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90_SB0658eng
775 ILCS 5/2-101.5 new
820 ILCS 40/1.5 new
820 ILCS 105/3.5 new
820 ILCS 115/2.5 new
820 ILCS 130/3.5 new
820 ILCS 255/3.5 new
820 ILCS 305/1.5 new
820 ILCS 310/1.5 new
820 ILCS 405/212 from Ch. 48, par. 322
Amends the Human Rights Act, the Personnel Record Review
Act, the Minimum Wage Law, the Wage Payment and Collection
Act, the Prevailing Wage Act, the Toxic Substances Disclosure
to Employees Act, the Workers' Compensation Act, the Workers'
Occupational Diseases Act, and the Unemployment Insurance
Act. Provides that services performed by an individual for
an employer shall be deemed to be employment unless and until
it is proven that the services would not constitute
employment under the Federal Unemployment Tax Act. In the
Unemployment Insurance Act, these provisions replace
provisions relating to independent contractors. Provides
that the changes made by this amendatory Act apply after June
30, 1997.
LRB9002897DJcdA
SB658 Engrossed LRB9002897DJcdA
1 AN ACT concerning employment, amending named Acts.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Human Rights Act is amended by
5 adding Section 2-101.5 as follows:
6 (775 ILCS 5/2-101.5 new)
7 Sec. 2-101.5. Services deemed employment.
8 (A) Services performed by an individual for an employer,
9 whether or not the individual employs others in connection
10 with the performance of those services, shall be deemed to be
11 employment unless and until it is proven in any proceeding
12 where that issue is involved that:
13 (1) the services would not be determined to
14 constitute employment under the Federal Unemployment Tax
15 Act; or
16 (2) a court decision or a binding ruling from the
17 Internal Revenue Service, specifically relating to the
18 employer, has expressly held the services do not
19 constitute employment under the Federal Unemployment Tax
20 Act, on the condition that the court decision or ruling
21 from the Internal Revenue Service has not been reversed
22 or otherwise overturned and that the circumstances under
23 which the services are performed are substantially the
24 same as those on which the court decision or ruling from
25 the Internal Revenue Service is based.
26 (B) Subsection (A) does not apply to services that are
27 required to be covered as a condition of approval of this
28 Act by the United States Secretary of Labor under Section
29 3304(a)(6)(A) of the Federal Unemployment Tax Act.
30 (C) The changes made by this amendatory Act of 1997
31 apply after June 30, 1997.
SB658 Engrossed -2- LRB9002897DJcdA
1 Section 10. The Personnel Record Review Act is amended
2 by adding Section 1.5 as follows:
3 (820 ILCS 40/1.5 new)
4 Sec. 1.5. Services deemed employment.
5 (a) Services performed by an individual for an employer,
6 whether or not the individual employs others in connection
7 with the performance of those services, shall be deemed to be
8 employment unless and until it is proven in any proceeding
9 where that issue is involved that:
10 (1) the services would not be determined to
11 constitute employment under the Federal Unemployment Tax
12 Act; or
13 (2) a court decision or a binding ruling from the
14 Internal Revenue Service, specifically relating to the
15 employer, has expressly held the services do not
16 constitute employment under the Federal Unemployment Tax
17 Act, on the condition that the court decision or ruling
18 from the Internal Revenue Service has not been reversed
19 or otherwise overturned and that the circumstances under
20 which the services are performed are substantially the
21 same as those on which the court decision or ruling from
22 the Internal Revenue Service is based.
23 (b) Subsection (a) does not apply to services that are
24 required to be covered as a condition of approval of this
25 Act by the United States Secretary of Labor under Section
26 3304(a)(6)(A) of the Federal Unemployment Tax Act.
27 (c) The changes made by this amendatory Act of 1997
28 apply after June 30, 1997.
29 Section 15. The Minimum Wage Law is amended by adding
30 Section 3.5 as follows:
31 (820 ILCS 105/3.5 new)
SB658 Engrossed -3- LRB9002897DJcdA
1 Sec. 3.5. Services deemed employment.
2 (a) Services performed by an individual for an employer,
3 whether or not the individual employs others in connection
4 with the performance of those services, shall be deemed to be
5 employment unless and until it is proven in any proceeding
6 where that issue is involved that:
7 (1) the services would not be determined to
8 constitute employment under the Federal Unemployment Tax
9 Act; or
10 (2) a court decision or a binding ruling from the
11 Internal Revenue Service, specifically relating to the
12 employer, has expressly held the services do not
13 constitute employment under the Federal Unemployment Tax
14 Act, on the condition that the court decision or ruling
15 from the Internal Revenue Service has not been reversed
16 or otherwise overturned and that the circumstances under
17 which the services are performed are substantially the
18 same as those on which the court decision or ruling from
19 the Internal Revenue Service is based.
