Illinois has its sights on construction firms that misclassify employees as independent contractors to save on taxes, wages and benefits.
Gov. Rod Blagojevich recently signed H.B.1795, the Employee Classification Act, which automatically classifies construction workers as employees unless they meet one of two exceptions.
The first is the independent-contractor exception. To qualify, an employee must be free from control over his or her performance under the contract, must provide a service outside the construction firm’s usual course of business and must be in an independently established trade.
The second is the sole proprietor/partnership exception. To qualify under this exception, an employee must meet 12 detailed criteria set forth in the law.
Contractors must post the law on bulletin boards and web sites in English, Spanish and Polish.
Visit the Illinois General Assembly web site at www.ilga.gov for details.