SPRINGFIELD – As workers and employers continue to navigate economic uncertainty, State Senator Linda Holmes advanced legislation to strengthen Illinois’ unemployment insurance system by protecting benefits, delaying planned contribution increases and helping workers access assistance faster after a mass layoff.
“Workers and employers alike benefit from stability and predictability,” said Holmes (D-Aurora). “This legislation reflects a collaborative approach that protects working families and individuals when they need it most, ensuring they have a sense of security during a major life change.”
Current law includes automatic changes beginning in 2027 that would temporarily reduce unemployment insurance benefits and increase employer contribution rates. Senate Bill 807 would delay those changes, pushing them to 2029, reducing the size of the temporary benefit decreases when they eventually take effect.
The measure – which has backing from labor and business stakeholders – would also create a new process to better assist workers following large layoffs or facility shutdowns. Under the measure, employers with 75 or more employees that conduct layoffs or shutdowns affecting 50 or more workers at a single site would be required to provide employee information to the Illinois Department of Employment Security.
The information provided to the department would allow the state to proactively connect affected workers with unemployment insurance benefits, reducing delays and helping families maintain financial stability while seeking new employment.
Additionally, Senate Bill 807 would delay a scheduled 0.35% employer surcharge and postpone increases in employer unemployment insurance contribution rates by two years, providing businesses with additional certainty and time to plan.
“While workers lose their jobs through no fault of their own, the last things they should have to worry about is navigating a complicated benefits process,” said Holmes. “This bill helps ensure workers can connect with the resources and support they need during an already difficult transition.”
Senate Bill 807 passed the Senate on Sunday.