20 (b) Subsection (a) does not apply to services that are
21 required to be covered as a condition of approval of this
22 Law by the United States Secretary of Labor under Section
23 3304(a)(6)(A) of the Federal Unemployment Tax Act.
24 (c) The changes made by this amendatory Act of 1997
25 apply after June 30, 1997.
26 Section 20. The Illinois Wage Payment and Collection Act
27 is amended by adding Section 2.5 as follows:
28 (820 ILCS 115/2.5 new)
29 Sec. 2.5. Services deemed employment.
30 (a) Services performed by an individual for an employer,
31 whether or not the individual employs others in connection
32 with the performance of those services, shall be deemed to be
SB658 Engrossed -4- LRB9002897DJcdA
1 employment unless and until it is proven in any proceeding
2 where that issue is involved that:
3 (1) the services would not be determined to
4 constitute employment under the Federal Unemployment Tax
5 Act; or
6 (2) a court decision or a binding ruling from the
7 Internal Revenue Service, specifically relating to the
8 employer, has expressly held the services do not
9 constitute employment under the Federal Unemployment Tax
10 Act, on the condition that the court decision or ruling
11 from the Internal Revenue Service has not been reversed
12 or otherwise overturned and that the circumstances under
13 which the services are performed are substantially the
14 same as those on which the court decision or ruling from
15 the Internal Revenue Service is based.
16 (b) Subsection (a) does not apply to services that are
17 required to be covered as a condition of approval of this
18 Act by the United States Secretary of Labor under Section
19 3304(a)(6)(A) of the Federal Unemployment Tax Act.
20 (c) The changes made by this amendatory Act of 1997
21 apply after June 30, 1997.
22 Section 25. The Prevailing Wage Act is amended by adding
23 Section 3.5 as follows:
24 (820 ILCS 130/3.5 new)
25 Sec. 3.5. Services deemed employment.
26 (a) Services performed by an individual for an employer,
27 whether or not the individual employs others in connection
28 with the performance of those services, shall be deemed to be
29 employment unless and until it is proven in any proceeding
30 where that issue is involved that:
31 (1) the services would not be determined to
32 constitute employment under the Federal Unemployment Tax
SB658 Engrossed -5- LRB9002897DJcdA
1 Act; or
2 (2) a court decision or a binding ruling from the
3 Internal Revenue Service, specifically relating to the
4 employer, has expressly held the services do not
5 constitute employment under the Federal Unemployment Tax
6 Act, on the condition that the court decision or ruling
7 from the Internal Revenue Service has not been reversed
8 or otherwise overturned and that the circumstances under
9 which the services are performed are substantially the
10 same as those on which the court decision or ruling from
11 the Internal Revenue Service is based.
12 (b) Subsection (a) does not apply to services that are
13 required to be covered as a condition of approval of this
14 Act by the United States Secretary of Labor under Section
15 3304(a)(6)(A) of the Federal Unemployment Tax Act.
16 (c) The changes made by this amendatory Act of 1997
17 apply after June 30, 1997.
18 Section 30. The Toxic Substances Disclosure to Employees
19 Act is amended by adding Section 3.5 as follows:
20 (820 ILCS 255/3.5 new)
21 Sec. 3.5. Services deemed employment.
22 (a) Services performed by an individual for an employer,
23 whether or not the individual employs others in connection
24 with the performance of those services, shall be deemed to be
25 employment unless and until it is proven in any proceeding
26 where that issue is involved that:
27 (1) the services would not be determined to
28 constitute employment under the Federal Unemployment Tax
29 Act; or
30 (2) a court decision or a binding ruling from the
31 Internal Revenue Service, specifically relating to the
32 employer, has expressly held the services do not
SB658 Engrossed -6- LRB9002897DJcdA
1 constitute employment under the Federal Unemployment Tax
2 Act, on the condition that the court decision or ruling
3 from the Internal Revenue Service has not been reversed
4 or otherwise overturned and that the circumstances under
5 which the services are performed are substantially the
6 same as those on which the court decision or ruling from
7 the Internal Revenue Service is based.
8 (b) Subsection (a) does not apply to services that are
9 required to be covered as a condition of approval of this
10 Act by the United States Secretary of Labor under Section
11 3304(a)(6)(A) of the Federal Unemployment Tax Act.
