Bill Text: IL HB3301 | 2023-2024 | 103rd General Assembly | Chaptered

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Bill Title: Amends the Unemployment Insurance Act. In provisions concerning the directory of new hires, provides that the definition of "newly hired employee" includes an individual under an independent contractor arrangement. Effective January 1, 2024.

Spectrum: Partisan Bill (Democrat 21-1)

Status: (Passed) 2023-07-28 - Public Act . . . . . . . . . 103-0343 [HB3301 Detail]

Download: Illinois-2023-HB3301-Chaptered.html

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Public Act 103-0343
HB3301 Enrolled LRB103 29378 SPS 55767 b
AN ACT concerning child support enforcement.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Unemployment Insurance Act is amended by
changing Section 1801.1 as follows:
(820 ILCS 405/1801.1)
Sec. 1801.1. Directory of New Hires.
A. The Director shall establish and operate an automated
directory of newly hired employees which shall be known as the
"Illinois Directory of New Hires" which shall contain the
information required to be reported by employers to the
Department under subsection B. In the administration of the
Directory, the Director shall comply with any requirements
concerning the Employer New Hire Reporting Program established
by the federal Personal Responsibility and Work Opportunity
Reconciliation Act of 1996. The Director is authorized to use
the information contained in the Directory of New Hires to
administer any of the provisions of this Act.
B. Each employer in Illinois, except a department, agency,
or instrumentality of the United States, shall file with the
Department a report in accordance with rules adopted by the
Department (but in any event not later than 20 days after the
date the employer hires the employee or, in the case of an

employer transmitting reports magnetically or electronically,
by 2 monthly transmissions, if necessary, not less than 12
days nor more than 16 days apart) providing the following
information concerning each newly hired employee: the
employee's name, address, and social security number, the date
services for remuneration were first performed by the
employee, and the employer's name, address, Federal Employer
Identification Number assigned under Section 6109 of the
Internal Revenue Code of 1986, and such other information as
may be required by federal law or regulation, provided that
each employer may voluntarily file the address to which the
employer wants income withholding orders to be mailed, if it
is different from the address given on the Federal Employer
Identification Number. An employer in Illinois which transmits
its reports electronically or magnetically and which also has
employees in another state may report all newly hired
employees to a single designated state in which the employer
has employees if it has so notified the Secretary of the United
States Department of Health and Human Services in writing. An
employer may, at its option, submit information regarding any
rehired employee in the same manner as information is
submitted regarding a newly hired employee. Each report
required under this subsection shall, to the extent
practicable, be made on an Internal Revenue Service Form W-4
or, at the option of the employer, an equivalent form, and may
be transmitted by first class mail, by telefax, magnetically,

or electronically.
C. An employer which knowingly fails to comply with the
reporting requirements established by this Section shall be
subject to a civil penalty of $15 for each individual whom it
fails to report. An employer shall be considered to have
knowingly failed to comply with the reporting requirements
established by this Section with respect to an individual if
the employer has been notified by the Department that it has
failed to report an individual, and it fails, without
reasonable cause, to supply the required information to the
Department within 21 days after the date of mailing of the
notice. Any individual who knowingly conspires with the newly
hired employee to cause the employer to fail to report the
information required by this Section or who knowingly
conspires with the newly hired employee to cause the employer
to file a false or incomplete report shall be guilty of a Class
B misdemeanor with a fine not to exceed $500 with respect to
each employee with whom the individual so conspires.
D. As used in this Section, "newly hired employee" means
an individual who (i) is an employee within the meaning of
Chapter 24 of the Internal Revenue Code of 1986 including an
individual under an independent contractor arrangement, and
(ii) either has not previously been employed by the employer
or was previously employed by the employer but has been
separated from that prior employment for at least 60
consecutive days; however, "newly hired employee" does not

include an employee of a federal or State agency performing
intelligence or counterintelligence functions, if the head of
that agency has determined that the filing of the report
required by this Section with respect to the employee could
endanger the safety of the employee or compromise an ongoing
investigation or intelligence mission.
Notwithstanding Section 205, and for the purposes of this
Section only, the term "employer" has the meaning given by
Section 3401(d) of the Internal Revenue Code of 1986 and
includes any governmental entity and labor organization as
defined by Section 2(5) of the National Labor Relations Act,
and includes any entity (also known as a hiring hall) which is
used by the organization and an employer to carry out the
requirements described in Section 8(f)(3) of that Act of an
agreement between the organization and the employer.
(Source: P.A. 97-621, eff. 11-18-11; 97-689, eff. 6-14-12;
97-791, eff. 1-1-13; 98-107, eff. 7-23-13; 98-463, eff.
8-16-13.)
Section 99. Effective date. This Act takes effect January
1, 2024.