Illinois Supreme Court Protects Workers, Upholds Constitutionality of Employee Classification Act
May 7, 2014
Chicago, IL (Law Firm Newswire) May 7, 2014 – The Illinois Supreme Court has upheld the constitutionality of the state’s Employee Classification Act.
The Employee Classification Act protects construction workers from being misclassified as independent contractors rather than employees. In the case, Bartlow v. Costigan, the state high court rejected a constitutional challenge by a roofing company that claimed the law was impermissibly vague and violated due process rights.
“This is an important ruling for workers,” states Robert Briskman, a Chicago work injury attorney. “When employees are misclassified as independent contractors, their employers avoid paying worker’s compensation premiums, unemployment insurance and overtime, putting workers at risk.”
The court’s February 21 decision upholds one of the strongest worker classification statutes in the country. The law creates a presumption that an individual performing construction services is an employee unless the company can prove otherwise.
As with the laws in many other states, to prove that an individual is an independent contractor, the company must show that the individual is free from control and direction by the company in the manner and means of performing the services; that the service is not in the usual scope of services that the company performs; and that the individual has an independent business or trade.
However, the Illinois law goes a step further, applying the employee presumption not just to individuals, but also to sole proprietorships and partnerships. These are deemed individuals unless an additional 12-factor test is met, showing that the entity is a self-sustaining business. The factors include showing that the entity has made a substantial capital investment and that it serves the general public.
The Illinois Department of Labor said that the misclassification of employees costs the state up to $700 million per year in lost payments and taxes.
Violations of the law subject the employer to penalties. Each day of misclassification for each worker is considered a separate violation. A first offense can bring a penalty of up to $1,000, with willful violations resulting in triple damages and subsequent violations resulting in double damages.
The Department said it has collected $314,325 in penalties resulting from 111 separate investigations since the law went into effect in 2008.
Learn more at http://www.briskmanandbriskman.com/practice-areas/workers-compensation/
Briskman Briskman & Greenberg
351 West Hubbard Street, Ste 810
Chicago, IL 60654
Phone: 312.222.0010
Facebook: Like Us!
Google Places: Contact a Chicago personal injury lawyer from Briskman Briskman & Greenberg on Google Places!
- Wrongful death lawsuit filed by wife of toll worker killed in truck crash
The wife of an Illinois Tollway employee who was killed in a fiery crash on I-88 in January has filed a wrongful death lawsuit against the truck driver alleged to have caused the crash and against his employer. Sandra Petrella, wife of Vincenzo Petrella, filed the lawsuit in Cook County Circuit Court. Vincenzo Petrella died […] - New Car Seat Safety Rule Goes Into Effect
A new federal rule requires manufacturers of automobile child safety seats to warn parents about their products’ weight specifications. If the combined weight of the child and the seat is 65 pounds or more, parents should not use the lower anchors to attach the car seat. The lower anchors are part of the LATCH system, […] - Department of Labor launches investigation into death of Illinois Tollway worker
The Illinois Department of Labor launched an investigation into the death of an Illinois Tollway maintenance worker on January 27. The worker was killed, and a State Trooper suffered serious injuries, while they were assisting highway motorists under severe weather conditions. The investigation was launched immediately. The accident occurred when a truck crashed into a […] - GM Probes Ignition Switch Failure and Michigan Woman is Awarded Thirteen Million Dollars in Birth Injury Lawsuit – Podcast
General Motors launches an internal probe into the failure of ignition switches that has been tied to 13 fatalities and a Michigan woman in a birth injury lawsuit has been awarded almost $13 million by a jury in this month’s Chicago Injury Alert. - Trucking Regulations Exist to Prevent Accidents
Federal regulations exist to prevent truck accidents – like the fiery crash that killed an Illinois Tollway worker and seriously injured an Illinois State Trooper in January – but unfortunately, safety measures are not always followed. The January crash occurred on Interstate 88 in Aurora, Illinois when truck driver Renato Velasquez crashed into two stopped […]
