Employee misclassification enforcement
Illinois steps up employee misclassification enforcement
Illinois Governor Pat Quinn recently announced a new initiative to step up enforcement against employers that misclassify workers as independent contractors. The Illinois Department of Labor, Illinois Department of Employment Security (IDES), Illinois Department of Revenue, and Illinois Workers’ Compensation Commission are working jointly to increase awareness, help responsible business owners obey the law, and punish fraud.
To be considered an independent contractor, a worker must:
- Be substantially free from control or direction;
- Provide services that lie outside the normal scope of the contracting business; and
- Be engaged in an independently established business or occupation.
Employers breaking the law could face fines of at least $10,000, up to 24 percent interest on unpaid unemployment compensation taxes, unpaid minimum wages and overtime, and other taxes and benefits. Officers and employees of businesses in Illinois that willfully misclassify workers can be held personally liable for payments due, IDES noted. Detailed instructions on properly classifying workers are available at www.illinoismisclassification.com.
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