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Illinois General Assembly· HB 3200Governor Approved

UNEMPLOYMENT INS-RECOVERY, the official text

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HB3200 Enrolled                     LRB104 11263 SPS 21347 b

1   AN ACT concerning employment.

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 Sections 601, 900, 901, 2206.1, and 2404 and by

6 adding Section 901.2 as follows:

7   (820 ILCS 405/601) (from Ch. 48, par. 431)

8   Sec. 601. Voluntary leaving.

9   A. An individual shall be ineligible for benefits for the

10 week in which the individual he or she has left work

11 voluntarily without good cause attributable to the employing

12 unit and, thereafter, until the individual he or she has

13 become reemployed and has had earnings equal to or in excess of

14 the individual's his or her current weekly benefit amount in

15 each of four calendar weeks which are either for services in

16 employment, or have been or will be reported pursuant to the

17 provisions of the Federal Insurance Contributions Act by each

18 employing unit for which such services are performed and which

19 submits a statement certifying to that fact.

20  B. The provisions of this Section shall not apply to an

21 individual who has left work voluntarily:

22  1. Because the individual, prior to voluntarily

23  leaving: he or she
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1   (a) is deemed physically unable to perform the

2   individual's his or her work by a licensed and

3   practicing physician, licensed and practicing nurse

4   practitioner, or licensed and practicing physician

5   assistant and the employer is unable to accommodate

6   the individual; , or

7   (b) for claims dated December 28, 2025 through

8   December 24, 2028, is deemed to be unable to perform

9   the individual's work due to a mental health

10  disability by a licensed and practicing psychiatrist

11  and the employer is unable to accommodate the

12  individual; or

13  (c) is providing necessary because the

14  individual's assistance to care is necessary for the

15  purpose of caring for the individual's his or her

16  spouse, child, or parent who, according to a licensed

17  and practicing physician or as otherwise reasonably

18  verified, is in poor physical or mental health or is a

19  person with a mental or physical disability and the

20  employer is unable to accommodate the individual's

21  need to provide such assistance;

22  2. To accept other bona fide work and, after such

23  acceptance, the individual is either not unemployed in

24  each of 2 weeks, or earns remuneration for such work equal

25  to at least twice the individual's his or her current

26  weekly benefit amount;
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1   3. In lieu of accepting a transfer to other work

2   offered to the individual by the employing unit under the

3   terms of a collective bargaining agreement or pursuant to

4   an established employer plan, program, or policy, if the

5   acceptance of such other work by the individual would

6   require the separation from that work of another

7   individual currently performing it;

8   4. Solely because of the sexual harassment of the

9   individual by another employee. Sexual harassment means

10  (1) unwelcome sexual advances, requests for sexual favors,

11  sexually motivated physical contact or other conduct or

12  communication which is made a term or condition of the

13  employment or (2) the employee's submission to or

14  rejection of such conduct or communication which is the

15  basis for decisions affecting employment, or (3) when such

16  conduct or communication has the purpose or effect of

17  substantially interfering with an individual's work

18  performance or creating an intimidating, hostile, or

19  offensive working environment and the employer knows or

20  should know of the existence of the harassment and fails

21  to take timely and appropriate action;

22  5. Which the individual he or she had accepted after

23  separation from other work, and the work which the

24  individual he or she left voluntarily would be deemed

25  unsuitable under the provisions of Section 603;

26  6.(a) Because the individual left work due to verified
    HB3200 Enrolled  -4-  LRB104 11263 SPS 21347 b

1   domestic violence as defined in Section 103 of the

2   Illinois Domestic Violence Act of 1986 where the domestic

3   violence caused the individual to reasonably believe that

4   the individual's his or her continued employment would

5   jeopardize the individual's his or her safety or the

6   safety of the individual's his or her spouse, minor child,

7   or parent

8   if the individual provides the following:

9   (i) notice to the employing unit of the reason for

10  the individual's voluntarily leaving; and

11  (ii) to the Department provides:

12                   (A) an order of protection or other

13  documentation of equitable relief issued by a

14  court of competent jurisdiction; or

15                   (B) a police report or criminal charges

16  documenting the domestic violence; or

17                   (C) medical documentation of the domestic

18  violence; or

19                   (D) evidence of domestic violence from a

20  member of the clergy, attorney, counselor, social

21  worker, health worker or domestic violence shelter

22  worker.

