Illinois 93rd Regular Session Status: In Committee

HB 4883 — TRUTH IN EMPLOYMENT ACT

Last action — Session Sine Die

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 93rd Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Creates the Truth in Employment Act. Provides that, if a contractor is a successful bidder for a construction project and purposefully misclassifies one or more of its employees as independent contractors, the contractor is liable to an unsuccessful bidder, or an entity contracting with an unsuccessful bidder (including a labor organization), for damages suffered because the bid was not accepted. Amends the Workers' Compensation Act and the Unemployment Insurance Act by providing that, if the Industrial Commission or the Director of Employment Security enters an order determining that an employer has purposefully misclassified one or more of its employees as independent contractors in violation of the Workers' Compensation Act, the Workers' Occupational Diseases Act, or the Unemployment Insurance Act, the following provisions apply: the Commission or Department may direct the employer to cease its operations, direct the employer to pay $250 for each day during which the violation continues, and require the employer to continue to pay employees affected by the order for the first 10 days of the order; no licenses or permits of any kind may be issued to the employer by any State agency or officer or any unit of local government nor may any such licenses or permits be renewed by any State agency or officer or any unit of local government until the Commission or Department enters an order determining that an employer has cured the misclassification; and no State agency or officer may enter into any contracts with the employer until 3 years have elapsed since the Commission or Department enters an order determining that an employer has cured the misclassification.

Bill Text

What changed in the latest version

159 added · 112 removed

Plain-language change summary

The recent amendments to HB 4883 clarify the definition of "contractor" and streamline the process for reporting independent contractors. Specifically, the bill now requires contractors to submit an annual statement to the Department of Revenue regarding individuals they classify as independent contractors, ensuring accountability in the classification process. This change is significant because it aims to reduce the misclassification of workers, which can lead to a lack of access to benefits and protections that employees typically receive. The new reporting requirement empowers regulatory oversight, potentially protecting workers' rights.

