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Rauner signs bill to reduce unemployment insurance costs

Illinois Gov. Bruce Rauner has signed legislation aimed at lowering the cost of unemployment insurance.

The bill signed Friday was a compromise between business groups and labor unions.

It tightens the definition of "misconduct" used to disqualify laid-off workers from receiving unemployment benefits. Under current law misconduct must be shown to be "willful and deliberate."

The new law would deny benefits in additional cases, such as if someone provides false information on an employment application or damages an employer's property through gross negligence.

The measure also eliminates a "Social Security offset," a reduction in unemployment benefits for people in Illinois who receive Social Security.

The Legislature unanimously approved the plan.

Most of the new law takes effect immediately. Some provisions take effect Jan. 3.

The bill is HB1285.

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