12 (c) The changes made by this amendatory Act of 1997
13 apply after June 30, 1997.
14 Section 35. The Workers' Compensation Act is amended by
15 adding Section 1.5 as follows:
16 (820 ILCS 305/1.5 new)
17 Sec. 1.5. Services deemed employment.
18 (a) Services performed by an individual for an employer,
19 whether or not the individual employs others in connection
20 with the performance of those services, shall be deemed to be
21 employment unless and until it is proven in any proceeding
22 where that issue is involved that:
23 (1) the services would not be determined to
24 constitute employment under the Federal Unemployment Tax
25 Act; or
26 (2) a court decision or a binding ruling from the
27 Internal Revenue Service, specifically relating to the
28 employer, has expressly held the services do not
29 constitute employment under the Federal Unemployment Tax
30 Act, on the condition that the court decision or ruling
31 from the Internal Revenue Service has not been reversed
32 or otherwise overturned and that the circumstances under
SB658 Engrossed -7- LRB9002897DJcdA
1 which the services are performed are substantially the
2 same as those on which the court decision or ruling from
3 the Internal Revenue Service is based.
4 (b) Subsection (a) does not apply to services that are
5 required to be covered as a condition of approval of this
6 Act by the United States Secretary of Labor under Section
7 3304(a)(6)(A) of the Federal Unemployment Tax Act.
8 (c) The changes made by this amendatory Act of 1997
9 apply after June 30, 1997.
10 Section 40. The Workers' Occupational Diseases Act is
11 amended by adding Section 1.5 as follows:
12 (820 ILCS 310/1.5 new)
13 Sec. 1.5. Services deemed employment.
14 (a) Services performed by an individual for an employer,
15 whether or not the individual employs others in connection
16 with the performance of those services, shall be deemed to be
17 employment unless and until it is proven in any proceeding
18 where that issue is involved that:
19 (1) the services would not be determined to
20 constitute employment under the Federal Unemployment Tax
21 Act; or
22 (2) a court decision or a binding ruling from the
23 Internal Revenue Service, specifically relating to the
24 employer, has expressly held the services do not
25 constitute employment under the Federal Unemployment Tax
26 Act, on the condition that the court decision or ruling
27 from the Internal Revenue Service has not been reversed
28 or otherwise overturned and that the circumstances under
29 which the services are performed are substantially the
30 same as those on which the court decision or ruling from
31 the Internal Revenue Service is based.
32 (b) Subsection (a) does not apply to services that are
SB658 Engrossed -8- LRB9002897DJcdA
1 required to be covered as a condition of approval of this
2 Act by the United States Secretary of Labor under Section
3 3304(a)(6)(A) of the Federal Unemployment Tax Act.
4 (c) The changes made by this amendatory Act of 1997
5 apply after June 30, 1997.
6 Section 45. The Unemployment Insurance Act is amended by
7 changing Section 212 as follows:
8 (820 ILCS 405/212) (from Ch. 48, par. 322)
9 Sec. 212. Services deemed employment.
10 A. Services Service performed by an individual for an
11 employing unit, whether or not the such individual employs
12 others in connection with the performance of those such
13 services, shall be deemed to be employment unless and until
14 it is proven in any proceeding where that such issue is
15 involved that:
16 1. the services would not be determined to
17 constitute employment under the Federal Unemployment Tax
18 Act; or
19 2. a court decision or a binding ruling from the
20 Internal Revenue Service, specifically relating to the
21 employing unit, has expressly held the services do not
22 constitute employment under the Federal Unemployment Tax
23 Act, on the condition that the court decision or ruling
24 from the Internal Revenue Service has not been reversed
25 or otherwise overturned and that the circumstances under
26 which the services are performed are substantially the
27 same as those on which the court decision or ruling from
28 the Internal Revenue Service is based.
29 B. Subsection A does not apply to services that are
30 required to be covered as a condition of approval of this
31 Act by the United States Secretary of Labor under Section
32 3304(a)(6)(A) of the Federal Unemployment Tax Act.
SB658 Engrossed -9- LRB9002897DJcdA
1 C. The changes made by this amendatory Act of 1997 apply
2 after June 30, 1997.
3 A. Such individual has been and will continue to be free
4 from control or direction over the performance of such
5 services, both under his contract of service and in fact; and
6 B. Such service is either outside the usual course of
7 the business for which such service is performed or that such
8 service is performed outside of all the places of business of
9 the enterprise for which such service is performed; and
10 C. Such individual is engaged in an independently
11 established trade, occupation, profession, or business.
12 (Source: Laws 1951, p. 32.)