23  (b) If the individual does not meet the provisions of

24  subparagraph (a), the individual shall be held to have

25  voluntarily terminated employment for the purpose of

26  determining the individual's eligibility for benefits
    HB3200 Enrolled  -5-       LRB104 11263 SPS 21347 b

1   pursuant to subsection A.

2   (c) Notwithstanding any other provision to the

3   contrary, evidence of domestic violence experienced by an

4   individual, or the individual's his or her spouse, minor

5   child, or parent, including the individual's statement and

6   corroborating evidence, shall not be disclosed by the

7   Department unless consent for disclosure is given by the

8   individual.

9   7. Because, due to a change in location of employment

10  of the individual's spouse, the individual left work to

11  accompany the individual's his or her spouse to a place

12  from which it is impractical to commute or because the

13  individual left employment to accompany a spouse who has

14  been reassigned from one military assignment to another.

15  The employer's account, however, shall not be charged for

16  any benefits paid out to the individual who leaves work

17  under a circumstance described in this paragraph.

18  C. Within 90 days of the effective date of this amendatory

19 Act of the 96th General Assembly, the Department shall

20 promulgate rules, pursuant to the Illinois Administrative

21 Procedure Act and consistent with Section 903(f)(3)(B) of the

22 Social Security Act, to clarify and provide guidance regarding

23 eligibility and the prevention of fraud.

24  D. On or before January 1, 2030, the Department shall file

25 a report with the General Assembly setting forth the estimated

26 fiscal impact of subparagraph (b) of paragraph 1 of subsection
    HB3200 Enrolled  -6-  LRB104 11263 SPS 21347 b

1 B of Section 601 on the Unemployment Insurance Trust Fund.
2 (Source: P.A. 99-143, eff. 7-27-15.)

3   (820 ILCS 405/900) (from Ch. 48, par. 490)

4   Sec. 900. Recoupment and recovery.)

5   A. Whenever an individual has received any sum as benefits

6 for which he or she is found to have been ineligible, the

7 individual must be provided written notice of the individual's

8 his or her appeal rights, including the ability to request

9 waiver of any recoupment ordered and the standard for such

10 waiver to be granted. Thereafter, the amount thereof may be

11 recovered by suit in the name of the People of the State of

12 Illinois, or, from benefits payable to the individual him, may

13 be recouped:

14  1. At any time, if, to receive such sum, the

15  individual he knowingly made a false statement or

16  knowingly failed to disclose a material fact.

17  2. Within 3 years from any date prior to January 1,

18  1984, on which the individual he has been found to have

19  been ineligible for any other reason, pursuant to a

20  reconsidered finding or a reconsidered determination, or

21  pursuant to the decision of a Referee (or of the Director

22  or Director's his representative under Section 604) which

23  modifies or sets aside a finding or a reconsidered finding

24  or a determination or a reconsidered determination; or

25  within 5 years from any date after December 31, 1983, on
    HB3200 Enrolled  -7-        LRB104 11263 SPS 21347 b

1   which the individual he has been found to have been

2   ineligible for any other reason, pursuant to a

3   reconsidered finding or a reconsidered determination, or

4   pursuant to the decision of a Referee (or of the Director

5   or Director's his representative under Section 604) which

6   modifies or sets aside a finding or a reconsidered finding

7   or a determination or a reconsidered determination.

