TITLE 56: LABOR AND EMPLOYMENT
CHAPTER I: DEPARTMENT OF LABOR
SUBCHAPTER b: REGULATION OF WORKING CONDITIONS
PART 240 EMPLOYEE CLASSIFICATION
SECTION 240.110 DEFINITIONS


 

Section 240.110  Definitions

 

"Act" means the Employee Classification Act [820 ILCS 185].

 

"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 from any building, structure, highway, roadway, street, bridge, alley, sewer, ditch, sewage disposal plant, water works, parking facility, railroad, excavation or other structure, project, development, real property or improvement, or to do any part thereof, whether or not the performance of the work herein described involves the addition to, or fabrication into, any structure, project, development, real property or improvement herein described of any material or article of merchandise.  Construction shall also include moving construction related materials on the job site to or from the job site.

 

"Contractor" means any sole proprietor, partnership, firm, corporation, limited liability company, association or other legal entity permitted by law to do business within the State of Illinois who engages in construction as defined in the Act.  Contractor includes a general contractor and a subcontractor.

 

"Department" means the Department of Labor.

 

"Director" means the Director of the Department of Labor or an authorized representative.

 

"Employer" means any contractor that employs individuals deemed employees under Section 10 of the Act; however, "employer" does not include:

 

the State of Illinois or its officers, agencies, or political subdivisions; or

 

the federal government.

 

"Entity" means any contractor for which an individual is performing services and is not classified as an employee under Section 10 of the Act; however, "entity" does not include:

 

the State of Illinois or its officers, agencies, or political subdivisions; or

 

the federal government.

 

"Individual performing services" does not include a bona fide corporation nor a limited liability company (LLC).  In determining whether a corporation is bona fide for purposes of the Act, the Department shall consider, among other factors, whether:

 

            the corporation is capitalized;

 

            the corporation has issued corporate stock;

 

            the corporation maintains a corporate bank account;

 

there is an intermingling of corporate and personal accounts or funds;

 

            the corporation holds itself out as a corporation;

 

the corporation maintains corporate books and records, including corporate meeting minutes, and files corporate tax returns that are current and complete; and

 

Articles of Incorporation have been filed and the corporation is in good standing, in the case of Illinois corporations, with the Illinois Secretary of State or, in the case of foreign corporations, as directed by the laws of that jurisdiction.

 

In determining whether a limited liability company (LLC) is bona fide for purposes of the Act, the Department shall consider, among other factors, whether:

 

            the LLC has assets;

 

            the LLC maintains a company bank account;

 

            there is an intermingling of company and personal accounts or funds;

 

            the LLC holds itself out as an LLC;

 

            the LLC makes necessary tax filings that are current and complete; and

 

Articles of Organization have been filed and the LLC is in good standing, in the case of Illinois LLCs with the Illinois Secretary of State or, in the case of foreign LLCs, as directed by the laws of that jurisdiction.

 

"Interested party" means a person with an interest in compliance with the Act.

 

"Performing services" means the performance of 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 from any building, structure, highway, roadway, street, bridge, alley, sewer, ditch, sewage disposal plant, water works, parking facility, railroad, excavation or other structure, project, development, real property or improvement, or to do any part thereof, whether or not the performance of the work herein described involves the addition to, or fabrication into, any structure, project, development, real property or improvement herein described of any material or article of merchandise.  Construction shall also include moving construction related materials on the job site to or from the job site. [820 ILCS 185/5]

 

"Permitted by law to do business within the State of Illinois" means located, operating, transacting business, or performing services within the State of Illinois.