HB0366 100TH GENERAL ASSEMBLY

LRB100 05518 KTG 15530 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB0366

Introduced , by Rep. Margo McDermed

SYNOPSIS AS INTRODUCED:

820 ILCS 185/40
820 ILCS 185/42
820 ILCS 185/45

Amends the Employee Classification Act. Provides that an employer that violates any provision of the Act or rule adopted under the Act is subject to a civil penalty not to exceed: (i) $1,500 (rather than $1,000) for each violation found in the first audit by the Department of Labor and (ii) $2,500 (rather than $2,000) for each repeat violation found by the Department within a 5-year period. Provides that a person who willfully violates any provision of the Act or rule adopted under the Act or obstructs the Director of Labor or any other person authorized to inspect places of employment under the Act is liable for penalties up to triple (rather than double) the statutory amount. Provides that an employer that is found to have willfully violated any provision of the Act shall be debarred from being awarded a State contract. Effective immediately.

FISCAL NOTE ACT MAY APPLY

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 Sections 40, 42, and 45 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 not to exceed $1,500 $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 not to exceed $2,500 $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.)

(820 ILCS 185/42)

Sec. 42. Debarments. For any second or subsequent violation determined by the Department which is within 5 years of an earlier violation, or a violation in accordance with the provisions of Section 45 of this Act, the Department shall add the employer or entity's name to a list to be posted on the Department's official website. Upon such notice, the Department shall notify the violating employer or entity. No state contract shall be awarded to an employer or entity appearing on the list until 5 4 years have elapsed from the date of the last violation.

(Source: P.A. 95-26, eff. 1-1-08.)

(820 ILCS 185/45)

Sec. 45. Willful violations.

(a) Whoever willfully violates any of the provisions of this Act or any rule adopted under this Act or whoever obstructs the Director of Labor, or his or her representatives, or any other person authorized to inspect places of employment under this Act shall be liable for penalties up to triple double the statutory amount.

(b) Whoever willfully violates any of the provisions of this Act or any rule adopted under this Act shall be liable to the employee for punitive damages in an amount equal to the penalties assessed in subsection (a) of this Section.

(c) The penalty shall be imposed in cases in which an employer or entity's conduct is proven by a preponderance of the evidence to be willful. The penalty may be recovered in a civil action brought by the Director of Labor in any circuit court. In any such action, the Director of Labor shall be represented by the Attorney General. Any uncollected amount shall be subject to the provisions of the Illinois State Collection Act of 1986.

(d) An entity or employer that willfully violates any provision of this Act or any rule adopted under this Act commits a Class C misdemeanor. An entity or employer that commits a second or subsequent violation within a 5 year period commits a Class 4 felony.

(e) An entity or employer that is found to have willfully violated any provision of this Act shall be debarred from being awarded a State contract as provided under Section 42 of this Act.

(Source: P.A. 95-26, eff. 1-1-08.)

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