093_HB3397 LRB093 09060 WGH 09292 b 1 AN ACT concerning unemployment insurance. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Unemployment Insurance Act is amended by 5 changing Section 409 as follows: 6 (820 ILCS 405/409) (from Ch. 48, par. 409) 7 Sec. 409. Extended Benefits. 8 A. For the purposes of this Section: 9 1. "Extended benefit period" means a period which 10 begins with the third week after a week for which there 11 is a State "on" indicator; and ends with either of the 12 following weeks, whichever occurs later: (1) the third 13 week after the first week for which there is a State 14 "off" indicator, or (2) the thirteenth consecutive week 15 of such period. No extended benefit period shall begin 16 by reason of a State "on" indicator before the fourteenth 17 week following the end of a prior extended benefit 18 period. 19 2. There is a "State 'on' indicator" for a week: 20 (a) if the Director determines, in accordance 21 with the regulations of the United States Secretary 22 of Labor or other appropriate Federal agency, that 23 for the period consisting of such week and the 24 immediately preceding twelve weeks, the rate of 25 insured unemployment (not seasonally adjusted) in 26 this State(a) equaled or exceeded 4% and equaled or27exceeded 120% of the average of such rates for the28corresponding 13-week period ending in each of the29preceding two calendar years, or (b) equaled or30exceeded 5%; for weeks beginning after September 25,311982(1) equaled or exceeded 5% and equaled or -2- LRB093 09060 WGH 09292 b 1 exceeded 120% of the average of such rates for the 2 corresponding 13-week period ending in each of the 3 preceding 2 calendar years, or (2) equaled or 4 exceeded 6 percent; or 5 (b) if the United States Secretary of Labor 6 determines that (1) the average rate of total 7 unemployment in this State (seasonally adjusted) for 8 the period of the most recent 3 months for which 9 data for all states are published before the close 10 of the week equals or exceeds 6.5%, and (2) the 11 average rate of total unemployment in this State 12 (seasonally adjusted) for the 3-month period 13 referred to in clause (1) equals or exceeds 110% of 14 the average for either (or both) of the 15 corresponding 3-month periods ending in the 2 16 preceding calendar years. 17 3. There is a "State 'off' indicator" for a week: 18 (a) if the Director determines, in accordance 19 with the regulations of the United States Secretary 20 of Labor or other appropriate Federal agency, that 21 for the period consisting of such week and the 22 immediately preceding twelve weeks, the rate of 23 insured unemployment (not seasonally adjusted) in 24 this State(a) was less than 5% and was less than25120% of the average of such rates for the26corresponding 13-week period ending in each of the27preceding 2 calendar years, or (b) was less than 4%;28and for weeks beginning after September 25, 1982,29 (1) was less than 6% and less than 120% of the 30 average of such rates for the corresponding 13-week 31 period ending in each of the preceding 2 calendar 32 years, or (2) was less than 5%; and 33 (b) if the United States Secretary of Labor 34 determines that (1) the average rate of total -3- LRB093 09060 WGH 09292 b 1 unemployment in this State (seasonally adjusted) for 2 the period of the most recent 3 months for which 3 data for all states are published before the close 4 of the week was less than 6.5%, or (2) the average 5 rate of total unemployment in this State (seasonally 6 adjusted) for the 3-month period referred to in 7 clause (1) is less than 110% of the average for both 8 of the corresponding 3-month periods ending in the 2 9 preceding calendar years. 10 4. "Rate of insured unemployment", for the purpose 11 of paragraphs 2 and 3, means the percentage derived by 12 dividing (a) the average weekly number of individuals 13 filing claims for "regular benefits" in this State for 14 weeks of unemployment with respect to the most recent 13 15 consecutive week period, as determined by the Director on 16 the basis of his reports to the United States Secretary 17 of Labor or other appropriate Federal agency, by (b) the 18 average monthly employment covered under this Act for the 19 first four of the most recent six completed calendar 20 quarters ending before the close of such 13-week period. 21 5. "Regular benefits" means benefits, other than 22 extended benefits and additional benefits, payable to an 23 individual (including dependents' allowances) under this 24 Act or under any other State unemployment compensation 25 law (including benefits payable to Federal civilian 26 employees and ex-servicemen pursuant to 5 U.S.C. chapter 27 85). 28 6. "Extended benefits" means benefits (including 29 benefits payable to Federal civilian employees and 30 ex-servicemen pursuant to 5 U.S.C. chapter 85) payable to 31 an individual under the provisions of this Section for 32 weeks which begin in his eligibility period. 