HB1567 94TH GENERAL ASSEMBLY

LRB094 08476 WGH 38682 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB1567

Introduced 2/14/2005, by Rep. Kevin A. McCarthy

SYNOPSIS AS INTRODUCED:

New Act

Creates the Employment Termination Notice Act. Provides that an employer who employs 12 or more employees in Illinois must give a terminated employee, who has been employed by the employer for at least one year, a written termination notice of at least one week or, at the employer's option, termination pay in an amount equal to the wages the employee would have earned if the employee had worked his or her regular hours of work for one week. Excludes voluntary leaving and termination for cause. Provides that termination pay shall be in addition to any other payments that the employee may owe to the terminated employee. Provides that the Director of Labor shall administer and enforce the Act and may adopt rules necessary to administer and enforce the Act. Provides for hearings, relief, and civil penalties. Provides that a willful violation of the Act is a petty offense.

FISCAL NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

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 Employment Termination Notice Act.

Section 5. Definitions. As used in this Act:

"Employee" means a person who has been employed by an employer on a full-time or part-time basis for at least one year. "Employee" does not include an independent contractor.

"Employer" means a person, entity, State officer or agency, unit of local government, or school district that employs 12 or more employees in Illinois.

"Termination" means the dismissal of an employee by an employer or a layoff of an employee by an employer for more than 2 consecutive months; however, "termination" does not include (i) the voluntary leaving of an employee or (ii) termination for cause.

"Cause" means a reasonable basis related to an individual employee for termination of the employee's employment in view of relevant factors and circumstances, which may include the employee's duties, responsibilities, conduct on the job or otherwise, job performance, and employment record.

Section 10. Notice. An employer who terminates an employee must give the employee written termination notice of at least one week. Instead of giving a termination notice, an employer may pay an employee termination pay in an amount equal to the wages the employee would have earned if the employee had worked his or her regular hours of work for one week. Termination pay shall be in addition to any other payments that the employee may owe to the terminated employee. Termination pay must be paid within 14 days after the termination.

Section 15. Rights not diminished. This Act may not be construed to diminish an employee's right to termination notice or termination pay that may exist under any other law or rule or under a contract.

Section 20. Administration; violations; enforcement.

(a) The Director of Labor shall administer and enforce this Act. The Director may adopt rules necessary to administer and enforce this Act.

(b) If an employee alleges that he or she has been denied his or her rights under this Act, the employee may file a complaint with the Department of Labor. The Department shall have the power to conduct investigations in connection with the administration and enforcement of this Act. The Department may conduct hearings in accordance with the Illinois Administrative Procedure Act. After a hearing, if supported by the evidence, the Department may (i) issue and cause to be served on any party an order to cease and desist from further violation of the Act, (ii) take affirmative or other action as deemed reasonable to eliminate the effect of the violation, (iii) award, to an employee who received neither termination notice nor termination pay in accordance with Section 10, an amount equal to the termination pay that would have been payable under Section 10 had the employer elected to pay the employer termination pay under Section 10, and (iv) impose a civil penalty not to exceed $500 for each violation. The Director of Labor or his or her representative may compel, by subpoena, the attendance and testimony of witnesses and the production of records and other evidence in any investigation or hearing and may administer oaths to witnesses. Any party to a proceeding under this Act may apply for and obtain judicial review of an order of the Department entered under this Act in accordance with the Administrative Review Law, and the Department in proceedings under the Act may obtain an order from the court for the enforcement of its order.

(c) A willful violation of this Act is a petty offense.

Section 25. Applicability. This Act applies to terminations occurring on or after its effective date.