephone System Act.
(k) Law enforcement officer identification information
or driver identification information compiled by a law
enforcement agency or the Department of Transportation
under Section 11-212 of the Illinois Vehicle Code.
(l) Records and information provided to a residential
health care facility resident sexual assault and death

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review team or the Executive Council under the Abuse
Prevention Review Team Act.
(m) Information provided to the predatory lending
database created pursuant to Article 3 of the Residential
Real Property Disclosure Act, except to the extent
authorized under that Article.
(n) Defense budgets and petitions for certification of
compensation and expenses for court appointed trial
counsel as provided under Sections 10 and 15 of the
Capital Crimes Litigation Act. This subsection (n) shall
apply until the conclusion of the trial of the case, even
if the prosecution chooses not to pursue the death penalty
prior to trial or sentencing.
(o) Information that is prohibited from being
disclosed under Section 4 of the Illinois Health and
Hazardous Substances Registry Act.
(p) Security portions of system safety program plans,
investigation reports, surveys, schedules, lists, data, or
information compiled, collected, or prepared by or for the
Department of Transportation under Sections 2705-300 and
2705-616 of the Department of Transportation Law of the
Civil Administrative Code of Illinois, the Regional
Transportation Authority under Section 2.11 of the
Regional Transportation Authority Act, or the St. Clair
County Transit District under the Bi-State Transit Safety
Act.

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(q) Information prohibited from being disclosed by the
Personnel Record Review Act.
(r) Information prohibited from being disclosed by the
Illinois School Student Records Act.
(s) Information the disclosure of which is restricted
under Section 5-108 of the Public Utilities Act.
(t) All identified or deidentified health information
in the form of health data or medical records contained
in, stored in, submitted to, transferred by, or released
from the Illinois Health Information Exchange, and
identified or deidentified health information in the form
of health data and medical records of the Illinois Health
Information Exchange in the possession of the Illinois
Health Information Exchange Office due to its
administration of the Illinois Health Information
Exchange. The terms "identified" and "deidentified" shall
be given the same meaning as in the Health Insurance
Portability and Accountability Act of 1996, Public Law
104-191, or any subsequent amendments thereto, and any
regulations promulgated thereunder.
(u) Records and information provided to an independent
team of experts under the Developmental Disability and
Mental Health Safety Act (also known as Brian's Law).
(v) Names and information of people who have applied
for or received Firearm Owner's Identification Cards under
the Firearm Owners Identification Card Act or applied for

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or received a concealed carry license under the Firearm
Concealed Carry Act, unless otherwise authorized by the
Firearm Concealed Carry Act; and databases under the
Firearm Concealed Carry Act, records of the Concealed
Carry Licensing Review Board under the Firearm Concealed
Carry Act, and law enforcement agency objections under the
Firearm Concealed Carry Act.
(v-5) Records of the Firearm Owner's Identification
Card Review Board that are exempted from disclosure under
Section 10 of the Firearm Owners Identification Card Act.
(w) Personally identifiable information which is
exempted from disclosure under subsection (g) of Section
19.1 of the Toll Highway Act.
(x) Information which is exempted from disclosure
under Section 5-1014.3 of the Counties Code or Section
8-11-21 of the Illinois Municipal Code.
(y) Confidential information under the Adult
Protective Services Act and its predecessor enabling
statute, the Elder Abuse and Neglect Act, including
information about the identity and administrative finding
against any caregiver of a verified and substantiated
decision of abuse, neglect, or financial exploitation of
an eligible adult maintained in the Registry established
under Section 7.5 of the Adult Protective Services Act.
(z) Records and information provided to a fatality
review team or the Illinois Fatality Review Team Advisory

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Council under Section 15 of the Adult Protective Services
Act.
(aa) Information which is exempted from disclosure
under Section 2.37 of the Wildlife Code.
(bb) Information which is or was prohibited from
disclosure by the Juvenile Court Act of 1987.
(cc) Recordings made under the Law Enforcement
Officer-Worn Body Camera Act, except to the extent
authorized under that Act.
(dd) Information that is prohibited from being
disclosed under Section 45 of the Condominium and Common
Interest Community Ombudsperson Act.
(ee) Information that is exempted from disclosure
under Section 30.1 of the Pharmacy Practice Act.
(ff) Information that is exempted from disclosure
under the Revised Uniform Unclaimed Property Act.
(gg) Information that is prohibited from being
disclosed under Section 7-603.5 of the Illinois Vehicle
Code.
(hh) Records that are exempt from disclosure under
Section 1A-16.7 of the Election Code.
(ii) Information which is exempted from disclosure
under Section 2505-800 of the Department of Revenue Law of
the Civil Administrative Code of Illinois.
(jj) Information and reports that are required to be
submitted to the Department of Labor by registering day

