HB2649 EnrolledLRB098 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, and 40 and by adding Section 63 as
6follows:
 
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. Within 120 days of the filing of a complaint, the
8Department shall notify the employer in writing of the filing
9of a complaint and provide the employer the location and
10approximate date of the project or projects, affected
11contractors, and the nature of the allegations being
12investigated.
13    (b) Whenever the Department believes upon investigation
14that there has been a violation of any of the provisions of
15this Act or any rules or regulations promulgated under this
16Act, the Department may: (i) issue and cause to be served on
17any party an order to cease and desist from further violation
18of the Act, (ii) take affirmative or other action as deemed
19reasonable to eliminate the effect of the violation, (iii)
20collect the amount of any wages, salary, employment benefits,
21or other compensation denied or lost to the individual, and
22(iv) assess any civil penalty allowed by this Act. The civil
23penalties assessed by the Department as well as any other
24relief requested by the Department shall be recoverable in an
25action brought in the name of the people of the State of
26Illinois by the Attorney General.

 

 

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1    (c) If, upon investigation, the Department finds cause to
2believe that Section 20 or Section 55 of this Act has been
3violated, the Department shall notify the employer, in writing,
4of its finding and any proposed relief due and penalties
5assessed and that the matter will be referred to an
6Administrative Law Judge to schedule a formal hearing in
7accordance with the Illinois Administrative Procedure Act.
8    (d) The employer has 28 calendar days from the date of the
9Department's findings to answer the allegations contained in
10the Department's findings. If an employer fails to answer all
11allegations contained in the Department's findings, any
12unanswered allegations or findings shall be deemed admitted to
13be true and shall be found true in the final decision issued by
14the Administrative Law Judge. If, within 30 calendar days of
15the final decision issued by the Administrative Law Judge, the
16employer files a motion to vacate the Administrative Law
17Judge's final decision and demonstrates good cause for failing
18to answer the Department's allegations, and the Administrative
19Law Judge grants the motion, the employer shall be afforded an
20opportunity to answer and the matter shall proceed as if an
21original answer to the Department's findings had been filed.
22    (e) A final decision of an Administrative Law Judge issued
23pursuant to this Section is subject to the provisions of the
24Administrative Review Law and shall be enforceable in an action
25brought in the name of the people of the State of Illinois by
26the Attorney General.

 

 

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1(Source: P.A. 95-26, eff. 1-1-08.)
 
2    (820 ILCS 185/30)
3    Sec. 30. Attorney General; State's Attorneys. Criminal
4violations of this Act shall be prosecuted by the Attorney
5General or the appropriate State's Attorney. The Department
6shall refer matters to the Attorney General and the appropriate
7State's Attorney upon determining that a criminal violation may
8have occurred. In all other proceedings the Department shall be
9represented by the Attorney General's Office.
10(Source: P.A. 95-26, eff. 1-1-08.)
 
11    (820 ILCS 185/40)
12    Sec. 40. Penalties.
13    (a) An employer or entity that violates any of the
14provisions of this Act or any rule adopted under this Act shall
15be subject to a civil penalty not to exceed $1,000 $1,500 for
16each violation found in the first audit by the Department.
17Following a first audit, an employer or entity shall be subject
18to a civil penalty not to exceed $2,000 $2,500 for each repeat
19violation found by the Department within a 5 year period. For
20purposes of this Section, each violation of this Act for each
21person and for each day the violation continues shall
22constitute a separate and distinct violation. In determining
23the amount of a penalty, the Director shall consider the
24appropriateness of the penalty to the employer or entity

 

 

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1charged, upon the determination of the gravity of the
2violations.
3    (b) The amount of the penalty, when finally determined, may
4be recovered in any administrative proceeding or a civil action
5filed in any circuit court by the Director of Labor, or a
6person aggrieved by a violation of this Act or any rule adopted
7under this Act.
8        (1) The Department shall distribute to all affected
9    employees 10% of the civil penalty recovered as a result of
10    any administrative proceeding or civil action brought by
11    the Department. The remaining 90% of the amount recovered
12    shall be submitted to the Director of Labor.
13        (2) In any civil action brought by an interested party
14    pursuant to this Section, the circuit court shall award the
15    interested party 10% of the amount recovered. In such case,
16    the remaining amount recovered shall be submitted to the
17    Director of Labor.
18    (c) Any uncollected amount shall be subject to the
19provisions of the Illinois State Collection Act of 1986.
20(Source: P.A. 95-26, eff. 1-1-08.)
 
21    (820 ILCS 185/63 new)
22    Sec. 63. Individual liability. In addition to an individual
23who is an employer pursuant to Section 5 of this Act, any
24officer of a corporation or agent of a corporation who
25knowingly permits such employer to violate the provisions of

 

 

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1this Act may be held individually liable for all violations and
2penalties assessed under this Act. This Section shall not apply
3to an individual who is an officer or agent of a corporation
4which on the project under investigation satisfies the
5responsible bidder requirements set forth in the Illinois
6Procurement Code.