07/15/2008
As of Jan. 1, construction contractors in Illinois have been dealing with a new law on how to classify independent contractors. Initially, the Illinois Department of Labor issued a set of rules to allow a better understanding of how the new law would be enforced. Then, through what's called the "rules process," the department then took into consideration the comments and suggestions of many groups, including NFIB. The department has issued a revised set of rules that will become final and permanent.
Many of the revisions will help contractors better understand how and when someone is an employee or independent contractor.
The most significant changes are the following:
- In addition to defining a "bona fide corporation," the rules now also include a description of a "bona fide limited liability company (LLC)";
- The department may investigate alleged violations for up to three years instead of five years;
- Contractors facing allegations will now have 30 calendar days, instead of 15, to provide any written information on the case to the department;
- A lengthy list of factors has now been given by the department to describe what it will look for when determining whether or not the employer controlled the work of the individual performing services;
- Employers will be required to keep records on all individuals performing services for them for three years instead of five years (unless the records pertain to an ongoing investigation);
- Either party may seek review of the department's final determination by filing a request with the director within 15 days of the issuance of the final determination.