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HB4883 *LRB09320882WGH46835b* 93RD GENERAL ASSEMBLY State of Illinois and 2004 Introduced 02/04/04, by Larry McKeon SYNOPSIS AS INTRODUCED:
HB4883 Engrossed LRB093 20882 WGH 46835 b AN ACT concerning employment.
New Act ILCS 305/26.1 new ILCS 405/2206.2 new Creates the Truth in Employment Act.
Provides that, if a contractor is a successful bidder for a construction project and purposefully misclassifies one or more of its employees as independent contractors, the contractor is liable to an unsuccessful bidder, or an entity contracting with an unsuccessful bidder (including a labor organization), for damages suffered because the bid was not accepted.
Amends the Workers’ Compensation Act and the Unemployment Insurance Act by providing that, if the Industrial Commission or the Director of Employment Security enters an order determining that an employer has purposefully misclassified one or more of its employees as independent contractors in violation of the Workers’ Compensation Act, the Workers’ Occupational Diseases Act, or the Unemployment Insurance Act, the following provisions apply:
the Commission or Department may direct the employer to cease its operations, direct the employer to pay $250 for each day during which the violation continues, and require the employer to continue to pay employees affected by the order for the first 10 days of the order;
no licenses or permits of any kind may be issued to the employer by any State agency or officer or any unit of local government nor may any such licenses or permits be renewed by any State agency or officer or any unit of local government until the Commission or Department enters an order determining that an employer has cured the misclassification;
and no State agency or officer may enter into any contracts with the employer until 3 years have elapsed since the Commission or Department enters an order determining that an employer has cured the misclassification.
LRB093 20882 WGH 46835 b FISCAL NOTE ACT MAY APPLY A BILL FOR HB4883 LRB093 20882 WGH 46835 b AN ACT concerning employment.
Section 3.
Purpose.
This Act is intended to address the practice of misclassifying employees as independent contractors.
Misclassification of employees as independent contractors;
Filing by contractors.
construction projects.
(a) A contractor for whom a person is performing work and is classified as an independent contractor with respect to that work must file with the Department of Revenue a statement regarding that person, together with a $5 filing fee.
If a contractor is a successful bidder for a construction project and purposefully misclassifies one or more of its employees as independent contractors, the contractor is liable to an unsuccessful bidder, or an entity contracting with an unsuccessful bidder (including, but not limited to, a labor organization), for damages suffered by the unsuccessful bidder or entity as a result of the unsuccessful bidder’s competitive bid for the construction project not being accepted due to the successful bidder’s purposeful misclassification of its employees as independent contractors.
The Department of Revenue shall adopt rules concerning the form, contents, and filing of the statement.
The statement shall include:
the name and address of the contractor and the person performing the work;
the name and address of the general contractor (if the general contractor is not the contractor for whom the person is performing the work);
and any other information required by the Department of Revenue.
A separate statement shall be filed by the contractor for each calendar year during which the worker performs work for the contractor.
The statement shall be filed no later than the first date of HB4883 Engrossed - 2 - LRB093 20882 WGH 46835 b the calendar year on which the worker performs work for the contractor.
(b) A contractor that is required to file a statement under subsection (a) and does not file the statement as required under subsection (a) shall pay a $10 penalty in addition to the $5 filing fee.
Section 15.
Notice.
(a) The Department of Revenue, the Department of Employment Security, and the Industrial Commission shall post a summary of the requirements of this Act on their web sites.
(b) The Department of Revenue shall post a summary of the requirements of this Act on bulletin boards in each office of the Department.
(c) A contractor for whom one or more persons classified as independent contractors are performing work shall post and keep posted, in conspicuous places on each job site where those persons work and in each of its offices, a notice, prepared by the Department of Revenue, summarizing the requirements of this Act.
The Department of Revenue shall furnish copies of summaries to contractors upon request without charge.
Section 20.
Investigations.
(a) The Department of Revenue shall commence an investigation if it finds, based on statements filed under this Act or other information supplied to the Department or otherwise obtained by the Department, that there is reason to suspect that a contractor has misclassified one or more employees as independent contractors.
(b) The Department of Revenue shall hire as many investigators as may be necessary to carry out the purposes of this Act.
Section 25.
Misclassification of employees as independent contractors.
(a) If a contractor is a successful bidder for a HB4883 Engrossed - 3 - LRB093 20882 WGH 46835 b construction project and knowingly or intentionally misclassifies one or more of its employees as independent contractors, the contractor is liable to an unsuccessful bidder, or an entity contracting with an unsuccessful bidder (including, but not limited to, a labor organization), for damages suffered by the unsuccessful bidder or entity as a result of the unsuccessful bidder’s competitive bid for the construction project not being accepted due to the successful bidder’s knowing or intentional misclassification of its employees as independent contractors.
(b) If, upon completion of an investigation commenced pursuant to subsection (a) of Section 20 of this Act, the Department of Revenue determines that a contractor has knowingly or intentionally misclassified one or more of its employees as independent contractors on a construction project:
(1) the Department may:
(i) direct the employer to cease its operations;
(ii) direct the employer to pay $250 for each day during which the violation continues;
