HB5077 101ST GENERAL ASSEMBLY

LRB101 18684 JLS 68139 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5077

Introduced 2/18/2020, by Rep. Stephanie A. Kifowit

SYNOPSIS AS INTRODUCED:

820 ILCS 185/40

Amends the Employee Classification Act. Provides that the civil penalty for violating the Act is $1,500 for the first violation and $3,000 for each repeat violation within a 5-year period (rather than an amount not to exceed $1,000 for the first violation and an amount not to exceed $2,000 for each repeat violation within a 5-year period). Effective immediately.

A BILL FOR

AN ACT concerning employment.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Employee Classification Act is amended by changing Section 40 as follows:

(820 ILCS 185/40)

Sec. 40. Penalties.

(a) An employer or entity that violates any of the provisions of this Act or any rule adopted under this Act shall be subject to a civil penalty of $1,500 not to exceed $1,000 for each violation found in the first audit by the Department. Following a first audit, an employer or entity shall be subject to a civil penalty of $3,000 not to exceed $2,000 for each repeat violation found by the Department within a 5 year period. For purposes of this Section, each violation of this Act for each person and for each day the violation continues shall constitute a separate and distinct violation. In determining the amount of a penalty, the Director shall consider the appropriateness of the penalty to the employer or entity charged, upon the determination of the gravity of the violations.

(b) The amount of the penalty, when finally determined, may be recovered in any administrative proceeding or a civil action filed in any circuit court by the Director of Labor, or a person aggrieved by a violation of this Act or any rule adopted under this Act.

(1) The Department shall distribute to all affected employees 10% of the civil penalty recovered as a result of any administrative proceeding or civil action brought by the Department. The remaining 90% of the amount recovered shall be submitted to the Director of Labor.

(2) In any civil action brought by an interested party pursuant to this Section, the circuit court shall award the interested party 10% of the amount recovered. In such case, the remaining amount recovered shall be submitted to the Director of Labor.

(c) Any uncollected amount shall be subject to the provisions of the Illinois State Collection Act of 1986.

(Source: P.A. 98-106, eff. 1-1-14.)

Section 99. Effective date. This Act takes effect upon becoming law.