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and Collection Act. |
"Contracting entity" means any person who retains a |
freelance worker to provide any service, other than: |
(1) the United States government; |
(2) the State of Illinois; |
(3) a unit of local government, including school |
districts; or |
(4) any foreign government. |
"Natural person" means an individual human being. |
"Person" means any natural person, individual, |
corporation, business enterprise or other legal entity, either |
public or private, and any legal successor, representative, |
agent or agency of that individual, corporation, business |
enterprise, or legal entity.
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Section 10. Payment of compensation for freelance workers. |
(a) Except as otherwise provided by law, a freelance |
worker shall be paid the contracted compensation amount on or |
before the date the compensation is due under the terms of the |
contract. If the contract does not specify when the hiring |
party must pay the contracted compensation or the mechanism by |
which the date will be determined, compensation shall be due |
no later than 30 days after the completion of the freelance |
worker's services under the contract. |
(b) Once a freelance worker has commenced preparation of |
the product or performance of the services under the contract, |
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the contracting entity shall not require as a condition of |
timely payment that the freelance worker accept less |
compensation than the amount of the contracted compensation.
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Section 15. Contract for products and services of |
freelance workers. |
(a) Whenever a contracting entity retains a freelance |
worker, the contract for such products or services shall be |
reduced to writing. The contracting entity shall furnish a |
copy of the written contract, either physically or |
electronically, to the freelance worker. |
(b) The written contract for the product and service of a |
freelance worker shall include, at a minimum, the following |
information: |
(1) the name and contact information of both the |
contracting entity and the freelance worker, including the |
mailing address of the contracting entity; |
(2) an itemization of all products and services to be |
provided by the freelance worker, the value of the |
products and services to be provided under the terms of |
the contract, and the rate and method of compensation; |
(3) the date on which the contracting entity must pay |
the contracted compensation or the mechanism by which such |
date will be determined, which shall be no later than 30 |
days after the products or services are provided; and |
(4) the date by which a freelance worker must submit a |
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list of products or services rendered under such contract |
to the contracting entity, if such a list is required in |
order to meet any internal processing deadlines of the |
contracting entity for the purposes of compensation being |
timely rendered by the agreed-upon date as stipulated in |
paragraph (3). |
(c) The contracting entity shall retain the contract for |
the service of a freelance worker for no less than 2 years and |
shall make such contract available to the Department upon |
request. |
(d) The Department shall make available model contracts on |
its website for use by the general public at no cost. Such |
model contracts shall be made available in English and in the 8 |
languages most commonly spoken by limited English proficient |
individuals in the State.
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Section 20. Nondiscrimination. No contracting entity shall |
threaten, intimidate, discipline, harass, deny a freelance |
opportunity to, or take any other action that penalizes a |
freelance worker for, or is reasonably likely to deter a |
freelance worker from, exercising or attempting to exercise |
any right guaranteed by this Act, or from obtaining any future |
work opportunity because the freelance worker has done so.
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Section 25. Complaint procedure. |
(a) A freelance worker may file a complaint with the |
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Department alleging a violation of the Act by submitting a |
completed form, provided by the Department, and by submitting |
copies of all supporting documentation. The Department is |
authorized to request or require any information the Director |
deems relevant to the complaint or to its reporting |
requirements under Section 50, including, but not limited to: |
(1) the general sector or occupation of the freelance |
worker submitting a claim under this Act; |
(2) the county where the work by the freelance work |
was performed, if in Illinois; and |
(3) at the discretion of the freelance worker, the |
demographic data of the freelance worker submitting a |
claim under this Act. |
(b) Complaints alleging violation of Section 10, 15, or 20 |
shall be filed within 2 years after the date the final |
compensation was due. Complaints shall be reviewed by the |
Department to determine whether there is cause for the |
Department to initiate the process of facilitating the |
exchange of information between the parties. The Department is |
not required to initiate an information facilitation process |
if either party to the contract has initiated a civil action in |
a court of competent jurisdiction alleging a violation of this |
chapter or a breach of contract arising out of the contract |
that is the subject of the complaint filed under this Act, |
unless such civil action has been dismissed without prejudice |
to future claims; or either party to the contract has filed a |
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claim or complaint before any administrative agency under any |
local, State, or federal law alleging a breach of contract |
that is the subject of the complaint filed under this Act, |
unless the administrative claim or complaint has been |
withdrawn or dismissed without prejudice to future claims. |
Failure of a contracting entity to keep adequate records or |
provide written contract as required by this Act shall not |
operate as a bar to a freelance worker filing a complaint. |
(c) Each freelance worker who files a completed complaint |
alleging a violation of this Act or a rule adopted thereunder |
shall be provided with a written description of the |
anticipated processing of the complaint, including |
notification to the contracting entity and the contracting |
entity's opportunity to respond. |
(d) The Department shall, within 20 days of receiving a |
complaint alleging a violation of this Act, initiate the |
information facilitation process by sending the contracting |
