Expect Illinois Unemployment Insurance Rates to Spike

Monday, July 27, 2009 | 0

By  Matthew A. Wrigley


Synopsis: Watch out, Illinois employers — unemployment insurance rates to increase drastically

Editor's comment: The Illinois Department of Employment Security (IDES) will likely increase unemployment insurance rates dramatically by the end of the year or no later than 2010. This across-the-board increase will affect all employers, even those who face no unemployment claims.

Illinois has just become the 16th state forced to borrow money from the federal government to pay unemployment insurance benefits because its trust fund has run dry. The roughly $34.7 million Illinois has borrowed so far pales in comparison to the unemployment insurance debt of states like neighboring Michigan, which has borrowed $2.2 billion so far. But since Illinois, like many states, received most of its unemployment insurance revenue in the first two quarters of the year, the borrowing has probably only just begun.

Due to the economy and corresponding liberal provision of unemployment insurance benefits, Illinois employers should expect a harsh raise in their unemployment insurance rates. Those employers who have their rates charged to their account may find their rates will rise even higher.

Employers are encouraged to take care in the evaluation of unemployment insurance claims by former employees. Not every claim is valid. In addition, any perceived error on an employer's IDES rate notice must be protested before the strict due date or the rate becomes final.

An Illinois employer may face a claim for unemployment insurance if it separated the claimant from work or reduced the claimant's hours, causing the claimant to become unemployed and was the last one to employ the claimant before they filed a claim and employed claimant for at least 30 working days or provided employment that allowed the claimant to re-qualify for benefits after the claimant was previously disqualified for certain reasons.

The Illinois Unemployment Insurance Act allows an employer to contest an unemployment insurance claim. When a former employee worker files a claim, the IDES will mail the employer a Notice of Claim. The employer may use the accompanying form to protest either the claimant's eligibility or the employer's status as "chargeable employer" — or both. The employer will have 10 days to file its protest by returning the form to the address indicated. An employer must reply by the due date indicated on the form or its forfeits its right to appeal any subsequent decisions.


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Matthew A. Wrigley is an attorney in the Chicago law firm of Keefe, Campbell & Associates.
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