The Unemployment Insurance Act is a comprehensive statute designed to aid individuals through periods of being out of work. 820 ILCS 405 et. seq. The Act requires employers to pay contributions for unemployment benefits provided by the Illinois Department of Employment Security (IDES) to unemployed individuals. 820 ILCS 405/202, 239, and 240.
An employer’s contributions are set by the IDES’ determination of a contribution rate based on a employer’s benefits wage ratio and adjusted state experience factor. 820 ILCS 405/1506.1 Eligibility for individuals to receive unemployment benefits is initially determined by the local office for IDES. 820 ILCS 405/500.
It is important for employees and employers to understand their rights and obligations under the Illinois Unemployment Insurance Act. Often employers are concerned about their contribution requirements prior to the purchase or sale of a business. During a separation from employment this is often an issue for both employers and employees to make sure that unemployment benefits are provided to those that have a legitimate claim to such assistance. Understanding the basis for disqualifications such as a refusal to work, voluntary leaving, or misconduct is often crucial to both employees and employers. 820 ILCS 405/600, 601, 602 and 603.
Consulting an employment attorney in the purchase or sale of a business, as well as, when a separation of employment occurs can aid both employers and employees.