Illinois Bill Would Allow Striking Workers Unemployment Pay After Two Weeks
Illinois lawmakers are considering House Bill 2565 that would allow striking workers to receive unemployment benefits after two weeks on the picket line, a change opposed by business groups who say it would increase costs for employers.
Proposed Change Would Let Workers Collect Benefits After 14 Days on Picket Line
SPRINGFIELD — Illinois lawmakers are considering a bill that would fundamentally change how unemployment benefits work during labor disputes.
State Rep. Dave Vella, D-Loves Park, introduced House Bill 2565 that would permit striking workers to begin receiving unemployment benefits after two weeks on the picket line.
Currently, striking workers are ineligible to receive unemployment benefits during a labor dispute-related work stoppage.
"It is a minor change to the Unemployment Insurance Act that limits how long workers are disqualified from receiving unemployment benefits during a labor dispute-related work stoppage," Vella told the Illinois House Labor and Commerce Committee. "Instead of being ineligible for any week affected by the labor dispute, workers would only be ineligible for two weeks."
The bill now under consideration would allow workers to start collecting benefits after two weeks of striking, according to the Center Square.
Business Groups Oppose Measure
Opponents include the Illinois Chamber of Commerce and associations representing manufacturers, retail merchants, construction, trucking and transportation builders.
During a hearing of the committee, NFIB Illinois State Director Noah Finley testified against the legislation.
"This bill would further increase the liabilities of the trust fund, increasing the outflow of funds and weakening its financial balance," Finley said.
Finley noted that when NFIB balloted its Illinois members, nine out of ten small business owners opposed giving unemployment benefits to striking workers.
The NFIB director added that a lower unemployment insurance trust fund balance would drive up small business unemployment assessments and result in higher unemployment taxes for Main Street businesses.
Even without this change, the state's unemployment trust fund balance is projected to decline this year, with collections from employers projected to come in under the amount the state is paying out to unemployed workers, according to NFIB.
Committee to Consider Amended Version
The committee is scheduled to consider an amended version of House Bill 2565, according to the Center Square.
State Rep. Gregg Johnson, D-Rock Island, said another proposal, House Bill 4805, would require employers with 75 or more employees to submit claim information to the state in cases involving layoffs, furloughs or temporary shutdowns.
"This bill does not expand eligibility for unemployment benefits, it does not change benefit levels. It does not apply to small employers," Johnson said.
Illinois Retail Merchants Association President and CEO Rob Karr expressed concern that the bill follows organized labor's move last year to abandon the agreed bill process.
"Even if proposals are adopted a few here and there every year, their cumulative effect will add significantly to the cost of employment for employers of every size, higher costs in a state that is already a high-cost state for employment," Karr said.
State Rep. Dan Ugaste, R-Geneva, opposed the bill and said it is set up to penalize employers.
Context on Unemployment
The Illinois Department of Employment Security reported in March that the unemployment rate was 5.1 percent, which is up .1 percent from February, according to WCIA.
Despite the slight increase, the state added more than 8,000 jobs in March.