56 Ill. Adm. Code 2765.336
Non-Cancellation of Benefit Charges Due to Employer's Pattern of Failing to Respond Timely and Adequately
Section 2765.336 Non-Cancellation of Benefit Charges Due
to Employer's Pattern of Failing to Respond Timely and Adequately
a) For
purposes of Section 706 of the Act, if benefits are paid pursuant to a finding
or determination, or a reconsidered finding or determination, that is finally
reversed or modified in subsequent proceedings, the benefit charges, for
purposes set forth in Section 1502.1 of the Act, shall be treated in the same
manner as if the reversal or modification had not occurred if:
1) The
employer was the last employer with respect to the claim at issue;
2) The
employer was properly notified with respect to the claim at issue;
3) The finding
or determination, or reconsidered finding or determination, was attributable to
the employer's failure to file a sufficient protest within the time required by
56 Ill. Adm. Code 2720.130(a)(1) or (d)(3), whichever is applicable; and
4) During the same calendar year, there were at
least 4 prior benefit claims with respect to which:
A) subsections
(a)(1), (2) and (3) applied with respect to the employer; and
B) benefits
were paid, and the finding, determination or reconsidered finding or
determination under which benefits were paid was finally reversed or modified
in subsequent proceedings.
EXAMPLE: The employer fails to
file a timely and sufficient protest when notified initially that the claimant
has filed a claim for benefits and does not preserve party status. The claimant
receives benefits. When the employer receives its quarterly Statement of
Benefit Charges, it raises a question regarding the claimant's eligibility for
benefits. Upon investigation, the claims adjudicator determines the claimant to
be ineligible for benefits and establishes an overpayment for the entire amount
of the benefits paid to the claimant. The overpayment becomes legally final.
The employer's charges for this claimant's benefits will not be cancelled if,
within the same calendar year, there were at least four other cases to which
subsections (a)(4)(A) and (B) apply.
b) For
purposes of subsection (a)(3), with respect to a claim in which benefits are
initially paid pursuant to a finding or determination, or a reconsidered finding
or determination, the timing of the protest shall be determined without regard
to 56 Ill. Adm. Code 2720.130(e) if the finding or determination, or the reconsidered
finding or determination, was attributable to the employer's failure to
initially submit a sufficient protest.
c) Only
claims filed on or after April 1, 2020 shall be considered for purposes of
subsection (a).
d) The
applicability of this Section shall be based on the date of the reconsidered
finding or determination, or decision of a Referee, the Board of Review or a
court that finally reverses the finding or determination, or the reconsidered
finding or determination, pursuant to which benefits were paid with respect to
the claim.
EXAMPLE: The employer fails to
file a timely and sufficient protest when notified initially that the claimant
has filed a claim for benefits and does not preserve party status. A separation
issue is detected on the claim application. The claims adjudicator mails out an
"Allow" determination. The claimant collects benefits for several
weeks. The employer then submits a request for reconsideration and appeal. On
December 3, 2020, the claims adjudicator mails out a "Deny"
reconsidered determination. The claimant does not submit a request for
reconsideration and appeal. The reconsidered determination becomes final on
January 4, 2021. The application of this Section will be based on the date of
the reconsidered determination, December 3, 2020, and not the date when the
reconsidered determination became final on January 4, 2021.
e) This
Section will apply regardless of whether the employer has contracted with one
or more attorneys or other representatives for representation in connection
with benefit claims.