The Employee Classification Act (IL Comp. Stat. Ch. 820 Sec. 185/1et seq.) establishes specific criteria to determine if an individual performing services for a construction contractor is an employee or an independent contractor. The law is aimed at the practice in the construction industry of contractors misclassifying workers as independent contractors in order to avoid tax and labor law obligations, such as payroll taxes, unemployment insurance taxes, workers’ compensation premiums, and minimum wage and overtime payments. Under the law, an individual performing services for a contractor is presumed to be an employee unless:
• The individual is free from control or direction over the performance of the service for the contractor;
• The service performed is outside the usual course of services performed by the contractor; and
• The individual is engaged in an independently established trade, occupation, profession, or business.
Sole proprietors or partners performing services for a contractor are not ...