Legislative Alert:

PEter Schwartz Chief Executive Officer
Peter Schwartz
Chief Executive Officer

Home Builders Association of Illinois finds itself in "mission critical" in fighting legislation that threatens legitimate construction contractors that utilize independent contractors The legislation dramatically alters the relationship between a contractor and a worker by assuming that all workers are employees unless proven to be independent contractors. Previous provisions contained in HB 5002 have been amended into SB 2399 and will be voted on by the House Labor Committee.

The legislation is particularly damaging in that it very vaguely implements a three-factor "litmus test" to determine independent contractor status, significantly undercutting traditional, more thorough tests. Additionally, the provisions assume that a worker is an "employee" unless proven to be an independent contractor via the test. This unfairly places the burden of proof on the contractor as an employer. Furthermore, the legislation contains extreme penalties for minor violations, regardless of intent.

An honest employer could be forced out of business in Illinois on a "second strike", or 2 minor violations. Even worse, the legislation enables any person or entity the ability to harass employers by enabling anyone, not just the aggrieved worker, to file a complaint. The legislation even provides a funding mechanism for these harassment activities by providing 3rd parties rights to civil action and monetary awards; thus providing a financial windfall to entities willing to take advantage of this Act. ALL AT THE EXPENSE OF YOUR BUSINESS

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And for more information on actions taken in the Illinois General Assembly that will affect the housing industry, join the Lake County Chapter and HBAI Government Affairs Director Bill Ward on Thursday, April 20th at 8 a.m. at the Arboretum Club in Buffalo Grove where Bill will present an end-of-session wrap-up at this Legislative Breakfast. Sponsored by First American Title Insurance Co., cost is $25 per member. Click here for more information and to register.