Bill Text: IL HB3200 | 2025-2026 | 104th General Assembly | Enrolled

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Bill Title: Reinserts the provisions of the engrossed bill with the following changes. Further amends the Unemployment Insurance Act. Specifies that provisions concerning the recovery of unclaimed property shall apply to individuals determined to be ineligible for benefits due to fraud. Provides that the Director of Employment Security may cooperate with and enter into agreements with the State Treasurer for the recovery of unclaimed property held by the State Treasurer in the name of an employer who owes contributions, interest, or penalties under this Act. Provides that the amount of unclaimed property the Director is authorized to recover under this subsection is limited to the amount of contributions, interest, penalties, and fees owed by the employer.

Sponsorship: Partisan Bill (Democrat 4)

Status: (Passed) 2025-08-15 - Public Act . . . . . . . . . 104-0285 [HB3200 Detail]

Download: Illinois-2025-HB3200-Enrolled.html

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AN ACT concerning employment.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Unemployment Insurance Act is amended by
changing Sections 601, 900, 901, 2206.1, and 2404 and by
adding Section 901.2 as follows:
(820 ILCS 405/601) (from Ch. 48, par. 431)
Sec. 601. Voluntary leaving.
A. An individual shall be ineligible for benefits for the
week in which the individual he or she has left work
voluntarily without good cause attributable to the employing
unit and, thereafter, until the individual he or she has
become reemployed and has had earnings equal to or in excess of
the individual's his or her current weekly benefit amount in
each of four calendar weeks which are either for services in
employment, or have been or will be reported pursuant to the
provisions of the Federal Insurance Contributions Act by each
employing unit for which such services are performed and which
submits a statement certifying to that fact.
B. The provisions of this Section shall not apply to an
individual who has left work voluntarily:
1. Because the individual, prior to voluntarily
leaving: he or she

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(a) is deemed physically unable to perform the
individual's his or her work by a licensed and
practicing physician, licensed and practicing nurse
practitioner, or licensed and practicing physician
assistant and the employer is unable to accommodate
the individual; , or
(b) for claims dated December 28, 2025 through
December 24, 2028, is deemed to be unable to perform
the individual's work due to a mental health
disability by a licensed and practicing psychiatrist
and the employer is unable to accommodate the
individual; or
(c) is providing necessary because the
individual's assistance to care is necessary for the
purpose of caring for the individual's his or her
spouse, child, or parent who, according to a licensed
and practicing physician or as otherwise reasonably
verified, is in poor physical or mental health or is a
person with a mental or physical disability and the
employer is unable to accommodate the individual's
need to provide such assistance;
2. To accept other bona fide work and, after such
acceptance, the individual is either not unemployed in
each of 2 weeks, or earns remuneration for such work equal
to at least twice the individual's his or her current
weekly benefit amount;

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3. In lieu of accepting a transfer to other work
offered to the individual by the employing unit under the
terms of a collective bargaining agreement or pursuant to
an established employer plan, program, or policy, if the
acceptance of such other work by the individual would
require the separation from that work of another
individual currently performing it;
4. Solely because of the sexual harassment of the
individual by another employee. Sexual harassment means
(1) unwelcome sexual advances, requests for sexual favors,
sexually motivated physical contact or other conduct or
communication which is made a term or condition of the
employment or (2) the employee's submission to or
rejection of such conduct or communication which is the
basis for decisions affecting employment, or (3) when such
conduct or communication has the purpose or effect of
substantially interfering with an individual's work
performance or creating an intimidating, hostile, or
offensive working environment and the employer knows or
should know of the existence of the harassment and fails
to take timely and appropriate action;
5. Which the individual he or she had accepted after
separation from other work, and the work which the
individual he or she left voluntarily would be deemed
unsuitable under the provisions of Section 603;
6.(a) Because the individual left work due to verified

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domestic violence as defined in Section 103 of the
Illinois Domestic Violence Act of 1986 where the domestic
violence caused the individual to reasonably believe that
the individual's his or her continued employment would
jeopardize the individual's his or her safety or the
safety of the individual's his or her spouse, minor child,
or parent
if the individual provides the following:
(i) notice to the employing unit of the reason for
the individual's voluntarily leaving; and
(ii) to the Department provides:
(A) an order of protection or other
documentation of equitable relief issued by a
court of competent jurisdiction; or
(B) a police report or criminal charges
documenting the domestic violence; or
(C) medical documentation of the domestic
violence; or
(D) evidence of domestic violence from a
member of the clergy, attorney, counselor, social
worker, health worker or domestic violence shelter
worker.
(b) If the individual does not meet the provisions of
subparagraph (a), the individual shall be held to have
voluntarily terminated employment for the purpose of
determining the individual's eligibility for benefits

