The Illinois Employee Classification Act of 2008 Takes Effect

The newly enacted Illinois Employee Classification Act of 2008 took effect on January 1, 2008. The purpose of the Act is "to address the practice of misclassifying employees as independent contractors." 820 ILCS 185/3 in the construction, trucking, landscaping and related industries. Under this harsh new law, severe civil fines, penalties and criminal charges may be levied against employers or contractors found to have misclassified employees as independent contractors.

The Act further authorizes the Illinois Department of Labor to assess significant fines on employers or contractors who misclassify employees as independent contractors. It also gives those aggrieved by the misclassification the right to file suit and seek substantial money damages against the employer or contractor.

This Act is of major concern to Illinois employers in the industries targeted because of the significant financial exposure as well as criminal charges that may result from violations.

Related Publications

Read [Illinois Governor’s Press Release]

Read [Illinois Department of Labor’s Proposed Rules]

Disclaimer: The materials in Asonye & Associates web site have been prepared to permit visitors to our web site to learn more about the services we offer. These materials do not, and are not intended to, constitute legal advice. Neither transmission nor receipt of such materials will create an attorney-client relationship between the sender and receiver. Internet subscribers and online readers are advised not to take or refrain from taking any action based upon materials in this web site without consulting legal counsel. We do not undertake to update any materials in our Web Site to reflect subsequent legal or other developments.