entity named in the complaint a written notice of the |
complaint, or by notifying the freelance worker that the |
Department lacks jurisdiction to initiate such process. When |
the Department initiates this process, the notice of complaint |
shall: (i) inform the contracting entity that a complaint has |
been filed alleging a violation of this Act; (ii) detail the |
civil remedies available to a freelance worker for violations |
of this Act by a contracting entity; (iii) include a copy of |
the complaint; and (iv) state that failure to respond to the |
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complaint by the deadline established in paragraph (1) of |
subsection (e) creates a rebuttable presumption in any civil |
action commenced in accordance with this Act that the |
contracting entity committed the violations alleged in the |
complaint. The Department shall send such notice by certified |
mail. |
(e) Response. |
(1) Within 20 days of receiving the notice of |
complaint, the contracting entity identified in the |
complaint shall send the Director one of the following: |
(A) For a complaint under Section 10, a written |
statement that the freelance worker has been paid in |
full and proof of such payment. |
(B) For a complaint under Section 10, a written |
statement that the freelance worker has not been paid |
in full and the reasons for the failure to provide such |
payment. |
(C) For a complaint under Section 15 or 20, a |
defense against the alleged violation. |
(2) If the contracting entity identified in the |
complaint does not respond to the notice within 20 days, |
such failure to respond creates a rebuttable presumption |
in any civil action commenced in accordance with this Act |
that the contracting entity committed the violations |
alleged in the complaint.
Within 20 days of receiving a |
written response, the Director shall send the freelance |
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worker a copy of: |
(A) the contracting entity's response; |
(B) any enclosures submitted with the response; |
(C) materials informing the freelance worker about |
the freelance worker's right to bring an action in a |
court of competent jurisdiction; and |
(D) any other information about the status of the |
complaint. |
(3) If the director receives no response to the notice |
of complaint within the time provided by subsection (a), |
the Director shall mail a notice of non-response to both |
the freelance worker and the contracting entity by regular |
mail and shall include with such notice proof that the |
Director previously mailed the notice of complaint to the |
contracting entity by certified mail. Upon satisfying the |
requirements of this paragraph, the Director may close the |
case. |
(f) Attorney General powers. |
(1) Whenever the Attorney General has reasonable cause |
to believe that any person or entity is engaged in a |
pattern and practice prohibited by this Act, the Attorney |
General may initiate or intervene in a civil action in the |
name of the People of the State of Illinois in any |
appropriate court to obtain appropriate relief. |
(2) Before initiating an action, the Attorney General |
may conduct an investigation and may: |
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(A) require an individual or entity to file a |
statement or report in writing under oath or |
otherwise, as to all information the Attorney General |
may consider necessary; |
(B) examine under oath any person alleged to have |
participated in or with knowledge of the alleged |
violation; or |
(C) issue subpoenas or conduct hearings in aid of |
any investigation. |
(3) Service by the Attorney General of any notice |
requiring a person or entity to file a statement or |
report, or of a subpoena upon any person or entity, shall |
be made: |
(A) personally by delivery of a duly executed copy |
thereof to the person to be served or, if a person is |
not a natural person, in the manner provided in the |
Code of Civil Procedure when a complaint is filed; or |
(B) by mailing by certified mail a duly executed |
copy thereof to the person to be served at the person's |
last known abode or principal place of business within |
this State or, if a person is not a natural person, in |
the manner provided in the Code of Civil Procedure |
when a complaint is filed. |
The Attorney General may compel compliance with |
investigative demands under this Section through an order |
by any court of competent jurisdiction. |
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(4)(A) In an action brought under this Act, the |
Attorney General may obtain, as a remedy, monetary damages |
to the State, restitution, and equitable relief, including |
any permanent or preliminary injunction, temporary |
restraining order, or other order, including an order |
enjoining the defendant from engaging in a violation, or |
order any action as may be appropriate. In addition, the |
Attorney General may request and the court may impose a |
civil penalty not to exceed $5,000 for each violation or |
$10,000 for each repeat violation within a 5-year period. |
For purposes of this Section, each violation of this Act |
for each person who was subject to an agreement in |
violation of this Act shall constitute a separate and |
distinct violation. |
(B) A civil penalty imposed under this subsection |
shall be deposited into the Attorney General Court Ordered |
and Voluntary Compliance Payment Projects Fund. Moneys in |
the Fund shall be used, subject to appropriation, for the |
performance of any function pertaining to the exercise of |
the duties of the Attorney General, including, but not |
limited to, enforcement of any law of this State and |
conducting public education programs; however, any moneys |
in the Fund that are required by the court or by an |
agreement to be used for a particular purpose shall be |
used for that purpose. |
(g) Nothing in this Act shall be construed to prevent any |
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freelance worker from making complaint or prosecuting his or |
her own claim for compensation. Any freelance worker aggrieved |
by a violation of this Act or any rule adopted under this Act |
may file suit in circuit court of Illinois, in the county where |
the alleged violation occurred or where any freelance worker |
who is party to the action resides, without regard to |
exhaustion of any alternative administrative remedies provided |
in this Act. Actions may be brought by one or more freelance |
workers for and on behalf of themselves and other freelance |
workers similarly situated. |
(h) Nothing in this Act shall be construed to limit the |
authority of the State's Attorney of any county to prosecute |
actions for violation of this Act or to enforce the provisions |
thereof independently and without specific direction of the |
Department.