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pursuant to subsection A.
(c) Notwithstanding any other provision to the
contrary, evidence of domestic violence experienced by an
individual, or the individual's his or her spouse, minor
child, or parent, including the individual's statement and
corroborating evidence, shall not be disclosed by the
Department unless consent for disclosure is given by the
individual.
7. Because, due to a change in location of employment
of the individual's spouse, the individual left work to
accompany the individual's his or her spouse to a place
from which it is impractical to commute or because the
individual left employment to accompany a spouse who has
been reassigned from one military assignment to another.
The employer's account, however, shall not be charged for
any benefits paid out to the individual who leaves work
under a circumstance described in this paragraph.
C. Within 90 days of the effective date of this amendatory
Act of the 96th General Assembly, the Department shall
promulgate rules, pursuant to the Illinois Administrative
Procedure Act and consistent with Section 903(f)(3)(B) of the
Social Security Act, to clarify and provide guidance regarding
eligibility and the prevention of fraud.
D. On or before January 1, 2030, the Department shall file
a report with the General Assembly setting forth the estimated
fiscal impact of subparagraph (b) of paragraph 1 of subsection

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B of Section 601 on the Unemployment Insurance Trust Fund.
(Source: P.A. 99-143, eff. 7-27-15.)
(820 ILCS 405/900) (from Ch. 48, par. 490)
Sec. 900. Recoupment and recovery.)
A. Whenever an individual has received any sum as benefits
for which he or she is found to have been ineligible, the
individual must be provided written notice of the individual's
his or her appeal rights, including the ability to request
waiver of any recoupment ordered and the standard for such
waiver to be granted. Thereafter, the amount thereof may be
recovered by suit in the name of the People of the State of
Illinois, or, from benefits payable to the individual him, may
be recouped:
1. At any time, if, to receive such sum, the
individual he knowingly made a false statement or
knowingly failed to disclose a material fact.
2. Within 3 years from any date prior to January 1,
1984, on which the individual he has been found to have
been ineligible for any other reason, pursuant to a
reconsidered finding or a reconsidered determination, or
pursuant to the decision of a Referee (or of the Director
or Director's his representative under Section 604) which
modifies or sets aside a finding or a reconsidered finding
or a determination or a reconsidered determination; or
within 5 years from any date after December 31, 1983, on

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which the individual he has been found to have been
ineligible for any other reason, pursuant to a
reconsidered finding or a reconsidered determination, or
pursuant to the decision of a Referee (or of the Director
or Director's his representative under Section 604) which
modifies or sets aside a finding or a reconsidered finding
or a determination or a reconsidered determination.
Recoupment pursuant to the provisions of this paragraph
from benefits payable to an individual for any week may be
waived upon the individual's request, if the sum referred
to in paragraph A was received by the individual without
fault on the individual's his part and if such recoupment
would be against equity and good conscience. Such waiver
may be denied with respect to any subsequent week if, in
that week, the facts and circumstances upon which waiver
was based no longer exist.
Recovery by suit in the name of the People of the State of
Illinois, recoupment pursuant to paragraph 2 of this
subsection A from benefits payable to an individual for any
week, and, notwithstanding any provision to the contrary in
the Illinois State Collection Act of 1986, withholding
pursuant to subsection E shall be permanently waived if the
sum referred to in this subsection A was received by the
individual without fault on the individual's his or her part
and if such recoupment would be against equity and good
conscience, and the sum referred to in this subsection A was

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received by the individual on or after March 8, 2020, but prior
to the last day of a disaster period established by the
gubernatorial disaster proclamation in response to COVID-19,
dated March 9, 2020, and any consecutive gubernatorial
disaster proclamation in response to COVID-19. To be eligible
for permanent waiver under this paragraph, an individual must
request a waiver pursuant to this paragraph within 45 days of
the mailing date of the notice from the Department that the
individual may request a waiver. A determination under this
paragraph may be appealed to a Referee within the time limits
prescribed by Section 800 for an appeal from a determination.
Any such appeal, and any appeal from the Referee's decision
thereon, shall be governed by the applicable provisions of
Sections 801, 803, 804, and 805. This paragraph shall not
apply with respect to benefits that are received pursuant to
any program that the Department administers as an agent of the
federal government and for which the individual is found to
have been ineligible.
B. Whenever the claims adjudicator referred to in Section
702 decides that any sum received by a claimant as benefits
shall be recouped, or denies recoupment waiver requested by
the claimant, the Department he shall promptly notify the
claimant of the his decision and the reasons therefor. The
decision and the notice thereof shall state the amount to be
recouped, the weeks with respect to which such sum was
received by the claimant, and the time within which it may be

