Quiet Year in Illinois for UI Issues
We enter what many hope is the last week of the legislative session in Illinois. Adjournment is scheduled for this coming Friday, May 19th. The focus this week will be passing a budget for the 2024 fiscal year that begins July 1, 2023. The Governor and the legislature will be sorting through the multitude of spending requests and a declining outlook for revenues in an unstable economy.
After last year's long and delicate negotiations on Illinois' unemployment insurance system that resulted in an agreed to bill signed by Gov. Pritzker as PA 102-1105, the General Assembly has sent to the Governor for his consideration HB 3301.
New Hire Directory to Include Independent Contractors: HB 3301 adds to the definition of "employee": "an individual under an independent contractor arrangement". The change is being made to Section 1801.1. Directory of New Hires under the Unemployment Insurance Act. Section 1801.1 requires employers to file with the Illinois Department of Employment Secuity (IDES) a report within 20 days after the date the employer hires a new employee or, in the case of an employer transmitting reports magnetically or electronically, by 2 monthly transmissions not less than 12 days nor more than 16 days apart.
Likely to be signed by the Governor, it has a January 1, 2024 effective date. More information on the new hire reporting requirements can be found at the IDES website: New Hire Reporting (illinois.gov)
Child Support Pilot Program: Pending agreement by the House to a Senate Amendment, HB 3699 requires IDES, in collaboration with the Department of Healthcare and Family Services and the Department of Central Management Services, to implement a pilot program that seeks to connect parents in arrearage on child support obligations with work opportunities. The work opportunities provided to program participants shall include opportunities offered by employers located in the State of Illinois including, but not limited to, State employment. The pilot program ends on June 30, 2025. No later than 60 days after the end of the pilot program, the IDES is to provide a report on the pilot program to the General Assembly. It is effective January 1, 2024.
Illinois Chamber Joins Call for Federal Legislation to Combat UI Fraud
In a letter to congressional leadership earlier this month, the Illinois Chamber joined with other business organizations from around the country urging passage of the Protecting Taxpayers and Victims of Unemployment Fraud Act (HR 1163). The legislation was developed through the House Committee on Ways and Means after review of best UI integrity practices and reports from the Government Accountability Office (GAO) and the US Department of Labor Office of Inspector General (OIG). Key provisions in the bill include:
- Incentivizes states to recover fraudulent unemployment payments by allowing states to retain 25 percent of fraudulent federal funds recovered: Currently, state workforce agencies have little incentive to pursue costly investigations and prosecutions.
- Allow states to retain 5 percent of state UI overpayments recovered, upon meeting data matching integrity conditions, and dedicating such funds to preventing future fraud – reforms supported by DOL-IG, and in past budget requests by President Trump and President Obama.
- Improves program integrity and prevents future fraud by allowing states to use funds recovered to improve UI program integrity and fraud prevention:
- Hiring investigators and prosecutors to go after criminals to recover fraud payments;
- Modernizing state systems’ ability to verify identity and income in unemployment administration;
- Additional program integrity activities as determined by the state to deter, detect, and prevent improper payments;
- Ensures UI claims are verified against the National Directory of New Hires (NDNH) and the State Information Data Exchange System;
- Stops UI payments to incarcerated and deceased people.
- Extends the statute of limitations for civil actions and criminal charges prosecuting fraud from 5 to 10 years, as recommended by the Pandemic Response Accountability Committee in testimony provided to the Ways and Means Committee.
The legislation provides additional UI integrity tools and the availability of a source of long-term dedicated funding for states to address UI fraud and overpayment recovery.
The House Ways and Means Committee provided a detailed explanation of the provisions in the bill and the need for legislation to address identity theft, fraud ring prosecutions and recovery in its report at CRPT-118hrpt34.pdf (congress.gov)
The bill is approved for consideration after a vote of the full House.
Upcoming Chamber Event
Women in Business Conference
June 21, 2023
8:30 am – 2:30 pm
NIU Center | 1120 E. Diehl Road Naperville, IL 60563
The Illinois Chamber welcomes you to our women's conference as we come together to discuss and further dreams of our already strong women for a stronger Illinois. This year's theme is "Celebrate Success." The robust agenda will provide time for networking and connecting with professionals, and topics providing takeaways for all to take back to the office or home. Sponsorships now available, more information here.
