IL HB5577

Amends the Unemployment Insurance Act to limit personal liability for business purchasers and transferees for outstanding unemployment insurance contributions, interest, and penalties owed by the seller or transferor for transactions occurring on or after March 1, 2017.

Purchaser or transferee is not personally liable if they petition the Director of Employment Security within 2 years after the sale/transfer or notice of amount due (whichever is later) and prove they lacked knowledge of outstanding contributions, interest, and penalties at the time of the transaction.

Purchaser or transferee is not personally liable if the sale or transfer agreement explicitly states that the seller or transferor agreed to be liable for all outstanding contributions, interest, and penalties owed to the Department.

Retains existing provisions requiring sellers or transferors to file reports within 10 days of sale or transfer, pay all outstanding contributions and penalties, and allowing purchasers to withhold sufficient funds or performance to cover these amounts.

Takes effect immediately upon becoming law.