Full Text of HB4883 93rd General Assembly
HB4883eng 93RD GENERAL ASSEMBLY
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| AN ACT concerning employment.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 1. Short title. This Act may be cited as the Truth | 5 |
| in Employment
Act.
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| Section 3. Purpose. This Act is intended to address the | 7 |
| practice of misclassifying employees as independent | 8 |
| contractors. | 9 |
| Section 5. Definition. As used in this Act, "contractor" | 10 |
| means any person
who, in any capacity other than as the | 11 |
| employee of another for wages as the
sole
compensation, | 12 |
| undertakes to construct, alter, repair, move, wreck, or | 13 |
| demolish
any fixture or structure. "Contractor" includes a | 14 |
| subcontractor, but does not
include a person who furnishes only | 15 |
| materials or supplies.
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| Section 10. Filing by contractors. | 17 |
| (a) A contractor for whom a person is performing work and | 18 |
| is classified as an independent contractor with respect to that | 19 |
| work must file with the Department of Revenue a statement | 20 |
| regarding that person, together with a $5 filing fee. The | 21 |
| Department of Revenue shall adopt rules concerning the form, | 22 |
| contents, and filing of the statement. The statement shall | 23 |
| include: the name and address of the contractor and the person | 24 |
| performing the work; the name and address of the general | 25 |
| contractor (if the general contractor is not the contractor for | 26 |
| whom the person is performing the work); and any other | 27 |
| information required by the Department of Revenue. A separate | 28 |
| statement shall be filed by the contractor for each calendar | 29 |
| year during which the worker performs work for the contractor. | 30 |
| The statement shall be filed no later than the first date of |
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| the calendar year on which the worker performs work for the | 2 |
| contractor. | 3 |
| (b) A contractor that is required to file a statement under | 4 |
| subsection (a) and does not file the statement as required | 5 |
| under subsection (a) shall pay a $10 penalty in addition to the | 6 |
| $5 filing fee. | 7 |
| Section 15. Notice. | 8 |
| (a) The Department of Revenue, the Department of Employment | 9 |
| Security, and the Industrial Commission shall post a summary of | 10 |
| the requirements of this Act on their web sites. | 11 |
| (b) The Department of Revenue shall post a summary of the | 12 |
| requirements of this Act on bulletin boards in each office of | 13 |
| the Department. | 14 |
| (c) A contractor for whom one or more persons classified as | 15 |
| independent contractors are performing work shall post and keep | 16 |
| posted, in conspicuous places on each job site where those | 17 |
| persons work and in each of its offices, a notice, prepared by | 18 |
| the Department of Revenue, summarizing the requirements of this | 19 |
| Act. The Department of Revenue shall furnish copies of | 20 |
| summaries to contractors upon request without charge. | 21 |
| Section 20. Investigations. | 22 |
| (a) The Department of Revenue shall commence an | 23 |
| investigation if it finds, based on statements filed under this | 24 |
| Act or other information supplied to the Department or | 25 |
| otherwise obtained by the Department, that there is reason to | 26 |
| suspect that a contractor has misclassified one or more | 27 |
| employees as independent contractors. | 28 |
| (b) The Department of Revenue shall hire as many | 29 |
| investigators as may be necessary to carry out the purposes of | 30 |
| this Act. | 31 |
| Section 25. Misclassification of employees as independent | 32 |
| contractors. | 33 |
| (a) If a contractor is a successful
bidder for a |
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| construction
project and knowingly or intentionally | 2 |
| misclassifies one or more of its employees as
independent | 3 |
| contractors, the contractor is liable to an unsuccessful | 4 |
| bidder, or
an entity contracting with an unsuccessful bidder | 5 |
| (including, but not limited
to, a labor organization), for | 6 |
| damages suffered by the unsuccessful bidder or
entity as a | 7 |
| result of the unsuccessful bidder's competitive bid for the
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| construction project not being accepted due to the successful | 9 |
| bidder's
knowing or intentional misclassification of its | 10 |
| employees as independent contractors.