8   Recoupment pursuant to the provisions of this paragraph

9   from benefits payable to an individual for any week may be

10  waived upon the individual's request, if the sum referred

11  to in paragraph A was received by the individual without

12  fault on the individual's his part and if such recoupment

13  would be against equity and good conscience. Such waiver

14  may be denied with respect to any subsequent week if, in

15  that week, the facts and circumstances upon which waiver

16  was based no longer exist.

17  Recovery by suit in the name of the People of the State of

18 Illinois, recoupment pursuant to paragraph 2 of this

19 subsection A from benefits payable to an individual for any

20 week, and, notwithstanding any provision to the contrary in

21 the Illinois State Collection Act of 1986, withholding

22 pursuant to subsection E shall be permanently waived if the

23 sum referred to in this subsection A was received by the

24 individual without fault on the individual's his or her part

25 and if such recoupment would be against equity and good

26 conscience, and the sum referred to in this subsection A was
    HB3200 Enrolled       -8-  LRB104 11263 SPS 21347 b

1 received by the individual on or after March 8, 2020, but prior

2 to the last day of a disaster period established by the

3 gubernatorial disaster proclamation in response to COVID-19,

4 dated March 9, 2020, and any consecutive gubernatorial

5 disaster proclamation in response to COVID-19. To be eligible

6 for permanent waiver under this paragraph, an individual must

7 request a waiver pursuant to this paragraph within 45 days of

8 the mailing date of the notice from the Department that the

9 individual may request a waiver. A determination under this

10 paragraph may be appealed to a Referee within the time limits

11 prescribed by Section 800 for an appeal from a determination.

12 Any such appeal, and any appeal from the Referee's decision

13 thereon, shall be governed by the applicable provisions of

14 Sections 801, 803, 804, and 805. This paragraph shall not

15 apply with respect to benefits that are received pursuant to

16 any program that the Department administers as an agent of the

17 federal government and for which the individual is found to

18 have been ineligible.

19  B. Whenever the claims adjudicator referred to in Section

20 702 decides that any sum received by a claimant as benefits

21 shall be recouped, or denies recoupment waiver requested by

22 the claimant, the Department he shall promptly notify the

23 claimant of the his decision and the reasons therefor. The

24 decision and the notice thereof shall state the amount to be

25 recouped, the weeks with respect to which such sum was

26 received by the claimant, and the time within which it may be
    HB3200 Enrolled  -9-                 LRB104 11263 SPS 21347 b

1 recouped and, as the case may be, the reasons for denial of

2 recoupment waiver. The claims adjudicator may reconsider the

3 his decision within one year after the date when the decision

4 was made. Such decision or reconsidered decision may be

5 appealed to a Referee within the time limits prescribed by

6 Section 800 for appeal from a determination. Any such appeal,

7 and any appeal from the Referee's decision thereon, shall be

8 governed by the applicable provisions of Sections 801, 803,

9 804 and 805. No recoupment shall be begun until the expiration

10 of the time limits prescribed by Section 800 of this Act or, if

11 an appeal has been filed, until the decision of a Referee has

12 been made thereon affirming the decision of the claims

13 adjudicator Claims Adjudicator.

14  C. Any sums recovered under the provisions of this Section

15 shall be treated as repayments to the Department of sums

16 improperly obtained by the claimant.

17  D. Whenever, by reason of a back pay award made by any

18 governmental agency or pursuant to arbitration proceedings, or

19 by reason of a payment of wages wrongfully withheld by an

20 employing unit, an individual has received wages for weeks

21 with respect to which the individual he has received benefits,

22 the amount of such benefits may be recouped or otherwise

23 recovered as herein provided. An employing unit making a back

24 pay award to an individual for weeks with respect to which the

25 individual has received benefits shall make the back pay award

26 by check payable jointly to the individual and to the
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1 Department.

2   E. The amount recouped pursuant to paragraph 2 of

3 subsection A from benefits payable to an individual for any

4 week shall not exceed 25% of the individual's weekly benefit

5 amount.