33 7. "Additional benefits" means benefits totally 34 financed by a State and payable to exhaustees (as defined -4- LRB093 09060 WGH 09292 b 1 in subsection C) by reason of conditions of high 2 unemployment or by reason of other specified factors. If 3 an individual is eligible to receive extended benefits 4 under the provisions of this Section and is eligible to 5 receive additional benefits with respect to the same week 6 under the law of another State, he may elect to claim 7 either extended benefits or additional benefits with 8 respect to the week. 9 8. "Eligibility period" means the period consisting 10 of the weeks in an individual's benefit year which begin 11 in an extended benefit period and, if his benefit year 12 ends within such extended benefit period, any weeks 13 thereafter which begin in such period. 14 9. Notwithstanding any of the provisions of 15 Sections 1404, 1405B, and 1501, no employer shall be 16 liable for payments in lieu of contributions, and wages 17 shall not become benefit wages, by reason of the payment 18 of extended benefits which are wholly reimbursed to this 19 State by the Federal Government. With respect to 20 extended benefits, paid prior to July 1, 1989, wages 21 shall become benefit wages under Section 1501 only when 22 an individual is first paid such benefits with respect to 23 his eligibility period which are not wholly reimbursed to 24 this State by the Federal Government. Extended benefits, 25 paid on or after July 1, 1989, shall become benefit 26 charges under Section 1501.1 only when any individual is 27 paid such benefits with respect to his eligibility period 28 which are not wholly reimbursed by the Federal 29 Government. 30 B. An individual shall be eligible to receive extended 31 benefits pursuant to this Section for any week which begins 32 in his eligibility period if, with respect to such week (1) 33 he has been paid wages for insured work during his base 34 period equal to at least 1 1/2 times the wages paid in that -5- LRB093 09060 WGH 09292 b 1 calendar quarter of his base period in which such wages were 2 highest, provided that this provision applies only with 3 respect to weeks beginning after September 25, 1982; (2) he 4 has met the requirements of Section 500E of this Act; (3) he 5 is an exhaustee; and (4) except when the result would be 6 inconsistent with the provisions of this Section, he has 7 satisfied the requirements of this Act for the receipt of 8 regular benefits. 9 C. An individual is an exhaustee with respect to a week 10 which begins in his eligibility period if: 11 1. Prior to such week (a) he has received, with 12 respect to his current benefit year that includes such 13 week, the maximum total amount of benefits to which he 14 was entitled under the provisions of Section 403B, and 15 all of the regular benefits (including dependents' 16 allowances) to which he had entitlement (if any) on the 17 basis of wages or employment under any other State 18 unemployment compensation law; or (b) he has received all 19 the regular benefits available to him with respect to his 20 current benefit year that includes such week, under this 21 Act and under any other State unemployment compensation 22 law, after a cancellation of some or all of his wage 23 credits or the partial or total reduction of his regular 24 benefit rights; or (c) his benefit year terminated, and 25 he cannot meet the qualifying wage requirements of 26 Section 500E of this Act or the qualifying wage or 27 employment requirements of any other State unemployment 28 compensation law to establish a new benefit year which 29 would include such week or, having established a new 30 benefit year that includes such week, he is ineligible 31 for regular benefits by reason of Section 607 of this Act 32 or a like provision of any other State unemployment 33 compensation law; and 34 2. For such week (a) he has no right to benefits or -6- LRB093 09060 WGH 09292 b 1 allowances, as the case may be, under the Railroad 2 Unemployment Insurance Act, or such other Federal laws as 3 are specified in regulations of the United States 4 Secretary of Labor or other appropriate Federal agency; 5 and (b) he has not received and is not seeking benefits 6 under the unemployment compensation law of Canada, except 7 that if he is seeking such benefits and the appropriate 8 agency finally determines that he is not entitled to 9 benefits under such law, this clause shall not apply. 