IL HB1289

Establishes a shared work benefits program under the Unemployment Insurance Act allowing employers to reduce employee hours instead of conducting layoffs, with affected employees receiving proportionally reduced unemployment insurance benefits.

Requires employers to submit written shared work compensation plans to the Director of Employment Security identifying specific employees, with hour reductions between 10-50% of usual weekly hours.

Mandates Director approval or rejection of plans within 15 days; plans expire after 12 months unless revoked for good cause including non-compliance, unreasonable productivity changes, or violation of approval criteria.

Requires plans to maintain fringe benefits at pre-reduction levels, receive collective bargaining agent approval where applicable, and avoid subsidizing seasonal or traditionally part-time employers.

Takes effect July 1, 2011; shared work benefits are charged to employer experience ratings and deducted from maximum annual benefit entitlements; individuals exhausting benefits qualify for extended benefits under Section 409.