The Unemployment Insurance Act (“Act”) requires all Illinois employers to file a report with the Illinois Department of Employment Security (“IDES”) containing certain information about “newly hired employees.” The definition of “newly hired employees” was amended by Public Act 103-0343, signed into law by Governor Pritzker on July 28, 2023.
Newly Hired Employees Defined
As of January 1, 2024, all Illinois employers must report both employees and independent contractors who (i) have not previously been employed by the employer or (ii) who were previously employed by the employer but have separated from that prior employment for at least 60 consecutive days. 820 ILCS 405/1801.1(D).
Penalties
If an employer knowingly fails to report “newly hired employees,” including self-employed independent contractors, the Act imposes a civil penalty of $15.00 for each employee that the employer fails to report to the IDES. Further, the Act makes it a Class B misdemeanor and imposes a fine of $500.00 per employee for any employer that knowingly conspires with a newly hired employee to cause an employer to fail to report or file a false or incomplete report regarding required information for the newly hired employee under the Act.
For more information about this article, please contact Tressler attorney Jey Claudio at jclaudio@tresslerllp.com.