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recouped and, as the case may be, the reasons for denial of
recoupment waiver. The claims adjudicator may reconsider the
his decision within one year after the date when the decision
was made. Such decision or reconsidered decision may be
appealed to a Referee within the time limits prescribed by
Section 800 for appeal from a determination. Any such appeal,
and any appeal from the Referee's decision thereon, shall be
governed by the applicable provisions of Sections 801, 803,
804 and 805. No recoupment shall be begun until the expiration
of the time limits prescribed by Section 800 of this Act or, if
an appeal has been filed, until the decision of a Referee has
been made thereon affirming the decision of the claims
adjudicator Claims Adjudicator.
C. Any sums recovered under the provisions of this Section
shall be treated as repayments to the Department of sums
improperly obtained by the claimant.
D. Whenever, by reason of a back pay award made by any
governmental agency or pursuant to arbitration proceedings, or
by reason of a payment of wages wrongfully withheld by an
employing unit, an individual has received wages for weeks
with respect to which the individual he has received benefits,
the amount of such benefits may be recouped or otherwise
recovered as herein provided. An employing unit making a back
pay award to an individual for weeks with respect to which the
individual has received benefits shall make the back pay award
by check payable jointly to the individual and to the

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Department.
E. The amount recouped pursuant to paragraph 2 of
subsection A from benefits payable to an individual for any
week shall not exceed 25% of the individual's weekly benefit
amount.
In addition to the remedies provided by this Section, when
an individual has received any sum as benefits for which the
individual he is found to be ineligible, the Director may
request the Comptroller to withhold such sum in accordance
with Section 10.05 of the State Comptroller Act and the
Director may request the Secretary of the Treasury to withhold
such sum to the extent allowed by and in accordance with
Section 6402(f) of the federal Internal Revenue Code of 1986,
as amended. Benefits paid pursuant to this Act shall not be
subject to such withholding. Where the Director requests
withholding by the Secretary of the Treasury pursuant to this
Section, in addition to the amount of benefits for which the
individual has been found ineligible, the individual shall be
liable for any legally authorized administrative fee assessed
by the Secretary, with such fee to be added to the amount to be
withheld by the Secretary.
F. The Director may cooperate with and enter into
agreements with the State Treasurer for the recovery of
unclaimed property held by the State Treasurer in the name of
an individual who received benefits for which the individual
was determined to be ineligible under this Act. The amount of

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unclaimed property the Director is authorized to recover under
this subsection is limited to the amount of benefits an
individual received for which the individual was determined to
be ineligible and any penalties provided for in this Act and
rules adopted under this Act. Any funds recovered under this
subsection shall be returned to the fund from which they were
withdrawn.
(Source: P.A. 102-26, eff. 6-25-21.)
(820 ILCS 405/901) (from Ch. 48, par. 491)
Sec. 901. Fraud - Repayment - Ineligibility.
A. An individual who, for the purpose of obtaining
benefits, knowingly makes a false statement or knowingly fails
to disclose a material fact, and thereby obtains any sum as
benefits for which the individual he is not eligible:
1. A. Shall be required to repay such sum in cash, or
the amount thereof may be recovered or recouped pursuant
to the provisions of Section 900.
2. B. Shall be ineligible, except to the extent that
such benefits are subject to recoupment pursuant to this
Section, for benefits for the week in which the individual
he or she has been notified of the determination of the
claims adjudicator referred to in Section 702 that the
individual he or she has committed the offense described
in the first paragraph and, thereafter, for 6 weeks (with
respect to each of which the individual he or she would be