6   In addition to the remedies provided by this Section, when

7 an individual has received any sum as benefits for which the

8 individual he is found to be ineligible, the Director may

9 request the Comptroller to withhold such sum in accordance

10 with Section 10.05 of the State Comptroller Act and the

11 Director may request the Secretary of the Treasury to withhold

12 such sum to the extent allowed by and in accordance with

13 Section 6402(f) of the federal Internal Revenue Code of 1986,

14 as amended. Benefits paid pursuant to this Act shall not be

15 subject to such withholding. Where the Director requests

16 withholding by the Secretary of the Treasury pursuant to this

17 Section, in addition to the amount of benefits for which the

18 individual has been found ineligible, the individual shall be

19 liable for any legally authorized administrative fee assessed

20 by the Secretary, with such fee to be added to the amount to be

21 withheld by the Secretary.

22  F. The Director may cooperate with and enter into

23 agreements with the State Treasurer for the recovery of

24 unclaimed property held by the State Treasurer in the name of

25 an individual who received benefits for which the individual

26 was determined to be ineligible under this Act. The amount of
    HB3200 Enrolled  - 11 - LRB104 11263 SPS 21347 b

1 unclaimed property the Director is authorized to recover under
2 this subsection is limited to the amount of benefits an
3 individual received for which the individual was determined to
4 be ineligible and any penalties provided for in this Act and
5 rules adopted under this Act. Any funds recovered under this
6 subsection shall be returned to the fund from which they were
7 withdrawn.
8 (Source: P.A. 102-26, eff. 6-25-21.)

9   (820 ILCS 405/901) (from Ch. 48, par. 491)

10  Sec. 901. Fraud - Repayment - Ineligibility.

11  A. An individual who, for the purpose of obtaining

12 benefits, knowingly makes a false statement or knowingly fails

13 to disclose a material fact, and thereby obtains any sum as

14 benefits for which the individual he is not eligible:

15  1. A. Shall be required to repay such sum in cash, or

16  the amount thereof may be recovered or recouped pursuant

17  to the provisions of Section 900.

18  2. B. Shall be ineligible, except to the extent that

19  such benefits are subject to recoupment pursuant to this

20  Section, for benefits for the week in which the individual

21  he or she has been notified of the determination of the

22  claims adjudicator referred to in Section 702 that the

23  individual he or she has committed the offense described

24  in the first paragraph and, thereafter, for 6 weeks (with

25  respect to each of which the individual he or she would be
    HB3200 Enrolled  - 12 - LRB104 11263 SPS 21347 b

1   eligible for benefits but for the provisions of this

2   paragraph, not including weeks for which such benefits are

3   subject to recoupment pursuant to this Section) for the

4   first offense, and for 2 additional weeks (with respect to

5   each of which the individual he or she would be eligible

6   for benefits but for the provisions of this paragraph, not

7   including weeks for which such benefits are subject to

8   recoupment pursuant to this Section) for each subsequent

9   offense. For the purposes of this paragraph, a separate

10  offense shall be deemed to have been committed in each

11  week for which such an individual has received a sum as

12  benefits for which the individual he or she was not

13  eligible. No ineligibility under the provisions of this

14  paragraph shall accrue with respect to any week beginning

15  after whichever of the following occurs first: (1) 26

16  weeks (with respect to each of which the individual would

17  be eligible for benefits but for the provisions of this

18  paragraph, not including weeks for which such benefits are

19  subject to recoupment pursuant to this Section) have

20  elapsed since the date that the individual he or she is

21  notified of the determination of the claims adjudicator

22  referred to in Section 702 that the individual he or she

23  has committed the offense described in the first

24  paragraph, or (2) 2 years have elapsed since the date that

25  he or she is notified of the determination of the claims

26  adjudicator referred to in Section 702 that the individual
    HB3200 Enrolled           - 13 - LRB104 11263 SPS 21347 b

1   he or she has committed the offense described in the first

2   paragraph.

