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HB 3200

Relating to education; declaring an emergency.

2025 Regular Session Introduced by Farrah Chaichi and 1 co-sponsor

Expands unemployment benefits rules to allow certain separations for mental health, caregiving, domestic violence, or harassment without disqualification, and strengthens recovery

In committee upon adjournment.
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Bill Summary · HB 3200

HB 3200 — Summary (Public Act 104-0285)

Status: Enacted (Public Act 104‑0285). Gov. approved 2025‑08‑15. Effective date: 2026‑01‑01. Introduced: 2025‑02‑21.

Purpose

Amends the Illinois Unemployment Insurance Act to (1) clarify and expand exceptions to disqualification for voluntarily leaving employment (including mental‑health and caregiving reasons), (2) strengthen recoupment and recovery powers for benefits paid to ineligible individuals (including new mechanisms to recover unclaimed property and funds on debit cards), and (3) require agency rulemaking and reporting related to these changes.

Key provisions

  • Voluntary leaving (Section 601)

    • Retains general rule that voluntarily leaving without “good cause” disqualifies a claimant until reemployed and earning a set amount over four weeks.
    • Expands/clarifies exceptions so voluntary leaving is not disqualifying when the claimant:
    • Is physically unable to perform work (medical provider verification) and employer cannot accommodate.
    • Is unable to perform work due to a mental‑health disability — language in later engrossed/enrolled versions allows verification from licensed professionals (e.g., psychiatrist, psychologist, licensed clinical social worker, counselor) for specified claim periods.
    • Must provide necessary care for a spouse, child, or parent who is in poor health or disabled and the employer cannot accommodate.
    • Leaves because of verified domestic violence (with specified acceptable proof) — and the Department must keep such evidence confidential unless the claimant consents.
    • Leaves due to sexual harassment by another employee (defined) or for certain spouse‑relocation/military reassignment reasons (employer account not charged for benefits paid in that case).
    • Requires the Department to adopt implementing rules within 90 days (consistent with federal requirements).
    • Department must file a report by January 1, 2030 estimating the fiscal impact on the Unemployment Insurance Trust Fund of specified mental‑health related exceptions.

  • Recoupment and recovery (Sections 900, new 901.2, and related)

    • Reinforces that claimants found ineligible must be notified of appeal rights and ability to request waiver of recoupment.
    • Authorizes recovery of amounts paid in error (including penalties and interest where applicable) and clarifies recovery methods.
    • Authorizes the Director of Employment Security to cooperate with and enter agreements with the State Treasurer to recover unclaimed property held in the name of an individual who received ineligible benefits or an employer who owes contributions/penalties. Recovery is limited to the amounts owed (benefits, penalties, interest).
    • Authorizes the Director, under federal law, to directly request return of funds from a debit‑card issuer when a debit card that received benefits was activated and no transactions occurred in the prior 12 months; the amount recoverable is limited to the ineligible benefits plus penalties/interest.
    • Makes these recovery provisions apply consistent with other statutory recovery sections (e.g., Sections 2206, 2400‑2403).

Who is affected

  • Claimants: eligibility exceptions (mental health, caregiving, domestic violence, sexual harassment) and potential recoupment for ineligible benefits.
  • Employers: changes retain existing rules on employer charging for certain separations (employer account not charged when claimant leaves to accompany spouse for reassignment); possible impacts from recoveries tied to employer liability for contributions/penalties.
  • State agencies: Department of Employment Security (rulemaking, reporting, recovery actions) and State Treasurer (cooperation on unclaimed property recovery).
  • Debit‑card issuers: may be asked to return inactive funds in limited circumstances.

Legislative & effective dates

  • Passed both houses: May 2025 (final concurrence 2025‑05‑30).
  • Sent to Governor: 2025‑06‑24; approved 2025‑08‑15.
  • Effective: January 1, 2026.
  • Public Act: 104‑0285.

Notes: The enrolled/public act incorporates several amendments from House and Senate floor amendments clarifying the types of licensed professionals who may verify mental‑health disabilities, specifying recovery mechanisms, and adding confidentiality and reporting requirements.

Compiled from official sources — confirm details with the bill’s official record.

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