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eligible for benefits but for the provisions of this
paragraph, not including weeks for which such benefits are
subject to recoupment pursuant to this Section) for the
first offense, and for 2 additional weeks (with respect to
each of which the individual he or she would be eligible
for benefits but for the provisions of this paragraph, not
including weeks for which such benefits are subject to
recoupment pursuant to this Section) for each subsequent
offense. For the purposes of this paragraph, a separate
offense shall be deemed to have been committed in each
week for which such an individual has received a sum as
benefits for which the individual he or she was not
eligible. No ineligibility under the provisions of this
paragraph shall accrue with respect to any week beginning
after whichever of the following occurs first: (1) 26
weeks (with respect to each of which the individual would
be eligible for benefits but for the provisions of this
paragraph, not including weeks for which such benefits are
subject to recoupment pursuant to this Section) have
elapsed since the date that the individual he or she is
notified of the determination of the claims adjudicator
referred to in Section 702 that the individual he or she
has committed the offense described in the first
paragraph, or (2) 2 years have elapsed since the date that
he or she is notified of the determination of the claims
adjudicator referred to in Section 702 that the individual

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he or she has committed the offense described in the first
paragraph.
B. The amount of benefits that an individual received for
which the individual was determined to be ineligible due to
fraud, plus any penalties provided for by this Act and rules
adopted under this Act, may be recovered in any manner
provided for in Sections 2206, 2400, 2401, 2401.1, 2402, and
2403 for the recovery of past-due contributions, interest, and
penalties from employers, and those Sections of this Act shall
apply to an individual who received benefits for which the
individual was determined to be ineligible due to fraud.
(Source: P.A. 91-342, eff. 1-1-00.)
(820 ILCS 405/901.2 new)
Sec. 901.2. Return of debit card funds.
A. As allowed for under federal law, the Director is
authorized to directly request and accept the return of funds
from a debit card issuer for any debit card account that
received benefits, if there is no transfer of funds through
the benefits system to the debit card account during the
preceding 12 months and if the account has never been
activated.
B. As provided under federal law, the Director may
directly request and accept the return of funds from a debit
card issuer for any debit card account that received benefits
and was activated if no transaction has been conducted on the

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account during the preceding 12 months and the individual
associated with the account received benefits for which the
individual was determined to be ineligible. The amount that
the Director is authorized to accept from the debit card
issuer under this subsection is limited to the amount of
benefits an individual received for which the individual was
determined to be ineligible and any penalties provided for in
this Act and rules adopted under this Act.
C. Any funds recovered under this Section shall be
returned to the fund from which they were withdrawn.
(820 ILCS 405/2206.1) (from Ch. 48, par. 686.1)
Sec. 2206.1. Additional recovery. In addition to the
remedies provided by this Act, when an employing unit defaults
in any payment or contribution required to be made to the State
under the provisions of this Act, the Director may:
1. Request request the Comptroller to withhold the
amount due in accordance with the provisions of Section
10.05 of the State Comptroller Act and the Director may
request the Secretary of the Treasury to withhold the
amount due to the extent allowed by and in accordance with
Section 6402(f) of the federal Internal Revenue Code of
1986, as amended. Where the Director requests withholding
by the Secretary of the Treasury pursuant to this Section,
in addition to the amount of the payment otherwise owed by
the employing unit, the employing unit shall be liable for

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any legally authorized administrative fee assessed by the
Secretary, with such fee to be added to the amount to be
withheld by the Secretary.
2. Cooperate with and enter into agreements with the
State Treasurer for the recovery of unclaimed property
held by the State Treasurer in the name of an employer who
owes contributions, interest, or penalties under this Act.
The amount of unclaimed property the Director is
authorized to recover under this subsection is limited to
the amount of contributions, interest, penalties, and fees
owed by the employer.
(Source: P.A. 97-621, eff. 11-18-11.)
(820 ILCS 405/2404) (from Ch. 48, par. 724)
Sec. 2404. Court may enjoin delinquent employing unit. Any
employing unit which willfully refuses or fails to pay any
contribution, interest, or penalties found to be due to the
Director by the Director's his final determination and
assessment, or refuses or fails to file new hire reports or
reports of wages paid to the workforce as required by this Act,
after 30 days' written notice of intent to proceed under this
Section, sent by the Director to the employing unit at its last
known address by registered or certified mail, may be enjoined
from operating any business as an "employer", as defined in
this Act, anywhere in this State, while such contribution,
interest, or penalties remain unpaid, or while either new hire

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reports or reports of wages paid to the workforce as required
by this Act remain unfiled, upon the complaint of the Director
in the Circuit Court of the county in which the employing unit
resides or has or had a place of business within the State. The
provisions of this Section shall be deemed cumulative and in
addition to any provision of this Act relating to the
collection of contributions by the Director.
(Source: Laws 1965, p. 1792.)