In an article published April 1, 2024 in the Illinois Business Journal, Constangy Chicago managing partner Laura Balson discussed the upcoming Illinois Freelance Worker Act, which goes into effect July 1.
In the article, Balson discussed the ramifications of the Freelance Worker Act, which expands on recent updates to rules on independent contractor designations issued by federal government agencies. Balson went on to identify who qualifies as a freelance worker based on the new guidelines.
Balson then identified three key obligations required by the Freelance Worker Act and severe potential penalties if companies do not comply with the guidelines outlined by the legislation. She concluded by mapping out a plan of best practices for Illinois businesses to protect themselves from facing charges of non-compliance.
“In some instances, it may be beneficial to the business to convert the individual to an employee,” suggests Balson. “In other instances, it will take time to determine whether current payment practices to the independent contractors meet these new requirements and to put together a detailed written contract that captures all of the elements mandated by the Act, as well as any specifics about the services or products necessary to determine when payment is due.”
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