Illinois employers need to be aware of an amendment to the Unemployment Insurance Act (820 ILCS 405). Section 1801.1 which established the Directory of New Hires has been significantly and substantively revised.
In addition to reporting newly hired employees as defined under the Internal Revenue Code, employers are now required to include “individuals under an independent contractor arrangement.” The amendment took effect on January 1, 2024.
Penalties for failure to report are provided so employers must be diligent to now include “hires” who would have not been previously reported. Other provisions of the statute which were not amended still apply.
The Labor and Employment Team of Sandberg Phoenix can assist employers with compliance with this and all other labor and employment law issues.