(iii) direct the employer to pay $500 for each day during which a second or subsequent violation occurs that involves different employees than those involved in an earlier violation by that employer;
and (iv) require the employer to continue to pay, for 10 days, employees affected by the determination;
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(2) no licenses or permits of any kind may be issued to the employer by any State agency or officer or any unit of local government nor may any such licenses or permits be renewed by any State agency or officer or any unit of local government until the Department determines that an employer has cured the misclassification;
and (3) no State agency or officer may enter into any contracts with the employer until 2 years have elapsed since the Department has determined that an employer has cured the misclassification.
(c) A contractor that knowingly or intentionally HB4883 Engrossed - 4 - LRB093 20882 WGH 46835 b misclassifies one or more of its employees as independent contractors on a construction project commits a Class C misdemeanor.
A contractor that commits a second or subsequent violation commits a Class 4 felony if the second or subsequent violation involves different employees than those involved in an earlier violation.
Section 30.
Attorney General;
State’s Attorneys.
Criminal violations of this Act shall be prosecuted by the Attorney General or the appropriate State’s Attorney.
The Department of Revenue shall refer matters to the Attorney General and the appropriate State’s Attorney upon determining that a criminal violation may have occurred.
Section 35.
Truth in Employment Fund.
The Truth in Employment Fund is created as a special fund in the State treasury.
All fees and penalties received by the Department of Revenue under this Act shall be deposited into the Fund.
Moneys in the Fund shall be used, subject to appropriation by the General Assembly, by the Department of Revenue for administration, investigation, and other expenses incurred in carrying out its powers and duties under this Act.
Any moneys in the Fund at the end of a fiscal year in excess of a $1,000,000 reserve shall be transferred to the General Revenue Fund.
Section 40.
Rulemaking.
In addition to any rulemaking required by any other provision of this Act, the Department of Revenue may adopt reasonable rules to implement and administer this Act.
Section 45.
Judicial review.
A final administrative decision of the Department of Revenue under this Act is subject to judicial review under the Administrative Review Law.
Section 50.
No waivers.
HB4883 Engrossed - 5 - LRB093 20882 WGH 46835 b (a) There shall be no waiver of any provision of this Act.
(b) It is a Class C misdemeanor for a contractor to attempt to induce any individual to waive any provision of this Act.
Section 85.
The Department of Employment Security Law of the Civil Administrative Code of Illinois is amended by adding Section 1005-160 as follows:
(20 ILCS 1005/1005-160 new) Sec.
1005-160.
Misclassification of employees as independent contractors.
The Department shall cooperate with the Department of Revenue under the Truth in Employment Act by providing information to the Department of Revenue concerning any suspected misclassification by a contractor of one or more of its employees as independent contractors.
The State Finance Act is amended by adding Section 5.625 as follows:
(30 ILCS 105/5.625 new) Sec.
5.625.
The Truth in Employment Fund.
Section 95.
If the Commission enters an order determining that HB4883 - 2 - LRB093 20882 WGH 46835 b an employer has purposefully misclassified one or more of its employees as independent contractors in violation of this Act or the Workers’ Occupational Diseases Act:
The Commission shall cooperate with the Department of Revenue under the Truth in Employment Act by providing information to the Department of Revenue concerning any suspected misclassification by a contractor of one or more of its employees as independent contractors.
(1) the Commission may:
Section 97.
(i) direct the employer to cease its operations;
Severability.
(ii) direct the employer to pay $250 for each day during which the violation continues;
The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.
and (iii) require the employer to continue to pay employees affected by the order for the first 10 days of the order;
(2) no licenses or permits of any kind may be issued to the employer by any State agency or officer or any unit of local government nor may any such licenses or permits be renewed by any State agency or officer or any unit of local government until the Commission enters an order determining that an employer has cured the misclassification;
and (3) no State agency or officer may enter into any contracts with the employer until 3 years have elapsed since the Commission enters an order determining that an employer has cured the misclassification.
An order entered under this Section is a final administrative decision that is appealable under the Administrative Review Law.
Section 95.
The Unemployment Insurance Act is amended by adding Section 2206.2 as follows:
(820 ILCS 405/2206.2 new) Sec.
2206.2.
Misclassification of employees as independent contractors.
If the Director enters an order determining that an employer has purposefully misclassified one or more of its employees as independent contractors in violation of this Act:
(1) the Director may:
(i) direct the employer to cease its operations;
(ii) direct the employer to pay $250 for each day during which the violation continues;
and (iii) require the employer to continue to pay employees affected by the order for the first 10 days of the order;
HB4883 - 3 - LRB093 20882 WGH 46835 b (2) no licenses or permits of any kind may be issued to the employer by any State agency or officer or any unit of local government nor may any such licenses or permits be renewed by any State agency or officer or any unit of local government until the Director enters an order determining that an employer has cured the misclassification;
and (3) no State agency or officer may enter into any contracts with the employer until 3 years have elapsed since the Director enters an order determining that an employer has cured the misclassification.
An order entered under this Section is a final administrative decision that is appealable under the Administrative Review Law.
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Action History

