Employers in Illinois have to ensure they’re classifying workers properly. This includes distinguishing between employees and independent contractors. Both of these categories are outlined in the Illinois Employee Classification Act, 820 ILCS 185.
Employees have more protections and benefits than independent contractors. This includes factors, such as overtime pay, Family and Medical Leave Act, workers’ compensation and similar benefits. While some employers may mistakenly misclassify workers because they don’t actually understand the differences, others misclassify workers on purpose in an attempt to save money.
3 points to consider
There are three points that are considered when trying to determine if a worker should be classified as an employee or an independent contractor. These include:
- Is the individual free from control and direction of when and how they do the job duties?
- Is the service the worker is providing outside of the usual scope of the company’s offerings?
- Is the individual a sole proprietor or established tradesperson for the job they’re doing?
In order to be classified as an independent contractor, all three of those questions must be answered affirmatively. If one or more is negative, the person would be classified as an employee. Each worker must be qualified as an independent contractor, even if they work on the same project. This ensures that there aren’t any misclassifications.
Misclassification of employment is a serious matter, primarily because it negatively impacts the individual who isn’t classified properly. It’s often possible to seek damages for the misclassification, and employers may be liable for fines associated with the issue. Because these cases can be challenging, it might be best for them to have someone on their side who understands the requirements under Illinois law so they can fight for their rightful classification.