10 3. For the purposes of clauses (a) and (b) of 11 paragraph 1 of this subsection, an individual shall be 12 deemed to have received, with respect to his current 13 benefit year, the maximum total amount of benefits to 14 which he was entitled or all of the regular benefits to 15 which he had entitlement, or all of the regular benefits 16 available to him, as the case may be, even though (a) as 17 a result of a pending reconsideration or appeal with 18 respect to the "finding" defined in Section 701, or of a 19 pending appeal with respect to wages or employment or 20 both under any other State unemployment compensation law, 21 he may subsequently be determined to be entitled to more 22 regular benefits; or (b) by reason of a seasonality 23 provision in a State unemployment compensation law which 24 establishes the weeks of the year for which regular 25 benefits may be paid to individuals on the basis of wages 26 in seasonal employment he may be entitled to regular 27 benefits for future weeks but such benefits are not 28 payable with respect to the week for which he is claiming 29 extended benefits, provided that he is otherwise an 30 exhaustee under the provisions of this subsection with 31 respect to his rights to regular benefits, under such 32 seasonality provision, during the portion of the year in 33 which that week occurs; or (c) having established a 34 benefit year, no regular benefits are payable to him with -7- LRB093 09060 WGH 09292 b 1 respect to such year because his wage credits were 2 cancelled or his rights to regular benefits were totally 3 reduced by reason of the application of a 4 disqualification provision of a State unemployment 5 compensation law. 6 D. 1. The provisions of Section 607 and the waiting 7 period requirements of Section 500D shall not be 8 applicable to any week with respect to which benefits are 9 otherwise payable under this Section. 10 2. An individual shall not cease to be an exhaustee 11 with respect to any week solely because he meets the 12 qualifying wage requirements of Section 500E for a part 13 of such week. 14 3. For the purposes of this Section, the "base 15 period" referred to in Sections 601 and 602 shall be the 16 base period with respect to the benefit year in which the 17 individual's eligibility period begins. 18 E. With respect to any week which begins in his 19 eligibility period, an exhaustee's "weekly extended benefit 20 amount" shall be the same as his weekly benefit amount during 21 his benefit year which includes such week or, if such week is 22 not in a benefit year, during his applicable benefit year, as 23 defined in regulations issued by the United States Secretary 24 of Labor or other appropriate Federal agency. If the 25 exhaustee had more than one weekly benefit amount during his 26 benefit year, his weekly extended benefit amount with respect 27 to such week shall be the latest of such weekly benefit 28 amounts. 29 F. An eligible exhaustee shall be entitled, during any 30 eligibility period, to a maximum total amount of extended 31 benefits equal to the lesser of the following amounts: 32 1. Fifty percent of the maximum total amount of 33 benefits to which he was entitled under Section 403B 34 during his applicable benefit year; or -8- LRB093 09060 WGH 09292 b 1 2. Thirteen times his weekly extended benefit 2 amount as determined under subsection E. 3 2.1. Effective with respect to weeks beginning in a 4 high unemployment period, this subsection F shall be 5 applied by substituting "eighty" for "fifty" in paragraph 6 1 and "twenty" for "thirteen" in paragraph 2. For 7 purposes of this paragraph, the term "high unemployment 8 period" means any period during which an extended benefit 9 period would be in effect if paragraph 2 of subsection A 10 were applied by substituting "8%" for "6.5%". 11 3. Notwithstanding subparagraphs 1,and2, and 2.1 12 of this subsection F, and if the benefit year of an 13 individual ends within an extended benefit period, the 14 remaining balance of extended benefits that the 15 individual would, but for this subsection F, be otherwise 16 entitled to receive in that extended benefit period, for 17 weeks of unemployment beginning after the end of the 18 benefit year, shall be reduced (but not below zero) by 19 the product of the number of weeks for which the 20 individual received any amounts as trade readjustment 21 allowances as defined in the federal Trade Act of 1974 22 within that benefit year multiplied by his weekly benefit 23 amount for extended benefits. 24 G. 1. A claims adjudicator shall examine the first claim 25 filed by an individual with respect to his eligibility 26 period and, on the basis of the information in his 27 possession, shall make an "extended benefits finding". 