98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB2649

 

Introduced 2/21/2013, by Rep. Luis Arroyo

 

SYNOPSIS AS INTRODUCED:
 
820 ILCS 185/5
820 ILCS 185/25
820 ILCS 185/30
820 ILCS 185/40
820 ILCS 185/55
820 ILCS 185/63 new

    Amends the Employee Classification Act. Includes an individual within the scope of the term "contractor". Provides for notice to an employer of violations and penalties and for a time within which an employer may request a hearing; provides for a formal administrative hearing. Makes changes concerning responsibilities of the Attorney General and the recovery of penalties. Includes discipline within acts prohibited as retaliation against a person for exercising rights under the Act, and adds provisions concerning review, an investigation, and a formal hearing. Provides for individual officers and agents of employers to be liable under the Act.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2649LRB098 07683 JLS 37756 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 5, 25, 30, 40, and 55 and by adding Section
663 as follows:
 
7    (820 ILCS 185/5)
8    Sec. 5. Definitions. As used in this Act:
9    "Construction" means any constructing, altering,
10reconstructing, repairing, rehabilitating, refinishing,
11refurbishing, remodeling, remediating, renovating, custom
12fabricating, maintenance, landscaping, improving, wrecking,
13painting, decorating, demolishing, and adding to or
14subtracting from any building, structure, highway, roadway,
15street, bridge, alley, sewer, ditch, sewage disposal plant,
16water works, parking facility, railroad, excavation or other
17structure, project, development, real property or improvement,
18or to do any part thereof, whether or not the performance of
19the work herein described involves the addition to, or
20fabrication into, any structure, project, development, real
21property or improvement herein described of any material or
22article of merchandise. Construction shall also include moving
23construction related materials on the job site to or from the

 

 

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1job site.
2    "Contractor" means any individual, sole proprietor,
3partnership, firm, corporation, limited liability company,
4association or other legal entity permitted by law to do
5business within the State of Illinois who engages in
6construction as defined in this Act.
7    "Contractor" includes a general contractor and a
8subcontractor.
9    "Department" means the Department of Labor.
10    "Director" means the Director of the Department of Labor.
11    "Employer" means any contractor that employs individuals
12deemed employees under Section 10 of this Act; however,
13"employer" does not include (i) the State of Illinois or its
14officers, agencies, or political subdivisions or (ii) the
15federal government.
16    "Entity" means any contractor for which an individual is
17performing services and is not classified as an employee under
18Section 10 of this Act; however, "entity" does not include (i)
19the State of Illinois or its officers, agencies, or political
20subdivisions or (ii) the federal government.
21    "Interested party" means a person with an interest in
22compliance with this Act.
23    "Performing services" means the performance of any
24constructing, altering, reconstructing, repairing,
25rehabilitating, refinishing, refurbishing, remodeling,
26remediating, renovating, custom fabricating, maintenance,

 

 

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1landscaping, improving, wrecking, painting, decorating,
2demolishing, and adding to or subtracting from any building,
3structure, highway, roadway, street, bridge, alley, sewer,
4ditch, sewage disposal plant, water works, parking facility,
5railroad, excavation or other structure, project, development,
6real property or improvement, or to do any part thereof,
7whether or not the performance of the work herein described
8involves the addition to, or fabrication into, any structure,
9project, development, real property or improvement herein
10described of any material or article of merchandise.
11Construction shall also include moving construction related
12materials on the job site to or from the job site.
13(Source: P.A. 95-26, eff. 1-1-08.)
 
14    (820 ILCS 185/25)
15    Sec. 25. Enforcement.
16    (a) Any interested party may file a complaint with the
17Department against an entity or employer covered under this Act
18if there is a reasonable belief that the entity or employer is
19in violation of this Act. It shall be the duty of the
20Department to enforce the provisions of this Act. The
21Department shall have the power to conduct investigations in
22connection with the administration and enforcement of this Act
23and any investigator with the Department shall be authorized to
24visit and inspect, at all reasonable times, any places covered
25by this Act and shall be authorized to inspect, at all

 

 

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1reasonable times, documents related to the determination of
2whether an individual is an employee under Section 10 of this
3Act. The Director of Labor or his or her representative may
4compel, by subpoena, the attendance and testimony of witnesses
5and the production of books, payrolls, records, papers, and
6other evidence in any investigation and may administer oaths to
7witnesses.
8    (b) Whenever the Department believes upon investigation
9that there has been a violation of any of the provisions of
10this Act or any rules or regulations promulgated under this
11Act, the Department may: (i) issue and cause to be served on
12any party an order to cease and desist from further violation
13of the Act, (ii) take affirmative or other action as deemed
14reasonable to eliminate the effect of the violation, (iii)
15collect the amount of any wages, salary, employment benefits,
16or other compensation denied or lost to the individual, and
17(iv) assess any civil penalty allowed by this Act. The civil
18penalties assessed by the Department as well as any other
19relief requested by the Department shall be recoverable in an
20action brought in the name of the people of the State of
21Illinois by the Attorney General.
22    (c) Upon the determination by the Department of any
23violation and the determination by the Department of a civil
24penalty under this Section, the Department shall notify the
25employer in writing of the alleged violation and the amount of
26the penalty. The Department shall afford the employer 10

 

 

