Short title
Short title. This Act may be cited as the Employee Classification Act. (Source: P.A. 95-26, eff. 1-1-08.)
Illinois · statute · 820 ILCS 185 · 30 active provisions
Short title. This Act may be cited as the Employee Classification Act. (Source: P.A. 95-26, eff. 1-1-08.)
Purpose. This Act is intended to address the practice of misclassifying employees as independent contractors. (Source: P.A. 95-26, eff. 1-1-08.)
Definitions. As used in this Act: "Construction" means any constructing, altering, reconstructing, repairing, rehabilitating, refinishing, refurbishing, remodeling, remediating, renovating, custom fabricating, maintenance, landscaping, improving, wrecking, painting, decorating, demolishing, and adding to or subtracting…
Applicability; status of individuals performing service. (a) For the purposes of this Act, an individual performing services for a contractor is deemed to be an employee of the employer except as provided in subsections (b) and (c) of this Section. (b) An individual performing services for a contractor is deemed to be…
Notice. (a) The Department shall post a summary of the requirements of this Act in English, Spanish, and Polish on its official web site and on bulletin boards in each of its offices. (b) An entity for whom one or more individuals perform services who are not classified as employees under Section 10 of this Act shall p…
Failure to properly designate or classify individuals performing services as employees. It is a violation of this Act for an employer or entity not to designate an individual as an employee under Section 10 of this Act unless the employer or entity satisfies the provisions of Section 10 of this Act. (Source: P.A. 95-26…
Enforcement. (a) Any interested party may file a complaint with the Department against an entity or employer covered under this Act if there is a reasonable belief that the entity or employer is in violation of this Act. It shall be the duty of the Department to enforce the provisions of this Act. The Department shall…
Attorney General; State's Attorneys. Criminal violations of this Act shall be prosecuted by the Attorney General or the appropriate State's Attorney. The Department shall refer matters to the Attorney General and the appropriate State's Attorney upon determining that a criminal violation may have occurred. (Source: P.A…
Contempt. Whenever it appears that any employer or entity has violated a valid order of the Department issued under this Act, the Director of Labor may commence an action and obtain from the court an order commanding the employer or entity to obey the order of the Department or be adjudged guilty of contempt of court a…
Penalties. (a) An employer or entity that violates any of the provisions of this Act or any rule adopted under this Act shall be subject to a civil penalty not to exceed $1,000 for each violation found in the first audit by the Department. Following a first audit, an employer or entity shall be subject to a civil penal…
Debarments. For any second or subsequent violation determined by the Department which is within 5 years of an earlier violation, the Department shall add the employer or entity's name to a list to be posted on the Department's official website. Upon such notice, the Department shall notify the violating employer or ent…
Reporting requirements. (a) Any contractor for which either an individual, sole proprietor, or partnership is performing construction services shall report all payments made to that individual, sole proprietor, or partnership if the recipient of payment is not classified as an employee. The report shall be submitted el…
Willful violations. (a) Whoever willfully violates any of the provisions of this Act or any rule adopted under this Act or whoever obstructs the Director of Labor, or his or her representatives, or any other person authorized to inspect places of employment under this Act shall be liable for penalties up to double the…
Employee Classification Fund. All moneys received by the Department as fees and civil penalties under this Act and all moneys owed to the Department under the Prevailing Wage Act and the Employment of Illinois Workers on Public Works Act shall be deposited into the Employee Classification Fund and shall be used, subjec…
Retaliation. (a) It is a violation of this Act for an employer or entity, or any agent of an employer or entity, to retaliate through discharge or in any other manner against any person for exercising any rights granted under this Act. Such retaliation shall subject an employer or entity to civil penalties pursuant to…
Private right of action. (a) An interested party or person aggrieved by a violation of this Act or any rule adopted under this Act by an employer or entity may file suit in circuit court, in the county where the alleged offense occurred or where any person who is party to the action resides, without regard to exhaustio…
Individual liability. In addition to an individual who is an employer pursuant to Section 5 of this Act, any officer of a corporation or agent of a corporation who knowingly permits such employer to violate the provisions of this Act may be held individually liable for all violations and penalties assessed under this A…
Rulemaking. The Department may adopt reasonable rules to implement and administer this Act. For purposes of this Act, the General Assembly finds that the adoption of rules to implement this Act is deemed an emergency and necessary for the public interest and welfare. (Source: P.A. 95-26, eff. 1-1-08.)
No waivers. (a) There shall be no waiver of any provision of this Act. (b) It is a Class C misdemeanor for an employer to attempt to induce any individual to waive any provision of this Act. (Source: P.A. 95-26, eff. 1-1-08.)
Cooperation. The Department of Labor, the Department of Employment Security, the Department of Revenue, and the Illinois Workers' Compensation Commission shall cooperate under this Act by sharing information concerning any suspected misclassification by an employer or entity of one or more of its employees as independe…
Effect of Final Order. Any finding made pursuant to this Act is for the purpose of enforcing this Act and may not be admissible or binding against a party in any other proceeding. (Source: P.A. 95-26, eff. 1-1-08.)
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(Amendatory provisions; text omitted). (Source: P.A. 95-26, eff. 1-1-08; text omitted.)