HB0582ham001 100TH GENERAL ASSEMBLY

Rep. Jay Hoffman

Filed: 3/7/2017

10000HB0582ham001 LRB100 07081 JLS 22429 a

AMENDMENT TO HOUSE BILL 582

AMENDMENT NO. ______. Amend House Bill 582 by replacing everything after the enacting clause with the following:

"Section 5. The Employee Classification Act is amended by changing Sections 40, 42, and 45 as follows:

(820 ILCS 185/40)

Sec. 40. Penalties.

(a) An employer or entity that violates any of the provisions of this Act or any rule adopted under this Act shall be subject to a civil penalty not to exceed $1,500 $1,000 for each violation found in the first audit by the Department. Following a first audit, an employer or entity shall be subject to a civil penalty not to exceed $2,500 $2,000 for each repeat violation found by the Department within a 5 year period. For purposes of this Section, each violation of this Act for each person and for each day the violation continues shall constitute a separate and distinct violation. In determining the amount of a penalty, the Director shall consider the appropriateness of the penalty to the employer or entity charged, upon the determination of the gravity of the violations.

(b) The amount of the penalty, when finally determined, may be recovered in any administrative proceeding or a civil action filed in any circuit court by the Director of Labor, or a person aggrieved by a violation of this Act or any rule adopted under this Act.

(1) The Department shall distribute to all affected employees 10% of the civil penalty recovered as a result of any administrative proceeding or civil action brought by the Department. The remaining 90% of the amount recovered shall be submitted to the Director of Labor.

(2) In any civil action brought by an interested party pursuant to this Section, the circuit court shall award the interested party 10% of the amount recovered. In such case, the remaining amount recovered shall be submitted to the Director of Labor.

(c) Any uncollected amount shall be subject to the provisions of the Illinois State Collection Act of 1986.

(Source: P.A. 98-106, eff. 1-1-14.)

(820 ILCS 185/42)

Sec. 42. Debarments. For any second or subsequent violation determined by the Department which is within 5 years of an earlier violation, or a violation in accordance with the provisions of Section 45 of this Act, the Department shall add the employer or entity's name to a list to be posted on the Department's official website. Upon such notice, the Department shall notify the violating employer or entity. No state contract shall be awarded to an employer or entity appearing on the list until 5 4 years have elapsed from the date of the last violation.

(Source: P.A. 95-26, eff. 1-1-08.)

(820 ILCS 185/45)

Sec. 45. Willful violations.

(a) Whoever willfully violates any of the provisions of this Act or any rule adopted under this Act or whoever obstructs the Director of Labor, or his or her representatives, or any other person authorized to inspect places of employment under this Act shall be liable for penalties up to triple double the statutory amount.

(b) Whoever willfully violates any of the provisions of this Act or any rule adopted under this Act shall be liable to the employee for punitive damages in an amount equal to the penalties assessed in subsection (a) of this Section.

(c) The penalty shall be imposed in cases in which an employer or entity's conduct is proven by a preponderance of the evidence to be willful. The penalty may be recovered in a civil action brought by the Director of Labor in any circuit court. In any such action, the Director of Labor shall be represented by the Attorney General. Any uncollected amount shall be subject to the provisions of the Illinois State Collection Act of 1986.

(d) An entity or employer that willfully violates any provision of this Act or any rule adopted under this Act commits a Class C misdemeanor. An entity or employer that commits a second or subsequent violation within a 5 year period commits a Class 4 felony.

(e) An entity or employer that is found to have willfully violated any provision of this Act shall be debarred from being awarded a State contract as provided under Section 42 of this Act.

(Source: P.A. 95-26, eff. 1-1-08.)

Section 99. Effective date. This Act takes effect upon becoming law.".