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Full Text of SB1323  99th General Assembly

SB1323 99TH GENERAL ASSEMBLY

  
  

 


 
99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB1323

 

Introduced 2/18/2015, by Sen. Kyle McCarter

 

SYNOPSIS AS INTRODUCED:
 
820 ILCS 405/610  from Ch. 48, par. 440
820 ILCS 405/611  from Ch. 48, par. 441

    Amends the Unemployment Insurance Act. Provides that payments made pursuant to a collective bargaining agreement to an individual as vacation pay, vacation pay allowance, pay in lieu of vacation, or as standby pay during a period of shutdown for the taking of inventory or for vacation purposes shall be deemed "wages". Makes changes concerning what constitutes "disqualifying income".


LRB099 07988 JLS 28128 b

 

 

A BILL FOR

 

SB1323LRB099 07988 JLS 28128 b

1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Unemployment Insurance Act is amended by
5changing Sections 610 and 611 as follows:
 
6    (820 ILCS 405/610)  (from Ch. 48, par. 440)
7    Sec. 610. Vacation pay. A. Whenever an employer has
8announced a period of shutdown for the taking of inventory or
9for vacation purposes, or both, and (1) at the time of or
10during such shutdown makes a payment or becomes obligated or
11holds himself ready to make such payment to an individual as
12vacation pay, or as vacation pay allowance, or as pay in lieu
13of vacation, or as standby pay, or (2) has, pursuant to a
14collective bargaining agreement, made a payment to an
15individual as vacation pay, vacation pay allowance, pay in lieu
16of vacation, or as standby pay with respect to a period, such
17sum shall be deemed "wages" as defined in Section 234, and
18shall be treated as provided in subsection C of this Section.
19    B. Whenever in connection with any separation or layoff of
20an individual, his employer makes a payment or payments to him,
21or becomes obligated and holds himself ready to make such
22payment to him as, or in the nature of, vacation pay, or
23vacation pay allowance, or as pay in lieu of vacation, and

 

 

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1within 10 calendar days after notification of the filing of his
2claim, designates (by notice to the Director) the period to
3which such payment shall be allocated (provided, that if such
4designated period is extended by the employer, he may again
5similarly designate an extended period, by giving notice
6thereof not later than the beginning of the extension of such
7period, with the same effect as if such period of extension
8were included in the original designation), the amount of any
9such payment, or obligation to make payment, shall be deemed
10"wages" as defined in Section 234, and shall be treated as
11provided in subsection C of this Section.
12    C. If the employer has not designated the period provided
13for in subsection B within the prescribed time limits, the
14wages referred to in subsection B shall not be attributed or be
15deemed payable to such individual with respect to any week
16after such separation or layoff. Of the wages described in
17subsection A (whether or not the employer has designated the
18period therein described), or of the wages described in
19subsection B if the period therein described has been
20designated by the employer as therein provided, a sum equal to
21such individual's wages for a normal work day shall be
22attributed to, or deemed to be payable to him with respect to,
23the first and each subsequent work day except paid holidays in
24such period until such amount so paid or owing is exhausted. If
25an employee is entitled to receive and receives holiday pay for
26any work day in such designated period, such pay shall be

 

 

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1deemed "wages" and the period herein designated shall be
2extended by such paid holiday. Any individual receiving or
3entitled to receive wages as provided in this Section shall be
4ineligible for benefits for any week in which the sums, so
5designated or attributed to such normal work days, equal or
6exceed his weekly benefit amount. If no amount is so paid or
7owing, or if in any week the amount so paid or owing is
8insufficient to attribute any sum as wages, or if the amount so
9designated or attributed as wages is less than such
10individual's weekly benefit amount, he shall be deemed
11"unemployed" as defined in Section 239.
12(Source: P.A. 81-1521.)
 
