Illinois Independent Contractor Initiative – Risky Business

The Illinois Department of Employment Security has announced a new initiative to hold employers that misclassify workers as independent contractors accountable. An independent contractor is considered to be self-employed, not an employee of the business or businesses with which they work. Therefore, misclassifying employers do not pay unemployment insurance and workers’ compensation for these workers.

Illinois’ plan is intended to level the playing field for businesses that lose work to companies that purposefully misidentify workers as independent contractors. The plan protects workers and assists honest business owners that follow the law and punishes those who break the law.

Employers breaking the law could face fines of at least $10,000 and up to 24% interest on failed payments. Also, officers and employees who willfully cause a business to fail to make payments into the system can now be held personally liable for the payments due from the business. Details on the educational and fraud-reporting components are available at www.illinoismisclassification.com.