IllinoisHB3200104th General Assembly (2025–2026)HouseWALLET

UNEMPLOYMENT INS-RECOVERY

Sponsored By: Sponsor information unavailable

Signed by Governor

Summary

Amends the Unemployment Insurance Act. Provides for the recovery of benefits awarded to individuals who are determined to not be eligible for those benefits, plus any penalties and interest, in accordance with specified provisions of the Act. Provides that the Director of Employment Security is authorized to cooperate with and enter into appropriate agreements with the State Treasurer for the recovery of unclaimed property held by the State Treasurer in the name of an individual who received benefits that the individual was determined to not be eligible to receive or in the name of an employer who owes contributions, interest, or penalties under the Act. Authorizes the Director to directly request and accept the return of funds from a debit card issuer for any debit card account that received benefits under specified circumstances. Makes other changes.

labor & commerceassignmentslabor

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 2 benefits, 3 costs, 0 mixed.

More unemployment access after health-related quits

Workers who leave jobs for health reasons have broader access to unemployment benefits. For physical limits, a licensed, practicing doctor, nurse practitioner, or physician assistant must find the worker unable to perform the job. The employer must be unable to accommodate the worker. A mental health disability also qualifies when a licensed, practicing psychiatrist makes that finding and the employer cannot accommodate it. The mental health exception covers claims dated December 28, 2025, through December 24, 2028.

Stronger enforcement of employers' unemployment duties

Illinois can collect employers' unpaid unemployment contributions, interest, penalties, and fees from unclaimed property held in their names. Recovery cannot exceed what the employer owes. A court can also bar an employer from operating anywhere in Illinois for willfully failing to file new-hire or wage reports. Before filing suit, the state director must send 30 days' written notice by registered or certified mail. The order can remain in place while either type of report remains unfiled.

Clearer repayment rights for unemployment recipients

People found to have received unemployment benefits they were not eligible for must receive written notice of their appeal rights. The notice must also explain their right to request a repayment waiver and the standard for granting one. The notice does not itself erase the debt or guarantee a waiver.

Inactive unemployment cards face fund recovery

Illinois can ask card issuers to return unemployment funds from two types of inactive accounts, as federal law allows. Never-activated accounts must have received benefits and had no benefits-system transfers in the past 12 months. Activated accounts must have received benefits, had no transactions in the past 12 months, and belong to someone found ineligible. For activated accounts, recovery is limited to ineligible benefits and applicable penalties, with money returned to the original fund. These issuer recovery routes do not create a new personal repayment duty.

More ways to collect unemployment overpayments

Illinois can use unclaimed property held by the State Treasurer in a recipient's name to collect unemployment overpayments. Collection is limited to benefits the person was ineligible to receive and applicable penalties. Recovered property funds return to the fund that paid the benefits. For fraud-related overpayments and penalties, the state can also use collection methods available for overdue employer unemployment debts. These changes expand collection tools; they do not set a new debt amount.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

  • Bill Cunningham

    Democratic • Senate

  • Camille Y. Lilly

    Democratic • House

  • Jawaharial Williams

    Democratic • House

  • Jay Hoffman

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 352 • No: 47

House vote • 5/30/2025

Senate Floor Amendment No. 1 House Concurs

Yes: 115 • No: 0

House vote • 5/29/2025

Senate Floor Amendment No. 1 Motion to Concur Recommends Be Adopted Labor & Commerce Committee;

Yes: 28 • No: 0

Senate vote • 5/22/2025

Third Reading - Passed;

Yes: 54 • No: 0

Senate vote • 5/20/2025

Senate Floor Amendment No. 1 Recommend Do Adopt Labor;

Yes: 16 • No: 0

Senate vote • 5/7/2025

Do Pass Labor;

Yes: 17 • No: 1

House vote • 4/11/2025

Third Reading - Short Debate - Passed

Yes: 85 • No: 30

House vote • 4/7/2025

House Floor Amendment No. 2 Recommends Be Adopted Labor & Commerce Committee;

Yes: 18 • No: 8

House vote • 3/19/2025

Do Pass / Short Debate Labor & Commerce Committee;

Yes: 19 • No: 8

Actions Timeline

  1. Public Act . . . . . . . . . 104-0285

    8/15/2025House
  2. Effective Date January 1, 2026

    8/15/2025House
  3. Governor Approved

    8/15/2025House
  4. Sent to the Governor

    6/24/2025House
  5. Passed Both Houses

    5/30/2025House
  6. House Concurs

    5/30/2025House
  7. Senate Floor Amendment No. 1 House Concurs 115-000-000

    5/30/2025House
  8. Added Chief Co-Sponsor Rep. Jawaharial Williams

    5/29/2025House
  9. Senate Floor Amendment No. 1 Motion to Concur Recommends Be Adopted Labor & Commerce Committee; 028-000-000

    5/29/2025House
  10. Senate Floor Amendment No. 1 Motion to Concur Rules Referred to Labor & Commerce Committee

    5/28/2025House
  11. Senate Floor Amendment No. 1 Motion to Concur Referred to Rules Committee

    5/22/2025House
  12. Senate Floor Amendment No. 1 Motion Filed Concur Rep. Jay Hoffman

    5/22/2025House
  13. Placed on Calendar Order of Concurrence Senate Amendment(s) 1

    5/22/2025House
  14. Arrived in House

    5/22/2025House
  15. Third Reading - Passed; 054-000-000

    5/22/2025Senate
  16. Placed on Calendar Order of 3rd Reading

    5/22/2025Senate
  17. Senate Floor Amendment No. 1 Adopted; Cunningham

    5/22/2025Senate
  18. Recalled to Second Reading

    5/22/2025Senate
  19. Senate Floor Amendment No. 1 Recommend Do Adopt Labor; 016-000-000

    5/20/2025Senate
  20. Senate Floor Amendment No. 1 Assignments Refers to Labor

    5/20/2025Senate
  21. Senate Floor Amendment No. 1 Referred to Assignments

    5/19/2025Senate
  22. Senate Floor Amendment No. 1 Filed with Secretary by Sen. Bill Cunningham

    5/19/2025Senate
  23. Placed on Calendar Order of 3rd Reading May 20, 2025

    5/15/2025Senate
  24. Second Reading

    5/15/2025Senate
  25. Placed on Calendar Order of 2nd Reading May 8, 2025

    5/7/2025Senate

Bill Text

  • Engrossed

  • Enrolled

  • House Amendment 1

  • House Amendment 2

  • Introduced

  • Senate Amendment 1

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