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Illinois protects Freelance Workers through the Freelance Worker Protection Act

21 Nov

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Update Applicable to:

All natural persons or entities in Illinois that hire a natural person to provide products or services in exchange for an amount of at least $500.

What happened?

On August 4, 2023, the Illinois Governor signed the Freelance Worker Protection Act that mandates that the contracting party provide a written contract and specific administrative and judicial relief, becoming the law effective on July 1, 2024.

What are the details?

A freelance worker is someone engaged to provide services or products in Illinois or for a company located within the State as an independent contractor, and the amount paid to the person must be at least $500. The law excludes people retained by construction contractors or subcontractors and employees as defined under State law. 

The law protects independent contractors by mandating that the contracting party provide a written contract, that there are specific administrative and judicial relief, forbids the hiring entity from changing/reducing the agreed-upon compensation in exchange for the timely payment of that money and prohibits any action designed to penalize the contractor or prevent him from pursuing his rights under the law, such as threats, harassment, or retaliation. There is a two-year statute of limitations, and the IDOL must provide a sample contract on its webpage free of charge.

Best practices

  • Employers should review the Freelance Worker Protection Act.
  • Employers should determine whether the actual contractors fall under the protections established by the Act and review or create any policy needed to comply properly with the new requirements of the law.

Employers should review additional resources here:

Law Firm Articles: Article 1, Article 2

Freelance Worker Protection Act

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This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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