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1calendar days from the date of the notice to request a hearing.
2Absent the employer requesting a hearing within the requisite
3time period provided herein, the Department's determination
4shall be final. Any final determination by the Department shall
5be enforceable in an action brought by the Attorney General in
6the name of the people of the State of Illinois under the
7Administrative Review Law.
8    (d) Upon timely written request of the employer or entity,
9the Department shall schedule a formal administrative hearing
10within 45 days in compliance with Article 10 of the Illinois
11Administrative Procedure Act and the Department shall have the
12authority to adopt reasonable rules for the hearing process.
13The General Assembly finds that the adoption of rules to
14implement this Section is deemed an emergency and necessary for
15the public interest and welfare. The final decision of an
16Administrative Law Judge shall be rendered within 30 calendar
17days after the close of the hearing. The final decision of an
18Administrative Law Judge rendered after the close of a hearing
19under this Section is subject to the provisions of the
20Administrative Review Law.
21(Source: P.A. 95-26, eff. 1-1-08.)
 
22    (820 ILCS 185/30)
23    Sec. 30. Attorney General; State's Attorneys. Criminal
24violations of this Act shall be prosecuted by the Attorney
25General or the appropriate State's Attorney. The Department

 

 

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1shall refer matters to the Attorney General and the appropriate
2State's Attorney upon determining that a criminal violation may
3have occurred. In all other proceedings the Department shall be
4represented by the Attorney General's Office.
5(Source: P.A. 95-26, eff. 1-1-08.)
 
6    (820 ILCS 185/40)
7    Sec. 40. Penalties. An employer or entity that violates any
8of the provisions of this Act or any rule adopted under this
9Act shall be subject to a civil penalty not to exceed $1,500
10for each violation found in the first audit by the Department.
11Following a first audit, an employer or entity shall be subject
12to a civil penalty not to exceed $2,500 for each repeat
13violation found by the Department within a 5 year period. For
14purposes of this Section, each violation of this Act for each
15person and for each day the violation continues shall
16constitute a separate and distinct violation. In determining
17the amount of a penalty, the Director shall consider the
18appropriateness of the penalty to the employer or entity
19charged, upon the determination of the gravity of the
20violations. The amount of the penalty, when finally determined,
21may be recovered in a civil action filed in any circuit court
22by the Director of Labor, or a person aggrieved by a violation
23of this Act or any rule adopted under this Act. In any civil
24action brought by an interested party pursuant to this Section,
25the circuit court shall award the interested party 10% of the

 

 

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1amount recovered. Upon receipt of any civil penalties by the
2Department, 10% of such moneys shall be distributed and paid to
3all affected employees.
4    All moneys collected by the Department excluding the 10%
5amount paid to affected employees shall be submitted to the
6Director of Labor. In such case, the remaining amount recovered
7shall be submitted to the Director of Labor. Any uncollected
8amount shall be subject to the provisions of the Illinois State
9Collection Act of 1986.
10(Source: P.A. 95-26, eff. 1-1-08.)
 
11    (820 ILCS 185/55)
12    Sec. 55. Retaliation.
13    (a) It is a violation of this Act for an employer or
14entity, or any agent of an employer or entity, to retaliate
15through discharge, discipline, or in any other manner against
16any person for exercising any rights granted under this Act.
17Such retaliation shall subject an employer or entity to civil
18penalties pursuant to this Act or a private cause of action, or
19both.
20    (b) It is a violation of this Act for an employer or entity
21to retaliate against a person for:
22        (1) making a complaint to an employer or entity, to a
23    co-worker, to a community organization, before a public
24    hearing, or to a State or federal agency that rights
25    guaranteed under this Act have been violated;

 

 

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1        (2) causing to be instituted any proceeding under or
2    related to this Act; or
3        (3) testifying or preparing to testify in an
4    investigation or proceeding under this Act.
5    (c) Any employee or a representative of employees who
6believes that he has been discharged, disciplined, or otherwise
7retaliated against by any person in violation of this Act, may,
8within 30 calendar days of the alleged violation, apply to the
9Department for a review of the discharge, discipline, or
10related retaliation. A copy of the complaint shall be sent to
11the person alleged to have committed the retaliation.
12    (d) Upon receipt of the allegation the Department shall
13cause an investigation to be made. In the event the Department
14finds cause to believe a violation has occurred, the Department
15may institute a formal hearing before an Administrative Law
16Judge. Upon the close of the hearing the Administrative Law
17Judge shall issue a formal decision, which may include such
18relief as is necessary to abate the violation including, but
19not limited to, the rehiring or reinstatement of the employee
20or representative of the employee and compensating the employee
21in an amount to make the employee whole. A final decision by
22the Administrative Law Judge shall be issued within 30 calendar
23days after the close of a hearing and is subject to the
24provisions of the Administrative Review Law.
25(Source: P.A. 95-26, eff. 1-1-08.)
 

 

 

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1    (820 ILCS 185/63 new)
2    Sec. 63. Individual liability. In addition to an individual
3who is deemed to be an employer pursuant to Section 5 of this
4Act, any officer of a corporation or agent of an employer who
5knowingly permits such employer to violate the provisions of
6this Act shall be deemed to be the employers of the employees
7of the corporation and individually liable for all violations
8and penalties assessed by the Department.