Illinois Administrative Code › Title 56 - LABOR AND EMPLOYMENT › Part 2870 - SPECIAL PROGRAMS › Subpart A - SHORT-TIME COMPENSATION PROGRAM › Section 2870.25 - Revocation of a Short-Time Compensation Plan

Current through Register Vol. 48, No. 28, July 12, 2024
a) At any time during the duration of an
				approved plan, the Director may revoke approval of the plan for good
				cause.
b) Good cause to revoke
				approval of an STC plan includes the following:
1) Failure of the employer to comply with the
				assurances given in the plan;
EXAMPLE 1: In its application for approval of its STC plan,
				  Company C provides assurances that it will continue to provide health and
				  retirement benefits to its employees in the affected unit under the same terms
				  and conditions it would have if the employees' usual hours of work had not been
				  reduced. Despite these assurances, Company C reduces health benefits to its
				  employees in the affected unit in proportion to its reduction of their hours of
				  work and Company C reduces the retirement benefits that it was providing to the
				  employees in the affected unit. Both the reduction in the health benefits and
				  the reduction of the retirement benefits constitute a failure of the employer
				  to comply with assurances given in the STC plan. Either of these failures to
				  comply with an assurance given in the plan constitutes good cause for the
				  Director to revoke approval of the plan.
EXAMPLE 2: In its application for approval of its STC plan
				  for its sales unit, Company D provides assurances that while the STC plan is in
				  operation, it will not hire additional full-time or part-time employees for the
				  affected unit, and that while the STC plan is in operation, it will not
				  transfer employees to the affected unit. Despite these assurances, while the
				  STC plan is in operation Company D hires one full-time employee and two
				  part-time employees for its sales unit and transfers an employee to its sales
				  unit who was working in its telemarketing department at the time of the
				  transfer. Both the hiring of the new employees and the transfer into the unit
				  of another employee constitute a failure of the employer to comply with an
				  assurance given in the STC plan. Any of these failures to comply with an
				  assurance given in the plan constitutes good cause for the Director to revoke
				  approval of the plan.
2)
				Termination of the approval of the STC plan by the collective bargaining
				representative of employees in the affected unit as set forth in Section 502(F)
				of the Act;
3) Unreasonable
				revision of productivity standards for the affected unit as set forth in
				Section 502(F) of the Act. An unreasonable revision of productivity standards
				for the affected unit is a revision that is not proportional to the percentage
				of work hours reduced under the approved STC plan.
EXAMPLE: Company E has an approved STC plan in place for its
				  assembly unit. The plan calls for a 20% reduction in hours for the workers in
				  the affected unit. At some point after the plan has been approved, Company E
				  announces to the workers in its assembly unit that even though their hours of
				  work had been reduced by 20%, the employer is setting production standards at a
				  10% reduction from the standards that were in place before the approval of the
				  STC plan. In this case, with a revision of productivity standards that is not
				  in proportion with the reduction of hours, the revision of the employer's
				  productivity standards for the affected unit is unreasonable and shall
				  constitute good cause for the Director to revoke approval of the STC
				  plan.
4)
Conduct or
				occurrences tending to defeat the intent and effective operation of the
				short-time compensation plan
as set forth in Section 502(F) of the
				Act. The intent and effective operation of the short-time compensation plan are
				to reduce unemployment, avoid layoffs, and provide employees unemployment
				benefits at a reduced rate.
EXAMPLE: Company F has in operation an approved STC plan for
				  its affected warehouse unit. The plan calls for a 25% reduction in hours for
				  the workers in the affected unit. The plan also calls for a temporary one-week
				  shutdown between the Christmas and New Year holidays. After the workers in the
				  affected unit return to work following the one-week shutdown, Company F lays
				  off the two workers in the unit with the least seniority. The layoff of workers
				  in the affected unit outside the temporary shutdown provided for in the plan
				  defeats the intent and effective operation of the STC plan by failing to avoid
				  layoffs, and constitutes good cause for the Director to revoke approval of the
				  STC plan.
5)
Violation of any criteria on which approval of the plan was
				based
as set forth in Section 502 of the Act and certified to by the
				employer in the plan application (Sec. 502(F) of the Act);
EXAMPLE: Company G has in operation an approved STC plan for
				  its affected transportation unit. The plan calls for a 25% reduction in hours
				  for the workers in the affected unit. However, Company G reduces the workers'
				  hours by 27%. The reduction of the workers' hours by a percentage other than
				  that stated in the plan is a violation of a criterion on which approval of the
				  plan was based and constitutes good cause for the Director to revoke approval
				  of the STC plan.
6) The
				employer's failure to make timely filings of its wage reports while the plan is
				in operation;
7) The employer's
				failure to make timely and full payment of contributions or payments in lieu of
				contributions while the plan is in operation;
8) The employer's failure to provide the
				Department with required reports; or
9) The employer's failure to allow the
				Director or an authorized Department employee to monitor and evaluate the
				plan.