  1. Session Sine Die

  2. Rule 19(a) / Re-referred to Rules Committee

  3. State Debt Impact Note Filed As Amended by HA 2

  4. Fiscal Note Filed As Amended by HA 2

  5. Judicial Note Filed As Amended by HA 2

  6. Pension Note Filed As Amended by HA 2

  7. House Floor Amendment No. 2 Referred to Rules Committee

  8. House Floor Amendment No. 2 Filed with Clerk by Rep. Dan Reitz

  9. Held on Calendar Order of Second Reading - Standard Debate

  10. Recalled to Second Reading - Standard Debate

  11. Committee/3rd Reading Deadline Extended-Rule 9(b); May 31,2004

  12. Committee/3rd Reading Deadline Extended-Rule 9(b); April 30, 2004

  13. Added Chief Co-Sponsor Rep. Brandon W. Phelps

  14. Added Chief Co-Sponsor Rep. Patrick Verschoore

  15. Placed on Calendar Order of 3rd Reading - Standard Debate

  16. House Floor Amendment No. 1 Adopted by Voice Vote

  17. Fiscal Note Filed As Amended by HA 1

  18. State Mandates Fiscal Note Filed As Amended by HA 1

  19. Judicial Note Filed

  20. Judicial Note Filed As Amended by HA 1

  21. Fiscal Note Filed

  22. Judicial Note Requested by Rep. Terry R. Parke

  23. State Mandates Fiscal Note Requested by Rep. William B. Black; As Amended

  24. Fiscal Note Requested by Rep. William B. Black; As Amended

  25. House Floor Amendment No. 1 Recommends Be Adopted Labor Committee; 008-004-000

  26. Held on Calendar Order of Second Reading - Standard Debate

  27. Second Reading - Standard Debate

  28. House Floor Amendment No. 1 Rules Refers to Labor Committee

  29. Added Co-Sponsor Rep. Charles E. Jefferson

  30. Added Co-Sponsor Rep. Robert Rita

  31. House Floor Amendment No. 1 Referred to Rules Committee

  32. House Floor Amendment No. 1 Filed with Clerk by Rep. Dan Reitz

  33. Added Chief Co-Sponsor Rep. Mike Boland

  34. Fiscal Note Filed

  35. Placed on Calendar 2nd Reading - Standard Debate

  36. Do Pass / Standard Debate Labor Committee; 003-006-000

  37. Assigned to Labor Committee

  38. Chief Co-Sponsor Changed to Rep. Larry McKeon

  39. Added Chief Co-Sponsor Rep. Larry McKeon

  40. Chief Sponsor Changed to Rep. Dan Reitz

  41. Referred to Rules Committee

  42. First Reading

  43. Filed with the Clerk by Rep. Larry McKeon

Sponsors

  • Dan Reitz · Cosponsor

Sponsorship breakdown

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0 sponsors · 1 co-sponsors · 182 not signed on

Sponsors (0)

None.

Co-sponsors (1)

  • Dan Reitz

Not signed on (182)

182 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Frequently asked questions

What does HB 4883 do?
Creates the Truth in Employment Act. Provides that, if a contractor is a successful bidder for a construction project and purposefully misclassifies one or more of its employees as independent contractors, the contractor is liable to an unsuccessful bidder, or an entity contracting with an unsuccessful bidder (including a labor organization), for damages suffered because the bid was not accepted. Amends the Workers' Compensation Act and the Unemployment Insurance Act by providing that, if the Industrial Commission or the Director of Employment Security enters an order determining that an employer has purposefully misclassified one or more of its employees as independent contractors in violation of the Workers' Compensation Act, the Workers' Occupational Diseases Act, or the Unemployment Insurance Act, the following provisions apply: the Commission or Department may direct the employer to cease its operations, direct the employer to pay $250 for each day during which the violation continues, and require the employer to continue to pay employees affected by the order for the first 10 days of the order; no licenses or permits of any kind may be issued to the employer by any State agency or officer or any unit of local government nor may any such licenses or permits be renewed by any State agency or officer or any unit of local government until the Commission or Department enters an order determining that an employer has cured the misclassification; and no State agency or officer may enter into any contracts with the employer until 3 years have elapsed since the Commission or Department enters an order determining that an employer has cured the misclassification.
Who sponsors HB 4883?
HB 4883 is sponsored by Dan Reitz.
What is the current status of HB 4883?
This bill died with 93rd Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track HB 4883?
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