IL SB1749

Defines unemployment insurance fraud as knowingly making false statements or failing to disclose material facts (such as voluntary job separation, refused work offers, or discharge reasons) to obtain benefits.

Requires the Department of Employment Security to display a fraud warning statement on its website and all printed benefit application forms notifying individuals that providing false information is a crime with penalties including imprisonment, fines, and benefit denial.

Imposes penalties for fraud including mandatory repayment of wrongfully obtained benefits, ineligibility for 6 weeks for first offense and 2 additional weeks for each subsequent offense, with maximum ineligibility period of 26 weeks or 2 years from notification date.

Requires employers and other persons to promptly provide information to law enforcement and the Department when requested for detecting, prosecuting, or preventing unemployment insurance fraud, subject to legal privileges.

Obligates employers and other persons with reasonable belief that fraud is occurring or has occurred to disclose relevant information to appropriate law enforcement or the Department, subject to legal privileges.