Health-First Policy: New Pilot Program Allows Unemployment for Mental Health Disability
METROPOLIS, IL – In our next report, we look at a new pilot program that recognizes mental health as a valid reason for voluntarily leaving a job. Effective January 1, 2026, House Bill 3200 creates a temporary program allowing individuals who resign due to a certified mental health disability to be eligible for unemployment insurance benefits.
This law acknowledges that mental health conditions can be just as debilitating as physical illnesses, making continued employment impossible.
Key Requirements of the Mental Health Unemployment Pilot
This program is a three-year pilot, meaning it is set to expire unless extended by the legislature, and it has specific, strict criteria for eligibility.
1. Requirement for Certification
The most critical requirement is documentation. To qualify, the individual must provide the Illinois Department of Employment Security (IDES) with a certification from a licensed mental health professional that clearly states:
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The claimant has a mental health disability.
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The disability necessitated the individual’s separation from employment.
2. Voluntary Separation Only
This program applies only to individuals who voluntarily left their job. It does not apply to those who were discharged or laid off. The separation must be directly attributable to the certified mental health disability.
3. Duration and Scope
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Three-Year Limit: As a pilot program, it will run for three years to allow the state to assess its feasibility, costs, and effectiveness before considering permanent implementation.
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Benefits: If approved, the claimant is entitled to the standard unemployment insurance benefits as defined by existing state law.
4. Employer Protections
While the program provides a crucial safety net for workers, it also attempts to balance employer interests:
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Prohibited from Charging: Unemployment benefits paid under this pilot program shall not be charged against the experience rating accounts of the separating employer. This means the employer’s future unemployment tax rates will not increase due to claims made under this specific mental health provision.
A Shift in Policy
Historically, resigning from a job for “personal reasons”—including mental health—often disqualified claimants from receiving unemployment benefits, as they were not considered “unemployed through no fault of their own.” This pilot program represents a significant public policy shift, treating serious mental health conditions with the same consideration as physical disabilities when it comes to the loss of employment.
Individuals in Illinois who are considering leaving their jobs due to a mental health crisis should consult with a licensed mental health professional first and then contact the Illinois Department of Employment Security (IDES) to understand the precise requirements for filing a claim under HB 3200.
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