Illinois Administrative Code › Title 56 - LABOR AND EMPLOYMENT › Part 2920 - DISQUALIFYING INCOME AND REDUCED BENEFITS › Subpart A - GENERAL PROVISIONS › Section 2920.25 - Payments Made During Shutdown For Inventory Or Vacation Purposes

Current through Register Vol. 48, No. 28, July 12, 2024
a) Amounts that an
				employer pays or holds himself liable to pay an individual as vacation pay or
				allowance, or as pay in lieu of vacation, or as standby pay during an announced
				period of shutdown for inventory or vacation purposes shall be treated as wages
				in amounts equal to the individual's wages for a normal work day defined in
				Section
				2920.1. Such amounts
				treated as wages under this Section shall be attributed to, or deemed to be
				payable to the individual with respect to, the first and each subsequent work
				day in such period, except paid holidays, until the amount so paid or owing is
				exhausted. If a paid holiday occurs during the announced shutdown period, this
				period shall be extended by such paid holiday.
b) An employer shall announce the period of
				shutdown for inventory or vacation purposes by posting a notice at the place of
				employment or by giving other reasonable notice to its employees and the
				collective bargaining representative, if any, of the period during which the
				place of employment will be shut down for vacation or inventory. Such notice
				must be given at least 2 working days prior to the commencement of the
				shutdown.
c) An employer's
				announced purpose of the shutdown may be disputed by evidence showing that the
				shutdown was for purposes other than vacation or inventory. In such case, a
				determination will be made after a full investigation with respect to the
				disputed issue, taking into consideration the reasonableness of the period of
				the announced shutdown, the vacation period prevailing in the industry, the
				bargaining agreement, if any, and the length of previous shutdowns for vacation
				or inventory purposes. If it is shown that the shutdown was for purposes other
				than vacation or inventory, then the amounts that an employer pays or holds
				himself liable to pay an individual as vacation pay or allowance, or as pay in
				lieu of vacation, or as standby pay shall not be treated as wages under this
				Section. Amounts which do not qualify as wages under this Section may qualify
				as wages under Section
				2920.30,
				because they are made in connection with a separation or layoff.
d) In deciding whether amounts paid or
				payable to the individual shall be treated as vacation pay under this Section,
				the actual amount of vacation leave available to the individual at the time of
				the shutdown is not material.
e)
				The fact that the period of announced shutdown for vacation or inventory
				purposes covered under this Section is preceded or followed by a layoff due to
				lack of work or a period of vacation or holiday covered under Sections
				2920.30
				or
				2920.35 does not
				affect the treatment of the payments received under this Section. The existence
				of the situations described in subsections (d) and (e) might be relevant
				evidence, however, in deciding whether the announced shutdown was truly for
				vacation or inventory purposes under subsection (c).
1) Example 1: The employer announced a one
				week shutdown for inventory purposes on June 1, effective for the week
				beginning June 20. The individual was laid off for lack of work on May 3. If
				the employer's payments to the individual for the week beginning June 20,
				otherwise satisfy the requirements of this Section, the fact that the announced
				period of shutdown for inventory purposes follows a period of layoff due to
				lack of work does not affect the status of those payments as wages under this
				subsection.
2) Example 2: Assume
				the same situation given in the preceding example except for the additional
				fact that the individual is able to introduce evidence that the shutdown for
				the week beginning June 20, was not intended for inventory purposes but rather
				was scheduled because of lack of work. In this situation, the provisions of
				subsection (c) control in deciding whether the employer's payments to the
				individual are treated as wages under this Section.