New Illinois law to fight misclassification of workers - WREX.com – Rockford’s News Leader

New Illinois law to fight misclassification of workers

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CHICAGO (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.

In addition, the signing of House Bill 923 also amends the Employee Classification Act to require all contractors report all payments to people not classified as company employees to the Illinois Department of Labor. The goal is to prevent tax evasion and ease tax liability for those workers.

The two laws go into effect on January 1.

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