100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB0366

 

Introduced , by Rep. Margo McDermed

 

SYNOPSIS AS INTRODUCED:
 
820 ILCS 185/40
820 ILCS 185/42
820 ILCS 185/45

    Amends the Employee Classification Act. Provides that an employer that violates any provision of the Act or rule adopted under the Act is subject to a civil penalty not to exceed: (i) $1,500 (rather than $1,000) for each violation found in the first audit by the Department of Labor and (ii) $2,500 (rather than $2,000) for each repeat violation found by the Department within a 5-year period. Provides that a person who willfully violates any provision of the Act or rule adopted under the Act or obstructs the Director of Labor or any other person authorized to inspect places of employment under the Act is liable for penalties up to triple (rather than double) the statutory amount. Provides that an employer that is found to have willfully violated any provision of the Act shall be debarred from being awarded a State contract. Effective immediately.


LRB100 05518 KTG 15530 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB0366LRB100 05518 KTG 15530 b

1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Employee Classification Act is amended by
5changing Sections 40, 42, and 45 as follows:
 
6    (820 ILCS 185/40)
7    Sec. 40. Penalties.
8    (a) An employer or entity that violates any of the
9provisions of this Act or any rule adopted under this Act shall
10be subject to a civil penalty not to exceed $1,500 $1,000 for
11each violation found in the first audit by the Department.
12Following a first audit, an employer or entity shall be subject
13to a civil penalty not to exceed $2,500 $2,000 for each repeat
14violation found by the Department within a 5 year period. For
15purposes of this Section, each violation of this Act for each
16person and for each day the violation continues shall
17constitute a separate and distinct violation. In determining
18the amount of a penalty, the Director shall consider the
19appropriateness of the penalty to the employer or entity
20charged, upon the determination of the gravity of the
21violations.
22    (b) The amount of the penalty, when finally determined, may
23be recovered in any administrative proceeding or a civil action

 

 

HB0366- 2 -LRB100 05518 KTG 15530 b

1filed in any circuit court by the Director of Labor, or a
2person aggrieved by a violation of this Act or any rule adopted
3under this Act.
4        (1) The Department shall distribute to all affected
5    employees 10% of the civil penalty recovered as a result of
6    any administrative proceeding or civil action brought by
7    the Department. The remaining 90% of the amount recovered
8    shall be submitted to the Director of Labor.
9        (2) In any civil action brought by an interested party
10    pursuant to this Section, the circuit court shall award the
11    interested party 10% of the amount recovered. In such case,
12    the remaining amount recovered shall be submitted to the
13    Director of Labor.
14    (c) Any uncollected amount shall be subject to the
15provisions of the Illinois State Collection Act of 1986.
16(Source: P.A. 98-106, eff. 1-1-14.)
 
17    (820 ILCS 185/42)
18    Sec. 42. Debarments. For any second or subsequent violation
19determined by the Department which is within 5 years of an
20earlier violation, or a violation in accordance with the
21provisions of Section 45 of this Act, the Department shall add
22the employer or entity's name to a list to be posted on the
23Department's official website. Upon such notice, the
24Department shall notify the violating employer or entity. No
25state contract shall be awarded to an employer or entity

 

 

HB0366- 3 -LRB100 05518 KTG 15530 b

1appearing on the list until 5 4 years have elapsed from the
2date of the last violation.
3(Source: P.A. 95-26, eff. 1-1-08.)
 
4    (820 ILCS 185/45)
5    Sec. 45. Willful violations.
6    (a) Whoever willfully violates any of the provisions of
7this Act or any rule adopted under this Act or whoever
8obstructs the Director of Labor, or his or her representatives,
9or any other person authorized to inspect places of employment
10under this Act shall be liable for penalties up to triple
11double the statutory amount.
12    (b) Whoever willfully violates any of the provisions of
13this Act or any rule adopted under this Act shall be liable to
14the employee for punitive damages in an amount equal to the
15penalties assessed in subsection (a) of this Section.
16    (c) The penalty shall be imposed in cases in which an
17employer or entity's conduct is proven by a preponderance of
18the evidence to be willful. The penalty may be recovered in a
19civil action brought by the Director of Labor in any circuit
20court. In any such action, the Director of Labor shall be
21represented by the Attorney General. Any uncollected amount
22shall be subject to the provisions of the Illinois State
23Collection Act of 1986.
24    (d) An entity or employer that willfully violates any
25provision of this Act or any rule adopted under this Act

 

 

HB0366- 4 -LRB100 05518 KTG 15530 b

1commits a Class C misdemeanor. An entity or employer that
2commits a second or subsequent violation within a 5 year period
3commits a Class 4 felony.
4    (e) An entity or employer that is found to have willfully
5violated any provision of this Act shall be debarred from being
6awarded a State contract as provided under Section 42 of this
7Act.
8(Source: P.A. 95-26, eff. 1-1-08.)
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.