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.
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