Illinois Employee Classification Act
Illinois State Law
State Project Laws
Illinois Prevailing Wage Act (217-782-1710)
Requires contractor and subcontractor to pay laborers, workers and mechanics employed on public works
projects, no less than the general prevailing rate of wages (consisting of hourly cash wages plus fringe
benefits) for work of similar character in the locality where the work is performed. Violators must pay
workers the difference between the wage paid and the prevailing wage and may be subject to 20% penalties
and 2% punitive damages. A contractor or subcontractor found to have violated the Act on two occasions may
be barred from public works projects for two years.
- It is the policy of the State of Illinois that all workers employed performing similar work on public
works projects within the same locality shall be paid the same prevailing hourly rate. - All bid specifications shall list the specified rates to all laborers and workers. If the Department of
Labor revises the prevailing rate of hourly wages to be paid, it will apply to the contract. The contractor
and each subcontractor will be notified of the revised rate. - An employee may not be punished (discharged, disciplined or discriminated against) for filing or instituting
a proceeding resulting from the administrative or enforcement of this Act, or for offering any evidence of any
violation of this Act.
Click here for a PDF full-text version of the law.
State Employment Laws
Employee Classification Act (217-782-1710)
Differentiates what constitutes employees and independent contractors for tax and benefit purposes. Provides that an individual performing services for a contractor is deemed to be an employee of the contractor unless it is shown that:
- the individual has been and will continue to be free from control or direction over the performance of the service for the contractor, both under the individual’s contract of service and in fact;
- the service performed by the individual is outside the usual course of services performed by the contractor; and
- the individual is engaged in an independently established trade, occupation, profession or business; or
- the individual is deemed a legitimate sole proprietor or partnership.
Click here for a PDF full-text version of the law.
Federal Law
Federal Project Laws
Davis-Bacon Act
The Davis-Bacon Act states that prevailing wage rates must be paid to workers on federal public works projects that are in
excess of $2,000.
Copeland Anti-Kickback
The Copeland Anti-Kickback Act makes it punishable by a fine up to $5,000 and/or by imprisonment up to five years to induce
any person working on a federally funded or assisted construction project to give up any part of the compensation to which they
are entitled under the Davis-Bacon Act or any other related Acts.
