Illinois General Assembly - Bill Status for HB4883

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.

Deletes everything. Creates the Truth in Employment Act. Requires a construction contractor for whom a person is performing work and is classified as an independent contractor with respect to that work to file a statement with the Department of Revenue once each year, together with a $5 filing fee. Provides that the statement shall include: the name and address of the contractor for whom the person is performing the work; the name and address of the general contractor (if the general contractor is not the contractor for whom the person is performing the work); and any other information required by the Department of Revenue. Provides that, if a contractor is a successful bidder for a construction project and knowingly or intentionally 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. Provides that, if the the Department of Revenue determines that an employer has knowingly or intentionally misclassified one or more of its employees as independent contractors, the Department may direct the employer to cease its operations, direct the employer to pay penalties, and require the employer to continue to pay, for 10 days, employees affected by the determination; 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 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 2 years have elapsed since the Department enters an order determining that an employer has cured the misclassification. Provides for criminal penalties and enforcement. Creates the Truth in Employment Fund as a special fund in the State treasury and amends the State Finance Act to include the Fund as a special fund; provides that fees and penalties received by the Department of Revenue under the Act shall be deposited into the Fund; and provides that moneys in the Fund shall be used, subject to appropriation, by the Department of Revenue for administration, investigation, and other expenses incurred under the Act. Provides that any moneys in the Fund at the end of a fiscal year in excess of a $1,000,000 reserve shall be transferred to the General Revenue Fund. Contains provisions concerning rulemaking, judicial review, waivers, severability, and other matters. Amends the Workers' Compensation Act and the Department of Employment Security Law of the Civil Administrative Code of Illinois to provide that the Industrial Commission and the Department of Employment Security shall cooperate with the Department of Revenue by providing information concerning any suspected misclassification by a contractor of any of its employees as independent contractors.

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