Q. What is the Illinois Employee Classification Act? I’m not sure if it applies to my company.
A. The Illinois Employee Classification Act applies exclusively to the construction industry. Its purpose is to address the widespread construction-industry practice of misclassifying workers as “independent contractors” in order to avoid tax and obligations, such as , unemployment insurance taxes, workers’ compensation premiums, and minimum wage and overtime payments.
The law applies broadly to all individuals performing construction services for a contractor in Illinois on or after Jan. 1, 2008.
What if we break the law?
Q. What are the penalties for violating the Illinois Employee Classification Act?
A. Each violation, for each person and for each day, constitutes a separate and distinct violation. The act imposes civil penalties, including $1,500 for each violation found in the first audit by...(register to read more)
- How to Fire an Employee the Legal Way: 6 Termination Guidelines
- Small Business Tax Deduction Strategies
- Time to pay attention: the next work/life benefit?
- Need cash for IRA deposits? Ask Uncle Sam
- Discharged for moonlighting? Former employee may not be eligible for unemployment
- Can we push employees to donate to charity?