18 May 2020 Illinois urged to implement state UI law providing for a state workshare program by issuing the necessary regulations Illinois state unemployment insurance (UI) law (820 ILCS 405/502) allows the Illinois Department of Employment Security (IDES) to implement a state short-time compensation (STC) program (also referred to as workshare) through state regulations. The law was enacted in late 2014 (SB 3530) to take advantage of federal grants available under the Middle Class Tax Relief and Job Creation Act of 2012. However, the implementing regulations were never issued and the state's STC program remains inactive to this date. A recent white paper released by the Illinois Economic Policy Institute urges the state to implement the STC program in consideration of the economic impact COVID-19. The sponsor of SB 3530, Senator Stadelman, is also urging Illinois Governor Pritzker to direct his Administration to implement the program. The Coronavirus Aid, Relief and Economic Security (CARES) Act of 2020 provides temporary 100% federal financing of UI benefits through December 31, 2020, when paid under a preexisting state STC program that complies with section §3306(v) of the Federal Unemployment Tax Act (FUTA), as amended by the CARES Act. States without a preexisting STC program in their laws may enter into an agreement with the U.S. Department of Labor (DOL) to operate a temporary federal STC program, for which the states will receive federal reimbursement equaling one half of the UI benefit costs through December 31, 2020. The CARES Act also provides $100 million in grants to support states in implementing and administering STC programs and enrolling employers, including conducting outreach to employers to promote the use of STC. The DOL will provide assistance and guidance to states implementing STC programs. States must request these grants before December 31, 2023. A recent white paper released by the Illinois Economic Policy Institute urges the IDES to implement the STC program to address the economic impact COVID-19 on the state. The sponsor of the 2014 legislation who added the STC program to the state's UI law, Illinois Senator Stadelman, is also urging Illinois Governor Pritzker Administration to get the needed rules written to implement the program. According to the senator's April 21, 2020, weekly news bulletin: "At a Thursday news conference, Gov. JB Pritzker said he supports the work-share program. Stadelman is now urging the Pritzker administration to write the rules needed for work-share to go into full effect." We have been corresponding with Senator Stadelman's office in connection with this matter. According to a representative of the senator's office, IDES resource constraints due to COVID-19 are holding up movement on the implementing regulations. IDES was unavailable for comment.
Document ID: 2020-1322 | |||||||||||
