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Illinois independent contractor laws – classification, compliance & Freelance Worker Protection Act

Stay compliant with Illinois independent contractor regulations. This guide covers classification factors, key employment laws, and rules for businesses hiring freelancers in Illinois.

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by Stuart R. Buttrick, Taylor L. Lindauer, Lindsey M. Hogan, Alexander E. Preller, Stacey Smiricky and Aaron T. Vance, Faegre Drinker Biddle & Reath LLP

Illinois applies multiple legal tests to determine whether a worker is classified as an employee or an independent contractor under workers’ compensation, unemployment insurance, and other employment laws. Additionally, the Illinois Freelance Worker Protection Act sets specific requirements for businesses hiring freelance workers in the state.

This guide provides a comprehensive overview of Illinois independent contractor laws, including classification criteria, compliance obligations, and best practices to avoid misclassification.

In this guide, learn about:

  • Determining Whether a Worker Is an Employee or an Independent Contractor
    • The IDOL Test for Minimum Wage and Overtime
    • The ABC Test for Unemployment Benefits
    • The Economic Realities Test for Workers’ Compensation and Discrimination Law
    • The Six-Factor Test for the Illinois Service Member Employment and Reemployment Rights Act (ISERRA)
    • The Three-Factor Test for Construction Contractors
  • Illinois Freelance Worker Protection Act
    • Coverage / Definitions
    • Written Contract Requirements
    • Timely Payment Requirements
    • Retaliation
  • Communications in Postings Required by Illinois Law
  • Future Developments

Federal law and guidance on this subject should be reviewed together with this section.

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Jurisdiction: Illinois

Latest updates

Updated to reflect the Freelance Worker Protection Act, effective July 1, 2024.

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