What kinds of employers does the Illinois Employee Classification Act cover?

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in Compensation and Benefits,Employee Benefits Program,Employment Law,Hiring,HR Management,Human Resources,Small Business Tax,Small Business Tax Deduction Strategies

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 labor law obligations, such as payroll taxes, 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)

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