13    (820 ILCS 405/611)  (from Ch. 48, par. 441)
14    Sec. 611. Retirement, severance pay, and payments in lieu
15of wages.
16    A. For the purposes of this Section "disqualifying income"
17means:
18        1. the The entire amount which an individual has
19    received or will receive with respect to a week in the form
20    of a retirement payment (a) from an individual or
21    organization (i) for which he performed services during his
22    base period or which is liable for benefit charges or
23    payments in lieu of contributions as a result of the
24    payment of benefits to such individual and (ii) which pays
25    all of the cost of such retirement payment, or (b) from a

 

 

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1    trust, annuity or insurance fund or under an annuity or
2    insurance contract, to or under which an individual or
3    organization for which he performed services during his
4    base period or which is liable for benefit charges or
5    payments in lieu of contributions as a result of the
6    payment of benefits to such individual pays or has paid all
7    of the premiums or contributions; and
8        2. one-half One-half the amount which an individual has
9    received or will receive with respect to a week in the form
10    of a retirement payment (a) from an individual or
11    organization (i) for which he performed services during his
12    base period or which is liable for benefit charges or
13    payments in lieu of contributions as a result of the
14    payment of benefits to such individual and (ii) which pays
15    some, but not all, of the cost of such retirement payment,
16    or (b) from a trust, annuity or insurance fund (including
17    primary social security old age and disability retirement
18    benefits, including those based on self-employment) or
19    under an annuity or insurance contract, to or under which
20    an individual or organization for which he performed
21    services during his base period or which is liable for
22    benefit charges or payments in lieu of contributions as a
23    result of the payment of benefits to such individual pays
24    or has paid some, but not all, of the premiums or
25    contributions; and .
26        3. the entire amount which an individual has received

 

 

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1    or will receive with respect to a week in the form of a
2    severance payment or payment in lieu of wages from the
3    employing unit, unless the employing unit waives the
4    application of this subsection in writing. If payment is
5    made by lump sum by the employing unit, a sum equal to
6    one-fifth of such individual's weekly benefit amount shall
7    be attributed to, or deemed to be payable to him or her
8    with respect to, the first and each subsequent work day
9    following the individual's separation from the employing
10    unit and the date on which the payment is made until such
11    amount so paid is exhausted. Notwithstanding paragraph 1
12    and 2 above, the entire amount which an individual has
13    received or will receive, with respect to any week which
14    begins after March 31, 1980, of any governmental or other
15    pension, retirement, or retired pay, annuity or any other
16    similar periodic payment which is based on any previous
17    work of such individual during his base period or which is
18    liable for benefit charges or payments in lieu of
19    contributions as a result of the payment of benefits to
20    such individual. This paragraph shall be in effect only if
21    it is required as a condition for full tax credit against
22    the tax imposed by the Federal Unemployment Tax Act.
23    B. Whenever an individual has received or will receive a
24retirement payment for a month, an amount shall be deemed to
25have been paid him for each day equal to one-thirtieth of such
26retirement payment. If the retirement payment is for a

 

 

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1half-month, an amount shall be deemed to have been paid the
2individual for each day equal to one-fifteenth of such
3retirement payment. If the retirement payment is for any other
4period, an amount shall be deemed to have been paid the
5individual for each day in such period equal to the retirement
6payment divided by the number of days in the period.
7    C. An individual shall be ineligible for benefits for any
8week with respect to which his disqualifying income equals or
9exceeds his weekly benefit amount. If such disqualifying income
10with respect to a week totals less than the benefits for which
11he would otherwise be eligible under this Act, he shall be
12paid, with respect to such week, benefits reduced by the amount
13of such disqualifying income.
14    D. To assure full tax credit to the employers of this State
15against the tax imposed by the Federal Unemployment Tax Act,
16the Director shall take any action as may be necessary in the
17administration of paragraph 3 of subsection A of this Section
18to insure that the application of its provisions conform to the
19requirements of such Federal Act as interpreted by the United
20States Secretary of Labor or other appropriate Federal agency.
21(Source: P.A. 86-3.)