New Illinois Employee Classification Act, 1-1-08

Ed the Roofer

I will add the link for the full site shortly. This may assist contractors on determining how an employee or subcontractor should be classified.

edit to add full link
http://12.43.67.2/legislation/BillSt...51&LegID=30630

Ed

"Synopsis As Introduced"
"Creates the Employee Classification Act. Provides that an individual performing services for a contractor is deemed to be an employee of the employer. Provides that an individual performing services for a contractor is deemed to be an employee of the contractor unless it is shown that: (1) the individual has been and will continue to be free from control or direction over the performance of the service for the contractor, both under the individual's contract of service and in fact; (2) the service performed by the individual is outside the usual course of services performed by the contractor; and (3) the individual is engaged in an independently established trade, occupation, profession or business; or (4) the individual is deemed a legitimate sole proprietor or partnership. Provides that subcontractors or lower tiered contractors are subject to all provisions of the Act. Provides that he Department of Labor 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. Provides that it is a violation of the Act for an employer or entity not to designate an individual as an employee under the Act unless the employer or entity satisfies the provisions of the Act. Provides for civil remedies and civil penalties. Amends various Acts to make conforming changes. Effective January 1, 2008."

Ed the Roofer

I also found this interesting tid-bit at the following link:
http://www.w-p.com/CM/Articles/Is-In...-The-Magic.asp

Ed

"Under the Illinois Employee Classification Act, if the Illinois Department of Labor finds that a company is using misclassified construction-related independent contractors (including painters, drywallers, landscapers, truck drivers who haul to and from construction sites, carpenters, brick layers, masons, electricians, etc.), then the company will be hit with very severe civil and possibly criminal penalties.

BOUNTY HUNTERS:

To make matters worse, under this new law, any individual who "turns in" the company who is allegedly misclassifying the independent contractors will get a 10% reward (yep, we are talking about bounty hunters here!). So, many construction-related companies are understandably nervous about how to protect themselves in the face of what is sure to be a blood bath starting January 1, 2008.

TWO DEFINITIONS OF INDEPENDENT CONTRACTOR STATUS:

There are two definitions of independent contractor status in this new law. One is a three-part test; one is a 12-part test. If a company is found to have misclassified independent contractors, then the company is liable for civil and even criminal penalties. So, companies are looking for ways to lower their liability."

Walker1

I hope other states will follow!

KillerToiletSpider

Looks like I'll have a chance to make some cash.

__________________
A flush is better than a full house.

dougchips

I'll create a few Craigslist ads to see if I can get a few sub jobs....10% adds up! Maybe Ed can put me up if I actually have to travel out for interviews.

Tiger

As another Illinois contractor I just want to let you know how much I appreciate that you're posting legal issues here.

Dave

Floordude

This needs to be done in every state, but at the state or local levels. Don't let the feds get involved or it will be a wash as usual.

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Grumpy

Again as I always say, I am all for regulation. However regulation without enforcement only further handicaps the legit businessman.

This is good news. I look forward to the multitudes of improperly classified businesses going out of business or just raising their rates.

I read the part about bounty hunters. I could make a fortune as a bounty hunter. Now where is my address book?

Ed the Roofer

That could take thew place of Dogs cancelled show.

Grumpy the Bounty Hunter.

Ed