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| (b) If, upon completion of an investigation commenced | 12 |
| pursuant to subsection (a) of Section 20 of this Act,
the | 13 |
| Department of Revenue determines that a contractor has | 14 |
| knowingly or intentionally
misclassified one or more of its | 15 |
| employees as independent contractors on a construction
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| project:
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| (1) the Department may: (i) direct the employer to | 18 |
| cease its operations;
(ii) direct the employer to pay $250 | 19 |
| for each day during which the violation
continues; (iii) | 20 |
| direct the employer to pay $500 for each day during which a | 21 |
| second or subsequent violation
occurs that involves | 22 |
| different employees than those involved in an earlier | 23 |
| violation by that employer; and (iv) require the employer | 24 |
| to continue to pay, for 10 days, employees affected
by the | 25 |
| determination;
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| (2) no licenses or permits of any kind may be issued to | 27 |
| the employer by
any State agency or officer or any unit of | 28 |
| local government nor may any such
licenses or permits be | 29 |
| renewed by any State agency or officer or any unit of
local | 30 |
| government until the Department determines that an
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| employer has cured the misclassification; and
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| (3) no State agency or officer may enter into any | 33 |
| contracts with the
employer until 2 years have elapsed | 34 |
| since the Department has determined that an employer has | 35 |
| cured the misclassification.
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| (c) A contractor that
knowingly or intentionally |
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| misclassifies one or more of its employees as independent | 2 |
| contractors on a construction
project commits a Class C | 3 |
| misdemeanor. A contractor that
commits a second or subsequent | 4 |
| violation commits a Class 4 felony if the second or subsequent | 5 |
| violation involves different employees than those involved in | 6 |
| an earlier violation.
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| Section 30. Attorney General; State's Attorneys. Criminal | 8 |
| violations of this Act shall be prosecuted by the Attorney | 9 |
| General or the appropriate State's Attorney. The Department of | 10 |
| Revenue shall refer matters to the Attorney General and the | 11 |
| appropriate State's Attorney upon determining that a criminal | 12 |
| violation may have occurred. | 13 |
| Section 35. Truth in Employment Fund. The Truth in | 14 |
| Employment Fund is created as a special fund in the State | 15 |
| treasury. All fees and penalties received by the Department of | 16 |
| Revenue under this Act shall be deposited into the Fund. Moneys | 17 |
| in the Fund shall be used, subject to appropriation by the | 18 |
| General Assembly, by the Department of Revenue for | 19 |
| administration, investigation, and other expenses incurred in | 20 |
| carrying out its powers and duties under this Act. Any moneys | 21 |
| in the Fund at the end of a fiscal year in excess of a | 22 |
| $1,000,000 reserve shall be transferred to the General Revenue | 23 |
| Fund. | 24 |
| Section 40. Rulemaking. In addition to any rulemaking | 25 |
| required by any other provision of this Act, the Department of | 26 |
| Revenue may adopt reasonable rules to implement and administer | 27 |
| this Act. | 28 |
| Section 45. Judicial review. A final administrative | 29 |
| decision
of the Department of Revenue under this Act is subject | 30 |
| to judicial review under the Administrative Review Law.
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| Section 50. No waivers. |
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| (a) There shall be no waiver of any provision of this Act. | 2 |
| (b) It is a Class C misdemeanor for a contractor to attempt | 3 |
| to induce any individual to waive any provision of this Act. | 4 |
| Section 85. The Department of Employment Security Law of | 5 |
| the
Civil Administrative Code of Illinois is amended by adding | 6 |
| Section 1005-160 as follows: | 7 |
| (20 ILCS 1005/1005-160 new)
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| Sec. 1005-160. Misclassification of employees as | 9 |
| independent contractors. The Department shall cooperate with | 10 |
| the Department of Revenue under the Truth in Employment
Act by | 11 |
| providing information to the Department of Revenue concerning | 12 |
| any
suspected misclassification by a contractor of one or more | 13 |
| of its employees as independent contractors.
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| Section 90. The State Finance Act is amended by adding | 15 |
| Section
5.625 as follows:
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| (30 ILCS 105/5.625 new)
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| Sec. 5.625. The Truth in Employment Fund.
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| Section 95. The Workers' Compensation Act is amended by | 19 |
| adding Section
26.1 as follows:
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| (820 ILCS 305/26.1 new)
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| Sec. 26.1. Misclassification of employees as independent | 22 |
| contractors. The Commission shall cooperate with the | 23 |
| Department of Revenue under the Truth in Employment
Act by | 24 |
| providing information to the Department of Revenue concerning | 25 |
| any
suspected misclassification by a contractor of one or more | 26 |
| of its employees as independent contractors.
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| Section 97. Severability. The provisions of this Act are | 28 |
| severable under Section 1.31 of the Statute on Statutes.
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