3   B. The amount of benefits that an individual received for

4 which the individual was determined to be ineligible due to

5 fraud, plus any penalties provided for by this Act and rules

6 adopted under this Act, may be recovered in any manner

7 provided for in Sections 2206, 2400, 2401, 2401.1, 2402, and

8 2403 for the recovery of past-due contributions, interest, and

9 penalties from employers, and those Sections of this Act shall

10 apply to an individual who received benefits for which the

11 individual was determined to be ineligible due to fraud.

12 (Source: P.A. 91-342, eff. 1-1-00.)

13  (820 ILCS 405/901.2 new)

14  Sec. 901.2. Return of debit card funds.

15  A. As allowed for under federal law, the Director is

16 authorized to directly request and accept the return of funds

17 from a debit card issuer for any debit card account that

18 received benefits, if there is no transfer of funds through

19 the benefits system to the debit card account during the

20 preceding 12 months and if the account has never been

21 activated.

22  B. As provided under federal law, the Director may

23 directly request and accept the return of funds from a debit

24 card issuer for any debit card account that received benefits

25 and was activated if no transaction has been conducted on the
    HB3200 Enrolled  - 14 - LRB104 11263 SPS 21347 b

1 account during the preceding 12 months and the individual

2 associated with the account received benefits for which the

3 individual was determined to be ineligible. The amount that

4 the Director is authorized to accept from the debit card

5 issuer under this subsection is limited to the amount of

6 benefits an individual received for which the individual was

7 determined to be ineligible and any penalties provided for in

8 this Act and rules adopted under this Act.

9   C. Any funds recovered under this Section shall be

10 returned to the fund from which they were withdrawn.

11  (820 ILCS 405/2206.1) (from Ch. 48, par. 686.1)

12  Sec. 2206.1. Additional recovery. In addition to the

13 remedies provided by this Act, when an employing unit defaults

14 in any payment or contribution required to be made to the State

15 under the provisions of this Act, the Director may:

16  1. Request request the Comptroller to withhold the

17  amount due in accordance with the provisions of Section

18  10.05 of the State Comptroller Act and the Director may

19  request the Secretary of the Treasury to withhold the

20  amount due to the extent allowed by and in accordance with

21  Section 6402(f) of the federal Internal Revenue Code of

22  1986, as amended. Where the Director requests withholding

23  by the Secretary of the Treasury pursuant to this Section,

24  in addition to the amount of the payment otherwise owed by

25  the employing unit, the employing unit shall be liable for
    HB3200 Enrolled        - 15 - LRB104 11263 SPS 21347 b

1   any legally authorized administrative fee assessed by the

2   Secretary, with such fee to be added to the amount to be

3   withheld by the Secretary.

4   2. Cooperate with and enter into agreements with the

5   State Treasurer for the recovery of unclaimed property

6   held by the State Treasurer in the name of an employer who

7   owes contributions, interest, or penalties under this Act.

8   The amount of unclaimed property the Director is

9   authorized to recover under this subsection is limited to

10  the amount of contributions, interest, penalties, and fees

11  owed by the employer.

12 (Source: P.A. 97-621, eff. 11-18-11.)

13  (820 ILCS 405/2404) (from Ch. 48, par. 724)

14  Sec. 2404. Court may enjoin delinquent employing unit. Any

15 employing unit which willfully refuses or fails to pay any

16 contribution, interest, or penalties found to be due to the

17 Director by the Director's his final determination and

18 assessment, or refuses or fails to file new hire reports or

19 reports of wages paid to the workforce as required by this Act,

20 after 30 days' written notice of intent to proceed under this

21 Section, sent by the Director to the employing unit at its last

22 known address by registered or certified mail, may be enjoined

23 from operating any business as an "employer", as defined in

24 this Act, anywhere in this State, while such contribution,

25 interest, or penalties remain unpaid, or while either new hire
HB3200 Enrolled  - 16 - LRB104 11263 SPS 21347 b

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