28 Such finding shall state whether or not the individual 29 has met the requirement of subsection B(1), is an 30 exhaustee and, if he is, his weekly extended benefit 31 amount and the maximum total amount of extended benefits 32 to which he is entitled. The claims adjudicator shall 33 promptly notify the individual of his "extended benefits 34 finding", and shall promptly notify the individual's most -9- LRB093 09060 WGH 09292 b 1 recent employing unit, with respect to benefit years 2 beginning on or after July 1, 1989 and the individual's 3 last employer (referred to in Section 1502.1) that the 4 individual has filed a claim for extended benefits. The 5 claims adjudicator may reconsider his "extended benefits 6 finding" at any time within one year after the close of 7 the individual's eligibility period, and shall promptly 8 notify the individual of such reconsidered finding. All 9 of the provisions of this Act applicable to reviews from 10 findings or reconsidered findings made pursuant to 11 Sections 701 and 703 which are not inconsistent with the 12 provisions of this subsection shall be applicable to 13 reviews from extended benefits findings and reconsidered 14 extended benefits findings. 15 2. If, pursuant to the reconsideration or appeal 16 with respect to a "finding", referred to in paragraph 3 17 of subsection C, an exhaustee is found to be entitled to 18 more regular benefits and, by reason thereof, is entitled 19 to more extended benefits, the claims adjudicator shall 20 make a reconsidered extended benefits finding and shall 21 promptly notify the exhaustee thereof. 22 H. Whenever an extended benefit period is to begin in 23 this State because there is a State "on" indicator, or 24 whenever an extended benefit period is to end in this State 25 because there is a State "off" indicator, the Director shall 26 make an appropriate public announcement. 27 I. Computations required by the provisions of paragraph 28 6 of subsection A shall be made by the Director in accordance 29 with regulations prescribed by the United States Secretary of 30 Labor, or other appropriate Federal agency. 31 J. 1. Interstate Benefit Payment Plan means the plan 32 approved by the Interstate Conference of Employment 33 Security Agencies under which benefits shall be payable 34 to unemployed individuals absent from the state (or -10- LRB093 09060 WGH 09292 b 1 states) in which benefit credits have been accumulated. 2 2. An individual who commutes from his state of 3 residence to work in another state and continues to 4 reside in such state of residence while filing his claim 5 for unemployment insurance under this Section of the Act 6 shall not be considered filing a claim under the 7 Interstate Benefit Payment Plan so long as he files his 8 claim in and continues to report to the employment office 9 under the regulations applicable to intrastate claimants 10 in the state in which he was so employed. 11 3. "State" when used in this subsection includes 12 States of the United States of America, the District of 13 Columbia, Puerto Rico and the Virgin Islands. For 14 purposes of this subsection, the term "state" shall also 15 be construed to include Canada. 16 4. Notwithstanding any other provision of this Act, 17 effective with weeks beginning on or after June 1, 1981 18 an individual shall be eligible for a maximum of 2 weeks 19 of benefits payable under this Section after he files his 20 initial claim for extended benefits in an extended 21 benefit period, as defined in paragraph 1 of subsection 22 A, under the Interstate Benefit Payment Plan unless there 23 also exists an extended benefit period, as defined in 24 paragraph 1 of subsection A, in the state where such 25 claim is filed. Such maximum eligibility shall continue 26 as long as the individual continues to file his claim 27 under the Interstate Benefit Payment Plan, 28 notwithstanding that the individual moves to another 29 state where an extended benefit period exists and files 30 for weeks prior to his initial Interstate claim in that 31 state. 32 5. To assure full tax credit to the employers of 33 this state against the tax imposed by the Federal 34 Unemployment Tax Act, the Director shall take any action -11- LRB093 09060 WGH 09292 b 1 or issue any regulations necessary in the administration 2 of this subsection to insure that its provisions are so 3 interpreted and applied as to meet the requirements of 4 such Federal Act as interpreted by the United States 5 Secretary of Labor or other appropriate Federal agency. 6 K. 1. Notwithstanding any other provisions of this Act, 7 an individual shall be ineligible for the payment of 8 extended benefits for any week of unemployment in his 9 eligibility period if the Director finds that during such 10 period: 11 a. he failed to accept any offer of suitable 12 work (as defined in paragraph 3 below) or failed to 13 apply for any suitable work to which he was referred 14 by the Director; or 15 b. he failed to actively engage in seeking 16 work as prescribed under paragraph 5 below. 