HB4883 93RD GENERAL ASSEMBLY

LRB093 20882 WGH 46835 b

93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB4883

Introduced 02/04/04, by Larry McKeon

SYNOPSIS AS INTRODUCED:

New Act
820 ILCS 305/26.1 new
820 ILCS 405/2206.2 new

Creates the Truth in Employment Act. Provides that, if a contractor is a successful bidder for a construction project and purposefully misclassifies one or more of its employees as independent contractors, the contractor is liable to an unsuccessful bidder, or an entity contracting with an unsuccessful bidder (including a labor organization), for damages suffered because the bid was not accepted. Amends the Workers' Compensation Act and the Unemployment Insurance Act by providing that, if the Industrial Commission or the Director of Employment Security enters an order determining that an employer has purposefully misclassified one or more of its employees as independent contractors in violation of the Workers' Compensation Act, the Workers' Occupational Diseases Act, or the Unemployment Insurance Act, the following provisions apply: the Commission or Department may direct the employer to cease its operations, direct the employer to pay $250 for each day during which the violation continues, and require the employer to continue to pay employees affected by the order for the first 10 days of the order; no licenses or permits of any kind may be issued to the employer by any State agency or officer or any unit of local government nor may any such licenses or permits be renewed by any State agency or officer or any unit of local government until the Commission or Department enters an order determining that an employer has cured the misclassification; and no State agency or officer may enter into any contracts with the employer until 3 years have elapsed since the Commission or Department enters an order determining that an employer has cured the misclassification.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning employment.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Truth in Employment Act.

Section 5. Definition. As used in this Act, "contractor" means any person who, in any capacity other than as the employee of another for wages as the sole compensation, undertakes to construct, alter, repair, move, wreck, or demolish any fixture or structure. "Contractor" includes a subcontractor, but does not include a person who furnishes only materials or supplies.

Section 10. Misclassification of employees as independent contractors; construction projects. If a contractor is a successful bidder for a construction project and purposefully misclassifies one or more of its employees as independent contractors, the contractor is liable to an unsuccessful bidder, or an entity contracting with an unsuccessful bidder (including, but not limited to, a labor organization), for damages suffered by the unsuccessful bidder or entity as a result of the unsuccessful bidder's competitive bid for the construction project not being accepted due to the successful bidder's purposeful misclassification of its employees as independent contractors.

Section 90. The Workers' Compensation Act is amended by adding Section 26.1 as follows:

(820 ILCS 305/26.1 new)

Sec. 26.1. Misclassification of employees as independent contractors. If the Commission enters an order determining that an employer has purposefully misclassified one or more of its employees as independent contractors in violation of this Act or the Workers' Occupational Diseases Act:

(1) the Commission may: (i) direct the employer to cease its operations; (ii) direct the employer to pay $250 for each day during which the violation continues; and (iii) require the employer to continue to pay employees affected by the order for the first 10 days of the order;

(2) no licenses or permits of any kind may be issued to the employer by any State agency or officer or any unit of local government nor may any such licenses or permits be renewed by any State agency or officer or any unit of local government until the Commission enters an order determining that an employer has cured the misclassification; and

(3) no State agency or officer may enter into any contracts with the employer until 3 years have elapsed since the Commission enters an order determining that an employer has cured the misclassification.

An order entered under this Section is a final administrative decision that is appealable under the Administrative Review Law.

Section 95. The Unemployment Insurance Act is amended by adding Section 2206.2 as follows:

(820 ILCS 405/2206.2 new)

Sec. 2206.2. Misclassification of employees as independent contractors. If the Director enters an order determining that an employer has purposefully misclassified one or more of its employees as independent contractors in violation of this Act:

(1) the Director may: (i) direct the employer to cease its operations; (ii) direct the employer to pay $250 for each day during which the violation continues; and (iii) require the employer to continue to pay employees affected by the order for the first 10 days of the order;

(2) no licenses or permits of any kind may be issued to the employer by any State agency or officer or any unit of local government nor may any such licenses or permits be renewed by any State agency or officer or any unit of local government until the Director enters an order determining that an employer has cured the misclassification; and

(3) no State agency or officer may enter into any contracts with the employer until 3 years have elapsed since the Director enters an order determining that an employer has cured the misclassification.

An order entered under this Section is a final administrative decision that is appealable under the Administrative Review Law.