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and temporary labor service agencies but are exempt from
disclosure under subsection (a-1) of Section 45 of the Day
and Temporary Labor Services Act.
(kk) Information prohibited from disclosure under the
Seizure and Forfeiture Reporting Act.
(ll) Information the disclosure of which is restricted
and exempted under Section 5-30.8 of the Illinois Public
Aid Code.
(mm) Records that are exempt from disclosure under
Section 4.2 of the Crime Victims Compensation Act.
(nn) Information that is exempt from disclosure under
Section 70 of the Higher Education Student Assistance Act.
(oo) Communications, notes, records, and reports
arising out of a peer support counseling session
prohibited from disclosure under the First Responders
Suicide Prevention Act.
(pp) Names and all identifying information relating to
an employee of an emergency services provider or law
enforcement agency under the First Responders Suicide
Prevention Act.
(qq) Information and records held by the Department of
Public Health and its authorized representatives collected
under the Reproductive Health Act.
(rr) Information that is exempt from disclosure under
the Cannabis Regulation and Tax Act.
(ss) Data reported by an employer to the Department of

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Human Rights pursuant to Section 2-108 of the Illinois
Human Rights Act.
(tt) Recordings made under the Children's Advocacy
Center Act, except to the extent authorized under that
Act.
(uu) Information that is exempt from disclosure under
Section 50 of the Sexual Assault Evidence Submission Act.
(vv) Information that is exempt from disclosure under
subsections (f) and (j) of Section 5-36 of the Illinois
Public Aid Code.
(ww) Information that is exempt from disclosure under
Section 16.8 of the State Treasurer Act.
(xx) Information that is exempt from disclosure or
information that shall not be made public under the
Illinois Insurance Code.
(yy) Information prohibited from being disclosed under
the Illinois Educational Labor Relations Act.
(zz) Information prohibited from being disclosed under
the Illinois Public Labor Relations Act.
(aaa) Information prohibited from being disclosed
under Section 1-167 of the Illinois Pension Code.
(bbb) Information that is prohibited from disclosure
by the Illinois Police Training Act and the Illinois State
Police Act.
(ccc) Records exempt from disclosure under Section
2605-304 of the Illinois State Police Law of the Civil

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Administrative Code of Illinois.
(ddd) Information prohibited from being disclosed
under Section 35 of the Address Confidentiality for
Victims of Domestic Violence, Sexual Assault, Human
Trafficking, or Stalking Act.
(eee) Information prohibited from being disclosed
under subsection (b) of Section 75 of the Domestic
Violence Fatality Review Act.
(fff) Images from cameras under the Expressway Camera
Act. This subsection (fff) is inoperative on and after
July 1, 2023.
(ggg) (fff) Information prohibited from disclosure
under paragraph (3) of subsection (a) of Section 14 of the
Nurse Agency Licensing Act.
(hhh) Information that is exempt from disclosure under
Section 10 of the Wage Insurance Act.
(Source: P.A. 101-13, eff. 6-12-19; 101-27, eff. 6-25-19;
101-81, eff. 7-12-19; 101-221, eff. 1-1-20; 101-236, eff.
1-1-20; 101-375, eff. 8-16-19; 101-377, eff. 8-16-19; 101-452,
eff. 1-1-20; 101-466, eff. 1-1-20; 101-600, eff. 12-6-19;
101-620, eff 12-20-19; 101-649, eff. 7-7-20; 101-652, eff.
1-1-22; 101-656, eff. 3-23-21; 102-36, eff. 6-25-21; 102-237,
eff. 1-1-22; 102-292, eff. 1-1-22; 102-520, eff. 8-20-21;
102-559, eff. 8-20-21; 102-813, eff. 5-13-22; 102-946, eff.
7-1-22; 102-1042, eff. 6-3-22; revised 8-1-22.)

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Section 910. The State Finance Act is amended by adding
Section 5.990 as follows:
(30 ILCS 105/5.990 new)
Sec. 5.990. The Wage Insurance Fund.