17 2. Any individual who has been found ineligible for 18 extended benefits by reason of the provisions of 19 paragraph 1 of this subsection shall be denied benefits 20 beginning with the first day of the week in which such 21 failure has occurred and until he has been employed in 22 each of 4 subsequent weeks (whether or not consecutive) 23 and has earned remuneration equal to at least 4 times his 24 weekly benefit amount. 25 3. For purposes of this subsection only, the term 26 "suitable work" means, with respect to any individual, 27 any work which is within such individual's capabilities, 28 provided, however, that the gross average weekly 29 remuneration payable for the work must exceed the sum of: 30 a. the individual's extended weekly benefit 31 amount as determined under subsection E above plus 32 b. the amount, if any, of supplemental 33 unemployment benefits (as defined in Section 34 501(c)(17)(D) of the Internal Revenue Code of 1954) -12- LRB093 09060 WGH 09292 b 1 payable to such individual for such week; and 2 further, 3 c. pays wages not less than the higher of -- 4 (i) the minimum wage provided by Section 5 6 (a)(1) of the Fair Labor Standards Act of 6 1938, without regard to any exemption; or 7 (ii) the applicable state or local 8 minimum wage; 9 d. provided, however, that no individual shall 10 be denied extended benefits for failure to accept an 11 offer of or apply for any job which meets the 12 definition of suitability as described above if: 13 (i) the position was not offered to such 14 individual in writing or was not listed with 15 the employment service; 16 (ii) such failure could not result in a 17 denial of benefits under the definition of 18 suitable work for regular benefits claimants in 19 Section 603 to the extent that the criteria of 20 suitability in that Section are not 21 inconsistent with the provisions of this 22 paragraph 3; 23 (iii) the individual furnishes 24 satisfactory evidence to the Director that his 25 prospects for obtaining work in his customary 26 occupation within a reasonably short period are 27 good. If such evidence is deemed satisfactory 28 for this purpose, the determination of whether 29 any work is suitable with respect to such 30 individual shall be made in accordance with the 31 definition of suitable work for regular 32 benefits in Section 603 without regard to the 33 definition specified by this paragraph. 34 4. Notwithstanding the provisions of paragraph 3 to -13- LRB093 09060 WGH 09292 b 1 the contrary, no work shall be deemed to be suitable work 2 for an individual which does not accord with the labor 3 standard provisions required by Section 3304(a)(5) of the 4 Internal Revenue Code of 1954 and set forth herein under 5 Section 603 of this Act. 6 5. For the purposes of subparagraph b of paragraph 7 1, an individual shall be treated as actively engaged in 8 seeking work during any week if -- 9 a. the individual has engaged in a systematic 10 and sustained effort to obtain work during such 11 week, and 12 b. the individual furnishes tangible evidence 13 that he has engaged in such effort during such week. 14 6. The employment service shall refer any 15 individual entitled to extended benefits under this Act 16 to any suitable work which meets the criteria prescribed 17 in paragraph 3. 18 7. Notwithstanding any other provision of this Act, 19 an individual shall not be eligible to receive extended 20 benefits, otherwise payable under this Section, with 21 respect to any week of unemployment in his eligibility 22 period if such individual has been held ineligible for 23 benefits under the provisions of Sections 601, 602 or 603 24 of this Act until such individual had requalified for 25 such benefits by returning to employment and satisfying 26 the monetary requalification provision by earning at 27 least his weekly benefit amount. 28 8. This subsection shall be effective for weeks 29 beginning on or after March 31, 1981, and before March 7, 30 1993, and for weeks beginning on or after January 1, 31 1995. 32 L. Notwithstanding any other provision of this Act to 33 the contrary, the Governor may require, by Executive Order, 34 that an individual who would otherwise be eligible for -14- LRB093 09060 WGH 09292 b 1 benefits under this Section exhaust all entitlement to 2 benefits for which he or she is eligible under the federal 3 Temporary Unemployment Compensation Act of 2002 or any 4 similar federal law prior to receiving any benefits for which 5 he or she might otherwise be eligible under this Section. 6 M. If, pursuant to subdivision 2(b) of subsection A of 7 this Section, there is an "on" indicator for the week in 8 which this amendatory Act of the 93rd General Assembly takes 9 effect, this Section shall be applied as though that week is 10 the first week for which there is an "on" indicator pursuant 11 to subdivision 2(b) of subsection A of this Section. 12 (Source: P.A. 86-3; 87-1266.) 13 Section 99. Effective date. This Act takes effect upon 14 becoming law.