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Jul
2013
24

Illinois Gov. Signs Bill Making It Easier to Pursue Employers Who Misclassify Workers

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Details are scarce here, but any policy to combat misclassification should be applauded no matter how aggressive it is. Via WREX:

A bill addressing the missclassification of construction workers as independent contractors has been signed into law by Governor Pat Quinn.

House Bill 2649 is meant to fight employers who missclassify their workers in an attempt to avoid paying state employment taxes, unemployment insurance, worker’s compensation, and overtime. The practice turns the tax burden over to workers and costs the state up to $700 million a year in lost payments and taxes.

Under the new law, the Employee Classification Act will be clarified and it will be easier to pursue violators.

A companion move, the signing of House Bill 923, requires “all contractors to report all payments to people not classified as company employees to the Illinois Department of Labor.”

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