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Section 30. Civil enforcement. |
(a) Any freelance worker not timely paid final |
compensation by a contracting entity as required by Section 10 |
shall be entitled to recover through civil action double the |
amount of any such underpayments, injunctive relief, and other |
such remedies as may be appropriate. In a civil action for |
violation of Section 10, such freelance worker shall also be |
entitled to recover costs and all reasonable attorney's fees. |
A civil complaint alleging violation of Section 10 shall be |
filed within 2 years after the date the final compensation was |
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due. |
(b) Any freelance worker who was retained in violation of |
paragraphs (a) or (b) of Section 15 despite the freelance |
worker's request for a written contract prior to commencing |
the contracted work as required by Section 15 shall be |
entitled to recover through a civil action statutory damages |
of $500. A freelance worker who prevails on a claim alleging |
violation of Section 15 and on one or more claims under other |
Sections shall be awarded statutory damages equal to the value |
of the underlying contract or $500, whichever is greater, in |
addition to the other remedies provided. Civil complaints |
alleging violation of Section 15 shall be filed within 2 years |
after the date the final compensation was due. |
(c) Any freelance worker who is threatened, intimidated, |
disciplined, harassed, denied a freelance opportunity, or |
penalized by a contracting entity in violation of Section 20 |
shall be entitled to recover through a civil action statutory |
damages equal to the value of the underlying contract for each |
violation of Section 20. In a civil action for violation of |
Section 20, such freelance worker shall also recover costs and |
all reasonable attorney's fees.
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Section 35. Public policy and intent. |
(a) The provisions of this Act shall apply only to |
contracts taking effect after the effective date of this Act. |
(b) Except as otherwise provided by law, any provision of |
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a contract purporting to waive rights under this Act is void as |
against public policy. |
(c) The provisions of this Act are intended to supplement, |
and do not diminish or replace, any other basis of liability, |
remedy, or requirement established by statute or common law. |
(d) Failure to comply with this Section does not render |
any contract between a contracting entity and a freelance |
worker void in total, voidable, or otherwise impair any |
obligation, claim, or right related to the contract, nor does |
it constitute a defense to any action or proceeding to |
enforce, or for breach of, such contract. |
(e) No provision of this Act relating to freelance workers |
shall be construed as providing a determination about the |
legal classification of any such worker as an employee or |
independent contractor.
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Section 40. Public awareness. Subject to appropriation, |
the Department may conduct a public awareness campaign |
regarding this Act that, at a minimum, includes making |
information available on its website, otherwise informing |
contracting entities of the provisions of this Act, and |
establishing a means for assistance by a natural person |
through phone or email.
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Section 45. Reports. One year after the effective date of |
this Act, and by November 1 every 5 years thereafter, the |
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Department shall submit to the General Assembly and publish on |
its website a report regarding freelance contracting and |
payment practices. The report shall include, but is not |
limited to: |
(1) the number of complaints received by the |
Department under this Act; |
(2) the value of the contracts disaggregated into |
ranges of $500 and by the Section of this Act the |
associated contracting entity is alleged to have violated; |
(3) the numbers of responses and non-responses |
received from contracting entities by the Department |
disaggregated by contract value into ranges of $500 and by |
the Section of this Act the associated contracting entity |
is alleged to have violated; |
(4) the general sector or occupation of the freelance |
workers submitting claims in accordance with this Act; |
(5) the counties where violations of this Act are |
alleged to have occurred, if in Illinois, including the |
number of violations from each county, identified by the |
county where the work was performed; |
(6) to the extent available, demographic data of the |
freelance workers who have alleged violations of this Act; |
and |
(7) legislative recommendations as the Director deems |
appropriate, which may include consideration of whether |
certain occupations should be exempted from the scope of |
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the definition of freelance worker.
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Section 50. Coordination. The Department is authorized to |
coordinate efforts under this Act with other agencies and |
combine complaints under this Act with claims under other |
Acts.
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Section 55. Rulemaking. The Director, or the Director's |
authorized representatives, shall administer the provisions of |
this Act. In order to accomplish the objectives of this Act and |
to carry out the duties prescribed by this Act, the Director, |
or the Director's authorized representative, may adopt rules |
necessary to administer and enforce the provisions of this |
Act.
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Section 99. Effective date. This Act takes effect July 1, |
2024.
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