Emily Hurd works in the kitchen on Thursday, Oct. 25, 2022, at The Norwegian in Rockford. (Photo by Kevin Haas/Rock River Current)

By Kevin Haas
Rock River Current
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ROCKFORD — A new bill filed in the state House aims to give local restaurants relief from a surge in unemployment insurance rates that have cost some business owners tens of thousands of dollars and strained their ability to operate.

State Rep. Maurice West, a Rockford Democrat, filed House Bill 4036 on Monday. It would set aside $3 million in state funds to provide relief to small Rockford restaurants that suffered when their unemployment insurance rates spiked due to layoffs made in response to state-mandated shutdowns designed to curb the spread of the coronavirus.

“I know the conversation is going to be, ‘why just Rockford? Why can’t we expand it?’ But at least we’re starting to have the conversation,” West told the Rock River Current on Monday. He said his message to restaurant owners was: “I can’t promise that we will have a favorable outcome, but I promise you that I will work hard to get there.”

Background: ‘It hurts’: Spike in unemployment insurance rates hits Rockford restaurants

West met earlier this year with several local restaurant owners who were frustrated by the increases, which they felt punished them for following the state’s rules during the pandemic.

“It’s great that he’s not giving up on us,” said Emily Hurd, the owner of The Norwegian, 1402 N. Main St., on the city’s North End.

The Norwegian saw its unemployment insurance rates spike from less than 1% to the maximum rate of 7.625% a year ago. Then, its rates rose again this year as the max rate increased to 8.65%. The restaurant has never made a layoff that wasn’t due to the pandemic, Hurd said.

State lawmakers halted increases in unemployment rates from March 15, 2020, to Jan. 2, 2021, to protect businesses from paying higher rates for layoffs caused by coronavirus restrictions. But indoor dining was still shut down in northern Illinois until late January, and even then capacity was limited to 25%.

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Hurd and other local restaurant owners saw bills with the higher rates come due last year and sounded the alarm to state lawmakers on the potential consequences for their businesses.

For some restaurants it means passing the cost on to customers with higher menu prices. The Norwegian held fundraisers last year to stay afloat.

This year, the restaurant paid down $4,000 of its $16,000 unemployment insurance bill and chose to defer the rest of the payment.

“I don’t have a choice; I don’t have it,” Hurd said. “So that’s buying me a quarter.”

Restaurant owners say the higher unemployment rates have added another challenge for the restaurant industry, which has already been hit hard by inflation.

Hurd said Springfield needs to act with urgency to help restaurants like The Norwegian.

“It’s not going to happen quickly enough to save the local spots,” Hurd said.

A timeline has not been set for when West’s bill may be discussed or called for a vote.

This article is by Kevin Haas. Email him at khaas@rockrivercurrent.com or follow him on Twitter at @KevinMHaas or Instagram @thekevinhaas