Worker misclassification happens when employers label employees as independent contractors instead of employees. This mislabeling allows companies to avoid providing benefits like overtime pay, health insurance, and workers’ compensation.
In Illinois, such practices violate the Employee Classification Act, which presumes construction workers are employees unless proven otherwise.
A recent case in Chicago
A recent case involved United Builders Group Co., a masonry contractor in Glenview, Illinois. The company misclassified nearly 100 workers as independent contractors and didn’t pay them overtime for hours worked beyond 40 per week. After an investigation by the Illinois Attorney General’s office, the company agreed to a $550,000 settlement to compensate the affected workers.
Illinois laws on worker classification
The Illinois Employee Code states that construction workers are presumed to be employees. To classify a worker as an independent contractor, an employer must prove that the worker is free from control, performs work outside the usual course of the company’s business, and is engaged in an independently established trade.
Penalties for misclassification
Employers in Illinois face penalties for misclassifying workers. For a first offense, the fine can be up to $1,500 per violation. If the violation is willful or repeated, the penalty increases to $2,500 per violation. Additionally, employers may need to pay back wages, overtime, and other benefits denied to misclassified workers.
Protecting workers’ rights
Misclassification denies workers their rightful benefits and protections. Employees should be aware of their rights under Illinois law. If you believe you’ve been misclassified, you can file a complaint with the Illinois Department of Labor.
Ensuring fair treatment in the workplace
Proper worker classification is essential for fair treatment in the workplace. It ensures that employees receive the benefits and protections they deserve. Employers must adhere to state laws to maintain a just working environment.
